IT industry to touch $50 billion revenue: NASSCOM

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"We are quite confident that the IT software and services will achieve the target of $ 50 billion by the end of this fiscal, even as the dollar depreciation has some negative impact on the industry," NASSCOM chairman Lakshmi Narayanan said.

Last year, the industry clocked revenue of about $ 40 billion with a growth rate of 30 percent. This year, the growth was expected to stay between 26 and 27 percent, he said.

Observing that the IT industry continued to achieve handsome growth in the last quarter and that the same should continue in the next quarter, he said the revenue per employee might shrink in view of the rupee appreciation against dollar.

"The IT companies are growing and they are hiring more and more people but the margin per employee may dip due to the weakening of dollar," he said, speaking at the sidelines of an IT conclave in Chandigarh.

Narayanan said that in such a situation, the government should continue with the incentives for the IT industry in order to overcome the problem. "BPO sector is required to be given special attention so that it could cope with the current challenges," he said.

Addressing the concerns of the spike in attrition rate in IT sector, Narayanan said that the present human resources are sufficient to cater to the growing IT industry of India and the gap between demand and supply is negligible. "But in near future, the gap might widen which needs to be taken care of well in advance," he said.