Japan IT Services Analysis of Leading Vendor Profitability 2010

This IDC study (a translation of the Japanese report IDC #J10390104) focuses on the revenue and profit trends of leading Japan IT service vendors in FY09, and investigates/analyzes the efforts by these vendors to maintain profits. This study also refers to situations of these vendors in FY 1H10 (April–September).

The trend of reduced revenue and profit for leading Japan IT services vendors strengthened in FY09. However, due to a variety of cost reduction efforts (such as the leveraging of offshore resources, improved productivity through enhanced personnel training systems, the utilization of templates when providing services, service products, and countermeasures against unprofitable projects), profits are recovering. "With the Japan IT services market growing slowly, instead of simple cost containment, vendors need to implement strategic cost reduction measures and make structural changes such as eliminating unnecessary costs and making bold reductions," says Yukiharu Yorifuji, group manager, IT Services, IDC Japan.