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Status of Outsourcing at Fujitsu
Fujitsu has retained the top share*1 of Japan’s outsourcing market, in terms of rev-
enue, every year since fiscal 2003 (ended March 31, 2004), and boasts the fourth
leading share*2 of the market worldwide. In recent years, a growing need has
emerged among corporate IT systems divisions to outsource the operation of their
own IT systems, fueling annual growth in the market for such services in Japan. In
fiscal 2007, Fujitsu recorded ¥514.3 billion in revenues from outsourcing in Japan,
an increase of 9% year on year, and exceeding our revenue target of ¥510.0 billion
for this business. We anticipate ¥600.0 billion in outsourcing revenues in fiscal 2008
and ¥680.0 billion in fiscal 2009, driven by projected double-digit growth for both
years. We are also targeting an operating income margin of 10% or more for the
same two-year period.
Outside of Japan, the outsourcing business is conducted mainly through Fujitsu
Services, our UK-based subsidiary. Fujitsu Services has a wealth of experience in out-
sourcing for large government-related projects in the UK, and the company is now
expanding business with the corporate sector. For example, Fujitsu Services recently
received an order to deliver IT infrastructure services for news and information pro-
vider Reuters of the UK. Fujitsu Services also recently purchased TDS AG of Germany
and Mandator AB of Sweden in a bid to expand its capacity to offer services on a
global scale. Through these and other proactive steps to develop business, Fujitsu
Services recorded sales of £2,567 million for the fiscal year ended March 31, 2008.
*1 Source: IDC, August 2007
*2 Source: Gartner, April 2008, GJ08334
FUJITSU OUTSOURCING BUSINESS TARGETS JAPAN
Sales Growth:
Continue double-
digit sales growth
Operating Income:
Operating income
margin over 10%
Outsourcing
Business Domains
Data centers
On-site (LCM)
Support desks
Networks
APM
BPO
“Outsourcing” is the general term for corporate efforts to shift certain business func-
tions and resources to professionals outside one’s corporate domain, or to conduct
external procurement. Broadly speaking, outsourcing can be applied to the full spec-
trum of business functions, from general affairs, personnel and accounting, to sales
and production. In the IT field, however, outsourcing refers more specifically to the
strategic entrustment of information systems, from construction to operations, as
well as necessary equipment, to outside professionals.
Fujitsu is expanding its outsourcing business, having positioned it as a key business
to spearhead corporate growth going forward.
SALES OF FUJITSU SERVICES
(Millions of Pounds)
(Billions of Yen)
FEATURE 1: BUILDING ON OUR STRENGTHSFUJITSU’S OUTSOURCING BUSINESS
(Years ended March 31)
(Years ended March 31)
(Target) (Target)
GLOBAL OUTSOURCING
MARKET SHARE IN FISCAL 2007
REVENUE BASIS
Fujitsu
3.4%
Company A 11.8%
Company B 6.4%
Company C 4.0%
Company D 3.1%
Others 71.3%
(Source: Gartner, April 2008, GJ08334)
2004 2005 2006 2007 2008
0
600
1,200
1,800
2,400
3,000
1,735
1,986
2,294 2,465 2,567
2005 20072006 2008 2009 2010
0
200
400
600
800
380.0
460.0 510.0
415.0
600.0
680.0
016
ANNUAL REPORT 2008FUJITSU LIMITED