Bangalore: As the European crisis affected the developed markets, the decelerated global economy could direct the IT industry growth downwards, told CEO and Managing Director of Infosys, SD Shibulal to news agencies, reports The Times of India. Slow down of the global economy has signaled a flaw in IT service demand. Reportedly Nasscom industry body has informed that considering the global economic insecurity and the emerged national policy issues, IT and IT services sector in India will witness a slowdown in coming financial year. They have also told India will cross the $100 billion mark in this fiscal year.

Next fiscal is to witness a lower hiring rate of less than 1,00,000 job openings and even the rise of payment will be affected about 8-10 percent, the trade association of Indian IT and BPO industry, the National Association of Software and Services Companies (NASSCOM) informed. According to the latest assessment by Nasscom, $ 69 billion out of the estimated revenue of $ 101 by IT and IT services is expected from exports and the remaining from domestic IT market. Information Technology research and advisory firm, Garner Inc pointed out that the gap between what it expects and what the industry results has exposed with Nasscom’s lower growth estimates for software exports in the next financial year 2012 - 2013.   

A growth range of 19 - 25 percent in revenue was shown by top Indian IT companies in the previous quarter. According to the report, India’s leading software services exporting companies like TCS and Infosys signals the progressive growth in the industry, whereas, Nasscom’s latest industry study has warned the upcoming slowdown may hit the whole IT service sector.  As the unsteadiness of economic direction made it obscured, Nasscom has to re-examine its forecast in October.

Nasscom had earlier set a target of $225-billion revenue from Indian IT sector by 2020. The overall industry is seen difficult to reach the target as the industry should grow at 13 percent year-on-year for the next eight years.