Japan IT Outsourcing 2004 User Survey: Customer Perception and Needs

This IDC study is based on the results of IDC's user survey on Japan IT outsourcing conducted in November 2004. It analyzes and summarizes companies' usage of IT outsourcing and ASP services. It also illuminates the issues faced by such services and includes recommendations by IDC.

While the Japan IT outsourcing market has been fast growing, the increase in the number of user companies has somewhat stagnated. Also, competition from rival companies and packaged applications is getting more intense, and service vendors are finding themselves in an increasingly harsher environment. "User companies strongly expect operation cost reduction from the use of IT outsourcing. Service vendors are faced with the difficult task of having to suppress service cost and providing timely services at the same time, especially when upfront investments are required for IT outsourcing. It is important for service vendors to clearly define their own strengths and provide user companies with services that not only reduce their operation costs but also improve or reform their businesses," opines Satoshi Matsumoto, senior market analyst, IT Services, IDC Japan.