Abstract
This IDC study (which is a translation of the Japanese report IDC #J7250107)
explores the situations and trends in Japan KHBO market by submarket (HR,
customer care, F&A, and procurement). It analyzes the market situation in 2006,
provides a forecast through 2011, and includes IDC' s recommendations to service
providers.
The Japan business outsourcing market continues to expand amid a booming
economy, the resulting manpower shortage, and compliance needs. In 2006, the
business outsourcing market for Key Horizontal Business Functions (HR, customer
care, F&A, procurement) grew 6.2% to 834.6 billion yen. We predict that the
market will have a CAGR of 5.0% from 2006 to reach a size of 1.0650 trillion
yen in 2011. Although the Japan business outsourcing market will expand,
service vendors will continue to find themselves in a tough environment, with
price pressures resulting from uncertainties over the economic outlook, a
shortage of manpower, and escalating competition. "Service vendors should seek
to survive the competition not just by responding to existing needs for cost
savings and business improvements but also by delivering services that
anticipate regulatory and other changes in the environment and catering to the
needs of customers in each individual market segment. In addition, it is also
necessary for them to demonstrate their own commitment to internal controls by
acquiring the relevant external certifications," observes Yukiharu Yorifuji,
Group Manager, IT services, IDC Japan.
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