IT sector to grow 12-14%; exports at $86 bn: Nasscom
Chandigarh: IT industry body Nasscom Wednesday said the sector in the country would grow by 12-14 percent while IT exports are likely to reach USD 86 billion in the current fiscal on the back of adoption of new technologies and tapping new geographies by corporates.
"The (IT sector) growth will be 12-14 percent in dollar terms and in rupee terms it will be higher because of currency (fluctuations)," Nasscom President Som Mittal said here today.
He was here to attend two-day IT conclave organised by UT Chandigarh Administration in collaboration with Punjab government and CII today.
Nasscom was also positive about achieving higher growth this fiscal as IT companies came out with good financial results during last two quarters.
"Last fiscal, the IT sector grew by 10.3 percent...But the last two quarters results (showed) companies are doing good," he said.
Asked about the likely IT exports, Mittal said that the country's IT exports would reach USD 86 billion from USD 76 billion in last fiscal.
"From USD 76 billion last year, it is expected USD 86 billion...It is USD 10 billion increase...Lets not talk about slowdown, the base has increased. Therefore, the growth in percentage will certainly drop as the base has increased," he said.
The growth in IT exports will be possible because of existing customers moving to new technologies like social media mobility, health care, utilities and moreover, new geographies, he added.
Asked about hiring in IT sector, Mittal said companies in IT sector were hiring more people in comparison to other industry verticals.
"We are adding net people...People talk about (that) hiring is going down. We added 2 lakh people last year and we are hiring now. Tell me which industry is hiring," he said.
However, he said that IT sector had changed its hiring model. "We have changed our model. We will hire people in two tranches...We are hiring now from colleges and we will hire next year just in time," he said.
He said the hiring in current fiscal may be 1.80 lakh.
Asked about emerging markets, Mittal said that the US market would continue to grow while Asia Pacific was also growing, adding that though the global economies were still struggling.
There is also good potential in China and Japan while considering their size of economies, he said.
Mittal noted that the small IT companies were picking up in India as large ones were also seeking their help for IT solutions.
"A large number of small companies are picking up which is a big change (in IT landscape). Large companies are going to small companies for solutions," he said.
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