Friday, May 02, 2008

Filipino software companies eye Japan as market for IT outsourcing

Source : Click

Philippine software companies are looking at Japan’s fast-growing information technology (IT) services industry as a strategic market for IT outsourcing despite an expected slowdown in the US economy.

The Japanese IT market is considered the second largest market in IT services industry. Japan’s IT market is expected to turn in 2.3 trillion yen in revenues this year, which would grow to 5.5 trillion yen or billion by 2010. The market has been maintaining rapid growth since 1990.

Local IT companies are now eager to tap this huge IT market, as Japanese firms, such as Fujitsu, Canon, Epson, Denso Techno, System Yoshiii, and NEC Telecom, have already outsourced some of their services in the Philippines.

Industry statistics show that some 4,500 Filipino software engineers are already servicing the Japanese market.

On May 14 to 16, eight Philippine companies will be joining the Philippine participation in the 17th Software Development Expo and Conference (SODEC) at the Tokyo Big Sight. These are: Advanced World Systems Inc.; Alliance Software, Inc.; Astra (Philippines), Inc.; Ayala Systems Technology, Inc.; Imperium Technology, Inc.; N-PAX Cebu Corporation; Tsukiden Software Philippines Group; and WeServe Systems International, Inc.

SODEC is recognized as one of the most important trade exhibitions for software development engineers and designers in Japan. This year, it will feature 1,800 exhibitors and is expected to generate 125, 000 trade visitors.

"Japan is the world’s second largest economy and the leader in technological innovation. IT will always be part of Japan’s pursuit for innovation and economic growth," said Robert Cheng, president of Alliance Software. The company will bring their application development outsourcing services in Japan specifically open source development technologies and wireless/mobile applications.

"What Filipino software companies can offer to the Japanese software sector is reliable partnership with strong adherence to quality, cost effectiveness, language skills, and high technological competence," he added.

Organized by the Department of Trade and Industry’s Center for International Trade Expositions and Missions (CITEM) in coordination with the Philippine Software Industry Association (PSIA), the Philippine participation to SODEC aims to provide a venue for Philippine software, BPO companies, and application developers to meet and network with targeted Japanese clients. The participation also aims to introduce local IT companies to the Japanese market and update them with industry trends and technology developments.

Aside from the exhibition, the Philippines will also organize business seminars at the Center of the International Cooperation for Computerization (CICC) on May 13 and at the Philippine Booth on May 15.

"Japanese companies know that IT outsourcing is not just about cutting cost but also a strategy that can help companies push their innovation strategies," added Cheng.

In fact, some of the Japanese companies already resort to local IT firms for critical IT solutions like ATM system management and other banking and finance functions. Industry statistics show that there are 4,500 Filipino software engineers servicing the Japanese market.

Some of the major Japanese companies in IT outsourcing that are in the Philippines are Fujitsu, Canon, Epson, Denso Techno, System Yoshiii, and NEC Telecom among others. (AMM)