Software Outsourcing To India - Tapping The Japanese It Market

By Author: laurenjafor
Total Articles: 10
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The Indian IT industry exports majority of its IT services/products to United States. The software and web development companies in India enjoy a good rapport with their American IT outsourcing partners and have a created a niche for themselves on the American IT platform. The technical finesse, low development costs, high proficiency in English language and complimentary time difference are major players in the Indian IT success in America. However from business point of view complete dependence on US will not be enough to keep India abreast of its rivals like Philippines and China for long time. Though at present India is the number one in software outsourcing, these countries are fast catching up. On other hand the smooth passage of anti-outsourcing bill through the US senate indicates a shift in US attitude towards software outsourcing to India.

It is high time Indian software development companies explore new destinations to export their IT services. Japan offers great opportunity to Indian software companies. Japan is the second largest market for IT services after US but constitutes less than 2% of IT services ...
... exports from India. With 108 USD billion of market for IT services, driven mainly by manufacturing, banking and Finance industries, Japan has become quite attractive now for Indian software outsourcing industry.

The Japanese IT requirement is more oriented towards enhancing the business productivity and achieving greater flexibility to meet the challenges of the changing business scenario. The Japanese businesses have acquired world fame and known for their capacity to deliver world class products at competitive pricing. The Japanese dominance in business is however subjected to growing challenge from other countries and such the businesses always strive to increase their businesses efficiency. There is shift from the requirement of custom made IT applications to packaged software. ERP and CRM top the wish list.

Besides this Indian companies can capitalize from the fact that Japanese companies today are looking to modernize/migrate their legacy applications to cut down the high maintenance costs and keep their businesses competitive. This area of great interest to Indian software companies as they have technical finesses to deliver innovative software migration solutions to the Japanese businesses.

However penetrating Japanese market will be easier said than done because of many reasons. First one is language barrier, because the businesses there prefer IT vendor with strong Japanese language skills. The Japanese industry welcomes long term investor and players, and not to those investors who want to make quick bucks in short term. Therefore IT industry should have long term plans for Japenese market so that in can it can generate more software outsourcing to India from Japan.

The close proximity of China to Japan, culturally and geographically, makes it preferred IT outsourcing destination over India. China has significant number of Japanese speaking software professionals and this makes it easy for the Chinese company to create and run a low cost offshore development center oriented towards Japanese IT development. The Indian software development companies can get around this by investing in ODC in China and tap the Japanese market from there and meanwhile adopt more Japan-centric approach like training employees in enhancing Japanese language skills, following business models that facilitate more software outsourcing to India from Japanese companies and increasing their presence in Japan.

Tatvasoft makes Software Outsourcing to India attractive by providing end-to-end IT services at low cost so that online businesses can enhance their productivity.