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DATA MINE Aug. 12, 1999

IT Services Take Off in Japan
Japan's information technology market is expected to grow by nearly 26% over a five-year period, from $41.7 billion in 1998 to $52.5 billion in 2003, according to a report released on July 26 by IDC Japan. Outsourcing is expected to surge as companies move to cut costs and free up resources. Also driving the market will be E-commerce-related network services as demand for Internet services expands. The only area in decline will be hardware support and installation as vendors bundle services with hardware (to charge more for services and less for hardware).

(in billions of dollars) 1998 2003
Data Processing Services $11.6 $12.7
Systems Integration 7.5 9.8
Information Systems Outsourcing 6.1 9.6
Information Systems Consulting 1.9 2.7
Hardware Support and Installation Services 6.5 5.8
Software Support and Installation 2.5 4.0
Application Outsourcing .9 1.5
Application Development & Maintenance 1.7 1.9
Network and Desktop Outsourcing 1.1 1.7
Network Consulting and Integration Service .8 1.3
IT Education and Training 1.1 1.5
Total Market Value $41.7 $52.5
DATA: IDC Japan
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