Mumbai: India’s information technology (IT) industry is going through an important phase and as the adoption of new technologies rises, revenue growth will increase too, said N. Chandrasekaran chairman of Nasscom and CEO of Tata Consultancy Services Ltd, the country’s largest software exporter.
For the first time, domestic IT growth is seen to be faster than that of exports, he said at the Nasscom India leadership forum in Mumbai on Wednesday.
According to Nasscom’s forecast for fiscal 2014, IT exports are expected to grow 12-14% while the domestic IT industry is projected to grow 13-15%. Domestic IT growth will be led by spending by the government and the banking financial services and insurance sector.
Highlighting the key trends shaping the industry, he explained that technologies such as cloud computing, mobility, data analytics and social media along with high-speed Internet are making an impact on businesses and economies, both in developed and emerging markets.
An example of that is India’a own unique identification (UID) scheme. The adoption rate of the new technologies has been very high and it’s changing businesses and lives fundamentally, said Chandrasekaran.
“We are happy that domestic IT growth is higher in percentage than exports. We hope the IT industry will create nine million jobs directly by 2020,” said Anand Sharma, union minister of commerce and industry.
He also warned about the dangers of protectionism in the US and Europe. Sharma added that, historically, protectionism had proven counter productive. Given the challenging global economic climate, protectionism can delay recovery and deepen recession, he said.