Japan's IT sector continues to evolve rapidly, driven by a strong focus on digital transformation (DX) initiatives and the need for innovation across industries.

For IT professionals currently in or considering opportunities in Japan, understanding the current market trends and in-demand skills are crucial to positioning oneself effectively in this competitive landscape.

- Hiring practice: Current trends highlight a more conservative approach as many companies seek candidates with a broad range of skills including not only technical knowledge but also communication capabilities. A growing demand has shifted to prioritizing bilingual candidates who can better grasp the local culture, communicate effectively within teams, and offer fresh insights due to their diverse backgrounds. For local candidates, English proficiency, strong technical knowledge, and a willingness to learn are the main sought-after attributes for both domestic and international firms.

- Increase in Overseas Recruiting: Firms are also targeting the international market in an attempt to hire larger numbers of new graduates directly, or looking at mid-career IT professionals that bring in a strong technical background and over 4 years of experience, both directly and via recruitment agencies. For overseas candidates, Japanese proficiency is a strong “attractive point” as it showcases the candidate’s strong interest in the country and its culture.

- Salary: Despite recent global downturn in the IT industry, especially among big players, there seems to be little negative impact on salary range both among local and international firms. However, the depreciation of the yen may make salaries less competitive for overseas candidates from some regions such as North America when converted to their home currency. Comparisons of salary ranges for different roles and experience levels is important to help set realistic expectations.

- WFH: We can also see a strong tendency for “return to office” compared to overseas companies. Many firms are also trying to compromise by providing “hybrid work environments” as an alternative. The choice to opt for a mixed work style remains a trait across large to medium-sized firms and start-ups. Typically cited reasons for this are related to cultural preferences and productivity concerns.

- Startups and Innovation Hubs Increase: Cities like Tokyo, Osaka, and Fukuoka are emerging as hubs for startups and innovation in Japan. Companies are offering opportunities for IT professionals to work in dynamic and entrepreneurial environments, contributing to cutting-edge projects and technologies. Startups often seek candidates who can innovate, iterate quickly, and drive business growth, which means they often prioritize technical experience compared to Japanese language proficiency. Success stories and notable projects from these hubs bring up extensive benefits such as the ability to work from anywhere in Japan or hybrid setups, equipment, stock packages, and so on.

- Continuous Learning and Upskilling: Given the rapid pace of technological advancement, continuous learning and upskilling are essential for IT professionals in Japan. Candidates who invest in acquiring new skills, obtaining certifications, and staying updated with industry trends enhance their career prospects and remain competitive in the job market. The Japanese government also recognizes this, with initiatives and subsidies being provided to support continuous learning and skill-up mentality.



In conclusion, while we see more challenges arise, continuous learning and upskilling and the ability to lever insight information both via networking and agencies, can provide candidates with new insights on how to approach this changing and exciting job market.