InvestorQ : What is NASSCOM outlook for the Indian IT industry for the coming financial year 2021-22?
Crowny Pinto made post

What is NASSCOM outlook for the Indian IT industry for the coming financial year 2021-22?

3 months ago

NASSCOM, the organization that represents the interests of the information technology business in India, expects the Indian IT industry to show growth at the rate of 2.3% to touch total revenues of $194 billion in the financial year 2020-21. This is commendable consider that there has been a sharp fall in tech spending globally due to the pandemic.

NASSCOM, in its recent press release, has underlined that despite the pernicious effects of the pandemic, the Indian IT industry had been a net hirer during the year. It had added 138,000 jobs taking the total number of people gainfully employed by the IT industry to 44.70 lakhs. This is despite global GDP for 2020 calendar year dipped by 3.5%.

In the year 2020, the total tech spending by corporates dipped by 3.2% on account of severe budget constraints across the global corporate world. Most IT companies rely on US, European and UK companies for a bulk of their business and all these economies saw a sharp slowdown during the year. Despite that, IT sector achieved growth.

NASSCOM also disclosed that overall deal pipeline for the major listed IT companies in India stood at $15 billion. This excludes the non-listed IT names and is a good summary of the assurance of the business flows in the coming financial years. For the coming year, the deal pipeline, aggressive marketing as well as focus on digital is likely to boost the IT industry.

NASCOM is confident that industry IT spends should improve in the next financial year in sync with the global economy recovery next year. Most economies, including India, are expecting to see a bounce in GDP growth in the coming year, albeit on a much smaller base. That should be good news for the Indian IT industry.