Concerns over economic slowdown in the US and European markets will not impact the Indian IT sector and fears of software industry catching the slowdown contagion are unfounded, Som Mittal, president, Nasscom (National Association of Software & Service Companies), told HT.
A large portion the Indian IT company's revenue come through IT projects of private firms, he said.
"Private sector in the US is actually doing well. They have cash and are willing to upgrade their IT support systems," Mittal said. These private firms are looking at ways to enter newer markets and reduce time to market their products to target customers. "A robust IT apparatus plays a major role in enhancing their competitiveness."
A large part of the slowdown in the US and Europe is being measured in terms of construction and housing-related activities that are not necessarily hot sectors for software business, said Mittal.
During the last fiscal year, revenues of Indian IT firms from the US grew at 24% against a revenue growth of 18.5% globally.
Mittal, however, said that 30% annual growth rate witnessed during the earlier decade may not be feasible in the (now) changed economic environment. "We may not touch that figure but even a 18.5% growth over exports of $60 billion (Rs 2,70,000 crore) is no mean achievement."