R Chandrasekhar on Friday said that Nasscom is revising its guidance due to BFSI softness and uncertain global environment. "
Nasscom may revise the IT sector revenue growth guidance downwards to 8-10% from 10-12% for FY17. R Chandrasekhar on Friday told CNBC TV 18 that Nasscom is revising its guidance due to BFSI softness and uncertain global environment. “We expect to announce revised guidance for IT sector by mid-November,” he said. Earlier this year, Nasscom said that margins of Indian IT companies are under pressure due to reasons like global economic turbulence, while there may be a marginal decline in hiring because of increased automation and efficiency.
“Companies are quite upbeat about the revenues and prospects, notwithstanding headwinds in different places for different reasons. But clearly, there has been a lot of pressure on margins. That is much more visible and much more tangible than the overall revenue trajectory,” Nasscom President R Chandrasekhar said. He said the IT companies which have contracts in pound sterling may see some pressure on the margins due to the decline of the pound after UK voted to exit the European Union. He added that there may be a slight decline in hiring by IT companies due to increased automation and efficiency levels.
According to him, the IT and ITES industry provided three million jobs when it reached $100 billion in size and it is estimated that it would require about 1.5 million people for the second $100 billion.