NASSCOM brings down exports growth forecast for FY2015-16

The National Association of Software and Services Companies (NASSCOM), a trade association of information technology and business process outsourcing (BPO) industry, has said that currency volatility and technological changes may curb the growth in exports of India’s IT and business process management services.

NASSCOM has now lowered the exports growth forecast to 12-14% for FY2015-16. Its growth forecast for FY2014-15 was 13-15%. It said that global information technology and business process management spending had risen by 4.6% and the BPO spending had grown by 9-10% last year.

“We are seeing a continuity. But this year’s numbers are also an aggregation of all the segments, some growing fast,” said R Chandrashekhar, president, NASSCOM.

According to the trade association, the domestic market is likely to surpass $48 billion in FY2014-15, which would be a growth of 14% as compared to the year-ago period. “This was faster than average industry growth and was driven by e-commerce, which grew 33% year-on-year to become a $14-billion segment,” NASSCOM said.

“I think 2015 will be better than 2014,” said R Srikrishna, chief executive of Hexaware.

He further added, “Discretionary spending in the US will be better in 2015 than last year. Discretionary spending may be low in Europe, but we are hopeful of the non-discretionary part of client budgets to fuel growth in the region.”