Former Telecom Secretary R Chandrashekhar, under whom a government IT department was set up for the first time, today took over as President of Nasscom -- a body representing the USD 108 billion Indian IT-BPM industry.
Nasscom President Som Mittal said Indian government and businesses have been engaging with their US counterparts at all possible forums to convey their concerns.
"Europe is growing faster than the US. That is something we saw this year and this will only gain momentum. There is a lot of latent demand in the region, which will drive growth for the sector," Nasscom President Som Mittal said.
Som Mittal is happy that the rupee has stabilised at 62-63 to the dollar, as he says a rupee at 68 would have resulted in pricing pressure for Indian companies.
In an interview to CNBC-TV18, Som Mittal, President, NASSCOM spoke about IT sector growth trajectory.
Som Mittal, president of Nasscom feels right now the house bill is a clean bill. It doesn‘t put the same restrictions, it has all the positives that the immigration bill has. He hopes when the conferencing happens, people don't insist on those negative clauses.
Clauses such as increased visa fees, caps on the placement of H1-B workers in client sites and reduction in the number of H1-B workers have been fretting technology companies.
The Commerce and Industry Ministry will initiate formal consultations with all stake holders soon for allowing FDI in e-commerce activities, which will include selling of insurance and shares, besides retail.
For IT stocks, from a demand perspective, there is room for a lot of upside. Anantha Narayan of Credit Suisse sees the sector growing at 15-20 percent, going forward. But, Nasscom's Som Mittal is not convinced enough to up full -year guidance from 12-14 percent.
The USD 108-billion Indian IT-ITeS sector provides employment to about 3 million professionals.
IT industry body Nasscom today said the government's decision to modify circulars on taxation of R&D centres would send out positive signs to MNCs.
Som Mittal, president, Nasscom says the industry body has got assurance from the US judicial committee that a Bill which does not have negative provisions that can adversely impact Indian IT companies will be taken up in the US Senate in a few weeks.
Talking about the impact of the Immigration Bill, Som Mittal, president, Indian IT Body Nasscom says as per the US process, there are many places where intervention can happen from the administration and the White House on matters of strategic importance.
Arpinder Singh of Ernst & Young said, "India is exposed in two ways: The threat that the same theft could happen in India and the fact that the outsourcing industry will also get affected,"
Som Mittal, President, NASSCOM believes that since the macro economic factors have not changed much since their February forecast, they would not be reviewing the forecast at present.
Looking at the long-term road map for IT Industry, National Association of Software and Services Companies (NASSCOM) is projecting that we will touch another USD 100 billion over the next five-seven years for the Indian IT Industry.
Despite uncertainties across the globe, the IT industry is "very pleased" with the reported results, far ahead of estimates this quarter, and hopes to sustain it in future, NASSCOM President Som Mittal said today.
IT firm NIIT said it has partnered with industry body Nasscom to train over one lakh students in three years. The training programmes will be offered through two initiatives - Foundation Skills in IT (FSIT) for engineering graduates and Global Business Foundation Skills (GBFS) for graduates for all streams.
Sanket Akerkar, MD, Microsoft Corporation India, Som Mittal, president, Nasscom, Amar Babu, MD , Lenovo India, Debjani Ghosh, MD-South Asia, Intel and V Balakrishnan, member of the board, Infosys explain, on CNBC-TV18, that Internet connectivity and digital literacy are key to boost the IT sector in India.
Over the last few decades the India IT industry has grown leaps and bounds and even though growth did slowdown during the financial crisis of 2008 things are looking to get back on track.
Som Mittal, president, NASSCOM says he expects IT sector growth in double digits. "We had given a guidance that we will have a growth of 11-14 percent this year. Our review, after six months, is that we will still be in double digits. We will still be in double digits and probably closer to the lower end of our guidance, 11 percent," he adds.
Nasscom believes the Indian IT industry will do "exceedingly well" in 2013-14. The IT industry body expects to meet its earlier projected estimate of 11-14 percent growth in the country‘s software exports in the current financial year at the lower-end.
Nasscom today said its vision for the Indian product landscape is to help make India the hub of the world's most successful software products through multiple initiatives of market development.
The global markets will be keenly watching US elections. The race for White House will go down to the wire says a poll prediction. Som Mittal, president, NASSCOM says, "Irrespective of who comes, I suppose our industry fundamentals are good."
Software industry body Nasscom today said less-than-expected first quarter results by top IT companies should not be considered as an indicator for the whole industry, whose fundamentals are still "strong".