Japan IT Services: Analysis of Leading Vendor Profitability 2009

This IDC study, which is a translation of the Japanese report IDC #J9330105, analyzes the profitability among leading vendors in the Japan IT services market. It includes examination and observation of the profit structure of packaged software vendors and datacenter service providers. The tough market environment will continue and it will be appropriate to say that vendors will see reduced revenue or profits in their service business in FY09. The Japan IT market is also unlikely to experience a V-shaped recovery in the future.

"To increase business and strengthen profitability in the floundering IT market, service vendors are required to expand their business scale, differentiate their services through leading fields/specific solutions, thoroughly eliminate wastes, and increase the degree of confidence from customers," says Satoshi Matsumoto, research manager, IT Services, IDC Japan.