Posts Tagged ‘Japan’

Yahoo Japan Selects Google Search

July 28th, 2010

n an online version of the old three shell game, Yahoo, Google and Microsoft have been shuffled around in Japan with Google uncovered as Yahoo Japan’s new search partner, leaving Yahoo Inc. (USA) in the lurch.

Microsoft, which partners with Yahoo in the U.S., is also out in the cold. Yahoo Japan’s president Masahiro Inoue announced the decision Tuesday after his firm concluded that Microsoft’s search technology was not strong enough for its needs in Japan, according to the Reuters news service. Yahoo Japan is 35% owned by Yahoo Inc., but that percentage wasn’t enough to override the 40% stake owned by Softbank.

To complicate matters further, Yahoo Inc. has been outsourcing some of its search capability to Microsoft.

A possible antitrust problem — Google and the new Yahoo search capability could represent as much as an 80% search market share in Japan — has been cleared with the Japanese government, according to media reports.

Yahoo Inc. will remain associated with the Japanese affiliate as a strategic partner and will continue its financial stake in the Japanese unit.

Last year, Yahoo Inc. signed a 10-year agreement with Microsoft to shift web indexing to Microsoft while Yahoo improved its search capability. Still earlier Microsoft had offered by purchase Yahoo Inc. outright, but Yahoo’s management at the time rejected the offer and Yahoo stock has still not recovered from the pre-offer price.

Source:http://www.informationweek.com/news/storage/data_protection/showArticle.jhtml?articleID=226300081&subSection=All+Stories

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Many in Japan are outsourcing themselves

July 21st, 2010

In October 2008, when the world was reeling from the collapse of Lehman Brothers and job markets were freezing up everywhere, Akane Natori waltzed into a new position she liked. “Things went so smoothly after applying online, and before I knew it, I had the job,” said Ms. Natori, who was then a 26-year-old sales assistant at an import-export company in Tokyo.

There was just one catch, one that speaks volumes about the Japanese economy and the challenges younger Japanese face in a country where college graduates used to count on lifetime employment with the company they joined right out of school. Ms. Natori’s new job — working in a call center answering queries from customers in Japan — was in Bangkok.

Under fierce pressure to cut costs, large Japanese companies are increasingly outsourcing and sending white-collar operations to China and Southeast Asia, where doing business costs less than in Japan. But while many American companies have been content to transfer work to, say, an Indian outsourcing company staffed with English-speaking Indians, Japanese companies are taking a different tack. Japanese outsourcers are hiring Japanese workers to do the jobs overseas — and paying them considerably less than if they were working in Japan.

Japanese outsourcers like Transcosmos and Masterpiece have set up call centers, data-entry offices and technical support operations staffed by Japanese workers in cities like Bangkok, Beijing, Hong Kong and Taipei.

Such outposts cater to Japanese employers who say they cannot do without Japanese workers for reasons of language and culture. Even foreign citizens with a good command of the Japanese language, they say, may not be equipped with a sufficiently nuanced understanding of the manners and politesse that Japanese customers often demand.

“If you used Japanese-speaking Chinese, for example, the service quality does not match up with the expectations of the end customers,” said Tatsuhito Muramatsu, managing director at Ms. Natori’s employer, Transcosmos Thailand, a unit of Transcosmos, which is based in Tokyo.

Statistics on exactly how many Japanese have taken jobs outside the country at lower wages are hard to come by. But according to the Japanese Ministry of Internal Affairs and Communications, there was a net outflow of 100,000 Japanese in the year that ended in September 2008, the most recent for which statistics were available. It was the highest number in the past 20 years.

While the number of workers sent overseas by Japanese companies on traditional expatriate packages fell 0.32 percent in the same period, the number of “independent businesspeople” and freelance contractors like Ms. Natori rose 5.69 percent, according to data from the Japanese Foreign Ministry. Many of those workers were headed to cities like Shanghai and Bangkok, where net increases of Japanese residents have been recorded in the past several years, according to the ministry.

Many large Asian cities — including Bangkok, Hong Kong, Jakarta, New Delhi, Shanghai and Singapore — have three to four Japanese job placement agencies each. Four Japanese outsourcing companies run call centers in Bangkok, which is a particularly attractive city for such operations because it has low costs but good amenities, offering a living standard that young Japanese enjoy.

Transcosmos runs the largest Japanese call center in Bangkok, having nearly tripled its staff from 60 workers in late 2008 to 170 now. “We see ourselves growing to as large as 500 workers here,” Mr. Muramatsu said.

Transcosmos pays a call center operator in Thailand a starting salary of about 30,000 baht, or $930, a month — less than half of the ¥220,000, or $2,500, the same employee would get in Tokyo. That means a saving of 30 percent to 40 percent for customers, Transcosmos said.

