Japan IT Services Vendors Strengthen Their Position in Emerging Economies by Establishing New Offices and Datacenters, According to IDC Japan
TOKYO, November 9, 2011 – International Data Corporation (IDC) published its survey findings on the strategies of major Japan IT services vendors for emerging markets. Survey results show that most Japan IT services vendors include business expansions in emerging markets as part of their growth strategies and are moving to strengthen operations by reorganizing existing resources and establishing new offices and datacenters. Emerging markets continue to achieve extraordinary growth and Japan user companies are rapidly expanding operations in these areas. IDC analyzes that it will be crucial for Japan IT services vendors to resort to mergers and acquisitions (M&A) and alliances to quickly establish service delivery frameworks if they wish to win a business in emerging markets.
Markets in emerging economies offer significantly higher rates of expansion, while low growth rates are forecast for the Japan IT services market. Japan user companies are also accelerating their moves into emerging markets. Many companies are already moving into the China market, and a certain number of Japan's larger companies are also enthusiastic about future expansion to other parts of Asia, as well as emerging markets in South America and Africa. As this takes place, emerging markets offer increasingly attractive growth opportunities for Japan IT services vendors.
In response to this market environment, most of Japan's IT services vendors include the expansion of business in emerging markets as part of their growth strategies. The larger services vendors are taking steps to enhance support for Japan user companies by establishing new offices and datacenters in emerging markets. Some vendors are also seeking to expand services to local companies by participating in government-led projects and targeting specific sectors where they have strong track records in Japan market.
To win business in rapidly expanding emerging markets, it is crucial that Japan IT services vendors increase their market presence by quickly putting together service delivery frameworks. "We expect to see an increase in M&A and alliance-building activities by IT services vendors in emerging markets. Vendors will need to determine optimal M&A and alliance strategies after clarifying their target clientele and what that clientele requires," says Akiko Takei, Market Analyst, IT Services, IDC Japan.
The IDC study, Japan IT Services Vendors' Strategy for Emerging Markets 2011 (IDC #JP2578613T), contains a detailed report on the survey. This study analyzes IT services business strategies of major Japan IT services vendors in emerging markets. It also contains points to note on individual target client segments of service vendors developing and expanding business in emerging markets.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.