Nasscom expects the Indian IT industry's export revenue to grow at 7 to 8 percent and domestic revenue to grow at 10 to 11 percent in FY18.
Explaining the impact of this on the Indian IT companies, Anand Deshpande, Founder, MD & CEO, Persistent Systems said the industry is going through a major transformation. The new work is quite different from the old work we have been doing for many years, he said.
With use of new technologies, the same work is being done with less people, said Deshpande.
The company has shifted its business model which was traditionally only focused on services to now selling IP plus services, which in turn is being sold in the digital market, said Deshpande, adding that this enhances the ability to deliver quickly.
Meanwhile, the company has no plans of any buyback to utilize the cash on books, he said, adding that in the AGM they requested for an ESoP plan, although it is a small one. They would also look at acquisitions in digital area to help change their mix from all-services to solution based. Looking at companies that will give frontend skills to sell and deliver these solutions differently, he added.
With regards to revenues, he says they would look at low double-digit growth in FY18. Last year’s stellar performance was due to the acquisition, he said.
In FY17 the dollar revenue growth was 22 percent for the company.
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