Japan Business Process Outsourcing Market Size, Share & Trends Analysis Report By Deployment (Traditional, and BJapaniness Process-as-a-Service), By Type (Offshore, Nearshore, and Onshore), By End-Japane, By Service Type, and Forecast, 2023 - 2030

The Japan Business Process Outsourcing Market size is expected to reach $24.9 Billion by 2030, rising at a market growth of 9% CAGR during the forecast period.

Japan's business process outsourcing market has witnessed significant growth and transformation over the past few decades. Initially, business process outsourcing (BPO) services primarily focused on basic functions such as data entry and customer support. However, as businesses in Japan increasingly seek to streamline operations, improve efficiency, and reduce costs, the scope of BPO services has expanded to encompass various processes across various industries.

One key driver behind the growth of the business process outsourcing market in Japan is the country's aging population and shrinking workforce. With a declining pool of available talent, many Japanese companies are turning to outsourcing as a strategic solution to fill the gaps in their workforce. By outsourcing non-core functions to specialized service providers, businesses in Japan allocate resources more effectively and focus on their core competencies.

According to the International Trade Administration, in Japan, by 2025, the entire generation born during the baby boom years of 1947-1949 will be 75 or older. This population is expected to reach 22 million, or one in four in Japan. At the recent Council on Economic and Fiscal Policy, the Government of Japan (GOJ) stated that starting in 2022, the growth rate of social security costs overtook previous expectations. As the elderly population rises, the workforce continues to decrease due to an overall population decline. This so-called "2025 problem" in Japan is imminent, with concerns about sharp increases in social security costs, medical and nursing care costs, and a shortage of nursing care workers. As the country navigates these demographic and economic shifts, the role of outsourcing in driving operational excellence and fostering innovation is likely to become increasingly pronounced.

Moreover, the advancement of technology has played a pivotal role in shaping the landscape of BPO in Japan. Automation, artificial intelligence, and machine learning have enabled BPO providers to offer their clients more sophisticated and efficient solutions. For instance, robotic process automation (RPA) has revolutionized repetitive, rule-based tasks, allowing BPO companies to deliver faster turnaround times and higher accuracy rates.

The COVID-19 pandemic has also had a profound impact on the business process outsourcing market in Japan. As businesses adapt to remote work environments and navigate disruptions to their operations, many turn to outsourcing as a flexible and cost-effective solution. BPO providers have played a critical role in supporting businesses during these challenging times, offering virtual assistance, IT support, and digital transformation services to ensure continuity and resilience.

Market Trends

Growth of onshore BPO in Japan

The growth of onshore business process outsourcing (BPO) in Japan has been steadily gaining momentum, fueled by several factors unique to the Japanese industry. One significant driver of onshore BPO growth in Japan is the rising need for cost optimization and operational efficiency. With a highly skilled and educated workforce, Japan presents an attractive destination for companies seeking high-quality services at competitive rates. Onshore BPO providers leverage this talent pool to deliver tailored solutions across various domains, including customer support, finance and accounting, human resources, and IT services.

Furthermore, the Japanese government's initiatives to promote foreign investment and streamline business processes have expanded onshore BPO. Policies aimed at deregulation and economic reforms have created a more conducive environment for outsourcing companies to establish operations in Japan, driving job creation and fostering innovation in the business process outsourcing market.

Moreover, cultural and linguistic affinity plays a crucial role in Japanese businesses' preference for onshore BPO. Local service providers possess a deep understanding of Japanese business culture, etiquette, and language nuances, essential for delivering seamless customer experiences and maintaining brand reputation. Another factor propelling the growth of onshore BPO in Japan is the increasing demand for digital transformation and technology-driven solutions. Hence, the growth of onshore BPO in Japan is driven by factors such as cost optimization, government initiatives, cultural affinity, and the demand for digital transformation.

Rising demand for customer service outsourcing

Japan's business process outsourcing market is witnessing a notable surge in demand for customer service outsourcing services. Japanese companies increasingly recognize the benefits of outsourcing customer service operations to specialized business process outsourcing (BPO) firms. Outsourcing allows Japanese companies to streamline their operations, reduce costs, and improve efficiency by leveraging the expertise and resources of third-party service providers. By offloading customer service tasks to experienced professionals, companies focus on their core competencies and strategic initiatives, enhancing overall competitiveness.

