Software lobby group National Association of Software and Services Companies (Nasscom) said it was yet to get clarity on the rates for IT products but cautioned that the bigger challenge for the sector would be the implementation of the goods and services tax.
“The industry is looking at a rate of 12-16 per cent. So, it entirely depends on how it gets. But, the bigger concern is how the GST is applied,” said R Chandrashekhar, president of Nasscom.
Nasscom, the country’s software lobby, will revise its growth forecast downward from 10-12 per cent this year. This is after its biggest members such as Tata Consultancy Services, Wipro, Cognizant and Infosys have struggled to grow faster in a more uncertain global environment.
These companies are seeing clients shift to faster adoption of automation, cloud and digital technologies, while cutting on traditional information technology (IT) services. Both Infosys and Cognizant have cut their annual revenue forecast, for these reasons. Nasscom says this is a good indication of where the sector is headed.
The total addressable market for the Indian business process management (BPM) sector is expected to be $54 billion by 2025, growing at eight to nine per cent yearly, says Nasscom, the apex body of the information technology and BPM sector.
Over the next five to seven years, global BPM spending is expected to grow six to seven per cent annually and reach $233 bn by 2020, it said.
While Indian IT industry body Nasscom said that the Goods and Services Tax (GST) Bill is a welcome move, it has also voiced some concerns on the GST Model Law. Nasscom has suggested certain changes to the finance ministry on self-declaration procedures, instead of multiple paper-work for registrations by the IT companies for ease of doing business.
Global software major Tata Consultancy Services (TCS) is the top employer in the Indian IT industry, followed by Infosys, Cognizant and Wipro, the industry's representative body National Association of Software and Services Companies (Nasscom) said on Monday.
According to the Nasscom annual rankings of top IT-BPM (business process management) employers in the country for 2016, TCS heads the Indian IT industry, with 362,079 employees.
The fallout of last night's terror attack at Nice in France has some ramifications for India's IT sector. For one, US Presidential candidate Donald Trump has suddenly realised that he needs to show up his moderate face, and that is a good sign, believes Nasscom chairman C P Gurnani.
The threat perceptions of two recent global political developments – prospect of Donald Trump getting elected as the next US President and fallout out of Brexit – have got largely moderated, said Gurnani, who is also the chief executive officer of Tech Mahindra.
Nasscom, the information technology sector’s apex association, proposed on Thursday to form an empowered group to address policy issues impacting this and the e-commerce segments, such as the proposed goods and services tax (GST).
If this isn't done, it said, the government's entire Digital India programme would halt.
IT industry body Nasscom on Friday said Britain's exit from the European Union or Brexit will lead to a phase of uncertainty in the near term but there will be a mix of challenges and opportunities in the longer term.
Nasscom said likely decline in the value of the British Pound, which could render many existing contracts losing propositions, unless they are renegotiated whereas the uncertainty surrounding protracted negotiations on the terms of exit or future engagement with EU could impact decision making for large projects.
NEW DELHI: With an aim to get a grip on the innovation ecosystem in Israel - a country which has one of the largest startups in the world - IT industry body Nasscom is planning to take a delegation of Indian companies and startups to the country.
Scheduled to take place in the last week of May, the delegation will include members from Tech Mahindra, MindTree, ITC Infotech and Cyient among others.
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