In many people’s minds, offshore outsourcing is closely associated with Japan. As Japan has become an increasing source of technology and products over more recent years, this is a natural correlation.

Japan, which was a largely underdeveloped country until the post-World War II years, has become a major source for offshore outsourcing. The country has also become an increasingly popular nation with which to trade, as the United States finds profit in exporting products to the country. This trade promotes beneficial economic relations between the United States and Japan, which in turn have stimulated offshore outsourcing to Japan by American companies. Initially, many professionals in the United States proclaimed that countries like Japan would surpass the United States in economic superiority. Although that prediction has not come to pass, the trade market and increasing presence of offshore outsourcing have made Japan an especially valuable country to many domestic employers.

Japan has evolved from an underdeveloped nation to a strong supporter of United States exports. These improved trade relations have also been the result of offshore outsourcing, as many employers find the expertise of the Japanese in technology to be beneficial to their companies. The trend of offshore outsourcing locations, however, is arguably moving to the increasingly popular India and the up-and-coming China. These countries are making ever-growing improvements to their technology and thus are attracting more and more companies. These countries also can provide a large, well educated work force at less cost to employers, making them an increasingly popular choice.

In fact, as Japan’s economy has matured, it is becoming a source, rather than a recipient, of outsourcing. While Japanese companies have traditionally retained their information technology (IT) work in house, they are beginning to outsource such work for the same reason that American companies do: to save money. Japan is finding good outsourcing prospects in China and India with their developed infrastructures, well trained workers, and low wages. Japanese companies must address the same concerns as do American companies, however, such as differences in language and culture, the cost of moving employees around, differences in time and calendars, and a general sense of losing control over production when it is happening at a distance.