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Low growth of domestic IT revenues worrisome: Nasscom

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Press Trust of India New Delhi
Last Updated : Apr 30 2014 | 7:39 PM IST
The Indian IT sector has done wonders globally, but growth in the domestic market has been worryingly slow, Nasscom President R Chandrashekhar said today.
"IT industry has become India's calling card. At one level, we have been growing at 12-14 per cent. The domestic revenues, which are some indicator of how things are in terms of adoption in the country, are rather bleak. Last year, domestic revenues have been flat," he told PTI.
Chandrashekhar added that though the growth of the domestic IT sector was 10 per cent in rupee terms, but it was flat in dollar terms.
"So the rise is because of the dollar depreciation. That is worrisome. While the Indian (IT) industry is performing miracles in other countries and driving productivity, within the country the adoption has been extremely low," he said.
Chandrashekhar further said though the domestic market accounts for only 10 per cent of the total industry size, it is still a concern.
According to Nasscom, the Indian IT-BPM industry clocked export revenues of USD 86 billion in FY2014 with a year-on-year growth of 13 per cent.

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The domestic market witnessed y-o-y growth of 10 per cent, taking revenues to Rs 1.15 lakh crore.
For FY15, Nasscom estimates exports to grow 13-15 per cent, while domestic market is forecast to rise 9-12 per cent.
"There was slowdown in the adoption in public sector because of the decision making being on hold. Also some payments got delayed leading to companies having a little hesitancy in participating. The private sector faced the same issues," he said.
He added that with the new government coming in, it will take another six months for things to start moving.
"Assuming that the new government that comes in focuses on getting this done, it will take at least six months. We will
make some suggestions when the new government comes in. Hopefully, some correctives will happen," Chandrashekhar said.
He added but though it may not bring in major changes this year, next year could be better.

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First Published: Apr 30 2014 | 7:39 PM IST

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