Intensifying Competition and Declining Competitive Advantage in the BPO and Multilingual CRM Markets
First written in FY2021. 3 of 11 entries say "Worsened", first in FY2025-H1. Latest entry: 2026-08-14.
The whole theme swung hardest in 2026: 29 of 92 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「The external cost environment remained challenging in this business because of increased competition and higher labour costs, and these expenses rose further. As a result, progress in securing revenue and profit was below plan.」
In bidding projects for government agencies and other entities, costs continued to rise because of increased competition and higher labour costs, resulting in full-year revenue and profit secured below plan. - FY2026-H1MaterialisedAnnual report
「In bidding projects for government agencies and other entities, where revenue and profit per project are substantial, acquisitions of projects commencing from the second quarter onward progressed roughly in line with the plan. However, the external cost environment remained challenging because of increased competition and higher labour costs, resulting in progress below plan in securing profit.」
In bidding projects for government agencies and other entities, costs continued to rise because of increased competition and higher labour costs, resulting in profit secured below plan. - FY2025-H1WorsenedAnnual report
「In bidding projects for government agencies and other entities, where revenue and profit per project are substantial, the environment remains challenging because increased competition has driven up the associated labour costs and public tendering has passed its peak.」
The company explains that the environment remains challenging in bidding projects for government agencies and other entities because of increased competition, higher labour costs and the completion of the main round of public tendering. - FY2024Market-size updateAnnual report
「BPO is a large market, with a market size of approximately ¥4.7 trillion in fiscal 2022 (Source: Yano Research Institute Ltd., “BPO (Business Process Outsourcing) Market Survey 2023,” November 2023). However, because barriers to entry are low, numerous companies, from major corporations to venture companies, have entered the market, which remains highly fragmented and competitive.」
The company continues to describe intensifying competition, and the stated market size was updated from approximately ¥4.5 trillion in the previous fiscal year to approximately ¥4.7 trillion in fiscal 2022. - FY2023Market-size updateAnnual report
「BPO is a large market, with a market size of approximately ¥4.5 trillion (Source: Yano Research Institute Ltd., “BPO (Business Process Outsourcing) Market Survey 2022,” November 2022). However, because barriers to entry are low, numerous companies, from major corporations to venture companies, have entered the market, which remains highly fragmented and competitive.」
The company continues to describe the competitive environment and has updated the stated market size from approximately ¥4.4 trillion to approximately ¥4.5 trillion. - FY2022RestatedAnnual report
「BPO is a large market, with a market size of approximately ¥4.4 trillion (Source: Yano Research Institute Ltd., “BPO (Business Process Outsourcing) Market Survey 2021,” November 2021). However, because barriers to entry are low, numerous companies, from major corporations to venture companies, have entered the market, which remains highly fragmented and competitive.」
The company continues to describe as a risk the competitive environment, characterised by increasing oligopolisation by major companies and new market entrants, and the market size of approximately ¥4.4 trillion. - FY2021First statedAnnual report
「BPO is a large market, with a market size of approximately ¥4.4 trillion (Source: Yano Research Institute Ltd., “BPO (Business Process Outsourcing) Market: Current Conditions and Outlook 2020-2021,” November 2020). However, because barriers to entry are low, numerous companies, from major corporations to venture companies, have entered the market, which remains highly fragmented and competitive.」
While indicating the market size, the company describes the continued entry of numerous companies from major corporations to venture companies and the impact on performance as a risk if it cannot maintain its competitive advantage.