Japan Business Outsourcing 2006-2009 Forecast: Industry Report

Japan Business Outsourcing 2006-2009 Forecast

Product Type: Market Research Report
Published by: IDC
Published: March 2006
Product Code: R104-25869

Description

This IDC study (which is a translation of the Japanese report IDC #J5100106) analyzes the trends in the Japan business outsourcing market in respect to the key horizontal business functions (namely, human resources [HR], customer care, finance and accounting [F&A], and procurement). This study also presents a forecast for the market. We also look at the trends in the respective business segments and forecast the market sizes and growth rates over 2006-2009. This study also includes IDC's recommendations to SPs.

"Many companies have adopted business outsourcing services to achieve business improvement/transformation, concentration on core business, and business cost reduction. This has spurred the growth of the Japan business outsourcing market. The 2005 Japan business outsourcing market grew 10.7% from the previous year to reach 785.4 billion yen. IDC believes that the market will continue to grow after 2006 although the year-on-year growth rate will decrease gradually as the market size increases. Many SPs have entered the Japan business outsourcing market, as the market has gained momentum. In contrast to the IT service market, many of the SPs in the business outsourcing market have their roots in a diverse range of other industries. These include internal Shared Service Centers (SSCs), worker dispatch services, IT services, consulting, and taxation/accounting. Competition has escalated with the entry of these new players. The objectives that user-companies seek to realize through the use of business outsourcing range from cost reduction to business process reengineering, and thus, a wide repertoire of abilities is required from the SPs. However, it is difficult for any single SP to possess all the abilities required. Different SPs have different strengths since they belong to different industries and have their own experience sets. IDC believes that it will be an effective growth strategy for SPs to forge strategic alliances with each other and provide a comprehensive range of services," comments Satoshi Matsumoto, senior market analyst, IT Service, IDC Japan.

Table of Contents

Table of Contents
IDC Opinion
In This Study
Methodology
User Survey
Services Market Definitions
Table: IDC's Services Market Map
Business Services Market Definitions
Figure: IDC Business Services Market Map
Business Outsourcing Market Definitions
Figure: IDC Business Outsourcing Market Map
Business Process Outsourcing
Processing Services
Distinctions Between BPO and Processing
Business Functions
Horizontal Versus Vertical
Executive Summary
Situation Overview
Economic Situation
Table: Japan Gross Domestic Product Growth Rate, Deflator, and Domestic/External Demand Contribution Rate, January 2004-September 2005 (%)
Shift Toward a Service-Oriented Economy and Changes in the Employment Systems
Figure: Number of Employees by Industry, 2002-2005
Figure: Employee Shares by Industry, 1985-2005
Table: Number of Employees by Employment System
Employment System Changes and Motivation/Ability to Carry Out Business Improvement/Transformation
Figure: Employment System and Motivation/Ability to Carry Out Business Improvement/Transformation
Decreasing Service Prices
Table: Corporate Service Price Index (Base Year: 2000)
Corporate Trends in Japan (Based on the Japan BPO Survey 2005)
Japan Business Process Outsourcing Service Usage Plans
Figure: Business Process Outsourcing Service Usage Among Japanese Companies
Table: Business Process Outsourcing Service Usage Among Japanese Companies by Company Size and Industry
Figure: Relations of Business Process Outsourcing Service Providers to Companies That Currently Use or Plan to Use Business Process Outsourcing
Figure: Reasons for Not Using Business Process Outsourcing Services
Figure: Shares Occupied by Companies That Indicated "Aversion to Business Outsourcing" as the Reason for Not Considering Business Process Outsourcing Services: Business Operation
Objectives of Using Business Process Outsourcing Services (User Expectations)
Figure: Objectives of Using Business Process Outsourcing Services (User Expectations)
Figure: Objectives of Using Business Process Outsourcing Services (User Expectations) by Company Size
Figure: Objectives of Using Business Process Outsourcing Services (User Expectations) by Industry
Concerns over the Use of Business Process Outsourcing Services
Figure: Concerns over the Use of Business Process Outsourcing Services
Figure: Concerns over the Use of Business Process Outsourcing Services by Company Size
Figure: Concerns over the Use of Business Process Outsourcing Services by Industry
Level of Satisfaction with Business Process Outsourcing Services
Figure: Level of Satisfaction with Business Process Outsourcing Services
Figure: Level of Satisfaction with Business Process Outsourcing Services by Company Size
Figure: Level of Satisfaction with Business Process Outsourcing Services by Industry
Future Outlook
Forecast and Assumptions
Table: Key Forecast Assumptions for Japan Business Outsourcing, 2006-2009
Japan Business Outsourcing Market Forecast
Figure: Japan Business Outsourcing Market, 2004-2009
Japan Business Outsourcing Market Forecast by Segment
Table: Japan Business Outsourcing Market by Segment, 2004-2009
Figure: Japan Business Outsourcing Market Size by Segment, 2004-2009
Figure: Japan Business Outsourcing Year-on-Year Growth Rates by Segment, 2004-2009
Japan Human Resource Business Outsourcing Market Analysis and Forecast
Figure: Japan Human Resource Business Outsourcing Market, 2004-2009
Japan Customer Care Business Outsourcing Analysis and Forecast
Figure: Japan Customer Care Business Outsourcing Market, 2004-2009
Japan Finance and Accounting Business Outsourcing Market Analysis and Forecast
Figure: Japan Finance and Accounting Business Outsourcing Market, 2004-2009
Japan Procurement Business Outsourcing Market Analysis and Forecast
Figure: Japan Procurement Business Outsourcing Market, 2004-2009
Essential Guidance
Learn More
Related Research
Definitions
Human Resource Business Outsourcing
Customer Care Business Outsourcing
Finance and Accounting Business Outsourcing
Procurement Business Outsourcing
Japan BPO Survey 2005 Respondents
Table: Japan BPO Survey 2005Respondent Profiles by Vertical
Table: Japan BPO Survey 2005Respondent Profiles by Company Size
Synopsis

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