However, when it comes to software there are many examples that highlight how the country has fallen well behind the rest of the world (Figure 1). According to Gartner1, Japan is seven years behind the US in the adoption of cloud computing technology. It predicts that by 2022 14% of US IT spending will be on cloud services. In comparison, the level for Japan will rise to just 4.4%, up from 3% in 2019. In addition, the IMD World Competitiveness Ranking (2020) put Japan 27 in digital competitiveness2; in 2018, penetration of software-as-a-service (SaaS) products against the overall accounting and HR software market was just 14% in Japan versus more than 50% in the US3; and in 2019 spending on customer experience and relationship management (CRM) software was three times higher in the UK and five times higher in the US than in Japan as a percentage of overall sales and marketing expenses.4
6 Mention of specific companies should not be taken as recommendation
The research and analysis included on this website has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.