Double Digit Growth Dream for Indian IT: Nasscom

IT industry body Nasscom on Tuesday maintained its projection of 16-18 per cent growth for the sector this fiscal notwithstanding the economic uncertainty in the US and European markets.

“There is no reason for us to be worried … I am confident that Indian IT sector will grow in double digit and we stand by our projection for FY’12. “We have spoken to customers and they are looking at expanding into geographies and bringing newer solutions to the market,” Nasscom President Som Mittal told reporters here on the sidelines of a FICCI event.

He, however, added that the industry maintains a cautious outlook.

Earlier, Nasscom had projected 16-18 per cent growth of the Indian IT industry in FY’12 despite the economic uncertainty in the US and European markets. A persisting eurozone debt crisis and fears of its contagion impact on other western markets have raised concerns of clients cutting their IT budgets, which would impact Indian software exporters in a major way. The US and European region account for over 85 per cent of the revenues of the over USD 70 billion Indian IT sector.

Nasscom had in February presented a conservative outlook of 16-18 per cent growth in IT exports in 2011-12 in the wake of the slow economic recovery in the US and uncertainty in the European region.

The growth in software and services export is expected to be 16-18 per cent and the sector is slated to bring in revenues of USD 68-70 billion. The growth in the domestic market is estimated to be 15-17 per cent, with revenues of about USD 19-20 billion.