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Indian IT cos eye Japan

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August 30, 2005 12:37 IST

Having marked their presence in the US markets by capturing a fair deal of business, Indian IT companies are now eyeing Japan for opportunities.

Despite being the second largest economy in the world and one of the most advanced nations in information and communication technology, Japan still remains a market to be tapped. Currently, Indian software exports to Japan accounts for only three per cent of the total market.

"Precisely, this is the factor which is making Indian IT companies to look at Japan," Sanjayyes Khendry, vice president (business development) of Sierra Atlantic, told PTI.

The company, which is eyeing Japan for considerable business, has already over $1million business with Japanese companies.

"We see lot of business potential there. Indian firms have an advantage as Japan being an expensive economy has an eye for quality. The cost-advantage in offshoring to India without compromising on quality is a major pull for Japanese companies," says Khendry, who has been visiting Tokyo almost every month.

Though language has been a major barrier in Japan, many companies are finding ways to deal with it, he adds.

In fact, some major IT companies here have been making preparations to crack the language barrier either by hiring professionals with knowledge of Japanese or encouraging a select few to get to terms with the language, according to industry sources.

However, the honeymoon with Japan would be rather a tough one for Indian corporates. "The Japanese take a long time to commit to business deals. Unless we are extremely sticky about deadlines and quality, it is difficult to convince them," says Ashank Desai, chairman of Delhi-based Mastek Ltd, which operates an office in Japan.

Though there has been business with Japan in areas where language is not a barrier, scope for Indian IT companies now appears brighter in many other areas too, he adds.

The corporate endeavour, seen together with the MoUs that Delhi and Tokyo recently signed to further cooperation and business ties in ICT, is expected to benefit Indian IT, say analysts.

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