Additionally, the rise of online shopping has expanded the scope and complexity of customer interactions. Japanese companies need help to deliver seamless and personalized customer experiences across multiple touchpoints, including websites, mobile apps, social media platforms, and messaging apps. According to the International Trade Administration, there has been a consistent increase in the percentage of Japanese households engaging in online shopping, starting at 35.9% in 2018 and steadily rising to 47.8% in 2021. In December 2021, 56% of Japanese households shopped online.

Moreover, the evolving business landscape in Japan is driving the need for more flexible and scalable customer service solutions. As businesses in Japan adapt to rapid technological advancements and changing consumer preferences, they require agile customer support capabilities that quickly adjust to fluctuating demands. Thus, the surge in demand for customer service outsourcing in Japan underscores the strategic advantage of leveraging specialized BPO firms to enhance operational efficiency, adaptability, and customer experience in a rapidly evolving business landscape.

Competition Analysis

In Japan, the business process outsourcing market has witnessed significant growth in recent years, driven by the increasing demand for cost-effective and efficient business solutions. One prominent player in the Japanese business process outsourcing market is NTT Data. As one of Japan's largest IT services providers, NTT Data offers comprehensive business process outsourcing (BPO) solutions to clients across industries such as finance, healthcare, and telecommunications. Leveraging its extensive expertise in technology and deep understanding of the Japanese industry, NTT Data helps organizations streamline their operations, improve efficiency, and drive innovation through its tailored BPO services.

Another key player is Fujitsu Limited, a global leader in IT services and solutions. Fujitsu's BPO offerings encompass various services, including finance and accounting, human resources, and procurement. With its strong focus on leveraging digital technologies such as artificial intelligence and cloud computing, Fujitsu enables Japanese businesses to enhance agility, reduce costs, and accelerate growth through its innovative BPO solutions.

Additionally, Ricoh is a notable player in the Japanese business process outsourcing market, providing end-to-end document management and business process outsourcing services. With its extensive portfolio of services, including document scanning, data entry, and workflow automation, Ricoh helps organizations streamline their document-intensive processes and improve productivity while reducing operational costs.

Furthermore, SoftBank Group Corp. has also made significant strides in the Japanese business process outsourcing market, offering a wide range of services, including customer support, IT outsourcing, and back-office operations. Leveraging its strong brand presence and extensive network of partners, SoftBank delivers innovative BPO solutions that enable Japanese businesses to drive efficiency, enhance customer experience, and achieve sustainable growth in today's rapidly evolving business landscape.

In addition to these established players, several niche providers have emerged to address specific needs within the Japanese business process outsourcing market. One such company is SCSK Corporation, a leading IT solutions and services provider. SCSK offers a comprehensive suite of BPO services, including data center management, application development, and system integration, helping Japanese businesses leverage technology to optimize their processes and drive business success. Hence, the Japanese business process outsourcing market is characterized by intense competition and rapid technological advancements, driving companies to innovate and evolve their service offerings to meet the evolving needs of Japanese businesses.

List of Key Companies Profiled

• Accenture PLC
• Amdocs Limited
• Capgemini SE
• Cognizant Technology Solutions Corporation
• HCL Technologies Ltd. (HCL Enterprises)
• IBM Corporation
• Wipro Limited
• Teleperformance SE
• NCR Corporation

Japan Business Process Outsourcing Market Report Segmentation

By Deployment

• Traditional
• Business Process-as-a-Service

By Type

• Offshore
• Nearshore
• Onshore

By End-use

• IT & Telecommunication
• Healthcare
• Manufacturing
• BFSI
• Retail & Others
• Government & Defense

By Service Type

• Customer Services
• Human Resource
• KPO
• Sales & Marketing
• Procurement & Supply Chain
• Training and Development Outsourcing
• Finance & Accounting
• Logistics
• Others

Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Japan Business Process Outsourcing Market, by Deployment
1.4.2 Japan Business Process Outsourcing Market, by Type
1.4.3 Japan Business Process Outsourcing Market, by End-use
1.4.4 Japan Business Process Outsourcing Market, by Service Type
1.5 Methodology for the research

Chapter 2. Market Overview
2.1 Introduction
2.1.1 Overview
2.1.1.1 Market Composition and Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints
2.2.3 Market Opportunities
2.2.4 Market Challenges
2.2.5 Market Trends

Chapter 3. Competition Analysis - Global
3.1 KBV Cardinal Matrix
3.2 Recent Industry Wide Strategic Developments
3.2.1 Partnerships, Collaborations and Agreements
3.2.2 Product Launches and Product Expansions
3.2.3 Acquisition and Mergers
3.3 Top Winning Strategies
3.3.1 Key Leading Strategies: Percentage Distribution (2019-2023)
3.3.2 Key Strategic Move: (Partnership & Collaboration: 2019, Oct – 2023, Nov) Leading Players
3.4 Porter Five Forces Analysis

Chapter 4. Japan Business Process Outsourcing Market
4.1 Japan Business Process Outsourcing Market by Deployment
4.2 Japan Business Process Outsourcing Market by Type
4.3 Japan Business Process Outsourcing Market by End-use
4.4 Japan Business Process Outsourcing Market by Service Type

Chapter 5. Company Profiles – Global Leaders
5.1 Accenture PLC
5.1.1 Company Overview
5.1.2 Financial Analysis
5.1.3 Segmental and Regional Analysis
5.1.4 Research & Development Expenses
5.1.5 Recent strategies and developments:
5.1.5.1 Partnerships, Collaborations, and Agreements:
5.1.5.2 Acquisition and Mergers:
5.1.6 SWOT Analysis
5.2 Amdocs Limited
5.2.1 Company Overview
5.2.2 Financial Analysis
5.2.3 Regional Analysis
5.2.4 Research & Development Expense
5.2.5 Recent strategies and developments:
5.2.5.1 Partnerships, Collaborations, and Agreements:
5.2.5.2 Product Launches and Product Expansions:
5.2.5.3 Acquisition and Mergers:
5.2.6 SWOT Analysis
5.3 Capgemini SE
5.3.1 Company Overview
5.3.2 Financial Analysis
5.3.3 Regional Analysis
5.3.4 Recent strategies and developments:
5.3.4.1 Partnerships, Collaborations, and Agreements:
5.3.5 SWOT Analysis
5.4 Cognizant Technology Solutions Corporation
5.4.1 Company overview
5.4.2 Financial Analysis
5.4.3 Segmental and Regional Analysis
5.4.4 SWOT Analysis
5.5 HCL Technologies Ltd. (HCL Enterprises)
5.5.1 Company Overview
5.5.2 Financial Analysis
5.5.3 Segmental and Regional Analysis
5.5.4 Research & Development Expenses
5.5.5 Recent strategies and developments:
5.5.5.1 Partnerships, Collaborations, and Agreements:
5.5.6 SWOT Analysis
5.6 IBM Corporation
5.6.1 Company Overview
5.6.2 Financial Analysis
5.6.3 Regional & Segmental Analysis
5.6.4 Research & Development Expenses
5.6.5 SWOT Analysis
5.7 Wipro Limited
5.7.1 Company Overview
5.7.2 Financial Analysis
5.7.3 Segmental and Regional Analysis
5.7.4 Research & Development Expenses
5.7.5 Recent strategies and developments:
5.7.5.1 Partnerships, Collaborations, and Agreements:
5.7.6 SWOT Analysis
5.8 Teleperformance SE
5.8.1 Company Overview
5.8.2 Financial Analysis
5.8.3 Segmental and Regional Analysis
5.8.4 Recent strategies and developments:
5.8.4.1 Partnerships, Collaborations, and Agreements:
5.8.4.2 Acquisition and Mergers:
5.8.5 SWOT Analysis
5.9 NCR Corporation
5.9.1 Company Overview
5.9.2 Financial Analysis
5.9.3 Segmental and Regional Analysis
5.9.4 Research & Development Expenses
5.9.5 SWOT Analysis

