If there is a recession, it would benefit IT companies, says Nasscom
Indian IT industry will weather the slowdown storm: That's the word coming in from Nasscom chairman Keshav Murugesh, who said that the global slowdown hasn't impacted the deal pipeline so far.
Indian IT industry will weather the slowdown storm: That's the word coming in from Nasscom chairman Keshav Murugesh, who said that the global slowdown hasn't impacted the deal pipeline so far.
“I think people are talking a lot about this global recession and we will have to see how that plays out over the next few months. From a NASSCOM point of view as well as from an individual company point of view, we are not seeing the kind of impact that you are pointing out at this point in time,” Murugesh told CNBC-TV18 in an interview.
“If you look at the results, coming out from companies, continues to be positive. If you look at the guidance, coming out from companies, continues to be positive. If you look at the visits that we are seeing from clients – which is a good benchmark – very positive. Most importantly, CEO Speak on the client-side is all focused on digital, transformation, artificial intelligence (AI), ML, all the buzzwords that you want to hear. So I will say that even if there is some kind of recession that comes up in the longer-term, actually it could benefit our industry,” he added.
“NASSCOM doesn’t give any guidance for the year as such. Having said that, the quality of conversations has moved completely away from discretionary spends to much more what can you do for me. I think that is the kind of conversation that all of us at NASSCOM and NASSCOM companies want to have with our clients. At this point in time-based on the kind of conversations we are having, the overall focus has moved to skill, to talent, to disruptive new technologies, to analytics-based thinking and to much more outcome-based thinking, which clients want from their vendors or their partners. So while the world is cautious, it does not mean that the IT industry is being cautious. At this point in time, all we are saying is we must cut the coat according to the cloth,” said Murugesh.
In terms of growth, he said, “The momentum continues to be positive at this point in time. We will have to wait to see at the year-end what the actual numbers are for the year.”
Speaking about jobs, Murugesh said, “It is a case of our making a point before the US authorities who deal with rejections to explain to them that while 67 percent of all H1-B visas issued come to India, the reality is only 2.6 percent of that goes to the top 7 Indian It companies. The rest are going to international companies, which are sourcing talent from India. Therefore, as long as rejections continue to rise, it will only affect the competitiveness of US companies.”
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