International Data Corporation (IDC) has published forecasts for the Japan business service market, comprising the business process outsourcing (BPO) service market and the business consulting market. It estimates the market size will increase at 5.4% year over year (YoY) to 866.1 billion yen in 2012, a higher growth rate than observed in 2011.
The forecast examined four areas of BPO services: human resources (HR), customer care, finance and accounting (F&A), and procurement. Together, the four areas are forecast to achieve a 5.0% YoY growth rate in 2012, bringing the size of the market to 591.7 billion yen. This will be the second consecutive year of positive growth, which indicates companies have come through the post-Lehman slump and are beginning to strengthen competitiveness. Within this process, the trend has been to increase outsourcing of services and shift business resources to core businesses. The market expansion has been particularly strong for procurement BPO services, where it is easy to measure the impact of cost-savings. In addition, IDC also forecasts high growth rates for HR BPO services, particularly the outsourcing of employee welfare services.
More companies are formulating and implementing new growth strategies in the business consulting market, which is expected to boost the 2012 growth rate above that of 2011 (6.1% YoY growth) and resulting in a market size of 274.4 billion yen. IDC forecasts greater demand for expert consulting services, particularly as companies begin to address the challenges of offshoring and the need for business process reengineering and organizational reform. One factor to increase the demand for outside consulting will be to accelerate mergers and acquisitions (M&A) and business realignments among domestic companies.
For the 2011–2016 forecast period, IDC expects the domestic business service market (aggregate for BPO and business consulting) to achieve a compound annual growth rate (CAGR) of 4.5%. In 2016, the market is expected to cross over the 1 trillion yen line, reaching 1,025.8 billion yen in size. However, price competition will also intensify in some market segments, including payroll BPO services and customer care (call center) BPO services. "It will be important for service providers to expand their service menus and make use of IT and offshore outsourcing locations to provide services more efficiently," said Mimei Ito, research manager, IT Services, IDC Japan.
Details of this forecast are reported in the IDC study, Japan Business Service 2012-2016 Forecast and 2011 Review (IDC #JP2542806U). This study estimates market size in 2011 and forecasts for 2012–2016 for the business consulting and the BPO services in four areas of HR, customer care, finance and accounting (F&A) and procurement.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
For more information, contact: