Market Overview

The business process outsourcing (BPO) market size (total of IT BPO and non-IT BPO) for FY2022 based on the sales at businesses was estimated at  4,702,090 million yen, up 3.0% from the preceding fiscal year. IT BPO rose by 3.5% to 2,782,900 million yen and non-IT BPO increased by 2.4% to 1,919,190 million yen.

Against the backdrop of the recent manpower shortages, the number of companies embarking on promoting the digital transformation (transformation centered around business automation using digital technology) has been increasing in the past few years, accelerating organizational restructuring (to focus on core business activities, and reallocating human resources accordingly). Along with this process, companies are increasingly outsourcing non-core activities that cannot be covered on their own. In addition, there is a growing momentum for utilizing end-to-end outsourcing, even including core activities in business restructuring such as strategy planning and consulting. Under the circumstances, the BPO market is on the rise. 

Future Outlook

With the expansion of the range of operation outsourced and the increase in demand for outsourcing in public sector, the market of BPO services is forecasted to grow further. The size for the entire BPO services for FY2023 is projected to rise by 4.2% on year-on-year basis to 4,897,590 million yen, with both BPO for IT and for non-IT to growing positively from the previous fiscal year, by 5.5% to 2,936,000 million yen, and by 2.2% to 1,961,590 million yen, respectively.

Research Outline