Outsourcing Japan market research and strategy consulting to India, Philippines?? – a recipe for business failure in Japan?

Business decisions unrelated to market realities are a prime reason for failure of foreign companies in Japan

In a quest to reduce market research costs, Japan market research is often outsourced to India, Philippines, Indonesia etc

With shock and surprise we recently found out that a very famous telecom and IT industry market research and strategy consulting firm with a globally famous brand apparently outsources market research of Japan’s mobile phone and telecom sector to India. The Indian employees apparently are diligently studying the Japanese language in evening classes, so that in a few years time, they will be able to read a little of the Japanese mobile market information which can be found on the internet, we assume.

We believe that this explains why so much information about Japan’s telecom and mobile phone markets circulating outside Japan is incomplete, or in many cases even wrong. As a consequence companies like Vodafone then take management decisions in Japan, which were totally unrelated to Japan’s market realities.

This fact also contributes we believe to the fact, that some of the most famous global companies in the telecommunications sector find it so difficult to succeed in Japan – not that Vodafone, Nokia (mobile phones and VERTU – except networks which are a great success), Cable & Wireless, Deutsche Telekom all withdrew from Japan – outsourcing market intelligence to low-cost countries such as China, India, Philippines etc. is certainly one of the contributing factors.

Indeed similar to Vodafone’s departure from Japan, famous global telecom consultancies have also closed shop in Japan, due to the very high costs and the continuous high investments necessary to achieve and maintain leadership in understanding Japan’s telecommunication markets.

We can assure our newsletter subscribers and our customers that our original Eurotechnology market reports and our strategy consulting is hand crafted in Tokyo/Japan. Our team members working on Japan market research and strategy consulting, all live in Japan, are mostly Japanese, and work daily with Japanese CEOs, telecom managers, and most importantly of all, daily interview and discuss with real-life Japanese mobile phones users: face-to-face here in Japan – not across one or more oceans.

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  • I think that it is not just being done in India, but also in the Philippines and other neighboring countries in Southeast Asia where they can learn Japanese language too. It is a very interesting strategy of outsourcing, but it is a good one for their company (Japanese).