IT Service Market Sales in Japan to Reach US$65.5 Billion by 2005: IDC Japan
November 14, 2001 (TOKYO) -- Annual sales of Japan's IT service market will reach 7.9 trillion yen (about US$65.5 billion by 120.70 yen = US$1) in 2005, International Data Corp. Japan (IDC Japan) said in a report.
IDC Japan said the annual sales of Japan's IT service market for 2000 was 5,277.7 billion yen, up 6.7 percent year-on-year. It predicts that the market will continue to grow at a compound annual growth rate (CAGR) of 8.4 percent in the coming years.
Japan's system integration (SI) market is showing steady growth. IDC Japan predicts that the SI market will grow at a CAGR of 9.5 percent on the strength of the increasing demand for e-commerce, customer relationship management (CRM) services, enterprise resource management (EMR), and supply chain management (SCM). As a result, the annual sales of the SI market will grow from a level between 900 billion yen and 1 trillion yen in 2000 to 1.5 trillion yen in 2005, the research company said.
The markets of IS outsourcing, application outsourcing and network infrastructure management showed steep growth rates. In fact, their growth rates far exceeded the CAGR of the whole IT service market, which was 8.4 percent.
In 2000, the IS outsourcing market registered annual sales of about 870 billion yen, up 12.5 percent year-on-year, and the market for application outsourcing, including ASPs, reached about 120 billion yen, up 12.4 percent year-on-year. According to IDC Japan's analysis, these results indicate that the IT outsourcing services, including the processing service and the other three types of services, are the driving force of Japan's IT service market.
On the other hand, the market size of hardware support and installation declined 3.3 percent year-on-year in 2000. The market is showing a similar trend worldwide.
According to IDC Japan's definition, Japan's IT service market, which comprises IT outsourcing services and non-outsourcing-model services, includes 11 sectors; IT outsourcing services includes intermediate-system outsourcing, processing service, application outsourcing and network infrastructure management. The non-outsourcing-model services include IT consulting, system integration, development and maintenance of custom applications, software support and installation, hardware support and installation, network consulting and integration, and IT education and training.
(BizTech News Dept.) |
