MUMBAI (Reuters) - India's IT services sector will likely grow slower than expected this financial year as local and global factors weigh on the outsourcing industry, a leading local industry lobby group said on Wednesday.

Revenue from the sector is likely to grow 8 to 10 percent in constant currency terms in the fiscal year ending March 2017, lower than an earlier forecast of 10 to 12 percent, the National Association of Software and Services Companies (NASSCOM) said.

Events such as the U.S. presidential election and Britain's vote to exit the European Union have weighed on the Indian IT outsourcing sector with most of its revenues coming from North America and Europe.

"The industry is going through a transient phase with various domestic and global factors impacting its performance," said NASSCOM President R. Chandrashekhar said in a statement.

"While the effect of various short-term factors may show for a couple more quarters, the worst is behind us," he added.

Infosys Ltd, the country's second-biggest software exporter, cut its annual revenue growth target last month for a second time in three months, as local software service exporters felt the pinch of major Western clients holding back on spending.

However, Tata Consultancy Services Ltd said it would fare better in the next two quarters.

(Reporting by Swati Bhat; Editing by Subhranshu Sahu)