Software and services industry body Nasscom, on Thursday, issued some guidances and trends of the IT sector for the current financial year. It said that the IT sector is at an interesting inflection point. Most notably, the body said that the IT sector will hire 1.3 lakh to 1.5 lakh people this year, as the industry is focussing on re-skilling, new talent addition. NASSCOM has said that the IT industry has been responding very fast and rapidly to concerns. In terms of revenue generation, the body said the industry had added $11 billion revenue in the fiscal year 2017 with 8.6 percent growth in CC(constant currency terms). NASSCOM also said that it is expecting IT industry’s services exports to grow 7-8 percent in the financial year 2017-18. At the NASSCOM event held in Hyderabad, telecasted on the news channel ETNOW, Nasscom’s president R Chandrashekhar, chairman Raman Roy, and vice chairman Rishad Premji announced the much awaited annual ritual which otherwise is normally held in February every year.
The reason for the delay that NASSCOM provided at the event was that the sector was experiencing a lot of uncertainties, and there is a lot of muscle flexing in IT industry at present. It said, “NASSCOM decided to delay guidance for industry on an extent of uncertainty in February.” NASSCOM said that Britain’s exit from the EU (Brexit), visa issues posed headwinds for the IT industry in the year 2017. However, it said that the industry is expected to grow by 7-8 percent in 2017-18. It added that the domestic IT services revenue is being expected at 10-11percent. It said that the industry is well on its way on a transformational journey, with over 8000 firms offering digital solutions. Chandrashekhar said, “Digital a bigger of new sunrise for IT industry. It has been a big driver for IT industry.”
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In terms of research and developments, NASSCOM said that the IT industry made R&D investments in products and platform in digital in 2017. It informed that R&D investments have a longer gestation period, and the results will not be visible soon. Yet, it said that there has been a faster growth in ER&D, testing & analytics, and digital projects, now that companies are sharing more risk and reward with clients and digital have been driving smaller deals too. However, there has been a slow growth in traditional services.
Nasscom for the first time deferred giving its outlook for the $155 billion industry in February and postponed to April-June quarter, as the headwinds including immigration and H-1B visas, rise. NASSCOM confirmed reports that a “World Congress on IT” will be held in Hyderabad next year.
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Meanwhile, earlier, Former Nasscom chairman and founder and executive chairman of Cyient Limited, B.V.R. Mohan Reddy hoped that the industry may grow between 8 and 10 percent during the current fiscal. He had told PTI, that the hiring by the IT companies may come down by up to 25 percent compared to 2016. “Hiring will be lower. The number will be in the range of 150,000 to 180,000 compared to little over 200,000 last year,” he had said. It was expected that the emphasis of Thursday’s meeting would be on how to skill, re-skill and up-skill people to meet the current technological changes.