(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Hitachi to Reorganize Software Service Businesses
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September 29, 1998 (TOKYO) -- Hitachi Ltd. plans to reorganize its software
service businesses, company officials told Nikkei Watcher on IT Business.
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Hitachi said it intends to review its software service businesses and
integrate affiliated companies in the business that are under the company's
consolidated accounts.
This will result in the birth of a large-scale software service business
unit of approximately 20,000 employees and consolidated sales of about
650 billion yen (US$4.75 billion).
According to the Hitachi officials, the company's aim with the changes
is to compete head to head with IBM Corp. and Fujitsu Ltd., which are
ahead in the growing software service market.
Hitachi plans to integrate its Information Systems group, which has a
software service business unit with a staff of approximately 9,000,
and its affiliates Hitachi Software Engineering Co., Ltd. with 4,400
people, and Hitachi Information Systems Ltd. with 3,600 people, as well
as Hitachi System Engineering Ltd. with 2,000 workers.
Sources close to Hitachi said that it is yet to be determined whether
Hitachi itself will absorb the affiliates or separate its Information
Systems group to form a new company in mergers with affiliates.
How the business is integrated will have significant implications for
Hitachi's global strategy for its software service business. The company
reportedly will make a final managerial decision by examining multiple
options such as acquisitions of large- or mid-size services companies
in Europe and the United States, establishment of joint venture companies,
or entering into strategic alliances.
(Nikkei Watcher on IT Business)
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