Saturday, September 13, 2008

Indian IT stepping towards Japan

Indian IT services companies have turned to Japan as the right market , Japan being one of the most IT spending nations in the world. Considering Japan as a major automobile and consumer electronic manufacturing destination in the world and as one of the most IT spending nations, Nasscom, an IT industry body is presently undertaking a study to evaluate the out sourcing opportunities in Japan.

According to Ameet Nivsarka, Vice President, Nasscom , 'Revenue from Japan hardly contributes to three percent of our total software services exports. We believe that Europe and Japan offer huge potential for Indian vendors.' Nasscom, an IT industry body is presently undertaking a study to evaluate the out sourcing opportunities.

Sabyasachi, Senior Director, neoIT added that currently Japan's outsourcing requirement is for embedded software and solutions and a lot of low end work testing and coding. When it opens up for more complex solutions, Indian services majors will see a traction coming from this region

Some of the Indian companies have already attempted to enter the outsourcing market of Japan. For example India's second largest IT company, Infosys has signed a pact with Nihon Unisys to combine its global delivery model with the latter's strength in the Japanese market.

Another major Indian IT company, Wipro has tied up with some of the leading Japanese corporates including NEC. Around 3 percent of Wipro' s IT revenue comes from Japan. Similarly, Infotech Enterprises, Patni Computer and KPIT Cummins have substantial presence in Japanese market.

In an IT analyst 's opinion In Japan it takes a considerable period of time to build the relationship and get a contract as local talent and understanding of IT buying behavior of corporations in Japan were critical to make a foray into this market.