Comments
Despite continued global headwinds and uncertainties, Nasscom sees a slight revival in growth for the IT and BPO industry for 2018-19, but this will come with a bleak outlook for jobs. It has projected a growth rate of 7-9 per cent, up from the projection of 6-8 per cent for the current financial year, but has pared its forecast for jobs to one lakh from 1.5 lakh jobs for the current year.
As against the projected 1.3-1.5 lakh jobs, 2017-18 ended up with only one lakh jobs. Nasscom says IT jobs are happening in spaces other than the traditional businesses.
Releasing the industry outlook at the Nasscom India Leadership Forum (NILF-2018), Nasscom President R Chandrasekhar said, “global headwinds and uncertainties continue to dog the industry this year as well. “Despite these multiple headwinds, the industry could grow at 7.8 per cent in 2017-18,” he said.
The industry will close 2017-18 with revenues of $167 billion, with software and services revenues crossing $150 billion. Exports for 2018-19 are pegged at $135-137 billion, a growth of 7-9 per cent over 2017-18’s $126 billion, while the domestic market could grow by 10-12 per cent to $28-29 billion from $26 billion this year.
Headwinds
The Nasscom President said the continued rhetoric on protectionism, Brexit, restrictions on movement of human resources, uncertainty related to implications of US tax reforms and global stock market volatility and the lack of adequate infrastructure of e-commerce in smaller towns are the challenges for the industry. It pins hopes on growing digital revenues and revival of business in the the North American and European markets, which contribute the bulk of revenues for the Indian IT-BPO industry.
Digital business contributed $22-25 billion, or 20 per cent this year to the overall revenues in the current financial year. Nasscom sees a higher potential from this segment as global forecasts pegged digital spending by companies at $310 billion by 2020 from $180 billion.
Though e-commerce industry grew by 17 per cent to reach a gross merchandise value of $38.5 billion (not included in the 2017-18 revenue numbers) this year, this sector is facing infrastructure issues, which is hindering its growth beyond Tier-I and Tier-II cities, he felt.
Also read p6
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.