

This IDC study (which is a translation of the Japanese report IDC #J9300105) analyzes the situation and trends in the Japan IT services market and presents market forecasts by industry (18 sectors) and forecasts for the subcategories by industry (six sectors). It also analyzes the market situation of each submarket in 2008 and presents market forecasts and growth rates from 2009 to 2013. This study also includes IDC' s recommendations to vendors.
The Japan IT services market is expected to register negative growth in 2009 due to the impact of the global economic recession and the financial crisis, which has been ensuing since 2H08. The project-oriented market, including systems integration (SI), will suffer from a major plunge and the overall market growth rate will stall as an increasing number of companies call for price reductions and revisions of service contents upon renewal of IT outsourcing (ITO) contracts, which tend to be relatively long term or even in the middle of the contract term. By industry, the IT services spending by the manufacturing and financial services industries will plunge while the spending by the government and healthcare industries will grow steadily.
"IT service vendors will have to deliver fast-acting solutions for cost reduction and develop new services/solutions for market growth after economic recovery through cooperating with user companies," says Yukiharu Yorifuji, group manager, IT Services Research, IDC Japan.