BT and KDDI sign Japanese joint venture

BT and KDDI will offer managed services and network outsourcing to multinationals in Japan

BT is linking up with KDDI to expand into the Japanese market for managed services. 

The two companies will fund a joint venture to offer global managed services and network outsourcing to multinational firms in Japan.

"As the world's second largest corporate market Japan is high on BT's priority list, and with good reason," said Andy Green, chief executive at BT Global Services. 

"Industry reports estimate the size of the current outsourcing market in Japan at approximately $90bn (£49.4bn), twice the size of the rest of Asia Pacific markets combined."

Green explained that network outsourcing has the capacity for significant growth because of the challenges of managing global networking technology and the greater need for performance, reliability and security.

"The joint venture agreement with KDDI is a perfect fit to address this market demand, with BT bringing its global capabilities and proven outsourcing track record, and KDDI contributing local relationships, capabilities and focus on the Japanese market," Green added.

The new joint venture will employ around 100 staff when it first launches and the majority of BT's business and resources in Japan will be transferred to the new entity.

BT will continue to provide carrier, financial and technology services directly to clients in Japan.