Cebu IT players told: Best way to penetrate Japan offshore market is to go to Japan

Although Japan offers multi-billion dollar opportunity for Information Technology (IT) offshore venture, it is a bit difficult to penetrate this market, unless one could invest more time and money.

Japan's IT industry is a US$130 billion industry, which made the country, the second largest IT market in the world, next to the United States.

In a seminar hosted by the Japan External Trade Organization (Jetro) dubbed "How to Succeed in Offshore Development Business for the Japanese Market," at the Cebu City Marriott Hotel, IT expert Atsuo Miyazaki said although a huge number of companies in Japan is needing offshore services for IT, most of them are requiring higher standards.

"This year's offshore ventures to Japan may be difficult. It is necessary to go into inside business first, before penetrating a company. Coming to Japan and do an on-site activities is very important," Miyazaki told Cebu IT players.

He warned though, that although Japanese IT vendors are now stricter in choosing offshore partners overseas, most companies are looking at the Philippines as potential offshore partner.

Consequently, Filipino IT companies are urged to improve productivity, standard, quality, efficiency, in order to be known as world-class player in IT, said Cebu Investment Promotion Center (CIPC) Joel Mari S. Yu.

He stressed that many companies in Japan are requesting for "one-site" visit. So, the best way to penetrate the huge Japanese market for offshore venture is to "come to Japan" he said.

This would mean a huge investment of money and time for those start up software companies.

In the past, Miyazaki said there were a lot of IT vendors in Japan who tried to adopt the offshore venture, but failed. Now, he said most companies are careful in choosing offshore partners.

Compared to other countries, like China, India, and Vietnam, the Philippine IT services export to Japan is very small. Miyazaki said it is because there are only few IT companies coming to Japan to look for offshore partners.

What is also important is for Filipino companies or IT engineers to learn to speak Japanese language.

Also he added that one of the ways to enter the huge IT market through offshore is for Philippine-based IT companies to coordinate and make partnership with Japan IT and Service Industry Association (JISA).

JISA has 350 IT company members, partnering with this association would also help IT companies in the Philippines, or in Cebu to penetrate Japanese market.