Japan Outsourcing Leading Vendor Profiles, 2004

This IDC study summarizes the results of a survey on the 2004 Japan outsourcing market and competition scene. The discussion on the competition scene presents profiles as well as market rankings of the Japan IT outsourcing vendors based on consolidated revenue.

Riding the tide of companies' cost-reduction needs, the IT outsourcing market continues to show high growth. However, the growth has slowed down compared to the 1990s when outsourcing services were sprouting up rapidly. As the outsourcing business garners more attention, competition among vendors has also become more intense. "In the March 2004 period, leading vendors achieved high growth in domestic IT outsourcing revenue. However, if the IT outsourcing services continue to be provided as solutions for cost reduction, vendors will be hard-pressed for profits. It is important for vendors, therefore, to provide speedy systems construction and other services that would improve the value of user companies' businesses," opines Satoshi Matsumoto, senior market analyst, IT Services Research, IDC Japan.