US, Europe on recovery path: Infosys Kris

March 8th, 2012 - 12:28 am ICT by IANS  

Bangalore, March 7 (IANS) Economies of the US and Europe were on recovery path and the macro environment for the Indian IT industry was looking better, Infosys co-chairman Kris S. Gopalakrishnan said Wednesday.

“I feel things are starting to look better for our industry in the US and Europe whose economies are on recovery path albeit slow. There is some confidence that issues (debt crisis) related to Greece will be resolved,” Gopalkrishnan told reporters here.

Asserting that the industry would not face a catastrophe it had gone through during the global financial crisis in 2008-10, the executive said the recovery that started would continue but not as fast it was in the past.

“The IT industry will have difficult period for two-three years though moving in the right direction and things are becoming better. There is optimism on growth returning,” Gopalakrishnan said on the margins of a day-long knowledge summit on ‘Reshaping the IT & Knowledge-based Professional Service Organisations of Tomorrow’, organised by the All India Management Association (AIMA).

Noting that companies would start spending on IT infrastructure, including products and services as the mood improved, the co-chairman said even in a difficult environment to grow at 13-15 percent this year was very good.

“When the global economy is projected to grow two-three percent and Indian economy 6.5-7 percent, our industry growing at 13-15 percent indicates that it is resilient to grow faster than the other two. It is a positive sign for creating jobs and hiring people,” Gopalakrishnan pointed out.

As a representative body, the National Association of Software Services Companies (Nasscom) last month said the IT industry would grow 13-15 percent in the ensuing fiscal (2012-13) after crossing the $100-billion mark in this fiscal (2011-12), with exports accounting for $70 billion.

“Even in the domestic market, I see tremendous opportunities for the industry from enterprises across verticals and government organizations, which have become pro-active on providing e-governance to the people. States across the country are vying with each other in rolling out e-governance projects for offering a range of services to their citizens,” Gopalakrishnan observed.

According to industry estimates, central and state governments are projected to spend a whopping Rs.27,000 crore (Rs.270 billion) on various e-governance projects over the next three years for providing a plethora of services online to the people.

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