The Japanese IT Market: An Introduction

Japan has long been - and remains- vital in the world IT market. In this era of rapid globalization, its reputation for expert technological workmanship and business professionalism are more important than ever. Japan's many distinction include:
• World's third largest market and GDP (about 10% of world economy)
• First country with mobile internet service (1999)
• 25% of world's hi-tech products are manufactured here

Outsourcing of software development to India is on the rise!

• Cost saving up to 35%
• Onsite expert support for engineering, network management and more
• Support available in Japanese’s or English, onsite in native Japanese’s
• Flexible timing: the time difference opens up more of the day for you to have real people at work at any given time
• Broad and deep talent bench to draw from. India has the most English-speaking IT graduates per year in the world
• Governmental benefits: low interest rates, fewer foreign exchange restrictions
• Rapid, recent improvements in telecommunications

Benefits for Japanese’s companies in Japan and India

• Especially suitable for front-end focused companies: the face and voice of your company can remain Japanese, as well as the language of business. This is very important in Japan, and it is easily achieved with back-end outsourcing: it frees up lots of resources for devoting to front end
• Price Waterhouse Coopers recognizes Japan as a 'long term market' for countries like India. With only 2% or so of India's IT exports currently going to Japan, the time is right for a pioneering company to build that long term relationship that will open the Japanese market. A company that already has a presence in India at that time will have a major advantage when the Japan and India collaboration to rise in value
• IT budgets in Japan run low (often as little as 1% of a company's budget) and tend to be spent largely on infrastructure upkeep. This is extremely expensive in Japan, and far less so in India. Even 1% of your budget will go much further  there - and most of it can go to new development instead of upkeep
• The current trend in Japan is toward modernization of antiquated applications and hardware. Indian IT workers, with their strong understanding of global clients and trend (and language skills to match) are an invaluable resource towards realizing that goal