According to industry veteran T V Mohandas Pai, the revenue growth of Indian IT exports this fiscal is likely to be slower than what industry body Nasscom projected. Nasscom s projection of Indian IT exports were 10 to 12 percent. This is in contrary to what T V Mohandas Pai has to say as his prediction of the revenue forecast is around 9 to 10 percent and he also termed it as reasonable. A clear picture would emerge after companies announce results for the September quarter, which is generally good for them. Also Read - FIR filed against Twitter India again, now over child pornography contentAlso Read - Mi Notebook Pro X to be Xiaomi's most expensive laptop yet, launch tomorrow
“The figures could be lower than what Nasscom has said. But it is still (expected to) be good figures. They forecast 10 to 12 percent, I would say 9 to 10 percent is something that could be more reasonable because we already have seen in the first quarter some companies not meeting numbers…second quarter, some companies going quite. So, 9 to 10 percent is reasonable,” the former Board member at Infosys told. On what Indian IT companies have to do to improve operational efficiency and cost-cutting, the chairman of venture capital fund Aarin Capital Partners, and Manipal Global Education, said that the IT sector has to automate and become more productive but added that they are already doing that.
“Europe is beginning to look better. Brexit has hurt the UK. America… we have to see what happens. Some industries are going quiet. So, we need some time, it’s too premature to say anything. In 30 days, we will have a clear picture,” Pai added. “We have to wait to know the real impact of Brexit. It’s too premature how companies are going to react. See what’s happening is all business in the UK has come down by 10 percent in rupees because of currency impact. And (the) UK is about 15 percent of India’s exports. So, 15 percent (10 percent of 15 percent) means, it will come down by 1.5 percent (currency impact). Australian currency is appreciating. We do not know how Euro will behave in the next three months. So, we have to wait. It’s too uncertain to take a call,” he added.
“They have to get into the consolidation mode, buy up smaller companies… because the industry is consolidating and they must become cost-efficient which is not difficult. I think they are all doing that, people know it, they have been through ups and downs for the last 20 years. It’s a mature industry. They have got good management. You have to give them some time,” Pai elaborated.
He denied suggestions that the IT services industry is witnessing retrenchment of employees, and stated that it s a “normal attrition”. Pai, a former chief financial officer and HR head at Infosys, termed as “very normal” the increasing number of startups shutting shop. ALSO READ: Indian IT companies margins under pressure: Nasscom