Software body Nasscom on Tuesday said it remains confident about its projection for 16-18 per cent growth of the Indian IT industry in FY'12 despite the economic uncertainty in the US and European markets.

"There is no reason for us to be worried... We have spoken to customers and they are looking at expanding into geographies and bringing newer solutions to the market," Nasscom President Som Mittal told reporters in New Delhi on the sidelines of the Nasscom BPO Strategy Summit 2011.

He, however, added that the industry maintains a cautious outlook. Fears of a financial crisis gripping major markets like the US and many European nations has raised concerns of clients cutting

their IT budgets, which would impact Indian firms in a major way.

Earlier this month, ratings agency S&P downgraded the US credit rating, which heightened concerns about the fallout of the global turmoil on the Indian IT industry.

The US and European region account for over 85 per cent of the revenues of the over USD 70 billion Indian IT sector.

Nasscom had in February presented a conservative outlook of 16-18 per cent growth in IT exports in 2011-12 in the wake of the slow economic recovery in the US and uncertainty in the European region.

The growth in software and services export is expected to be 16-18 per cent and the sector is slated to bring in revenues of USD 68-70 billion. The growth in the domestic market is estimated to be 15-17 per cent, with revenues of about USD 19-20 billion.