The Chennai floods roughly cost a week of work, though most of the hit went to the margins and not so much on the top line,” Sangeeta Gupta, senior vice-president at the NASSCOM or National Association for Software and Services Companies.The Economic Times reports that NASSCOM’s assessment is that many IT companies will outperform. But there is a struggle ahead as the fall in revenue at Tata Consultancy Services (TCS) and HCL Technologies and the floods in Chennai have spread sentiments of industry's bruised top line. Chennai has 15 percent share in the IT sector's headcount. The December floods in Chennai had caused large scale disruption of output.
Gupta said currency fluctuation makes it prudent the trade body to refresh the target in terms of constant currency. “You can't predict the currency. Last year, we said the industry grew 13.1% in constant currency terms, but about 12% in reported currency. And given the fall in the rupee in this quarter, that will wipe out domestic growth in dollar terms,” Gupta said.India's $146-billion IT industry was battling the vagaries of rapidly changing currency exchange rates. The swings dollar, euro, Australian dollar and Latin American currencies have hurt the growth last year. The NASSCOM official expects 13-14 percent of industry revenue to come from digital in FY16. In 2015, Nasscom said digital contributes 10 percent of the industry's revenue and is growing faster than the traditional businesses. Meanwhile, India’s Ministry of Commerce will consult NASSCOM to decide the future course of action against the US move to increase professional visa fees. A report by the Business Line quoted a senior official from the Commerce ministry in this regard. US President Barack Obama in Dec 2015 introduced a legislation raising the fee to $4,000 fee for certain categories of H-1B visa and $4,500 for L1 visa.
Indian IT companies operating in the US are feeling hurt by it. The new law targets mainly those companies having more than 50 foreigners or more foreigners than locals working for them. NASSCOM Chairman BVR Mohan Reddy said mutual negotiations and a give and take approach can solve the matter.