Indian software is not seeing a drop in value. Thanks to the advent of new services through AI and Cloud, IT exports are growing larger.
The National Association of Software & Services Companies (Nasscom) announced the key trends for the current year and the outlook for the next year at the Nasscom India Leadership Forum in conjunction with the World Congress on Information Technology (WCIT).
"The year 2017-18 began on a muted note, but driven by a better growth in the second half of the year is expected to clock revenues of $167 billion, representing a growth of 7.8 percent for export revenues and 10 percent in domestic revenues. E-commerce sector is expected to grow by 17 percent in GMV terms," says Raman Roy, Chairman of Nasscom.
India's IT exports are expected to grow at 7-9 percent to be at $135 billion-$137 billion in 2018-19, the report further said. The IT exports during the current financial year are projected to be $126 billion, a growth of 7-8 percent over last year.
The domestic revenues, excluding hardware, is expected to grow by 10-12 percent to be at $28 billion-$29 billion in the next financial year against $26 billion this year. During 2018-19, the industry is expected to add one lakh new jobs, the same numbers added during the current year.
Nasscom president R Chandrasekhar said that the trend is based on global economic growth and growth in digital spending.
Nasscom expects that the future of the industry will lie in 'Digital at Scale' as global digital spending is growing at 20 percent annually. India's digital revenues grew at 30 percent in FY 2018, demonstrating the base for a solid foundation in digital capabilities built by the sector.
"It's a great milestone for the software and services industry to cross $150 billion - tripling in size in less than a decade. The growth of the B2B startup sector also represents a unique opportunity for India to build innovative solutions for India and the world. However what lies ahead is even more exciting. From small digital pilots, to POCs with product players, we are witnessing industrialisation of digital as the wave ahead," said Raman Roy, Chairman, Nasscom.