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Japanese IT

India is driving Japan ‘s global IT push

Japanese IT firms are expanding their base in India looking at the country to build software and apps for their home market as customers globally.

Last month, NEC Corporation, which has been present in India for over 60 years, declared the establishment of NEC Laboratories India (NLI) in Mumbai as part of the global expansion of its company market solutions.

“By employing highly-skilled IT talent and conducting joint research with academia, customers and partners, NLI will promote the agile development and commercialisation of solutions for India, initially in the field of public transportation and logistics, both of which are NEC’s growth drivers in India in the next few years.” Takayuki Inaba, Managing Director, NEC Technologies India said. _Economictimes

NEC also aims to bring new technologies built by NLI to nearby developing countries to support NEC’s global market growth.

Fujitsu, which runs the biggest regional distribution hub in Asia, is also seeking to exploit that to repurpose Japanese goods to the rest of the world. Shrikant Vaze, Vice President, Global Delivery Center, Fujitsu Consulting India, said

“We have solutions with deep domain expertise and intellectual property in Japan which need to be repurposed, either contextually or for language, before we take them to other countries. A lot of the knowledge integration for this is happening in India.”  The key factor, Vaze said, is that India is home to Fujitsu ‘s largest bilingual population, giving it the benefit of scale. _Economictimes

Nasscom has a dedicated Japan Council with nearly 20 Japanese firms as members.  “Japanese IT firms are doing a range of things, from plain vanilla outsourcing to product development and research & development in India,” said Gagan Sabharwal, Senior Director, Foreign Trade Growth, Nasscom._Economictimes

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Together, these member firms have around 75,000 workers in India. NTT DATA is home to about half of its 45,000 workers in India and has established local companies to enhance its market footprint here during the last two decades.

“For NTT DATA Services, India is key to its growth due to the vast talent pool available in India. Its current strength of more than 20,000 employees makes it a strong and integral component of NTT DATA Services’ global delivery model, providing expert IT services in applications, infrastructure, and business process domains,” said Ankur Dasgupta, vice president, India/APJ marketing & communications, NTT DATA Service. The India business has been growing in double digits over the last ten years . _Economictimes

It is not just conventional IT services companies who are trying to tap into India ‘s advantages. Rakuten, which has a presence in a broad variety of markets, has its biggest science and technology production centre outside Japan in India.

“Rakuten India plays an integral role in driving our global innovation, developing and deploying next-generation products and services that power Rakuten’s global e-commerce, fintech and media and communications services for our more than 1.2 billion members. We’re looking forward to further growth in the region,” said Sunil Gopinath, CEO of Rakuten India. _Economictimes

Last month, Nasscom brought a group of Indian IT firms to three cities in Japan to look at outsourcing and discuss co-creational possibilities between the two nations. It is in the process of finalizing an IT corridor venue, close to the one it has recently set up in China, to further strengthen this partnership. Despite these measures, India ‘s position for Japanese IT companies can only get more important in the coming years.