No immediate need for revising FY17 growth forecast: Nasscom

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New Delhi | August 17, 2016 5:51 PM

Nasscom today said it sees no immediate reason to revise forecast of 10-12 per cent revenue growth in IT exports for FY17, but is keeping a close watch on factors like Britain's exit from the EU and its ripple effect on demand for technology services.

nasscomNasscom’s views came close on the heels of RBS cancelling plans to separate and list a new UK standalone bank, Williams & Glyn (W&G), for which Indian IT major Infosys was a key technology partner. (Reuters)

Nasscom today said it sees no immediate reason to revise forecast of 10-12 per cent revenue growth in IT exports for FY17, but is keeping a close watch on factors like Britain’s exit from the EU and its ripple effect on demand for technology services.

Nasscom’s views came close on the heels of RBS cancelling plans to separate and list a new UK standalone bank, Williams & Glyn (W&G), for which Indian IT major Infosys was a key technology partner. This has resulted in 3,000 jobs being impacted at the Bangalore-based company.

“At this stage we certainly do not envisage any reason to revisit our estimates but we are watching the situation closely. Because with the kind of turbulence that is around, we have to naturally keep track of all factors… We will be close to the range that we have projected,” Nasscom President, R Chandrashekhar said.

He further said post-Brexit, unless there were new developments which warranted a re-look, there is no immediate case for revisiting the industry projections.

“In any case we only revisit the numbers after September or October, following second quarter results,” he pointed out.

Chandrashekhar said that there could be a short term impact on the industry on account of uncertainties arising out of Brexit, but eventually it may even have an “upside” for India in the long term.

He said the industry had seen some “stress” in the financial services sector, which accounts for a significant portion of India’s software exports.

“I would not say its business as usual. What I am saying is that impact, if any, will be moderate,” he said.

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