Indian IT services industry body National Association of Software and Services Companies (Nasscom) expects software export growth to slow to 7-8 percent in the current financial year from 8.6 percent a year earlier, it said on Thursday, 22nd June 2017.
The IT services industry has been grappling with a slowdown in its banking and financial services business, which contributes a large chunk of revenues. It has also been hit by its retail clients facing a slowdown from the rise of online retail channels.
At its flagship industry event earlier this year, the Nasscom India Leadership Forum, the industry body had said that the IT industry grew by 8.6 percent in the current fiscal 2016-17, in line with its forecast of 8-10 percent last year.
Nasscom had, for the first time in 25 years, deferred the annual growth revenue guidance range in February, citing political and macroeconomic factors.
Last November, Nasscom had lowered its annual forecast from 10-12 percent, due to an adverse impact from Brexit in the UK, the US elections and stressed financial services spending.
Nasscom and big Indian IT players have consistently denied news of mass layoffs this year, but confidence among the workforce is low. The industry body said it expects to add 1.3-1.5 lakh new jobs this year, and marked cloud platforms, business intelligence, cognitive technology and embedded technology as growth areas.