IT Outsourcing in Japan

IT outsourcing in Japan is rapidly evolving, driven by the country’s strong technological infrastructure and increasing demand for digital transformation. Japan is becoming a major player in global IT outsourcing. And its market is projected to reach $39.64 billion by 2025. Businesses are leveraging outsourcing to optimize operations, access specialized expertise to remain ahead of the curve in the competitive digital landscape.

Japan as an Economy

Japan’s economy grew rapidly in the 20th century, especially after World War II. This growth was driven by expanding industries, a strong domestic market, and a focus on exports. Today, Japan is one of the world’s top economies, excelling in manufacturing and services. Namely, it is a global leader in cars, steel, and advanced technology, particularly consumer electronics. Over time, the service sector has become the biggest part of Japan’s economy and job market.¹

The economy of Japan at a glance

	Gross Domestic Product
Annual GDP		USD 4.2 Trillion (2023)
GDP Per Capita		USD 33,767 (2023)
Income Category		High Income (2023)
	People
Population		123 Million (2025)
Literacy Rate		99% (2024)
EF English Proficiency Index		Low Proficiency (2024)
	IT Sector
IT Services Market Size		USD 96 Billion (2025)
IT Outsourcing Market Size		USD 40 Billion (2025)
Registered Software Companies		28,600+ (2025)
	Business Environment
Ease of Doing Business		Score: 78 | Rank: 29 (2020)
Political Stability Indicator		Percentile Rank: 82 (2023)
Corruption Perceptions Index		Score: 73/100 | Rank: 16/180 (2023)

IT Services Market in Japan

Japan’s IT services market growth is driven by innovation and digital transformation. By 2025, it is expected to generate $95.8 billion in revenue, with IT outsourcing leading at $39.64 billion.

This growth is accelerating, with a projected annual increase of 5.23%, reaching $117.5 billion by 2029. Industries in Japan are increasingly relying on IT solutions to improve efficiency.

Companies are also investing in workforce development. Resulting in, IT service spending per employee expected to reach $1,384 in 2025. Furthermore, the rising demand for cloud computing is a key factor driving this growth. As the market expands, Japan is strengthening its role in the global digital economy.²

IT Outsourcing in Japan

Japan’s IT outsourcing market is set for major growth. Its revenue is expected to reach $39.64 billion by 2025. As a result of the country’s strong tech infrastructure and skilled workforce drives this growth. The market is projected to grow at an annual rate of 7.72%, reaching $53.37 billion by 2029. This reflects the increasing demand for outsourced IT services and the sector’s steady expansion.

In 2025, businesses are expected to spend an average of $572.7 per employee on IT outsourcing, highlighting its growing importance. As digital transformation accelerates, companies seek outsourcing partners who offer innovative solutions and understand the local market.

Japanese businesses value long-term relationships, trust, and precision. Consequently, they prefer outsourcing partners who meet high-quality standards and deeply understand their business culture.

Top Software Development and IT Employers in Japan

We have sorted a list of top companies that employ the highest number of IT professionals in Japan. We have analyzed publicly available information on IT companies and sorted a list of the top 10 firms based on employee count in Japan. Our emphasis was on employee quantity. As a result, certain companies, although esteemed for their quality in the market, may not appear on or rank highly in the list due to their smaller employee size.

Software Association of Japan (SAJ)

The Software Association of Japan (SAJ) seeks to promote the healthy growth of Japan’s software industry. Additionally, it enhances the quality of life for the country’s citizens by engaging in activities focused on advancing the software industry and bringing together companies involved in software products. In the era of the Fourth Industrial Revolution, software plays a pivotal role in virtually every aspect of life. Moreover, digitalization further amplifying its importance, SAJ takes proactive steps to advance a digital society centered on software. As of June 2024, the association has over 800 members.

Reputed Institutions for Higher IT Education in Japan

The following is a list of the top universities in Japan for Computer Science. We have used a dataset of 1.7 million academic papers from 506 universities in Japan to  determine the rankings. These institutions collectively received 25.6 million citations. We have sorted the list in terms of the number of alumni in IT and engineering roles.

Please note that the alumni in engineering roles may include other engineering domains other than computer science or software engineering since we have taken the filtered count from their LinkedIn pages.

Conclusion

IT outsourcing in Japan blends cultural heritage with technological innovation, strengthening its position as a global economic leader. In addition, it has a strong focus on education, workforce development, and digital transformation. This supports the country in advancing in cloud computing, IT services, and digital infrastructure. Its outsourcing market continues to grow, emphasizing trust, quality, and long-term partnerships. As Japan nurtures its digital economy and strengthens its technological ecosystem, it solidifies its role as a key player in the global IT landscape.

So, if you’re looking to outsource in Japan and tap into its thriving IT sector, let us help you connect with the best companies through Enosis Outsourcing. Contact us today to learn more and explore the opportunities Japan has to offer!

References

[1] Japan – Population, Migration, Aging | Britannica ↩

[2] IT Services – Japan | Statista Market Forecast ↩

[3] IT Outsourcing – Japan | Statista Market Forecast ↩