Market Insights Technology IT Services IT Outsourcing

Administration Outsourcing - Japan

Japan

The projected revenue in the Administration Outsourcing market in Japan is expected to reach €4.69bn in 2024.
It is anticipated that the revenue will show an annual growth rate (CAGR 2024-2029) of 4.12%, resulting in a market volume of €5.74bn by 2029.
In Japan, the average Spend per Employee in the Administration Outsourcing market is projected to reach €67.81 in 2024.
In global comparison, United States is expected to generate the highest revenue, reaching €25,040.00m in 2024.
Japan's increasing demand for administration outsourcing in the IT Services market is driven by the need for cost-efficient solutions and specialized expertise.

Key regions: Netherlands, Japan, China, United Kingdom, India

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Analyst Opinion

The Administration Outsourcing market in Japan has been steadily growing in recent years.

Customer preferences: Japanese companies are increasingly turning to outsourcing administrative tasks to reduce costs and improve efficiency. This trend is particularly prevalent in small and medium-sized enterprises (SMEs) that lack the resources to hire in-house administrative staff.

Trends in the market: One trend in the Administration Outsourcing market in Japan is the increasing demand for digital solutions. Companies are seeking to automate administrative processes such as payroll and accounting to reduce errors and increase speed. Another trend is the growing popularity of outsourcing to offshore locations such as the Philippines and India, where labor costs are lower.

Local special circumstances: Japan has a highly educated workforce, but there is a shortage of skilled workers in certain fields. This has led to a reliance on outsourcing to fill the gap. Additionally, Japanese companies tend to have a hierarchical management structure, which can make decision-making slow and bureaucratic. Outsourcing administrative tasks can help to streamline processes and improve efficiency.

Underlying macroeconomic factors: Japan's economy has been struggling with low growth and deflation for many years. This has put pressure on companies to cut costs and improve productivity. Outsourcing administrative tasks can help to achieve these goals. Additionally, Japan's aging population has led to a shrinking workforce, which has further increased the demand for outsourcing.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.