Appropriately or wrongly, the freelancing – in particular overseas outsourcing – sector in Japan has tended to be viewed as being markedly less developed than the equivalent sectors in America and Europe. A range of contributing factors can be considered to be behind this situation – but as the global economy is constantly on the go through troubled waters even traditionally offshore-averse institutions in Japan are having to reassess their perspectives. fusionex founder
All of us spoke recently with Shinichi Yamada, of NTT Info Corp., Japan’s most significant software services firm and a business considered by many as being among the list of country’s foremost advocates of offshoring. A twenty-year veteran of NTT Info, Yamada is now the company’s executive vp and chief technology officer, and played a key role in the acquisition of Pune, India-based Vertex Computer software, a move which NTT Data hopes will both increase an unique competitiveness and enhance its credentials as a provider of outsourced services to Japanese as well as to ALL OF US and European companies.
Queen: NTT Data has a reputation as being an offshoring pioneer in Asia. Can you show a little about the business offshoring strategy and how it has developed in recent years?
A: While a way of computing our cost reduction, we certainly have organized an Offshore Creation Promotion Office since the year 2003 to encourage company-wide organizations to promote offshoring. Beijing NTT Data (a totally subsidiary), which was at first a business devoted to the Chinese domestic market, has changed its policy to give attention to offshore business. Meanwhile, we have actively used in Chinese offshore companies, and made an idea to promote offshoring not only in we but also in our business lovers. Our offshore ordering cost will be more than? 7 billion ($64. 5m) in 2008, and we expect it to reach? 10 billion ($92. 2m) by 2009.
Q: The initial forays offshore were into China, but just lately you’ve invested heavily in India, in particular in your subsidiary Vertex. How come is this?
A: Though our offshoring has recently been growing as planned, the degree of dependence (offshoring ratios divided into countries) on China as of 2006 was over 95%. To avoid country risk (i. e. currency, laws and regulations, disasters) in China, we researched other offshoring locations, such as India and Vietnam, and determined that Vertex had a chance to take partial charge of Japanese people offshore, so we put in capital in the business. With 250 employees, Vertex can take on projects from Nippon and USA – 50-50. A development team for Japan can make specs, coding and communications in Japanese through their own special Japanese study system, and holds high-quality technology that has been developed from US business.
Queen: What do you observe as the key dissimilarities between Cina and India as locations for doing business?
A: As compared with China and tiawan, which is located very near Japan and has a time difference of only an hour, the length to India is a substantial wall for us to work with them. The inconvenience of flying to India (because there are few direct flights from Japan) makes us feel India is very much away. Actually, some job managers in our company sometimes hesitate to send out their orders scheduled to that barrier. As well, a halfway time big difference – 3 1/2 several hours – might feel irritating when we set an audio tracks conference with them.