Masterpiece, another Japanese outsourcer, has operations in Bangkok, Beijing and Dalian, China. Its workers handle jobs like mail-order service requests, processing of time sheets and other salary paperwork, and following up on e-mail inquiries. The company has Japanese and Chinese employees, and according to its Web site it is hiring people to establish another call center, in the Philippines.

Japan lost 240,000 jobs in May, government statistics showed, bringing the seasonally adjusted number of people with work to a two-decade low. The unemployment rate rose to 5.2 percent. Although exports have picked up since the end of 2009, economic growth remains slow. Gross domestic product expanded 1.2 percent in the first three months of 2010 from the level in previous quarter.

Source:-http://www.nytimes.com/2010/07/22/business/global/22outsource.html?src=busln

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Patni computer ceo,looking to tap japan for faster revenue growth

June 24th, 2010

Patni Computer Systems Ltd. is shifting focus to the nascent outsourcing market in Japan to perk up its revenue growth, as the Indian software services exporter looks to cash in on the increasing need for companies in Asia’s biggest economy to cut costs.

“We would like to grow faster in non-traditional markets beyond the U.S. and the U.K.,” Chief Executive Jeya Kumar said in a recent interview.

“Its (Japan’s) stagnating growth and declining profitability creates a ripe environment for outsourcing…Japan will increase outsourcing.”

The New York Stock Exchange-listed company’s foray into Japan comes at a time when major markets–the U.S. and Europe–remain cautious on technology spending, mainly due to the slow pace of recovery from the global economic turmoil.

Japan is a $110 billion outsourcing market, with only 8.5% of the work being moved out of the country, Kumar said, indicating that there is still room to penetrate into this market.

Source:http://online.wsj.com/article/BT-CO-20100624-702296.html

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Patni promoters, PE co plan to sell stake to Japan’s NTT

May 6th, 2010

The Patni brothers are likely to offload a large chunk of their combined stake in Patni Computer Systems, while private equity firm General Atlantic plans to sell its entire holding in the software company to Japanese systems integrator NTT Data, according to people with knowledge of the matter.

The three brothers, who together hold 46.5%, are expected to retain a combined 10% stake in the firm. Ashok Kumar Patni holds around 15.5%, Gajendra Kumar Patni owns 15% and Narendra Kumar Patni has 16% stake in the company. General Atlantic, which holds 17.7% in Patni Computer, will sell its entire stake, said an investment banker requesting anonymity.

“The talks are progressing well and are at a fairly advanced stage. The way the deal is envisaged currently, General Atlantic will sell its entire stake in Patni Computer, but the brothers could continue to individually retain a small or token percentage,” he said. NTT is likely to pay between Rs 650 and Rs 700 per share for a controlling stake of 51% in the company, said another person with knowledge of the transaction. With General Atlantic’s 17.7% stake and 33% from the Patni brothers, NTT stands to acquire a 51% stake in the firm. A Patni Computer spokesperson said: “We do not comment on market speculation.”

Shares of Patni surged 10% to Rs 623.90 before closing at a new high of Rs 608.60 on the BSE on Wednesday. The transaction, if it goes through, will be one of the largest in the history of the software industry in India, valued at nearly Rs 4,300 crore to Rs 4,600 crore. It will also result in an open offer for the shareholders of the company.

For General Atlantic, this will be one of its first exits from the investments it made in the early part of the decade in a number of outsourcing providers. ET was the first to report that talks had re-started between NTT and the stakeolders in Patni Computer in early April. It was also the first to report of differences between the Patni brothers way back in 2005 with two of the brothers, Ashok Patni and Gajendra Patni, wanting to sell out.

This will be the first time a Japanese systems integrator is getting such a significant footprint in India, allowing it to better compete with the likes of IBM and Accenture. “Japanese IT service vendors have a relatively lower exposure to offshore resources as compared to American and European majors.

In this context, NTT’s interest to acquire a stake in Patni is driven by the aim to partake greater exposure to offshore supply base and correct the lopsided onsite offshore ratio that NTT currently posses,” said Alok Shende, principal analyst, Ascentius Consulting. “This investment equally reflects a greater legitimisation of offshoring as a strategic trend in the traditionally conservative Japanese firms and this will in turn attract other Japanese IT services vendor to acquire IT services companies in India,” he added. Since 2005, there have been several attempts to sell stake in Patni Computer Systems.

Last year, after a long search, the company was eventually able to hire a professional CEO, Jeya Kumar, a former Sun Microsystems executive, paving way for fresh negotiations with potential buyers.

Unlike five years ago, Narendra Patni, who is no longer actively involved in the management of the company, is also selling.

