IT Services Sector: Will winter end for the IT services sector? Overseas hangover, Japan intact

研报英文原文证据摘录

IT Services Sector: Will winter end for the IT services sector? Overseas hangover, Japan intact

J P M O R G A N Asia Pacific Equity Research

24 June 2026

IT Services Sector

Will winter end for the IT services sector? Overseas

hangover, Japan intact

Global IT services demand has slowed noticeably amid ongoing concerns about AI Japan Equity Research

replacement. However, domestic IT services demand seems relatively firm,

IT Services and Telecoms

supported by an absence of cyclicality unique to Japan (IT staff shortages). This

report will look at the reasons for stagnant IT services demand and Japan’s Matthew Henderson AC

positioning, and present our three recommended Overweight stocks: Nomura (81-3) 6736-8831

matthew.henderson@jpmorgan.com

Research Institute (4307), Oracle Japan (4716) and Obic (4684). Due to low market JPMorgan Securities Japan Co., Ltd.

cyclicality, we do not envision a scenario where growth in domestic IT demand

slows sharply. However, we should note the risk that reallocation of corporate IT

budgets due to the spread of AI could pressure demand for small-scale digital

transformation (DX) projects and other services. As fundamentals remain strong

at domestic IT services companies, we believe their investment appeal is

increasing compared with overseas IT services companies facing a protracted

correction in valuations.

• Differing demand environments in Japan and overseas: Overseas IT

services have been affected by a protracted pullback in reaction to the sharp

increase in demand in the wake of the Covid-19 pandemic (2020–22), and the

US market is susceptible to cyclicality due to high labor mobility and

offshoring flexibility. In Japan, however, hiring remains unable to keep pace