Nasscom, the association represents India's IT services industry, has had to reign in its software and services sales growth expectations this year as a result of European and US customers holding back spending.
The fact that companies offering low cost services are reducing their expectations in the current economic climate is a reflection about how bad things are.
Nasscom had previously predicted growth in software and services exports of between 11% and 14%. It now expect it to be around 11%. "For 2013, a year marked by significantly varied trends, the industry is expected to meet the lower-end of its growth guidance and at least achieve a double-digit growth," said Nasscom. Software and services revenues increases 14.9% in 2012 compared to 2011.
The big Indian suppliers, known as the SWITCH group (Satyam, Wipro, Infosys, TCS, Cognizant and HCL) will have to make do with barely growing by a double digit. With major cost cutting exercises in businesses and the public sector the low cost offerings from these suppliers is attractive, but things are so bad even the Indian suppliers are downgrading expectations.
I have recently interviewed some of the big Indian forms. They are certainly confident and are investing in broadening their offerings.
See this interview with Infosys last week.
Will the Indian suppliers emerge stronger than ever when the slowdown finally ends?