In recent years, I feel that business executives in Japan are eager to spin off its IT divisions as a way of cutting the cost. On the other hand, some excellent companies are keeping their IT personnel within the companies.

For example, FedEx has 6,000(4,500 within US), Intel has 6,000, and Dell has 3,000. These companies are working on renovation and improvement
of their business processes utilizing IT.

It is not easy to copy good business processes compare to copying good products. Companies like FedEx are trying to differentiate themselves from its competitors through effective business processes, and they see IT as an important device for making it happen.

There are companies that are eager to sell their IT knowledge as a service, arguing that it is an effort of turning cost center into a profit center. Good IT professionals would attract good businesses, but on the other hand, I feel that the company would lose competitiveness of their own IT systems since their best people are providing services to outside of the company
instead of inside.

As I observe IT divisions and their role within corporation, I feel that many Japanese companies are neglecting the importance of IT division and the possibility of becoming a core competence for their business.