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Even as global uncertainties and restrictions on human resource movements continue to haunt the IT industry, the Nasscom sees a ray of hope in cracking the Japanese market, the second largest market for the IT industry after the US.
The Nasscom, which has increased its Japan-centric efforts three years ago, perceives that there is a realisation among the Japanese firms that they need to diversify their dependence.
Japan presently depends on Dalian, the North-Eastern Chinese city, for most of its IT outsourcing works. Though it is difficult to replicate the model here, the Indian IT industry feels that it can make a dent into the huge opportunity in the far-eastern country.
Hiring locals
“Dalian is geographically and culturally closer to Japan. It is not the same with India. But various Indian companies are making different efforts. While some firms are hiring locals, some others are encouraging their employees to learn Japanese language,” Nasscom President R Chandrashekhar told BusinessLine .
The outgoing President of National Association of Software and Solutions Companies (Nasscom) says that concerted effort from the government and the IT industry is paying dividends in gaining traction there.
“Yes, it (the pie) is increasing. We are pleased with the progress. But whether it will make a dramatic and quantitative impact on our exports, it will take some time. Changes happen slowly,” he points out.
“We have seen some traction. There is a board level interest in Japan (on engaging India IT firms) and there is a greater interest in entrepreneurial and start-up ecosystem. There have been more visits by Japanese teams to India,” he told BusinessLine .
Japan is on the top of Nasscom’s list of newer markets for the IT industry. The other geographies in the list are Germany, West Asia, Africa, and China with a focus on digital solutions.
He, however, felt that the country needed to invest more efforts in the long term in opening that market more.
Guidance for 2018-19
The Nasscom will announce its outlook for the industry in the financial year 2018-19 at the upcoming Nasscom India Leadership Forum (NILF), which is happening in Hyderabad for the first time, beginning February 19.
Deviating from the practice, the Nasscom had deferred the announcement of the guidance last year in the backdrop of global uncertainties.
The IT industry association, however, will not defer its outlook this time.
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