IT CXOs cautious about recessionary headwinds, geopolitical uncertainties, says NASSCOM chairperson

The Indian information technology industry has been a significant contributor to the global economy for several years but it is facing multiple challenges that have forced top managements to take a cautious approach.

The Chairman of NASSCOM and President of Enterprise Growth Group at TCS, Krishnan Ramanujam, in an interview to CNBC-TV18 stated that caution is a majority view being expressed by CXOs in the industry.

One of the primary reasons for this cautious approach is the recessionary headwinds caused by war and geopolitical conditions that have added to global uncertainties.

“The CXO survey broadly points to caution in the wind. The recessionary headwinds caused by combination of war and other geopolitical conditions as well as the effect of inflation, US dollar strengthening and so on and so forth have added to the uncertainty in the world. The year 2022 began with lot of optimism and exuberance but by the end of the year it was completely opposite to how it began. So most organisations globally are having a very hard time in terms of planning. So uncertainty is the broad keyword from the survey,” Ramanujam said.

While various companies are reacting to these headwinds differently, Ramanujam is reasonably optimistic that FY24 would be a positive year. However, he did mention that it may be slower than FY22 and FY23.

He also emphasised that the industry needs to focus on addressing the issue of attrition, which has been a significant problem globally and for India. This year is threatening to be a year of mass layoffs, he added.

Ramanujam also highlighted the potential for irrationality during times of exuberance and advised businesses to maintain a level head during times of rapid growth.