Reliable Digital BPO Solutions by Altius Link

Japan is facing a well-known population crisis, with the world's oldest population and a rapidly declining birth rate. Experts predict that the country could experience a labor shortage of up to 11 million workers by 2040. How is this demographic shift impacting your business and the broader industry?

The issue you mentioned is critical, and companies across Japan are struggling to hire employees. To compensate for the labor shortage, digital transformation (DX) has become a necessity. Businesses are also prioritizing their limited resources by clearly distinguishing between core and non-core operations. While non-core functions require cost efficiency and streamlined operations, their workload is increasing and becoming more complex, creating significant opportunities for outsourcing companies like ours.

Japan is at the forefront of this demographic shift, yet, compared to Western countries, the concept of outsourcing non-core operations is not as widely embraced. We see an important opportunity to develop and expand this market in Japan.

Additionally, Japan’s career and hiring system has traditionally focused on white-collar generalists rather than the job-specific roles seen in Western companies. This presents a major opportunity for back-office business process outsourcing (BPO), where we believe we can add significant value.

Are you assisting clients in identifying their non-core operations and then providing outsourcing solutions to help them streamline these functions?

Generally speaking, planning and management strategy are considered core functions, while back-office work, sales support, and routine tasks are often classified as non-core. Traditionally, clients have approached us with specific outsourcing requests. However, as an outsourcing provider, we believe it’s essential to take a more proactive role in offering comprehensive support and strategic solutions.

As you know, AI is ubiquitous in 2025, transforming businesses and workforces across nearly every industry. How is AI influencing your company, and how are you preparing your employees for this ongoing evolution?

We are not an AI developer but rather a user, which makes it essential for us to understand AI’s possibilities, as it plays a crucial role in our business operations. This is particularly relevant in contact centers, where customer interactions can be transformed into data and utilized for marketing. As AI adoption continues to grow, it is important that we help our clients understand its potential and applications.

In 2023, KDDI Evolva, a wholly-owned subsidiary of KDDI CORPORATION (KDDI), and Relia, an affiliate of Mitsui & Co (Mitsui), merged and established Altius Link (Altius Link), a joint venture between KDDI and Mitsui. Leveraging the collective strengths of our group companies, we aim to enhance BPO services. We are actively working to integrate and maximize the resources within the group. As part of this approach, we remain open to collaborations and innovation, making partnerships with cutting-edge technology companies a key element of our overall service strategy.

Our primary focus is AI utilization. While we have engineers dedicated to studying and enhancing AI applications, we collaborate with our group company KDDI and ELYZA Inc., a leading company in the implementation of large language models (LLM) in Japan for AI development. Additionally, for data platforms, we work with FLYWHEEL Inc another KDDI group company that supports data utilization for enterprises.

Scenes from Altius Link's contact center

Mergers like the one between KDDI Evolva and Relia offer significant benefits, but research shows that such mergers have a 60% failure rate within the first three years, often due to high shareholder expectations. What challenges have you faced post-merger, and what strategies are you implementing to ensure the long-term success of your new company?

It has only been two years since the merger, so we are still in the midst of the integration process, making it difficult to fully evaluate our progress. However, some clear advantages have already emerged, particularly in our ability to handle massive amounts of data. The more data we gather, the more meaningful analyses we can conduct, allowing us to provide data-driven solutions. Combined, the two companies process over 500 million annual cases or communications—a significant strength in establishing effective, data-driven strategies.

Particularly, utilization of data platforms through collaboration within the group companies is crucial, and consolidation of such expertise is one of our greatest strengths.

Relia has an extensive global network and presence in countries such as the Philippines, China, Thailand, Vietnam, Nicaragua, and the United States, while KDDI Evolva has provided over 2,000 in-house engineers. KDDI, in turn, offers a vast network, along with system integration and development expertise. Similarly, Mitsui excels in discovering advanced technologies and services overseas, business development, and leveraging the network of domestic and international group companies. By leveraging these collective strengths, we are creating group synergies, positioning ourselves for long-term success.

We came across the development of your Altius ONE platform, which not only centralizes outsourcing services but also functions as a business transformation solution. Given the rapid growth of the BPO sector in Japan, competition is intense. What do you see as the core competitive advantages of Altius ONE compared to other solutions currently available in the market?

Altius ONE is a data-driven platform capable of delivering solutions based on the analysis of over 500 million transactions. Given the diverse range of businesses and client segments we serve, we can support a wide variety of industries.

Within the value chain, we offer a broad spectrum of services. For example, Altius ONE enables tailored solutions for data centers while also integrating with core business functions such as e-commerce, sales, and marketing. By consolidating and analyzing this information from multiple angles, we provide comprehensive insights that drive business transformation. This linked approach, where various services and data points are interconnected to offer holistic solutions, is a key competitive advantage that sets Altius ONE apart in the market.

Overview of Altius ONE

What are the main challenges you encounter in managing data governance for your clients?

Omnichannel solutions have become a mainstream requirement, and our approach focuses on analyzing data to determine the most optimal allocation of resources. By converting data into text and leveraging AI for analysis, we can provide the best combination of data services, making every decision data-driven.

The key challenge now lies in how to effectively utilize this vast amount of data to optimize core business operations. LLMs and AI are increasingly being used to enhance efficiency and effectiveness, helping businesses make more informed decisions.

Structuring and analyzing data directly contribute to two key pillars of customer satisfaction: elevating quality and improving business efficiency. By refining these processes further, we believe we can drive even greater enhancements to our clients’ core business operations, ultimately delivering higher value and better outcomes.

Is there a particular project you can highlight that showcases the power of data-driven insights compared to the more traditional experience-based approach?

