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Administration Outsourcing - Japan

Japan
  • The projected revenue in the Administration Outsourcing market in Japan is expected to reach US$5.42bn in 2025.
  • It is anticipated that the revenue will show an annual growth rate (CAGR 2025-2029) of 3.85%, resulting in a market volume of US$6.30bn by 2029.
  • In Japan, the average Spend per Employee in the Administration Outsourcing market is projected to reach US$78.30 in 2025.
  • In global comparison, United States is expected to generate the highest revenue, reaching US$28.47bn in 2025.
  • Japan's increasing demand for administration outsourcing in the IT Services market is driven by the need for cost-efficient solutions and specialized expertise.

Revenue

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Apr 2024

SOURCE: Statista Market Insights

NOTES: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

MOST_RECENT_UPDATE: Apr 2024

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Apr 2024

SOURCE: Statista Market Insights

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.

Global Comparison

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Apr 2024

SOURCES: Statista Market Insights, Financial Statements of Key Players, National statistical offices

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.

Technology

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IT Outsourcing: market data & analysis - BackgroundIT Outsourcing: market data & analysis - Cover

Key Market Indicators

NOTES: Based on data from IMF, World Bank, UN and Eurostat

MOST_RECENT_UPDATE: Jan 2025

SOURCE: Statista Market Insights

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IT services - Statistics & Facts

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.
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