Japan’s Digital Overhaul to Fuel Record Profits at Hitachi, NEC, Fujitsu

Japan’s push to modernize government and corporate IT systems is setting some of the country’s legacy hardware makers up for an earnings windfall.

Storied names including Hitachi Ltd., NEC Corp. and Fujitsu Ltd. have reinvented themselves as digital service providers, helping upgrade outdated IT infrastructure in Japan and adopt new technologies. The three firms are leveraging decades-long relationships with government ministries and companies to win contracts. With solid order backlogs, rising margins and continued policy support, they are poised for a record year.