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Indian IT and IT-enabled services industry is setting its eyes on the Japanese market, the second biggest IT market after the US.
Heavily depended on the US and European markets for long, the National Association of Software and Services Companies (Nasscom) is now looking at the Japanese market that holds a lot of promise for the Indian industry.
“It is a very big IT market, second only to the US. But it comprises only two per cent of the total revenues of our total IT revenues. We have decided to focus on this market. We are going to build bridges to tap the opportunity there,” R Chandrashekhar, President of Nasscom, told Business Line .
The IT-ITeS industry generated revenues of $118 billion last year, with exports contributing $86 billion and domestic market $32 billion.
The industry generates more than 50 per cent of its revenue from the North American market followed by the European Union market.
Biz team to visit Tokyo With the US and European markets facing challenges in the last few years, the industry has been planning to open up other global markets. In order to crack the new market in the Far East, the Nasscom will lead a high-level business delegation to Tokyo and other top cities in Japan to hold one-one-meetings with top firms there to explore opportunities.
“The Prime Minister is going there this month. And it will be followed by our delegation. We think it is the right time for both sides to explore markets in the two countries,” he said.
In association with Japan, the IT industry body launched Nasscom-Japan Council in April to focus on the interests of Japanese global in-house centres (GICs) based in India and address the challenges they faced.
India is a major GICs destination, with a share of 30 per cent of all new set-ups globally. The GIC exports are pegged at $17 billion by the end of 2014.
US, European markets The Nasscom President said the US market is reasonable with the economy doing moderately well.
“The worst days of recession and even contraction are over. It is cautiously, not euphorically, better market,” he said.
In Europe, the UK market is okay and Nordic countries are holding the promise.
On the ₹500-crore technology entrepreneurship fund the association mooted, he said the amount was not the key. “It can be, say ₹100 crore. I have told the Union Finance Minister that the allocation should be token but reasonable to kick start the operations,” he said.
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