Mumbai, Feb. 12: The software giants can breathe a little easy.
Nasscom — the industry body that represents their interests — today forecast software exports from India could rise 12 to 14 per cent next fiscal after reading signals that global spending on IT would go up in 2013-14.
It said the domestic IT industry would clock export revenues of $84-87 billion as global technology spending increases with the resurgence in global economies. It believes the companies around the world will be eager to adopt new technologies to grab the opportunities thrown by this economic revival.
Revenues from India, also a growing market, is also expected to grow at the rate of 13 to 15 per cent and are expected to touch Rs 1,18,000-1,20,000 crore.
Software exports have been estimated to grow a piffling 10.2 per cent this year — generally regarded as a dog year for the industry which has been bedevilled by sluggish orders, price cuts and crimped margins.
The latest Nasscom forecast could ignite the strong revival that the industry has been looking forward to.
The forecast comes on the back of robust third quarter financial results from frontline IT services companies such as Infosys and Tata Consultancy Services (TCS). The top management of TCS has already given an optimistic outlook for 2013-14 and have indicated that with companies continuing to embrace technology, IT spends will be better.
Nasscom president Som Mittal told reporters here today that global spends on both IT and business process management (BPM) management would be higher than last year. The BPM segment is expected to garner export revenues of $17.8 billion this fiscal.
Speaking on the sidelines of the India Leadership Forum 2013, Mittal said technology changes such as cloud computing, mobility, analytics and social media were creating new opportunities for the domestic IT sector.
Nasscom chairman and TCS chief executive N. Chandrasekaran said 2013-14 would be “positive” for the industry. “There is better visibility of client budgets for the next year,” he added.