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Now, India's IT skills lure Japan
By siliconindia Mumbai Bureau
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Thursday, 01 July 2004, 19:30 IST
BANGALORE: Japan, which till now has always used its own talent for anything and everything, is now looking to India for IT skills.
India scored over China in one of the Japanese studies, because of its varied skills and off course the low-cost factor.
The Japanese information services industry clocked in sales of US$ 104 billion (JPY 13,703.9 billion) in fiscal 2001 according to the report released by the Ministry of Economy, Trade and Industry (METI), government of Japan.
This makes it the second largest market for IS services behind the United States. Players from across the world are vying for a share of this huge market which is dominated by domestic players such as NEC, Fujitsu, Hitachi etc., whose software and service operations are about 10-15 times the size of Indian biggies such as TCS , Wipro or Infosys .
Japanese companies have historically looked inwards (either within the company or domestic industry) for their IT systems primarily due to fears of sacrificing quality, confidentiality and timeliness of programs for their businesses.
However, after the prolonged bleak economic prospects that prevailed in Japan, many firms have grown more receptive to outsourcing as a way to boost their operating efficiency, improve their financial performance and upgrade IT systems.
This new outlook is reflected in the considerable success of MNCs operating in the Japanese market, especially IBM Japan which in recent times has walked away with several multi-year, multi-million dollar outsourcing contracts from top Japanese companies such as Sharp, Honda, Japan Airways, Kobe Steel, Nissan, Meiji Life Insurance and so on.