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GRAPH 1
Global IT Outsourcing Market Share in
2011 (Revenue Basis)
1 n Company A 10.9%
2 n Company B 6.1%
3 n Fujitsu 4.5%
4 n Company C 4.2%
5 n Company D 2.6%
6 n Others 71.6%
1
23
4
5
6
(Source: Gartner, “Market Share: IT Services 2011” 9
April 2012)
GRAPH 2
(Billions of U.S. dollars)
Global IT Services Market Forecast
(Source: IDC The Worldwide Black Book Q1 2012)
GRAPH 3
(Billions of U.S. dollars)
IT Services Market Forecast in Japan
(Source: IDC The Worldwide Black Book Q1 2012)
0
200
400
800
600
627.6
739.1
708.2
678.2
650.8
2011 2012 2013 2014 2015 0
20
40
60
80
60.6 61.8 64.2 65.3
63.0
2011 2013 2014 20152012
2011 Global Market Trends
The value of Japan’s IT services market in
2011 declined 2.2% year on year to
US$60.6 billion. GRAPH 3 The domes-
tic economy slowed due to the effects of
the Great East Japan Earthquake and Thai
flooding damage, as well as the yen’s
further appreciation caused by sovereign
debt problems in Europe. As a result,
corporate IT investment was constrained
and the public sector placed priority on
rebuilding from the earthquake, which
led to a reduction in domestic IT invest-
ment, as was the case in 2010.
By service field, demand for system-
building slumped significantly. The out-
sourcing field, which had continued to
grow to date, also saw a decrease in
market scope year on year due to strongly
curtailed current investments, despite
rising needs for disaster-response mea-
sures and datacenter usage with an eye
on business continuity planning in the
wake of the Great East Japan Earthquake.
The global market for IT services
expanded 3.4% year on year to US$627.6
billion. GRAPH 2 In Europe, IT invest-
ment was led by Germany, where export
industries performed strongly due to the
euro’s depreciation. IT investment reduc-
tions continued in other areas, however,
election and the impact on Australian
resource industries of a slowing Chinese
economy, IT investment in the Asia-
Pacific markets will generally be active,
driving market expansion.
Fiscal 2011 Business Results
Sales from the Services sub-segment
(Solutions/System Integration, Infrastruc-
ture Services) decreased 2.0% year on
year to ¥2,371.2 billion. Excluding the
impact of currency exchange rates, sales
were virtually unchanged from the previ-
ous fiscal year.
Solutions/System Integration: Sales
decreased 0.6% to ¥824.8 billion.
GRAPH 4 Excluding currency
exchange rate effects, sales were virtually
unchanged from the previous fiscal year.
Investment recovered in domestic
manufacturing and distribution indus-
tries, as well as in public sectors such as
local governments and healthcare. On
the other hand, there was a reduction in
large projects compared to the previous
year in the finance field, and in social
infrastructure fields such as electric power
and telecommunications, sales fell off
from the previous year as priority was
placed on infrastructure investment
as a result of economic deterioration,
and the overall market was limited to
a slight increase. In the North American
market, however, IT investment tended
toward recovery with the spread
of cloud computing ?.
Outlook for 2012
The Japanese IT services market in 2012
is projected to grow 1.9% year on year to
US$61.8 billion. GRAPH 3
Domestic economic conditions that
had continued to be severe due to stag-
nation caused by the Great East Japan
Earthquake and flooding damage in
Thailand, as well as the yen’s apprecia-
tion, are turning around, and we expect a
gradual recovery to continue. The recov-
ery in domestic IT investment is expected
to be modest in the first half of fiscal
2012, but is projected to broaden in the
second half as corporate earnings
rebound and progress is made in rebuild-
ing from the disaster.
The global IT services market is pro-
jected to grow 3.7% year on year to
US$650.8 billion. GRAPH 2 The IT
market will expand globally, but severe
conditions are forecast to continue in
Europe in 2012 due to deterioration in
the real economy caused by government
debt problems. Although there are uncer-
tainties such as the US presidential
Market Trends
Operational Review
and Initiatives
034 FUJITSU LIMITED ANNUAL REPORT 2012