IT industry body Nasscom on Monday said the country's IT companies, which exports 90 per cent of software and services to the US and Europe, may see a decline in new orders due to the global financial crisis.
"The growth is likely to be slower and the companies may see delay in new projects coming through," Nasscom President Som Mittal said while releasing a report on 'Opportunities for Indian IT Industry in Japan'.
Export-driven software firms, which earn more than 60 per cent of their revenue from the US market, had been hit by global slowdown and financial turmoil.
On the revision of growth projections, Mittal said, "We would be able to get a clear picture by the mid of December. We have already given a growth projection of 21-24 per cent. The growth is likely to be on the lower band of the range."
Earlier, software exporters Satyam Computer and Infosys had revised their 2009 fiscal guidance downwards on account of worrisome business environment.
Releasing the report, Mittal said, the $108-billion Japan IT market is likely to be an alternative to the Indian IT industry to reduce its dependence on the US and European markets currently battling the financial crisis.
"The Indian IT-BPO companies are fast diversifying into near territories and opening up new opportunities for growth," he said.
With the shortage of technical skills in Japan, and urgent need for business transformation, Japan would be a large market for India, he added. Japan is the second largest economy in the world and constitutes only two per cent of India's IT exports.
PricewaterhouseCoopers India, Partner and Consulting Practices Head Ambarish Dasgupta, also the Knowledge partner for this report said, "The Indian IT companies have an oppurtunity to establish themselves as the high end service providers, with service offerings differentiated from low end Chineses providers," Mittal said.
Japaneses IT services market at $108 billion is the second largest in the world with India's share being 1-1.5 billion.
Offshoring is limited to 8-10 per cent of total market with China being the biggest offshoring partner accounting for over 50 per cent of the total offshoring.
