School BPO Market in Japan: Key Research Findings 2024

School BPO Market Attained 187,000 Million Yen for FY2022, 104.0% of Previous Fiscal Year

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic school BPO service market, and found out the current status, the trends of market players, and future perspectives.

Transition of School BPO Market Size
Transition of School BPO Market Size

Market Overview

Size of the school BPO market for FY2022 grew to 104.0% of the preceding fiscal year to 187,000 million yen, based on the sales of businesses. As people’s flow gradually recovered from the Covid crisis in FY2022, classroom sessions were resumed, and therefore students came back on campus. Accordingly, recovery was seen in the demand for agencies (insurance and travel agency for students and school faculties, real estate agency for student housing such as dormitories and apartments) and operation outsourcing (facility management, cleaning, canteen operation, retailing of goods and services on university premises). However, while demand for school cafeteria operation and on-site retailing are recovering, canteen business is not paying off by itself due to soaring food prices and capital investments for counter-infection measures. Meanwhile, the demand for outsourcing administrative departments such as human resources and general affairs have almost returned to the pre-pandemic level.  

Noteworthy Topics

Survey Revealed “Agency Business” as Most Entered Business Domain Among For-Profit Corporations Established by Universities

According to our survey to 130 for-profit corporations funded by universities (as of March 2024), we found out that 109 companies (83.8%) provide “agency services” for insurance, travel, and real estate, 92 companies (70.8%) offer “facility management & cleaning” services, and 85 companies (65.4%) provide “procurement” of school equipment and teaching aids. The result indicates that these three are the main business areas of for-profit corporations funded by universities.

Future Outlook

The size of the school BPO market is forecasted to reach 192,000 million yen for FY2023, 102.7% of the preceding fiscal year, based on the sales of businesses. As the new coronavirus was reclassified to Class 5 under the Infectious Disease Control Law in May 2023, restrictions on the number of seats in school cafeterias and cafes have been lifted, allowing their operations to go back to pre-pandemic styles. Demand recovery was also seen in graduation trips and school faculty banquets.  

Driven by the needs for reducing overhead costs at schools, the demand for school BPO at cost center jobs at schools, chiefly administrative jobs, is definitely on the rise. BPO services (not only those funded by universities but also other companies) are increasingly closing deals, while they actively engage in expanding their capabilities.

Going forward, the market environment of the incorporated educational institutions will become harsher even more, as they cannot expect tuition revenue as much as they previously did (due to the decrease of students stemming from the declining birthrate) and thus they are compelled to cut overhead costs. Under the circumstances, we believe the school BPO market will continue to grow further. 

Research Outline

1.Research Period: January to March 2024
2.Research Object: Profit making businesses funded by incorporated educational institution, etc.
3.Research Methogology: Face-to-face interviews by our expert researchers (including online interviews), survey via telephone and email, and literature research

School BPO

In this research, school BPO refers to a profit making business funded by incorporated educational institution (mostly universities), which undertakes operations of cost centers at schools, such as human resources, general affairs, accounting, finance, security, cleaning, facility management, procurement, and canteen services. However, the market size also includes some of the outsourcing services provided for school’s core operations, such as education, research, publicity, and career center services.

<Products and Services in the Market>

BPO for administrative departments (HR, general affairs, accounting, finance), BPO for security, cleaning, facility management, procurement, canteen operation, etc.

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