The Shortage of IT Human Resources in Japan Is Becoming More Serious

According to an estimate published by Japan's Ministry of Economy, Trade and Industry (METI) in 2019, Japan is facing a severe shortage of IT talent, with a projected shortfall of up to 790,000 engineers by 2030. Offshore development services are one way to solve this shortage of both people and budget.

1. A Serious IT Talent Shortage 10 Years from Now

According to a 2020 METI survey:

• ITJapan is currently short of 300,000 IT professionals.
• This shortage is projected to reach up to 790,000 IT professionals by 2030.

➤ Even amid the pandemic, the effective job-openings-to-applicants ratio for IT engineers stood at 1.5 (versus around 1.2 overall).

_{Source [URL]: https://news.yahoo.co.jp/articles/6ceab514aa09e2882cb5bacfb6fc5b9791c8a389}

Source: METI, Survey on IT Human Resource Supply and Demand

2. IT Recruitment and Training Costs Are Steadily Rising.

• According to Mynavi Corporation's “Mynavi Mid-Career Hiring Survey 2020” (conducted in March 2020), companies in the IT, telecom, and internet industry budgeted an average of 9.167 million yen per year for recruitment, with actual spending of 8.985 million yen and an average of 8.6 hires. Based on this, the average recruitment cost in the IT industry works out to roughly 1.15 million yen per hire.

Source [URL]: https://www.mynavi.jp/wp-content/uploads/2020/03/%E3%83%97%E3%83%AC%E3%82%B9%E3%83%AA%E3%83%AA%E3%83%BC%E3%82%B9.pdf

3. We Were Shocked by IT Talent Salary Levels!!!

Shocked by IT Talent Salary Levels

• Companies are spending big money to hire top IT talent. According to a METI survey on IT talent trends in Japan, IT professionals' salary levels are very high, in the range of 450 to 1,200 man-yen (about ¥4.5–12 million) per year.

Source: METI website

[URL]: https://www.meti.go.jp/shingikai/mono_info_service/digital_jinzai/pdf/001_s01_00.pdf

*** Offshore development is now increasingly popular, with Vietnam offshore ranking No. 1.

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