The $118-billion Indian information technology (IT) industry could see muted growth in the fiscal year ending March 2016, even lower than the 13-15% growth that software lobby Nasscom forecast for the current fiscal as most businesses keep a wary eye on their IT budgets, say industry analysts.
Sanchit Vir Gogia, founder and chief executive officer of Greyhound Research, agreed the IT industry’s growth has “pretty much plateaued”.
“Our estimate is that the industry will grow about 14%, which is statuesque when compared to last year,” said Gogia.He attributed the flat growth to a “change in business models”.
“The cloud contracts and the managed services contracts that are being given out are smaller in size and duration, that is, they are shrinking in size. This is impacting the topline of the companies. While it is not evident this year, it will start having adverse impact on growth from next year onwards,” said Gogia.
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