Japan Offshore IT Services 2009-2013 Forecast and 2008 Review

Abstract

This IDC study, which is a translation of the Japanese report IDC #J9330103, analyzes Japan companies' spending on IT services from offshore IT service vendors such as China and India, and presents a forecast on the spending amount from 2009 to 2013. With increased Japan IT spending, services for Japan companies by offshore IT service vendors have also increased steadily. However, cutbacks on IT budget due to the current economic downturn have affected the outsourcing volume to offshore IT service vendors. Coupled with a temporary easing of the shortage of Japan IT engineers, growth in the offshore IT services market will slow down drastically in 2009.

"Offshore IT service vendors are now facing a lull in growth rate. Many offshore vendors are expanding their services or preparing to expand their customer bases during this period. As such, we expect high growth to resume when the economy recovers. It is necessary for Japan companies and vendors to pay attention to and prepare for the new values and competition posed by offshore IT service vendors in the Japan market," analyzes Yukiharu Yorifuji, group manager, IT Services, IDC Japan.

Table of Contents

• IDC Opinion
• In This Study
• Methodology
• Japan CIO Survey 2009
• Scope and Definitions
• Limitations (Not Covered)
• Forecast Market Segments
• Situation Overview
• Overview of the Japan IT Services Market/Offshore Resources Utilization
• Offshore IT Services Utilization Among Japan Companies
• IT Issues for Japan Companies
• Offshore IT Services Utilization
• Concerns Regarding Utilization of Offshore IT Services
• The Future of Offshore IT Services Spending
• Vendor Landscape
• Offshore Vendor Landscape
• Tata Consultancy Services (TCS)
• Infosys Technologies (Infosys)
• Satyam Computer Services Ltd. (Satyam)
• Cognizant Technology Solutions (Cognizant)
• hiSoft
• Utilization of Offshore IT Services Among Japan Vendors
• IBM
• HP
• FUJITSU
• Hitachi
• Other Vendors
• Future Outlook
• Forecast and Assumptions
• Offshore IT Services Market Forecast for Japan User Companies
• Scale of Offshore IT Services Via Japan Vendors
• Essential Guidance
• Recommendations for Offshore IT Service Vendors
• Recommendations for Japan Vendors
• Learn More
• Related Research
• IT Services Definition
• Project-Oriented
• IT Consulting
• Systems Integration
• Custom Application Development
• Network Consulting and Integration Services
• IT Outsourcing
• IS Outsourcing
• Network and Desktop Outsourcing Services
• Application Management
• Hosted Application Management
• Hosting Infrastructure Services
• Support and Training
• Hardware Deploy and Support
• Software Deploy and Support
• IT Education and Training
• Synopsis
• Table: Analysis Elements of IDC' s Offshore IT Services Market Forecast
• Table: Key Forecast Assumptions for Japan User Companies Offshore IT Services Market, 2009–2013
• Table: Japan User Companies Offshore IT Services Market Forecast by Segment, 2007–2013
• Figure: Target Markets in the Offshore IT Services Market for Japan Companies
• Figure: IT Issues Among Japan Companies (Japan CIO Survey 2009)
• Figure: Utilization of Offshore IT Services Among Japan Companies (Japan CIO Survey 2009)
• Figure: Purpose of Utilizing Offshore Resources
• Figure: Systems Developed by Offshore Vendors
• Figure: Purpose/Reasons for Using Offshore Vendors
• Figure: Concerns Regarding Utilization of Offshore Resources
• Figure: Concerns Regarding Utilization of Offshore Resources (Compared to Previous Year' s Survey)
• Figure: Changes in Effective Job Opening to Applicant Ratio for IT Engineers, 2001–2008
• Figure: Changes in Effective Job Opening to Applicant Ratio for IT Engineers, January 2008–April 2009
• Figure: Corporate Service Price Index, 2000–2008
• Figure: Corporate Service Price Index, January 2008–April 2009
• Figure: Changes in Outsourcing Budget for Offshore Vendors: Direct Outsourcing Only (Japan CIO Survey 2009)
• Figure: Japan User Companies Offshore IT Services Market by Segment, 2008 and 2013
• Figure: Japan User Companies Offshore IT Services Market Year-Over-Year Growth Rate Forecast by Segment (1), 2008–2013
• Figure: Japan User Companies Offshore IT Services Market Year-Over-Year Growth Rate Forecast by Segment (2), 2008–2013
• Figure: Evolutionary Model of Offshore Services Utilization