Business Process Outsourcing - Japan

Japan

Revenue in the Business Process Outsourcing market is projected to reach €21.58bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.61%, resulting in a market volume of €27.03bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach €0.31k in 2024.
In global comparison, most revenue will be generated in the United States (€135.70bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Marché

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Comparaison de régions

Monnaie

Analyst Opinion

The demand for Business Process Outsourcing (BPO) services in Japan has been on the rise in recent years.

Customer preferences: Japanese companies are increasingly outsourcing non-core business functions to reduce costs and improve efficiency. BPO providers offer a range of services, including finance and accounting, human resources, customer service, and IT support. Japanese companies are particularly interested in outsourcing IT functions, such as application development and maintenance, as well as data center management.

Trends in the market: One of the key trends in the BPO market in Japan is the growing adoption of automation technologies. BPO providers are leveraging robotic process automation (RPA) and artificial intelligence (AI) to automate repetitive and manual tasks, such as data entry and document processing. This not only improves efficiency but also reduces errors and frees up staff to focus on higher-value tasks. Another trend is the increasing use of cloud-based solutions, which offer greater flexibility and scalability compared to traditional on-premise systems.

Local special circumstances: One of the unique characteristics of the BPO market in Japan is the high level of service quality demanded by Japanese companies. BPO providers must adhere to strict quality standards and ensure that their staff are well-trained and knowledgeable about Japanese business practices. Additionally, language and cultural barriers can pose challenges for foreign BPO providers looking to enter the Japanese market.

Underlying macroeconomic factors: The Japanese government has been promoting the use of digital technologies to drive economic growth and improve productivity. This has created opportunities for BPO providers, particularly in the areas of IT and data management. Additionally, Japan's aging population and shrinking workforce have led to a shortage of skilled workers, making it more difficult for companies to handle non-core business functions in-house. Outsourcing these functions to BPO providers can help companies overcome these challenges and remain competitive.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.