Nasscom likely to cut India's tech growth forecast for FY09

New Delhi, Sept 29 (UNI) With the global financial crisis crimping demand, National Association of Software and Service Companies (NASSCOM) today said there may be a slowdown in the growth of the country's software and services in the current fiscal.

''There will be short to medium-term impact, which we define as three to four quarters. I won't be surprised if the numbers are tempered down,'' NASSCOM President Som Mittal told reporters here.

NASSCOM may revise its growth projections in December, he added.

The Association, had in July, forecasted revenue growth between 21 per cent and 24 per cent to about 50 billion dollars in the current fiscal.

The US financial system was shaken after the collapse of Lehman Brothers and the rescue of American International Group rattling Indian outsourcing firms who earn roughly half their revenue from the US.

''However, the financial turmoil has led IT firms here to explore newer territories in the Europe, Asia and Middle East to lower their dependence on the US,'' Mr Mittal said.

The US government's 700 billion dollar bailout fund to buy bad debt is likely to lead to recovery of the markets, he said adding, ''we are hopeful that whatever impact is there is limited to short to medium term.'' UNI SR MP RK1810