The National Association of Software and Service Companies has stuck to its 16-18 per cent annual growth estimate in the IT sector and termed the outlook positive.
Speaking to newspersons here after the Executive Council met in Kerala for the first time, the Nasscom Chairman, Mr Rajendra Pawar, and the President, Mr Som Mittal, announced the setting up of a regional chapter in the State.
This is the first time that the grouping has gone to a town other than metros and three bellwether industry locations in south India.
According to Mr Mittal, the term “recession” is being loosely bandied about to qualify the times we are in.
This is unwarranted, he said, adding that unlike in 2008, the situation can be only described “uncertain” at best. The private sector in the US is still doing well.
Mr Pawar concurred with this view, substantiating it in terms of numbers. In 1990, software exports amounted to $1 billion.
This was followed by a decade described as the “golden age” when, during 1990-2000, the exports figure jumped to $8.2 billion.
The subsequent decade, which has just passed, witnessed a growth nine times over to $75 billion.
In doing so, it survived the 9/11 tragedy, the Mumbai terrorist attack aftermath and the year 2008 recession.
So there’s no reason to doubt the resilience of the industry in doing what it has been till now.
According to Mr V. K. Mathews, Executive Chairman, IBS Group, and a member of the Executive Council, the India BPO sector still enjoyed the cost advantage.
“Uncertain” times also call for belt tightening, which will bring the US and European companies looking to offshore work even more.
Mr Mittal conceded that the deal sizes may have shrunk in size, but the volumes are being maintained.
“We are finding traction in transformational deals as companies increasingly look to move applications to cloud, mobile and social media platforms,” he said.