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  • India's NIIT Joint Venture Launches Business In Japan
  • July 20, 1998 (TOKYO) - A 50:50 joint venture of NIIT Ltd., a leading information service firm in India, and Japan's CSK Corp. started business in Japan this month.
    Japan India Information Technology Pte., Ltd. (JIIT) is a software developer established jointly by the two companies in February 1998. The company, capitalized at S$3 million (US$1.8 million), offers on-site and off-shore software development services. Although its company's registration is in Singapore, its actual sales activities are conducted in Japan with its Japanese branch in Nakano-ku, Tokyo.

    JIIT receives orders of application development and makes design concepts in Japan. Sometimes activities in Japan include even detailed designing. The software house will then proceed with most of detailed designing, or coding and other works to be done later in the process in India. After application development is completed, on-site tests are conducted in Japan, and the finished software is delivered to users.

    It is quite unusual in Japan for a company to offer on-site and off-shore services of developing operational applications as its main business. There are cases in which companies ask foreign software developers to develop middleware or other lower levels of software.

    Initially, JIIT will receive orders mainly from CSK, but it aims to boost the percentage of orders from companies other than CSK to more than 50 percent of its total orders in fiscal 2001 ending in June 2002. Sales are targeted at 500 million yen (US$3.5 million) in fiscal 1998 ending in June 1999 and 4 billion yen (US$28 million) in fiscal 2001. The company also aims to increase the number of employees to 40 in fiscal 2001 from about 10 recorded as of July 1998.

    In the future, the firm hopes to develop systems for multi-national companies in addition to Japanese corporate customers. For that reason, it appointed Shozo Uchida as chief executive officer. Uchida worked for Bain & Co. in the United States and has developed expertise overseas in consultation with ventures.

    JIIT will standardize its two-week internal software development process with a view to precisely communicate requirements from Japanese customers to software developers in India.

    Teiichi Aruga, senior managing director of CSK and chairman of JIIT, said that the ways to make requirements for systems and make specifications differ in Japan and India. For that reason, Japanese companies could not ask Indian firms to develop application-level programs, although they had been eying Indian software developers' ability, he explained.

    Aruga added that few successful cases in the past are attributable to differences in ways to develop systems between the two countries. However, the problem can be solved by standardizing the process, he said.

    (Hi-Tech News Center)

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    Updated: Sat Jul 18 18:31:57 1998