Market Overview

Size of the direct sourcing services market for FY2022 is valued at 86,500 million yen, up 38.9% from the previous fiscal year, based on the sales at businesses.

In recent years, direct sourcing services have taken root as a new way of workforce acquisition, a method different from traditional human resource services like job information services and recruitment services. Companies using these services are increasing steadily by reason of lower cost (compared to job placement services that involve agents for job matching) and simpler process (compared to job information services and event-type services to make direct contact with candidates that have talents suited to job requirements), and thus the market is expanding.

In fact, the demand for acquiring personnel for specific positions is increasing, such as for IT personnel for promoting digital transformation, female managers/ executives, and mid-career professionals who can step in and contribute to the company from day one. Satisfying the needs of employers is one of the factors that augment the market growth.

Noteworthy Topics

Utilization of AI Accelerates Market Growth

Direct sourcing service is a powerful means for user companies to engage with job seekers directly. That being said, human resource recruiters tend to feel overwhelmed by hours needed to spend, such as identifying candidates and writing recruitment emails. To address the needs for reducing the burden, some companies offer services using AI software. For example, there is a service that specialize in recruiting IT engineers, which creates a profile of candidates using AI software that automatically visualizes the skill sets of potential jobseekers based on their technical backgrounds posted on their social media (achievements in development, etc.). Based on the visualized analysis, user companies can reduce workloads involved in identifying candidates that match with job requirements and writing prime recruitment emails that are relevant to each candidate.

Convenience of employers and job seekers is expected to improve with the spread of AI utilization in the market hereafter. Expanding opportunities for using direct sourcing services, further market growth is expected hereafter.

Future Outlook

Size of the direct sourcing service market for FY2023 is forecasted to rise by 23.5% from the previous fiscal year to 106,800 million yen, based on the sales at businesses.

Against the background of labor shortage across different industries and rising demand for IT personnel and competent persons that can contribute from day one, the demand for direct sourcing services is expected to show stable growth hereafter, while the expansion of existing companies' business size and the increase of new market entrants are also anticipated. Moreover, the number of jobseekers using the direct sourcing services is poised to grow, as the services gain recognition as handy for job changing/job finding, where they simply need to wait for employers' contact. 

Research Outline