A short follow-up on last week's post regarding market data for the first half of the year.
Historically a major contributor to the outsourcing market in the Asia-Pacific region, Japan has seen a marked slowdown in the last 12 months with respect to deals with a total contract value of US$25 million or more.
Anecdotal evidence does not suggest that there are large numbers of unreported deals within that range, so either the deals in Japan have become smaller and therefore don't make the threshold, or activity has actually slowed for a while.
My hypothesis is that, consistent with the general trend of reduced sourcing activity in times of economic uncertainty, Japan has been in a recent period of economic uncertainty resulting in the trend we have seen.
Anecdotal evidence also suggests that the uncertainty has given way to acceptance of the current macro economic climate, and that we are likely to see a pickup in sourcing activity over the next 12 to 18 months.
Is that a bold prediction to be challenged?
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