The Indian IT industry, which generates over 70% of its revenues from exports, is witnessing stronger signs of optimism in the recent past with positive economic commentary coming in from US, its largest market.
The newly elected president of Nasscom, R Chandrashekar, while answering media queries on the performance of the industry for the current fiscal, said, We expect it to be better. It is not going to be a dramatic change but the direction of change is certainly up. However, he did not comment on any likely revision in revenue guidance for the industry. Nasscom has pegged the growth for the sector in FY14 to be in the range of 12-14%.
Nasscom has already outlined the vision for the industry of reaching a revenue of $300 billion by 2020, which would be driven by newer business verticals such as software engineering, emerging technologies, e-commerce, and e-governance.
It has said that the future potential for the industry would be in areas of internet and mobile, software products and domestic market, though the larger volumes would be driven by the segments of IT services and business process management.
The new Nasscom president remarked the share of the Indian IT industry is global market is still around 5-6% and there is still enough room for the sector to grow. We will need to collaborate in the ecosystem and see what is the kind of big impact we are able to make, he said.
On the domestic IT market, Chandrashekar said they would have to work with various constituencies, especially the government, to make a more meaningful impact.
On the proposed immigration bill in the US, he said the legislation is still under debate. We believe that there has been a positive reception to our views and we are hopeful that whatever comes out it would be practical serving the best interests of both American and Indian businesses, he added.
The US immigration Bill has certain provisions that could could prove to be very damaging for the Indian IT industry and Nasscom has been lobbying with lawmakers both in US and India to ensure that any likely negative impact through this legislation is minimised.