Nasscom cuts growth target of software services to 10-12 %

The growth of software services sector for the fiscal year 2016-2017 is expected to be in the range of 10-12%, Nasscom said.

This is lower than the 12-14 per cent range which Nasscom had projected in FY16. The industry just managed to grow at the lower end of the revenue guidance, clocking increase of 12.3 per cent in the current fiscal in exports and 10 per cent in domestic revenues to touch $143 billion.

One of the reasons is that the industry grapples with increasing macroeconomic uncertainty and currency volatility at present. ET had also reported that Growth issues in the US, especially in areas affected by plunging oil prices, and ambiguity caused by the plummeting Chinese markets are some of the reasons sparking caution.

According to Nasscom, industry added 2 lakh employees in FY16 reaching a total employee base of 3.7 million. For the next fiscal as year, the industry body is expecting the same number of people to be added to the workforce.

(Image credits: indiatimes)