Japanese IT Cos interested in Indian counterparts

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A recent Nasscom journal has reportedly accounted that most of the prominent Japanese IT companies are highly keen on acquiring Indian IT set ups. The Japanese IT services market which is worth $108 billion kitty is the world’s second largest after US. The prominent factors behind the growing Japanese interest in the Indian market are apparently the lack of skilled manpower and surging costs in global centers and local markets and that clearly is driving the enterprises to buy cheaper off shore destinations in India.

Among the major players in the Japanese IT market are Fujitsu, Toshiba, NEC, NTT data and US headquartered IBM. They have mainly been plying in banking and BFSI sectors. The recent interest by some of these players indicated that these entities are largely focusing on mid to large sized IT companies in India as it makes sense to operate from India settling on the cost part, ensuring comprehensive global catering.

Three of the aforementioned IT firms Fujitsu, NTT data and Hitachi consulting were among the early bidders in the race to acquire Patni Computers, though all of them stepped back due to internal reasons. Though the recent past is witness to some of the successful take-overs when Keane International and US based Intelligroup were acquired by NTT Data in 2010 and Hitachi consulting acquired Sierra Atlantic in January 2011. Interestingly, over three fourths of employees in these companies are based in India.

As per the industry experts, this is a good move by the Japanese firms, especially when it comes to gaining scale and reviewing costing areas.

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