Domestic revenues for the IT-BPM industry would grow at 10-11 per cent to reach $26-26.5 billion, up from $24 billion previous year, Chandrasekhar said.
In a first, the industry body had deferred giving the growth forecast in February and had instead postponed the same to April-June quarter. The domestic market was projected to grow faster than the export market during this fiscal, Nasscom president R.Chandrashekhar said. On the job creation front, he pointed out that the industry will continue to remain a "net hirer" this fiscal as it expects to add anywhere between 1.3 to 1.5 lakh jobs.
A leading lobby group for India's IT industry on Thursday forecast the sector's export revenues to grow at 7-8 percent for the year to March, around the growth levels seen last year, as the industry faces continued headwinds from the US market. "That translated into low opportunities for IT industry", the Nasscom chief explained. Export revenue, which forms the major component of the overall revenues touched $116 billion in FY17 and is expected to reach $124-125 billion at the end of the current fiscal.
The $150-billion Indian IT industry includes revenues from Business Process Management (BPM), software services and software products.
"We have shared our views and perspectives ahead of this high-level visit that both countries have enormously benefited from India's IT industry and it is important to keep the channels open for growth of this bilateral economic partnership so that the sector continues to contribute to its full potential", Chandrashekhar added. "Nasscom also cited an increase in requirement for integrated digital capabilities and automation based projects from customers, which were key investment areas for the industry", the industry body said in a statement.
Chandrasekhar said there was a churn within the industry as some jobs were disappearing but new jobs with new skill sets were being created.
An interesting takeaway from the analysis of the sector performance in FY 2017 was the relatively fast adoption of digital solutions by Indian enterprise.
"India's share in the global IT sector is not only steady, but also growing", Chandrashekhar said.
The industry, which is also growing its share of domestic contracts, has been battered by clients cutting back on discretionary IT spending and countries like the United States and United Kingdom tightening immigration rules. Then it had lowered the projections for the last fiscal year. It is working to expand opportunities in newer markets like Continental Europe, Japan, China and Africa. "While it may not change overnight, but we hope to reach out to newer markets and reduce the dependency on the U.S. market,"' Chandrashekhar said.
As the U.S. market, which accounts for about 60 per cent of India's IT exports, poses a particular challenge, the industry is looking to open newer markets such as Japan, China, Africa and the Gulf region.