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It is difficult to win the trust of the Japanese industry. But the ice is now broken. The Japanese market is fast emerging as the biggest opportunity for Indian software exports after the Americas.

The size of the Japanese market and current business trends already indicate that the country is well on its way to become the second largest importer of Indian software.

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Impressed with the efficiency of the Indian software industry, Japanese companies are now looking for joint ventures too. With an eye on the booming global market, they are also keen on technology collaborations.

According to the Electronics and Computer Software Export Promotion Council Executive Director R H Naqvi, many Japanese companies are also looking for contract manufacturing operations in India to make a dent in the world market by developing India as their second base.

Already Japan has galloped from nowhere to reach the third spot among India's major software markets, trailing only behind the US and the European Union.

Because the groundwork has been done, software firms should now focus on Japan where the business potential is huge and must be tapped properly, Naqvi says.

This is crucial because Japan has emerged as a $50 billion market for software, larger than even Europe. In the medium term, Naqvi feels, Japan would become the second largest market in the world for software after North America.

"It is very difficult to gain a toehold in the Japanese market. However, once their confidence is gained, they are with you. Now that hard work and planning has impressed on the Japanese that the Indian software sector is reliable, business should grow by leaps and bounds and our firms should concentrate on this market," Naqvi says.

He has been quoted as explaining that Japan now accounts for 7.55 per cent of the software exported from India.

The top place is occupied by the US with 57 per cent and the EU follows closely with 26.2 per cent. No other market has a large share with Singapore, Hong Kong and Asian countries together accounting for only 4.5 per cent.

Australia accounts for 2.3 per cent of Indian software exports. Africa is the destination for 1.05 per cent Indian software exports. The share of the Gulf region is around 1.20 per cent while Latin America's share is just 0.08 per cent.

Till 1994-95, software exports to Japan were negligible, recalls Naqvi. Then ESC tied up with the Centre for International Co-operation for Computerisation under the Asia Cupertino Programme of Japan External Trade Organisation.

This led to exchange of nearly 10 business delegations and the Japanese consumers could interact with Indian software industry representatives.

Naqvi says at least 150 representatives of the Japanese industry met with 300 Indian software industry representatives and meeting were held all over the country, including Bangalore, New Delhi and Bombay. Now collaborations are on at various levels.

Since the Japanese look at business with a long-term view, he said Indian firms would do better to secure a strong position in this large market.

- Compiled from the Indian media

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