A boundary integral equation method in the shape design sensitivity analysis is developed for the elasticity problems with axisymmetric non-homogeneous bodies. Functionals involving displacements and tractions at the zonal interface are considered. Sensitivity formula in terms of the interface shape variation is then derived by taking derivative of the boundary integral identity. Adjoint problem is defined such that displacement and traction discontinuity is imposed at the interface. Analytic example for a compound cylinder is taken to show the validity of the derived sensitivity formula. In the numerical implementation, solutions at the interface for the primal and adjoint system are used for the sensitivity. While the BEM is a natural tool for the solution, more generalization should be made since it should handle the jump conditions at the interface. Accuracy of the sensitivity is evaluated numerically by the same compound cylinder problem. The endosseous implant-bone interface problem is considered next as a practical application, in which the stress value is of great importance for successful osseointegration at the interface. As a preliminary step, a simple model with tapered cylinder is considered in this paper. Numerical accuracy is shown to be excellent which promises that the method can be used as an efficient and reliable tool in the optimization procedure for the implant design. Though only the axisymmetric problem is considered here, the method can be applied to general elasticity problems having interface.