This IDC study analyzes the trends of and forecasts for the Japan business services market by each segment. The Japan business services market covered in this study is composed of the business consulting market and the business process outsourcing (BPO) market (key horizontal BPO services for key horizontal business functions, which are human resources [HR], customer care, finance and accounting [F&A], as well as procurement).
The corporate attitude toward business services spending turned cautious due to concerns about the future of the economy, following the effects of the Great Eastern Japan Earthquake, strong yen, and fluctuations in overseas economy. On the other hand, non-core areas outsource to increase competitiveness, overseas deployment, mergers and acquisitions (M&A), and IFRS compliance, which are market opportunities for the business services market. Hence, the Japan business services market is expected to grow steadily in 2012. "However, this does not mean that the vendors providing the services will benefit equally from this growth. Each vendor must understand various changes such as company overseas deployment, M&A, and core/non-core boundary changes; and provide services while taking advantages of alliances to stay ahead of competitors," says Yukiharu Yorifuji, group director, IT Services & Communications, IDC Japan.