The Telegraph
Tuesday , November 13 , 2012
Since 1st March, 1999
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Infotech to meet lower end of growth target

Mumbai, Nov. 12: The Indian information technology (IT) industry will meet the lower end of the growth guidance for this fiscal, the National Association of Software and Services Companies said today.

The industry body had forecast that the IT sector would post a growth of around 11-14 per cent.

“For 2012-13, a year marked by significantly varied trends, the industry is expected to meet the lower-end of its growth guidance and at least achieve a double-digit growth,” Nasscom said after releasing the sector’s outlook for this year. This forecast is based on industry performance for the first half of this year and global technology spending trends.

According to Nasscom, export revenues are expected to come between $75 billion and $77 billion this fiscal with growth drivers coming from remote infrastructure management, BPO and testing. It pointed out that while emerging verticals such as retail and healthcare would perform well, Europe would also show robust growth as there was an increased focus on outsourcing.

Nasscom chairman N. Chandrasekaran said while the IT industry faced a volatile and challenging global economic environment, it still managed to sustain its growth trajectory during the year.

“The industry performance for the past half year has demonstrated the sector’s ability to innovate and deliver in enabling growth of customer businesses in challenging times. Changing business models, solutions around disruptive technologies and verticalised structures are enabling the industry to emerge as a strategic partner for their customers,” he added.

With the global economy passing through a slowdown, IT service exporters such as Infosys, Wipro, Tata Consultancy Services have witnessed large companies cutting down their IT budgets. While few domestic companies have been successfully able to navigate through these challenging times, others have faced modest volume growth.

For instance, during the second quarter of this year among the top tier IT services companies, while TCS posted a volume growth of 5 per cent, HCL Technologies clocked 4.5 per cent and Infosys came in at 3.8 per cent. On the other hand, Wipro saw a meagre volume growth of 0.2 per cent.

The uncertain global environment had led Infosys to forecast a 5 per cent growth in dollar revenues at $7.34 billion.