Impact of downturn will be co-specific: Nasscom

HYDERABAD: The slow-down in the global economy could impact new projects of software companies, though the pressure would be far more company and client specific, according to National Association of Software and Services Companies (Nasscom) president Som Mittal. The industry body has projected that India’s software exports would grow about 24% in FY 09, lower than the previous year, to touch around $50 billion.

Last fiscal, exports grew by over 29% to register revenues of $40.4 billion. The growth of the IT industry will come down in percentage terms as the base has also become larger. But the impact of a global slowdown will be more company and client specific, he said at a panel discussion organized by the Indian School of Business here. He reckons that as a global IT player, India needs to adjust to the happenings in the global economy. “We should be cautious that we do not talk ourselves into recession,” he said.

In fact, Mittal foresees US companies to outsource more work to India during this phase. This would require beefing up skill development and training. Nasscom is collaborating with colleges and premier institutions to devise a career guide for students.

Reference: Indiatimes,sep 06.