For the first time in 25 years, Nasscom (National Association of Software and Services Companies) has deferred its growth forecast for the financial year 2017-18. Mr. R Chandrashekhar, the current president of Nasscom, made the announcement at a press conference in Mumbai on 15 Feb 2017. He said that they will make a projection for the industry’s growth after they have had talks with various stakeholders. The new year’s forecast may now be announced as late as May 2017.
He cited drastic changes in the technology sector, political changes and a slowdown in global spending on IT-BPM as reasons for it deferring the announcement of the growth projection. These reasons could be linked to the recent decision by Britain to leave the EU and the proposal to change the minimum wage rules for H1B visas by the US.
Nirmal Bang, a domestic brokerage firm, said that they were surprised by the decision because they did not see the global situation to be so dire. Drawing a comparison to the slump in 2009, they said that the situation was much worse then, yet Nasscom projected a growth of 15% over two years, 2009-11.
Nasscom also changed its projection of growth for the financial year 2016-17 and scaled it down to 8.6% as opposed to the 8% to 10% projected earlier in the year. It said that the sector will grow to $155 billion by the end of the financial year and that the IT-BPM exports are likely to reach $118 billion.