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Agent-Based Modeling of the Software Industry Structure in Japan: Preliminary Consideration of the Influence of Offshoring in China

In: Management of Software Engineering Innovation in Japan

Author

Listed:
  • Yasuo Kadono

    (Ritsumeikan University Graduate School of Technology Management)

Abstract

In Chap. 7, our goal is a preliminary assessment of the future software industry structure in Japan, giving priority to the effects of offshoring in China, based on surveys on software engineering capabilities of Japanese IT vendors conducted together with the Japanese Ministry of Economy, Trade and Industry (METI). An agent-based simulation model, focusing mainly on customers’ price preferences and on the quality of vendors’ communication with customers, concludes that Japanese vendors can possibly lose market share if Japanese customers prefer the lower prices offered by offshore vendors. The results suggest that Japanese vendors should improve their communication skills to satisfy their customers’ requirements regarding the quality of enterprise software, while also taking into account their customers’ price preferences to avoid direct price competition with Chinese vendors. Otherwise, some Japanese vendors within the current man-month-based multilayered software industry culture will not survive in the drastically changing Japanese market.

Suggested Citation

  • Yasuo Kadono, 2015. "Agent-Based Modeling of the Software Industry Structure in Japan: Preliminary Consideration of the Influence of Offshoring in China," Springer Books, in: Management of Software Engineering Innovation in Japan, edition 1, chapter 7, pages 135-144, Springer.
    • Handle: RePEc:spr:sprchp:978-4-431-55612-1_7
    DOI: 10.1007/978-4-431-55612-1_7
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