Why Indian IT Companies are unable to leverage Japan's IT market potential

Jul 22 2014, 14:54 IST
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SummaryJapan's IT Adoption rate is 80 % in both public offices and Private business

Japan's IT Adoption rate is 80 % in both public offices and Private business. Every government offices and private companies have systemized their business process long back and use heavily systems, software’s that are proprietary developed or package based. Apart from self-developed systems; Web business [contents and services] is consistently growing.

According to Japan Ministry of Economy, Trade and Industry [METI], Japan Information Technology Industry size is Approximately 20 trillion yen in sales, employees about one million people and consists of about 23,000 companies.

On the hardware Side; as everyone knows, the most complex structured and sophisticated functionalities based hardware’s hit the market every 3 months and people do line up to buy the first product or first day of launch. So do the embedded software’s upgrades or new development keep happening.

While few reports do say that 90% of Japan Population is using emails and use internet for browsing, searching contents. Since aged population is high and as well youngsters prefer online shopping e-commerce is one of the biggest markets among web services, Coupled with online gaming and Manga [comics] contents. Despite being so much potential in software, web business, content business or BPO and other IT services, Indian IT companies have hardly leveraged the market. The reason being mainly as lack of Japanese language knowledge among Indian IT engineers/companies and the non sysnergy of Working process itself from both side that do not meet either of the goals.

Currently there are 80 plus Indian IT companies who have both established globally and or started their operations as part of their global accounts and providing services to global companies based in japan such as Multinational banks and Major insurance or other firms. There are handful of Indian Companies who are providing services to Japanese companies but very limited to activities such as network support, maintenance, partial development, database related. So we can term it as much of the work being done so far is outsource work provided by Japanese IT companies to Indian IT companies. There were recently 2/3 IT companies tie-ups basically to provide services to single Japanese company.

The largest Outsourcing partner for Japanese companies is China and Vietnam; nonetheless to say – the reason being low cost and language adoptability.

Having said as language being main reason, but it comes with two sub points. First language applicability for user interface requirements and second understanding the user requirements and system documentations. Much of

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