Global headwinds will hit Indian IT hard: Crisil

Mumbai: Global macroeconomic and financial sector headwinds are set to take a deep toll on the domestic IT companies' revenue growth in FY24, a report said on Friday.The Rs 10 lakh crore sector is likely to witness revenue growth plunging by up to 9 percentage points to 10-12 per cent in FY24 as against the nearly 20 per cent growth estimated in FY23, Crisil Ratings said.

"Headwinds in key markets, especially the BFSI (banking, financial services and insurance) segment in the US and Europe, will affect the revenue growth of domestic IT services companies," it's senior director Anuj Sethi said.

The BFSI segment, which has seen quite a few instances of stress after the Silicon Valley Bank collapse, will see revenue growth getting halved to mid-single digit, the agency said, adding that this impact would be marginally offset by 12-14 per cent growth in the manufacturing segment and 9-11 per cent growth in other segments.

IT Industry lobby grouping Nasscom has ceased its practice of giving a revenue growth estimate for the next fiscal. The sector, which supports over 50 lakh people directly, has witnessed a slew of changes lately including some top companies reporting a decline in headcount. The rating agency, which analysed data from 17 companies which account for 71 per cent of the Rs 10.2 lakh crore Indian IT sector revenue, said the last two fiscals have been one of the best for the industry as it had put out a 19 per cent growth in FY22.