Thursday, January 31, 2008

Is Japanese market ready for off shoring?

According to Jonathan Browne, senior analyst at Forrester Research-Japan, Indian vendors have a chance to diversify into the Japanese market in the long term. But for now, the Japanese market is not ready for off shoring.

Indian firms believe the Japanese market is under pressure to cut costs and raise efficiency. Wipro has around 450 employees in Japan which made up around 3% of revenues last fiscal. Satyam has set up a Japan Centre of Excellence, with around 100 engineers from India, China, Vietnam and Japan.

TCS, for instance, has built a facility in Yokohama, and set up a Japan offshore delivery centres (JODCs) in Kolkata and Pune.

The country's biggest software services company, TCS, has about 2,000 engineers servicing Japanese customers globally. The Asia Pacific region, including Japan, contributes around 5.5% of its revenues of Rs 5,923 crore in third quarter of FY08.

"Our Kolkata centre is the knowledge hub for Japan. It works with other satellite J-ODCs in China and other global development centers in India to serve Japanese clients," said Ashok Ganesh Pai, deputy general manager, TCS-Japan.
-The Economic Times

No comments: