Nasscom optimistic on IT growth despite uncertain eco environment
New Delhi: Newly appointed Nasscom Chairman N Chandrasekaran Monday expressed confidence that the USD 100 billion Indian IT-BPO sector will grow at 11-14 percent, despite the global economic uncertainties and muted forecast by some member companies.
"Overall, technology has an important role to play whether you look at this year or any other year. It will play an important role in the revival of markets and businesses. Along with that the emergence of new powerful technologies be it cloud or big data, there are tremendous opportunities globally and nationally," Chandrasekaran told reporters here.
All these things will play to the strength of the Indian IT industry, he said, adding that the software body is continuing with its 11-14 percent growth forecast and will take a re-look at it in October.
The global economic uncertainty has led to projected flat or reduction in budgets for outsourcing services by western clients, which has in turn sparked fears about the performance of Indian players, who get almost 80 percent of their revenues from the US and European markets.
With Infosys and Wipro giving muted guidance, these fears were further strengthened. However, the performance of others like TCS and HCL Technologies did provide hope that demand still existed, even if on a smaller level.
Chandrasekaran, who is also the CEO of country's largest software exporter Tata Consultancy Services (TCS), said there are numerous opportunities available and the focus needs to be on underpenetrated markets like Eastern Europe, Latin America and Japan.
Nasscom has also appointed MindTree CEO Krishnakumar Natarajan as Vice Chairman of Executive Council for 2012-13.
Asked about the challenges being faced by the Indian companies, the senior officials said the foremost task was to tide over the current environment.
"A McKinsey estimate is that by 2020, the industry will be between USD 220-300 billion and that is a huge opportunity for the Indian IT industry. There could be short term challenges but in the long term, competitiveness of Indian IT industry is strong," he said.
He added that the industry has changed from taking orders to helping companies transform their business and this will drive the growth further.
Chandrasekaran said the Executive Council will work on re-inventing and embracing new business models, strengthening innovation capacity and research capabilities of Indian players, strengthening long-term entrepreneurial environment.
On the issue of visa rejections, Chandrasekaran said it continues to be an issue.
"However, companies are now planning to tackle this, be it through local resourcing or applying ahead of time. There is also a better understanding that it is not labour movement but that of highly skilled manpower," he added.
Nasscom would also work on enhancing skilled talent pool in the country and focus on specialisation.
"One of the key priorities for Nasscom is to build the future companies of the industry and I look forward to take this initiative to greater heights," Natarajan said.