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0
200
400
800
600 584.0
695.9
664.1
632.8
604.8
2010 2011 2012 2013 2014
0
20
40
60
80
56.3 55.3 58.0 59.5
56.6
2010 2012 2013 20142011
2010 Global Market Trends
The value of Japan’s IT services market in
2010 declined 1.6% year on year to
US$56.3 billion. Despite
signs of recovery in the domestic econ-
omy, restrained domestic IT investment
continued as companies took a cautious
stance toward earnings in light of dimin-
ishing returns from economic stimulus
measures and continued appreciation of
the yen, with public sector spending also
scaled back since last year.
By service field, demand for system
integration continued to decline from the
previous fiscal year. In outsourcing,
although market scale continues to
expand, the growth rate has been moder-
ate in the face of growing insistence on
greater efficiency and cost reductions,
while price competition escalates with the
commoditization of services.
The global market for IT services
expanded 2.2% year on year to US$584.0
billion. In Europe, as in the
previous year, the market continued to
shrink in 2010 as a result of ongoing
reductions in IT investment in line with
economic deterioration, along with
cutbacks in public spending by the U.K.
government. In the North American
market, however, IT investment tended
toward recovery with the spread of
cloud computing.
Outlook for 2011
The Japanese IT services market in 2011
is projected to decline 1.8% year on year
to US$55.3 billion.
The scale of the domestic IT market is
projected to continue the decline from
2010, due mainly to uncertainty in the
outlook for corporate earnings stemming
from product and component supply
shortages as a result of damage to man-
ufacturing plants and power shortages
following the Great East Japan Earth-
quake, as well as to moves in the public
sector to prioritize disaster recovery.
gGRAPH 3
gGRAPH 2
gGRAPH 3
At the same time, however, in line
with disaster recovery efforts, companies
are introducing new IT systems such as
cloud computing, and there is a growing
need for outsourcing services that take
into account business continuity and
power supply strategies. Investment in IT
is expected to pick up as recovery efforts
continue and corporate earnings improve.
The global IT services market is pro-
jected to grow 3.5% year on year to
US$604.8 billion. There are
concerns about the continued austerity
measures by the U.K. government, as
well as instability in the European econ-
omy. However, brisk IT investment in
areas such as North America, China and
Oceania is expected to drive the market.
Fiscal 2010 Business Results
Sales from the Services sub-segment
(Solutions/System Integration, Infra-
structure Services) decreased 4.8% from
the previous fiscal year to ¥2,419.5
billion. Excluding currency
exchange rate effects, sales decreased
by 1%.
Solutions/System Integration: Sales
decreased 0.7% to ¥830.0 billion. Exclud-
ing currency exchange rate effects, sales
fell 1% year on year.
Proposals for large projects in certain
segments of the finance and social infra-
structure fields in Japan indicated a
recovery in investment. At the same
time, in the public sector there was a
falloff in business projects with the
downturn in the cycle for large-scale
system renewals, and many customers
curbed investment in light of repercus-
sions from the appreciation of the yen
and end of government stimulus policies.
Sales were also affected by delays in
contracts, deliveries and acceptance with
certain customers due to the Great East
Japan Earthquake.
gGRAPH 2
gGRAPH 4
Market Trends
Operational Review
and Initiatives
GRAPH 1
Global Outsourcing (IT Management)
Market Share in 2010 (Revenue Basis)
1 n Company A 11.1%
2 n Company B 6.8%
3 n Company C 4.6%
4 n Fujitsu 4.4%
5 n Company D 3.2%
6 n Others 69.9%
1
23
4
5
6
(Source: Gartner, “Market Share: IT Services, 2010” 31
March 2011)
GRAPH 2
GRAPH 3
(Billions of U.S. dollars)
(Billions of U.S. dollars)
Global IT Services Market Forecast
IT Services Market Forecast in Japan
(Source: IDC The Worldwide Black Book Q1 2011)
(Source: IDC The Worldwide Black Book Q1 2011)
034 FUJITSU LIMITED ANNUAL REPORT 2011
OPERATIONAL REVIEW AND OUTLOOK
TECHNOLOGY SOLUTIONS/SERVICES