The Indian IT industry, which has been clocking impressive growth rate in recent years, is likely to see a slow down in the next fiscal due to competition from China, the Philippines and Sri Lanka, industry body Nasscom has said.
The growth rate might come down by six per cent due to the competition besides economic uncertainty and lesser IT spends by the US, Nasscom President Som Mittal said.
"A recent survey by NASSCOM revealed the industry grew by 28 to 29 per cent in the last few years but our forecast is that it will go down to 22 to 24 per cent," he said while releasing the survey earlier this week.
However, it would not have any impact on the long-term prospects of the sector, which is set to cross the USD 60 billion mark this year, the survey said.
The survey titled, 'FY08 Revenue performance and FY09 forecast for the Indian IT software and services sector,' said that Indian IT-BPO industry, including domestic companies, recorded an overall growth of 28 per cent, clocking revenues of 52 billion US Dollars in 2007-08 up from 39.6 billion US Dollars in 2006-07.
The software and services exports segment grew by 29 per cent to register revenues of 40.4 billion US Dollars in 2007-08, up from 31.4 billion US Dollards in 2006-07. The domestic segment grew by 26 per cent to register revenues of 11.6 billion US Dollars in 20007-08.