Tuesday 11 February 2014

It Sector Exports May Grow 13-15% In Fy15: Nasscom

Indian software and BPO export industry is likely to see about 15 per cent rise in revenue in FY15, according to National Association of Software and Services Companies (Nasscom).


This effectively means a $15-17 billion of incremental revenue in the next fiscal year, one of the most bullish growth targets given by Nasscom in the last couple of years.


In the last fiscal, the industry clocked a growth of 10.2 per cent which was lesser than the original growth of 11-14 per cent prediction by the body.


The industry’s export revenues are estimated to touch $86 billion in the current fiscal and hover between $97-99 billion in the next fiscal. The overall industry’s revenues this fiscal are estimated to be $118 billion.


Nasscom said that concerns over the US Immigration Bill remain even as some of the more “worrisome” issues have been taken care of partly. “There are certain provisions which are a matter of concern although more worrisome concerns have been addressed to some extent,” Nasscom president and former telecom secretary R Chandrashekhar told reporters here while presenting the industry outlook for FY15.


The Immigration Bill proposes higher visa fees and enhanced audits by US agencies, which are likely to hurt the domestic IT industry. Stating that Nasscom had done its best to convince US lawmakers and the government, he said, “It is not that our concerns have vanished or disappeared.”


The next four to five months, when the Bill goes to the US Congress, will be critical, Nasscom chairman Krishnakumar Natarajan said.


‘“We continue to have a very optimistic outlook. We believe the export revenue will grow by 13-15 per cent to reach $97 to $99 billion in FY15,” Natarajan said.


Nasscom also highlighted the upcoming challenges for the sector, which includes the uncertainty in the wake of approaching general elections this year, currency fluctuation, global regulatory hurdles such as the US Immigration Bill.


Nasscom said that the estimate is the reflection of how they see the industry right now based on conversations with clients — a majority of which expect to spend higher on technology compared to this fiscal.


Natarajan said the focus of the industry is clearly on digitisation (with focus on social media, analytics, mobility and cloud) and innovation with almost 1,000 to 1,200 start-ups emerging in the country, playing across the spectrum from e-commerce to education.


Source:- indianexpress.com





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