Application Outsourcing - Japan

  • Japan
  • Revenue in the Application Outsourcing market is projected to reach US$8.54bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.70%, resulting in a market volume of US$8.78bn by 2028.
  • The average Spend per Employee in the Application Outsourcing market is projected to reach US$127.20 in 2024.
  • In global comparison, most revenue will be generated in the United States (US$44,040.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

 
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Analyst Opinion

Amidst the technological advancements and digital transformation, the Application Outsourcing market in Japan has been experiencing significant growth in recent years.

Customer preferences:
Japanese companies are increasingly outsourcing their application development and maintenance services to reduce costs and focus on core business operations. Additionally, the shortage of skilled IT professionals in Japan has led companies to seek outsourcing services from other countries.

Trends in the market:
The Application Outsourcing market in Japan is witnessing a shift towards cloud-based services and agile development methodologies. Companies are adopting cloud-based services to reduce infrastructure costs and increase scalability. Moreover, the adoption of agile development methodologies allows for faster delivery of applications and greater collaboration between development teams. Another trend in the market is the rise of digital transformation initiatives, which has led to an increased demand for application development services in emerging technologies such as artificial intelligence, machine learning, and the Internet of Things.

Local special circumstances:
Japan has a unique business culture that values long-term relationships and face-to-face communication. Therefore, many Japanese companies prefer to work with outsourcing providers who have a physical presence in Japan. Additionally, the Japanese language and business practices are unique, which requires outsourcing providers to have a deep understanding of the local culture and language to effectively communicate and deliver services.

Underlying macroeconomic factors:
The Japanese government has been promoting the use of digital technologies to improve productivity and competitiveness in the economy. The government's initiatives such as Society 5.0, which aims to create a super-smart society by integrating digital technologies into all aspects of life, has led to an increased demand for outsourcing services. Furthermore, the aging population in Japan has led to a shortage of skilled IT professionals, which has further fueled the growth of the Application Outsourcing market.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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