(MENAFN- The Peninsula) By Saritha Rai / Bloomberg
Revenue growth for India's software services industry is forecast to further slacken as customers grappling with technology changes and political uncertainty slow down their spending.
Sales will rise 7 to 8 percent in constant currency terms in the fiscal year ending in March 2018, the National Association of Software and Services Companies, or Nasscom, said in a statement Thursday. Last financial year, the $154 billion IT services industry added $11 billion revenues to grow at an 8.6 percent pace.
India's outsourcing industry, which includes giants such as Infosys Ltd. and Tata Consultancy Services Ltd., are facing a number of headwinds. That includes uncertainty about visas needed to service U.S. clients and increased rhetoric on protectionism that has seen businesses in sectors like financial services and health care delay decision making.
'That translates to lower opportunities for IT industry because of lowered investments, R Chandrashekhar, president of India's biggest trade body for the outsourcing industry, said at an event the southern city of Hyderabad which was broadcast live on Facebook.
The industry, which is also growing its share of domestic contracts, has been battered by clients cutting back on discretionary IT spending and countries like the U.S. and U.K. tightening immigration rules. The Trump administration, for instance, has made it tougher for outsourcing companies to get the H-1B visas.
Shares of Tata Consultancy were little changed in afternoon trade in Mumbai while Infosys rose 1.1 percent to 954 rupees.
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