One example of this is the analysis of operator interactions at contact centers. At KDDI’s customer service center, which is supported by Altius Link, approximately 2 million inquiries are handled monthly. Before implementing AI, only 5% of voice recordings could be analyzed manually. With AI-driven analysis, we can now process and evaluate 100% of the voice recordings, allowing us to extract key insights from both customer and operator interactions.

This data-driven approach has significantly improved customer satisfaction, as operators are now equipped with more informed responses based on keyword analysis. The cost savings have been substantial as well as 24,000 hours previously spent on manual reviews have been eliminated. Furthermore, the introduction of AI has resulted in 57.9% reduction in the need of human resources in this process.

With AI converting voice to text, we have not only increased efficiency but also enabled a deeper and more comprehensive understanding of customer interactions, driving improvements in both cost efficiency and service quality.

A major advantage of your merger was the integration of various services. You’ve discussed Altius ONE and the BPO side of your business, but the merger also enabled you to expand into staffing solutions, including engineering dispatch and system integration. How are you bringing these different business units together to create a comprehensive ecosystem for your customers?

Before the merger, KDDI Evolva had an IT solutions department which operated as an independent business, focusing on dispatching technicians and providing system integration. After the merger, the IT solutions department took on the responsibility of system integration for the customers contact centers, utilizing internal resources across the company. By converging the capabilities of our company, along with KDDI and Mitsui, we are strengthening the collaboration to deliver more seamless and advanced services to our clients.

The launch of Altius ONE has been a significant success, largely due to the simultaneous development and the execution of PoC (Proof of Concept). This process has accelerated the accumulation of in-house expertise and has helped us recognize the full extent of our capabilities. We are now in a stronger position to create a comprehensive ecosystem that delivers greater value to our clients.

In terms of international expansion, you have the advantage of leveraging your parent companies' extensive networks. Which countries or regions have you identified as key areas for potential growth in the coming years?

Leveraging Mitsui’s expertise in the unique business environment and utilizing knowledge of business needs across the 62 countries in which it operates, we aim to expand into the world's largest market, North America, where we already have a footprint, as well as the rapidly growing Asian market. In the Philippines, we operate a contact center with over 10,000 staff members, providing services not only to domestic companies but also to English-speaking clients, primarily in North America. Our service offerings, including 24/7 operations, are designed with flexibility to meet the diverse and evolving requirements of our customers needs. Additionally, with numerous honors from prestigious global business awards such as the Stevie Award and Globee Award, we have received high recognition for our use of cutting-edge technology and cybersecurity measures, enabling us to deliver high-quality services.

We are also looking to strengthen our operations in Vietnam. We have a contact center in Ho Chi Minh City and a BPO center in Hanoi. Hanoi, in particular, has a strong talent pool of Vietnamese professionals with high proficiency in Japanese, often achieving Grade 1 or Grade 2 on the Japanese Proficiency Test (JLPT). This allows us to provide offshore services to Japanese companies through our Vietnam-based facilities.

In Thailand, although we are not a majority shareholder, we have invested in a local company. Right now, our focus is on Southeast Asia, where we are strategically connecting key locations across the region to build a truly global outsourcing network.

In Japan, you offer a comprehensive range of services across various business segments. When it comes to your overseas operations, are you focusing on specific segments, or is the long-term goal to expand and offer the same full suite of services globally?

We don’t differentiate between the services we offer to Japanese clients and those offered to international clients. Our objective is to deliver a comprehensive value chain that supports end to end business operations. We believe that our advanced BPO services, including services like Altius ONE, which leverage data to drive business value, not just limited to back-office outsourcing, but also featuring thorough operations that leverage the attentive support inherit in Japanese quality, can be applied internationally. As a leading player in Japan’s BPO industry, we will utilize our international network to expand globally and strengthen our overseas operation.

In 2024, you partnered to integrate the Genesys Cloud platform into your Altius ecosystem, a move that appears to have highlighted your company’s strengths in IT, engineering, and system integration. Looking ahead, are you planning to pursue similar partnerships, and if so, what qualities would you look for in an ideal partner?

We aim to solve the genuine challenges faced by our clients through our business. To achieve this, it is essential to have a comprehensive set of capabilities that span the entire value chain of the business operations.

Genesys Cloud is a highly versatile and widely supported cloud contact center system that offers a range of functionalities. By leveraging this platform, businesses can transform data gathered from customer interactions within the contact center into valuable insights. These insights can then be utilized to enhance productivity, boost sales, and ultimately expand the reach of traditional business operations. The system enables companies to take full advantage of the data generated from customer touchpoints, driving continuous improvement and fostering growth across various aspects of their business.

Building on our strengths as a foundation, we are committed to advancing our collaboration with partners to provide even more valuable services. By working together, we aim to enhance our service offerings, create greater value for our clients, and foster mutual growth and success.

Is there a particular objective that you’ve set yourself, that you would like to achieve during your time as president of the company?

When we established our joint venture, our goal was to elevate ourselves as a digital BPO provider while building trust with our clients. The BPO industry is heavily dependent on human resources, so integrating digital solutions to reduce the risks associated with labor shortages is essential. At the same time, having trusted partners is crucial to ensuring the stability and success of our business operations. Our mission is to position ourselves as a digital BPO provider, recognizing our role as a public entity delivering essential services.

One of the key values in our Purpose & Values is “Sharing Happiness.” We strive to create happiness not just for our clients and employees, but for everyone who interacts with our company. Our focus is on fostering satisfaction and well-being among people around the world, ensuring that our impact extends beyond business and contributes to a more positive global community.

For more information, please visit their website at: https://www.altius-link.com/eng/