Hyderabad: The information technology industry in India has a challenging and an uncertain year ahead, feel the business leaders in the sector in this technology hub.

However, they believe the IT companies could use this uncertain period as an opportunity to make investments to increase their competitiveness.

"Such periods of uncertainly in the past have provided a great platform for organizations to refine strategy and execute initiates that increase competitive advantage and accelerate growth," said BVR Mohan Reddy, chairman and managing director, Infotech Enterprises, a global technology solutions provider.

As a sector emblematic of globalization and international trade, the Indian IT industry will also see a slowdown in growth, he noted.

The Indian IT industry's estimated export growth will be approximately 11 percent, down from 16 percent a year ago.

Mohan Reddy believes that the IT companies will look at expanding the delivery capability beyond India to leverage the global expertise, invest in creation of intellectual property and continue to improve the talent pool in the country.

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Suman Reddy, vice-president and managing director, Pegasystems Worldwide India, is of the opinion that the recovery of the global economy will have a positive impact on the IT sector globally as well as in India.

"Moreover, the Indian IT industry is witnessing a growth in niche sectors such as healthcare and insurance. With the healthcare reforms by the US to bring a new dimension to the Indian IT industry, we expect to see a lot more innovation and growth in the coming year," he said.

He wants the government to create tax reforms to encourage start-ups and smaller companies and to focus on public-private partnership.

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