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Posts Tagged ‘Indian market to move Japan’

India’s next target in IT business is Japan and Japan could be the best alternative for United States.We are just exporting only 2 % of software to Japan on the other hand we are exporting 90% to United states.

Japanese IT services market at $108 billion is the second largest in the world with India’s share in the market being 1 to 1.5 billion. Offshoring is limited to 8-10 per cent of the total market with China being the biggest offshoring partner, accounting for over 50 per cent of the total offshoring. NASSCOM and PricewaterhouseCoopers have released a report on Japan titled Opportunities for Indian IT Industry: Japan. The report presents key opportunities and outlines potential strategies for Indian IT companies to tap the $108 billion Japanese market.

As per the report, a key element for Japan to retain its competitiveness in the global market would need the proactive effort by Japanese government and industry to break the traditional models and they would have to reach out. They would need to embrace globalisation, accept the advantages of outsourcing and find ways to open up service businesses with countries like India. 

Japanese business houses would have to view IT as strategic enabler, rather than a cost centre. They would also have to re-look at their current hierarchical structure of IT service providers to bring in best practices in domain, technology and service delivery, further adds the report.

Embedded systems development and engineering and R&D services are the prospective quick win service offerings for Indian vendors. Application development and maintenance are the next big opportunities. Increased willingness by Japanese companies to adopt packaged products over custom development in the wake of global competition. This offers implementation opportunities for Indian companies, says the report.

The report also points out that setting offshore development centre in China is another strategy as China is currently a preferred location for outsourcing low-end development work by Japanese clients due to its cultural and geographical proximity.

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