This IDC study compiles the situation of and trends in the Japan IT outsourcing market by segment. This study also analyzes the market situation in 2003 and provides forecast up to 2008, including IDC's recommendations to service providers.

"IDC forecasts that the Japan IT outsourcing market in 2008 will reach 2,336.3 billion Yen with the average annual growth rate (CAGR) of 8.2% between 2003 and 2008. The market has been maintaining rapid growth since 1990, but it slowed down slightly in 2003 due to the decrease in the number of new large-scale projects," says Satoshi Matsumoto, senior market analyst, IT services, IDC Japan. He further says that user companies have high expectations toward using IT outsourcing. He expects that the market will continue growing. "The required service content is becoming more diverse in terms of consulting and operation. Service providers are required to respond to changes quickly while facing new business opportunities," he adds.