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Deepening the India-Japan ICT connect


The Indian tech sector, with its large pool of rightly skilled people, can help Japan fill this critical gap. The western world is already leveraging India's skill sets by setting up large R&D centers in the country for their higher-end work. Japan, on the other hand, has been lagging behind in this space.

The seminar provided a platform for the government functionaries as well as industry leaders to discuss ways in which the ICT industries of both nations could work together and how Japan, in particular could leverage the strengths that the Indian IT-BPM sector offered its tech companies.

NASSCOM has been working to raise awareness about India's IT-BPM industry among other nations and improve ICT trade with these countries. At the same time, the effort is on to position India as an ace ICT investment destination, and a global sourcing and innovation hub.

While Japan has a vast IT industry, India's share of this sector is a mere two percent. Japanese IT companies too are conspicuous by their absence in India, owing to certain long-held perceptions about difficulties associated with doing business in the country.

All this is changing now, with Japan remaining on the radar of the Indian IT industry. Over the last few years, NASSCOM has been focusing on creating a strong case for the Indian IT-BPM sector among Japan's government and technology leaders and demonstrating the success that Western IT companies have achieved through their presence in India.

With this goal in mind and as a part of its India-Japan IT-BPM Business Forum, NASSCOM organized an IT seminar for the visiting Japanese delegation, with representatives from 22 companies, on April 30, 2015. The aim of the meet was to provide Japanese companies with an update on the Indian IT-BPM industry, highlighting the strides it has made, and urging them to "look at the Indian IT industry again!”

Today, Japan is seeking Indian talent and solutions in sunrise areas such as IoT, IT products, Big Data, Analytics, Cloud and Mobility. A shortage of experts in these areas back home, owing to its demographics, is now compelling the country to look outward.

Fast Facts
Japan-India: looking ahead
Despite Japan being the second largest market in terms of IT spend, India's share remains disproportionately low at two percent
The perceived lack of understanding between the two can be bridged by champions from both sides and the convening of meetings between industry leaders
The Indian market can be used as a playground to build a Japanese manufacturing hub. This will dovetail with the Make in India dream as well
Companies like GE, Bosch and Target have shown great confidence in India and these examples can be followed by Japanese organizations as well
There are many new opportunities in areas besides IT services, such as IT products, SMAC, etc.
Being exposed to US and UK, India has access to global best practices and technologies. It also has domain expertise built on solid domain excellence
There are 1,800 MNCs in India, 40 percent of which are in Bengaluru. The city presents a huge opportunity for Japanese companies
Japanese companies can also explore the GIC way of entering India besides the traditional route through direct investments
Big Data
(As summarized by Yukio Takeyari, Chair, NASSCOM Japan Council).