The current turmoil happening in Egypt may affect the global IT services sector, making for a conservative growth for 2011, says the National Association of Software and Services Companies (Nasscom) of India.
Coupled with the prevailing debt problems of European countries, Nasscomm has projected the revenue of the Indian IT industry to grow by 16 to 18 percent only – a nearly flat estimate compared to last year’s 18.7 percent.
"There are some sectors and geographies where uncertainty exists. We think this estimate is realistic," explains Nasscom president Som Mittal.
On the other hand, Indian BPO giant Infosys Technologies Ltd. was more pragmatic about the events happening in North Africa. "There could be a domino effect, clients could stop spending, which could slow down information technology (IT) services," comments Infosys CEO S. Gopalakrishnan.
Despite the crises, Nasscom is still positive about industry growth. Companies have added 240,000 new jobs, with more deals on the pipeline. “India's share in the global sourcing has gone up from 51% in 2009 to 55% in 2010, which is a good sign,” said Mittal.
The Nasscom president says that despite the emergence of the Philippines as the leader in the voice-BPO market, the slowdown of the Indian BPO industry affected the growth of the Indian IT sector.