TABLE 1 Japan Business Process Outsourcing Market, 2019 - 2022, USD Million
TABLE 2 Japan Business Process Outsourcing Market, 2023 - 2030, USD Million
TABLE 3 Partnerships, Collaborations and Agreements– Business Process Outsourcing Market
TABLE 4 Product Launches And Product Expansions– Business Process Outsourcing Market
TABLE 5 Acquisition and Mergers– Business Process Outsourcing Market
TABLE 6 Japan Business Process Outsourcing Market by Deployment, 2019 - 2022, USD Million
TABLE 7 Japan Business Process Outsourcing Market by Deployment, 2023 - 2030, USD Million
TABLE 8 Japan Business Process Outsourcing Market by Type, 2019 - 2022, USD Million
TABLE 9 Japan Business Process Outsourcing Market by Type, 2023 - 2030, USD Million
TABLE 10 Japan Business Process Outsourcing Market by End-use, 2019 - 2022, USD Million
TABLE 11 Japan Business Process Outsourcing Market by End-use, 2023 - 2030, USD Million
TABLE 12 Japan Business Process Outsourcing Market by Service Type, 2019 - 2022, USD Million
TABLE 13 Japan Business Process Outsourcing Market by Service Type, 2023 - 2030, USD Million
TABLE 14 Key Information – Accenture PLC
TABLE 15 Key Information – Amdocs Limited
TABLE 16 Key Information – Capgemini SE
TABLE 17 Key Information – Cognizant Technology Solutions Corporation
TABLE 18 Information – HCL Technologies Ltd.
TABLE 19 Key Information – IBM Corporation
TABLE 20 Key Information – Wipro Limited
TABLE 21 Key Information – Teleperformance SE
TABLE 22 Key Information – NCR Corporation

List of Figures
FIG 1 Methodology for the research
FIG 2 Japan Business Process Outsourcing Market, 2019 - 2030, USD Million
FIG 3 Key Factors Impacting Business Process Outsourcing Market
FIG 4 KBV Cardinal Matrix
FIG 5 Key Leading Strategies: Percentage Distribution (2019-2023)
FIG 6 Key Strategic Move: (Partnership & collaboration : 2019, OCT – 2023, Nov) Leading Players
FIG 7 Porter’s Five Forces Analysis –Business Process Outsourcing Market
FIG 8 Japan Business Process Outsourcing Market share by Deployment, 2022
FIG 9 Japan Business Process Outsourcing Market share by Deployment, 2030
FIG 10 Japan Business Process Outsourcing Market by Deployment, 2019 - 2030, USD Million
FIG 11 Japan Business Process Outsourcing Market share by Type, 2022
FIG 12 Japan Business Process Outsourcing Market share by Type, 2030
FIG 13 Japan Business Process Outsourcing Market by Type, 2019 - 2030, USD Million
FIG 14 Japan Business Process Outsourcing Market share by End-use, 2022
FIG 15 Japan Business Process Outsourcing Market share by End-use, 2030
FIG 16 Japan Business Process Outsourcing Market by End-use, 2019 - 2030, USD Million
FIG 17 Japan Business Process Outsourcing Market share by Service Type, 2022
FIG 18 Japan Business Process Outsourcing Market share by Service Type, 2030
FIG 19 Japan Business Process Outsourcing Market by Service Type, 2019 - 2030, USD Million
FIG 20 Recent strategies and developments: Accenture PLC
FIG 21 SWOT Analysis: Accenture PLC
FIG 22 Recent strategies and developments: Amdocs Limited
FIG 23 SWOT Analysis: Amdocs Limited
FIG 24 SWOT Analysis: Capgemini SE
FIG 25 Swot analysis: cognizant technology solutions corporation
FIG 26 SWOT Analysis: HCL Technologies Ltd.
FIG 27 SWOT Analysis: IBM Corporation
FIG 28 SWOT Analysis: Wipro Limited
FIG 29 Recent strategies and developments: Teleperformance SE
FIG 30 SWOT Analysis: Teleperformance SE
FIG 31 SWOT Analysis: NCR Corporation