The economic crisis in US has come up as a wake up call for Indian IT companies. The crisis has made it essential for Indian companies to look beyond tried and tested. It has made them realise that it’s time to diversify both in terms of geography as well as industry. While Europe may appear as one of the most potential geography, there are other options too like Japan.
The world’s second-largest economy and with high rate of technology consumption and usage, the country seems to be a potential goldmine for Indian IT companies. The country offers huge opportunities for Desi IT companies, especially IT service providers.
However, along with opportunities, there are also a few challenges that need to be tackled. Here’s looking into what makes Japan a huge opportunity for Indian companies and the factors that can upset Indian IT’s prospects in Japan.With IT services market worth $108 billion, Japan has the second largest information technology market in the world. India’s share in this market ranges between mere $1 to 1.5 billion. Incidentally, offshoring is limited to 8-10 per cent of the total market.
Japan is also the world’s a second largest economy and is highly dependent on technology. Presently, Japan makes for only 2 per cent of India’s exports.