IT sector may miss Nasscom’s $225 bn revenue goal for 2020

India’s software and services companies may fail to meet industry grouping Nasscom’s 2020 collective revenue projection of $200-225 billion, proving that changes to a business model built largely around outsourcing and cost arbitrage are taking longer to translate into digital sales.

Nasscom, which over the past two decades helped establish India’s credentials as the leader in global outsourcing, had made the forecast in 2015 in a report it published jointly with McKinsey. This year, Nasscom has not published its customary industry growth forecast.

The 2015 report had said that if the IT industry adjusted its offerings and developed new digital solutions, it would be ‘on track to reach its goal of $200 billion to $225 billion in revenues by 2020 and further to reach revenues of $350 billion to $400 billion by 2025.’ At the end of FY19, the industry had revenue of $181 billion, including local sales.