As the global economic slowdown has ripped countries indiscriminately, India’s revenue growth from outsourcing is slowing significantly after years of bagging double-digit growth. Companies have slashed their IT budgets and consumers will need a lot more persuasion before they can feel confident enough to loosen purse strings, according to a forecast by Gartner Consultancy. The report has also added that the full impact of the global recession on the IT services and telecommunications sectors is still emerging.
National Association of Software and Service Companies (Nasscom) has projected the sector’s export revenues will rise by just 4-7% this year to at most $50 billion. The Indian IT space is sailing through tougher times for the flagship outsourcing industry, whose skilled and low-cost workforce have put the country on the global map.
The growth rate at 4-7% for the fiscal is much lower than the 16% logged in the last financial year to March and the 30% rise the industry clocked annually for most of the decade.
The global economic downturn has made companies reluctant to authorise new spending for maintaining their growth.