Notwithstanding the headwinds in form of delayed decision making due to macro-economic uncertainties, trade protectionism, visa issues, and slower growth in traditional services, the Indian information technology and business processing management (IT-BPM) industry is poised to witness a 7-8 per cent growth in its exports during FY18, with the domestic market expected to clock 10-11 per cent growth, according the the industry’s growth outlook released by lobby group Nasscom on Thursday.
Nasscom generally releases the guidance numbers in February every year, but had postponed the exercise citing geopolitical factors and the aforementioned headwinds. According to a presentation by Nasscom, the industry added over $11 billion in revenue during 2016-17, growing at 7.6 per cent in reported currency terms. This was lower than their revised range pegged at 8-10 per cent from 10-12 per cent growth estimated originally.
“This outlook comes on the back of political and economic uncertainties that impacted decision making and discretionary spend during the past year. Nasscom also cited an increase in requirement for integrated digital capabilities and automation based projects from customers, which were key investment areas for the industry,” the industry body said in a statement. The growth during the year would be driven by the modernisation of operations for client firms and the adoption of new technologies such as cloud platforms, cognitive and embedded analytics, big data analytics, internet-of-things, as enterprise customers scale digital projects, it said.
Sarabjit Kour Nangra, VP research-IT, Angel Broking said in a statement: “The guidance is broadly in line with the outlook given by the industry players and hence holds no big surprise”.
However, Nasscom said that it was imperative for the new and existing talent to re-skill themselves to prepare for emerging job roles which require new skill-sets. For the fiscal year 2017-18, it has said that the industry will hire 1.3 to 1.5 lakh people on a net basis, which is lower from the 1.7 lakh during the previous year. It also said that it is looking to establish a digital skills platform along with its members to re-skill 1.5-2 million people in the industry’s workforce in the next 4-5 years.
R Chandrashekhar, president, Nasscom said that currently, many of the top companies already have over 50 per cent of their employees already trained in handling digital services.
“Manoeuvring through an uncertain phase over the past year, the industry has maintained its status as a key net hirer in the country and global technology and services hub. Considering the evolution that the industry is undergoing due to the adoption of new technologies, it is imperative that we as an industry drive the skilling and re-skilling of new and existing talent, so as to ensure the requirement that will be created in the form of new job roles can be fulfilled appropriately and in time, helping us prepare for the future opportunities,” Chandrashekhar said.