No.2577
11/27/2020

BPO (Business Process Outsourcing) Market in Japan: Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic BPO (Business Process Outsourcing) market and found out the trend by service, the trend of market players, and the future perspectives.


Forecast and Transition of Domestic BPO Market Size
Forecast and Transition of Domestic BPO Market Size

Market Overview

The BPO (Business Process Outsourcing) market size (total of BPO for IT tasks and BPO for non IT) based on the sales at the businesses was estimated to have risen by 3.3% on a year-on-year basis to have reached 4,349,150 million yen. Of the total market size, BPO for IT rose by 4.0% on a Y-o-Y basis to have attained 2,575,830 million yen and BPO for non IT jobs increased by 2.2% on the same basis to have achieved 1,773,320 million yen.

The COVID-19 pandemic has affected considerable negative impact to the BPO market by stopping economic activities, but such impact has been overwhelmed by increasing number of those companies streamlining and transforming their tasks, by which to respond to the promotions of workstyle reform and DX (digital transformation). As such companies are accelerating optimization of their inner tasks to conform to implementation and expansion of telework that they introduced as people were requested not to go outside as much as possible, the demand for task outsourcing has been increasing. Therefore, when observing the market as a whole, the pandemic has worked to expand the market rather than to diminish.

Noteworthy Topics

BPO Market for Purchase and Procurement (Direct Materials for Production)

The market size of BPO for purchase and procurement (of materials directly connected with production) for FY2019 was estimated as 3,820 million yen, a rise by 2.4% on a Y-o-Y basis.

Purchase and procurement of materials directly connected with production are generally performed in-house, and are apt not to be outsourced, because streamlining of such jobs directly links to company profits. However, in recent years when major companies started globalizing for attaining sustainable growth, the demand for BPO services for purchase and procurement has begun seen here and there, and has been on the rise, in the hope of further strengthening cost competitiveness.

In addition, those BPO service providers that used to provide only the indirect materials to the users have begun offering direct materials i.e., the materials directly connected with production. With acceleration of accepted demand caused by increasing number of market players, the market size is likely to grow steadily even after FY2020.

Future Outlook

The total market size of BPO services based on the sales at service providers is forecasted to rise by 2.1% from the previous fiscal year to achieve 4,439,060 yen. Of the total market size, the BPO for IT is expected to rise by 1.5% on a Y-o-Y basis to 2,613,590 million yen and BPO for non IT jobs increased by 2.9% on the same basis to have achieved 1,825,470 million yen.

With increase in the use of data centers provided by cloud service providers due to wider acceptance of cloud services, and with increase of companies using data centers due to expanded in-house data volume, BPO for IT is expected to expand furthermore for the future. Meanwhile, BPO for non-IT jobs is also steadfastly on the rise, as the demand for BPO services as a whole has been increasing furthermore, against the backdrop of manpower shortage, promotions of workstyle reform and of DX, and replacement from temporary staffing services.

Research Outline

1.Research Period: July to October 2020
2.Research Object: BPO service providers for IT tasks, printing jobs, call center services, back office jobs, and other operations for client companies.
3.Research Methogology: Face-to-face interviews (including online interviews) by the expert researchers, surveys via telephone/email, and literature research

What is BPO (Business Process Outsourcing)?

BPO in this research indicates the services undertaken by a company at the request of client companies to do inner-office tasks such as: System operation/management, call center jobs (contact centers, help desks, and fulfillment), back-office jobs (HR, welfare, general affairs, and accounting), and direct departmental jobs (purchasing/procurement, sales, simple tasks at core sections, and tasks unique to each industry). However, the following specialty services that have been traditionally outsourced, such as tax matters, distribution, development of information systems, and maintenance of buildings, are not included.

BPO for IT in this research indicates system operation/management among various BPO tasks. All the other BPO tasks are defined as BPO for non-IT jobs. 

<Products and Services in the Market>

Call center jobs (contact centers, help desks, and fulfillment), back-office jobs (HR, welfare, general affairs, and accounting), direct departmental jobs (purchasing/procurement, sales, simple tasks at core sections, and tasks unique to each industry).

Contact Us

©2019 Yano Research Institute Ltd. All Rights Reserved.
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.