This IDC study, which is a translation of the Japanese report IDC #J9310101, explores situations and trends in the Japan business consulting market and the Japan key horizontal business process outsourcing market by submarket (HR, customer care, finance and accounting [F&A], and procurement). It analyzes the market situation in 2008, and provides forecasts up to 2013.

Amid the worsening economic environment, the number of contracts aimed at realizing offensive business management is decreasing and the pressure for lower service prices is increasing in the Japan business service market. On the other hand, the demand for business process outsourcing (BPO) services aimed at reducing companies' business costs is increasing. "Due to the rapid deterioration of the corporate performance, companies are more focused on short-term cost reduction instead of long-term business reforms. Service vendors should provide services that can produce short-term effects and present mid/long-term customer business reform plans in order to increase their presence as customers' business partners," analyzes Satoshi Matsumoto, research manager, IT services, IDC Japan.