Abstract
This IDC study (which is a translation of the Japanese report IDC #J7250106)
analyzes the situation and trends of the Japan IT outsourcing market, and
provides market forecasts by segment. It explores the market situation in 2006
and 1H07, and provides forecasts up to 2011. It also provides essential
guidance to service vendors.
The Japan IT outsourcing market enjoyed solid growth in 2006, marking a
year-on-year growth rate of 6.9% to reach 1,884.8 billion yen, thanks to the
companies' expectations for reduction of information system operation cost and
the increase of business processing volume. IDC forecasts that the market
growth will gradually decrease after 2007 because of the market expansion and
that the market will reach 2,486.1 billion yen in 2011 as it is likely to have
a CAGR of 5.7% from 2006 to 2011. "IT outsourcing will contribute to the
increase of revenue for service vendors in the Japan IT services market.
However, IT outsourcing services in Japan are becoming like commodities and
service vendors are beginning to face problems with their profitability. It is
important for service vendors to see from the customers' perspective and to
constantly improve the value of their services," observes Satoshi Matsumoto,
Research Manager, IT Services, IDC Japan.
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