IT industry body Nasscom has raised the lower end of its guidance for dollar revenues next fiscal to 12-14%. This, despite expectations that the IT industry will likely net only 10.2% growth in dollar revenues this fiscal, lower than the Nasscom-projected 11-14%.
In absolute figures, Nasscom expects the IT industry to mop up $84-87 billion in dollar revenues next fiscal, higher than $75.8 billion expected this fiscal.
Evidently, Nasscom has bought the better outlook story that most IT firms have scripted for the fourth (or January-March) quarter.
Nasscom’s president Som Mittal acknowledged as much when he said that the industry has grown on all growth matrices, despite the volatile macroeconomic situation. “This makes us confident of a better year, going forward. We’re expecting the industry to add revenues of $12-15 billion next fiscal, and touch $225 billion by 2020.”
Domestic revenues, he said, are also expected to grow at a healthy rate of 13-15% to reach `1.20 lakh crore in 2014-15. Last fiscal, domestic revenues were projected to grow by 13-16%, but actually grew at 14.1% to `1.04 lakh crore.
Companies such as TCS and Cognizant are confident of beating Nasscom guidance, while mid-tier firms believe they will be able to meet the new guidance.
Nasscom chairman N Chandrasekaran said that the trend will shift from offshoring/onshoring to boosting IT agility through new platforms, products, services and outcome-based pricing (not fixed pricing).
He said attrition at IT companies will be lower than last year.