System and Process Analysis of IT/IS Outsourcing in Japanese Market: Opportunities for India

The economic melt down in North America has taken a toll on most Information Technology/Information Systems companies in India. In response, Indian IT companies are looking towards untapped opportunities in other parts of the globe. The IT outsourcing market of Japan is the second largest market of world after USA. Based on a case study of a large transnational IT firm, this article examines the IT outsourcing process of Japanese firms and attempts to identify the lower level of Indian penetration to the Japanese IT outsourcing market using tools like SAP-LAP analysis, Porter's five force analysis, Root Cause Analysis and SWOT analysis. Grounded in available knowledge on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model is composed to examine the causal structure of capability, process flexibility, and relationship in IT outsourcing. By proposing a framework developed through a case study, this article will assist management of Indian IT companies to obtain the benefits from the IT/IS outsourcing market in Japan.