By 2030, Japan’s advanced IT sector is expected to face a shortage of about 550,000 (up to 790,000) talents. This severe shortage of skilled workers poses a major challenge for Japanese companies.
Similarly, countries around the world are experiencing a trend of IT talent shortages, but in Japan, where wages are trending lower compared to the rest of the world, utilizing India’s excellent engineers can be one way to address this difficulty.
The Appeal in Numbers
India is known as one of the world’s leading nations in engineering education, producing a significant number of talented IT professionals annually. The chart shows the percentage of STEM degree holders by country, with India accounting for 20.7% in 2018. In 2020, India produced 2.55 million graduates in the STEM fields (compared to 3.57 million in China and 192,000 in Japan).
The Appeal in Quality
India is renowned as one of the world’s leading countries in engineering education, and its top universities produce many graduates with advanced technical skills and innovative thinking. Additionally, due to English being an official language, Indian graduates generally possess high proficiency in English. The large population and competitive educational environment foster graduates with strong ambition and a ‘hungry’ spirit, ready to excel.
Indian Nationals as Advanced Foreign Talent: Second to Chinese, but with a 13-fold Difference
Although the total number of advanced IT professionals from India is approximately 70% of that from China, the actual number of those who have come to Japan is 13 times fewer than the Chinese. This indicates a significant need to attract more outstanding Indian talent to Japan.
Talent Benefits
Benefits of Indian Talent
Indian IT talent offers numerous advantages to Japanese companies. These individuals possess exceptional engineering skills and can contribute to technological innovation and advanced projects. Moreover, India’s education system focuses on both practical techniques and theoretical knowledge, making these talents likely to be immediately effective.
Additionally, Indian talents are known for their driven and ambitious spirit, readily embracing new environments and challenges. This is a critical factor in bringing innovative ideas and solutions. Also, with English education prevalent in India, many IT professionals are fluent in English.
This facilitates collaboration with international projects and multinational teams. Therefore, Indian IT talent, with their technical expertise, adaptability, and communication skills, could be a key to helping Japanese companies gain an edge in global competition.
100% Satisfaction with Indian High-Skilled Talent
According to a survey conducted by JETRO (n=27), all respondents indicated that Indian high-skilled talents are either “performing beyond expectations” or “performing as expected,” resulting in a 100% satisfaction rate.
Low Turnover Rate for Indian High-Skilled Talent
According to a JETRO survey (n=27), more than half of the companies responded that the turnover rate of Indian high-skilled talent is the same as, or lower than, that of their Japanese employees.
Plans to Maintain or Expand Hiring Quotas for Indian High-Skilled Talent
According to a JETRO survey (n=27), 85% of companies plan to maintain or expand their hiring quotas for Indian high-skilled talent in the future.
