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U.S. crisis will hit software exports
LOWERS TARGET: Som Mittal (left), President, Nasscom, and Krishnakumar Natarajan, CEO, MindTree, at a conclave in New Delhi on Monday.
NEW DELHI: The National Association of Software and Service Companies (Nasscom) on Monday said the Indian software industry might be hit by the financial crisis in the U.S. and global slowdown; and it could have to lower the software export target set for the current fiscal.
“We might have to revise software exports growth forecast downwards by few percentage points for 2008-09. However, the $60-billion target set for 2010 is still achievable,” said Nasscom President Som Mittal.
“It is clear that the financial crisis has impacted the industry. By how much we would come to know in December after the review comes up. I would think it would be minor by a few percentage points if at all. We have already lowered the growth rate target from 30 per cent to 23-24 per cent,” he said. In July, Nasscom had forecast revenue growth between 21 and 24 per cent at about $50 billion this fiscal.
Mr. Mittal, however, said that despite the current slowdown, the $60-billion target set for 2010 could still be achieved. “Till now we have been on track. We need to do just 20-21 per cent growth in the next two years to meet the target.”
On the current financial crisis in the U.S. and its impact on the Indian IT industry, Nasscom President said” “It is a reality and the Indian IT industry is an integral part of the global economy now. These events do impact us. We had factored a lot of this in our forecast this year. The impact could be less due to other verticals like healthcare, utilities and transport coming out well for IT companies.”
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