Source:http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Patni-promoters-PE-co-plan-to-sell-stake-to-Japans-NTT/articleshow/5895722.cms

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Genpact cuts deal with Japan’s Hikari Tsushin

April 1st, 2010

India’s top third party business process outsourcing (BPO) firm, Genpact, has announced a multi-year contract with the Tokyo-based Hikari Tsushin Inc, expanding its footprint in Japan.

The outsourcing firm did not disclose the value of the contract, but CEO Pramod Bhasin said that like most contracts for back-office functions, it would start small and then scale up.

The contract covers three types of services — finance and accounting, IT infrastructure support, and customer service. It also includes China, where Hikari is expanding.

Hikari, a fully owned subsidiary of Hello Communications, is in the business of distributing products and services such as mobile phones, subscription to long-distance and international call services. The firm hopes to lower its operating costs and decrease time to market through the deal, according to Shigetaro Toyoda, CEO of Hello Communications.

“Japan is the second-largest IT market. It is opening up, but still not very significant. The Hikari deal gives us a greater foothold in Japan and the very important China market,” said Mr Bhasin. The back-office services provider expects to potentially open more centres in China in coming months. It currently has centres in four cities, Dalian, Changchun, Shanghai, and Beijing.

Genpact employs about 3,500 people in China most of whom are servicing the Japanese market. “About 75 percent of the services we offer from China are Japan-facing,” admitted Mr Bhasin. Genpact was one of the earliest India-based outsourcing firms to set up a delivery centre in China and has been present there for around 10 years.

Source:http://www.tradingmarkets.com/news/stock-alert/htlwf_genpact-cuts-deal-with-japan-s-hikari-tsushin-886868.html

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Fujitsu appoints new head to fill leadership void

January 22nd, 2010

Fujitsu Ltd (6702.T), Japan’s biggest IT services firm, has appointed the head of its system products business as its next president, after months of deadlock that halted restructuring.

Masami Yamamoto, currently a senior vice president, will take the helm of the firm starting in April, Fujitsu said on Friday.

Analysts have said Fujitsu needs to cut costs further if it is keep pace with heavyweights IBM (IBM.N), Hewlett-Packard (HPQ.N) and Dell (DELL.O). Fujitsu, despite efforts to expand abroad in IT outsourcing services, remains tied to a sluggish market in Japan.

“I want to make Fujitsu a truly global IT firm,” he told reporters at a news conference, at which he steered clear of details, saying that he had more studying to do first.

Chairman Michiyoshi Mazuka has been running Fujitsu ever since former President Kuniaki Nozoe abruptly stepped down in September, citing illness.

Mazuka’s provisional status weakened his ability to cut money-losing operations or pursue mergers to boost sales in IT services, company officials and investment bankers said.

The delay may be costly in the rapidly transforming IT services sector, where hardware, software, and services firms are coming together to become more competitive, such as Oracle Corp’s (ORCL.O) planned acquisition of Sun Microsystems Inc (JAVA.O) and HP’s deal for network equipment maker 3Com Inc (COMS.O).

Yamamoto, 56, began his career at Fujitsu designing a Japanese word processing system and working to expand the company’s PC operations overseas. In his current position he is in charge of Fujitsu’s server business.

“Fujitsu has been relatively speedy in restructuring, but some still remains,” he said. He declined to comment on which operations required restructuring, but said he wanted to keep the company’s shrinking chip operations for now.

Fujitsu has been scaling back its chip business, outsourcing development to TSMC (2330.TW). Yamamoto said said it was more important to bring the unit back to profitability before looking for potential partners or buyers.

Shares of Fujitsu ended down 2.2 percent at 578 yen, underperforming a 1.5 percent fall in Tokyo’s index of electrical machinery stocks .IELEC.T.

Source:http://www.reuters.com/article/idUSTOE60L06V20100122?type=marketsNews

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Sony to Outsource Part of its Business Processes to IBM Japan

January 21st, 2010

Sony announced that it will outsource a part of the human resources and accounting operation services of Sony and certain of its subsidiaries in Japan to IBM Japan.

The companies said that Sony is undertaking steps on a global scale to execute structural transformation to achieve profitability improvement and optimize business processes.

In connection with the above-mentioned outsourcing decision, Sony, IBM Japan and Manpower Japan Co. have agreed to establish a joint venture. The joint venture will be formed by splitting a part of the human resources service operations from Sony Human Capital, which currently undertakes human resources service, business travel and insurance operations mainly for Sony Group in Japan.

IBM Japan will provide its human resources
and accounting operation services to Sony Group in Japan using the new joint venture as its base in Japan and IBM Global Delivery Center in Dalian, China as its base outside Japan.

Source:http://www.tradingmarkets.com/news/stock-alert/ibm_sony-to-outsource-part-of-its-business-processes-to-ibm-japan-716887.html

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