Features of Zenken's Overseas IT Talent Recruitment Services
The need to solve the social problem of securing IT human resources in Japan is a huge market opportunity for us
India, one of the world's leading IT nations with a population about 10 times that of Japan, is our partner
The hiring of talented IT personnel in Japan is expected to become increasingly difficult in the future.
With the spread of online interviews (recruitment), the trend in looking overseas to secure human resources will continue to increase, and the overseas IT human resources market is expected to be a growth area.
India, a country of 1.3641 billion people with a population about 10 times that of Japan, is known as one of the world's leading IT nations and has a large number of IT professionals. With these abundant human resources as our base, we have developed a sustainable IT personnel placement business.
Based on thorough research, we decided to partner with a top university in Bengaluru (formerly Bangalore), which is known as the Silicon Valley of India. In response to the needs of companies in Japan seeking IT personnel, we provide both 'new graduate recruitment' and 'mid-career recruitment' support services for talented IT professionals.
We have partnerships with a wide range of top universities, starting with the Indian Institute of Technology
Lawyers and IT engineers are said to be the most popular professions in India. As a result, there is a huge number of students studying to become IT engineers, in stark contrast with Japan. Our business model allows us to focus our recruiting activities on the most talented people from the top universities in India. We are able to select the right person for our clients from among hundreds of candidates, taking into account not only their skills but also their personality and their affinity for the corporate culture.
Bengaluru, an IT city that is attracting worldwide attention
- The 'Silicon Valley' of India, a leading nation in IT education
- Bengaluru, India is attracting attention from companies around the world as a source of IT talent. The number of science-related personnel continues to increase at a rate of 10,000, making it one of the three largest IT cities in the world.
- A city passionate about excellent IT education, delivering results that are recognized around the world
- In India, which is known as an IT powerhouse, IT education is promoted and ICT classes using computers and tablets begin in elementary and junior high schools. Thanks to these educational policies, the total number of engineering colleges in India exceeds 10,000.
- A treasure trove of young and enthusiastic IT talent
- While the number of students majoring in engineering in Japan is less than 430,000 for all faculties, in Bengaluru there are more than 1.5 million such students. However, due to the oversupply of IT human resources, the employment rate in India is low. This 'growth without employment' trend is a pressing issue in India.
- A city rich in human resources with well-developed language acquisition skills
- India is a multilingual country, with more than 200 languages, and many students can speak four or five languages. This means that their ability to acquire languages is very high. Moreover, it is said that students from Bengaluru find it less difficult to learn Japanese because of the grammar and pronunciation similarities between Kannada, the official language of Bengaluru, and Japanese.
- Professionals looking for employment opportunities in Japan
- Under the Trump Administration, the tightening of the 'H1b' visa for professional foreign workers has made it difficult for Indians to find work in the United States. Indians, who have always had a strong desire to work abroad, are now considering work for Japanese firms that offer higher salaries and better skills than domestic companies. As a result, we have been able to hire some of the most talented IT specialists currently working in Japan.
- An opportunity for small and medium-size companies to hire excellent IT personnel
- A typical starting salary for a college graduate in India is about 40,000 yen. This means that a job opening at a small Japanese company with an expected annual salary of less than 3 million yen attracts applications from hundreds of students from top engineering colleges in Bengaluru. Stories that one has to offer more than $10 million to hire the best IT talent in India are based on only a few exceptional cases.
- Bengaluru has a very strong affinity with Japan
- Bengaluru, located in the South of India, has always been a welcoming place for foreign companies and currently 700 of the 2,500 IT companies there are foreign-owned. Bengaluru has been open to accepting Western cultural influences, such as eating beef and drinking alcohol. We have seen that the professionals from Bengaluru take cultural differences in their stride and can easily adapt to Japanese culture.
Market environment surrounding Zenken's Overseas Talent Recruitment Business
Findings from the Survey on IT Human Resources Supply and Demand for 2018-2030
According to the 'Survey on IT Human Resources Supply and Demand' released by the Ministry of Economy, Trade and Industry, the gap between the supply and demand of IT professionals is estimated to expand to a maximum of 790,000 people by 2030, due to the rapid decrease in the domestic working population and the expected growing demand for IT talent.
As one measure to tackle the pressing social issue of a decreasing working age population, the government of Japan has implemented the Information and Communication Technology (ICT) monitoring scheme. The government needs to take concrete actions to close the gap between IT human resources supply and demand. Zenken's overseas IT recruitment business is well placed to take advantage of this market opportunity.
Japan's national initiative to promote the acceptance of high-level foreign talent
In the government's strategy for the revitalization of Japan, it was stated that 'in order to further revitalize the Japanese economy and increase its competitiveness amidst intensifying competition for human resources, it is important to attract and retain excellent professionals in Japan'.
As part of this nation-wide drive to improve the environment for accepting highly-skilled professionals, the IT industry is actively promoting foreign talent recruitment to close the supply-demand gap.
A survey of the popularity of IT-related professions and skill levels
IT human resources are expected to play an important role in the future growth of domestic industry. In 2008, the Ministry of Economy, Trade and Industry (METI) conducted a comparative study of IT human resources in various countries to discover the best sources of foreign IT talent. The results of this survey demonstrate that the desire to work in IT-related jobs is higher overseas than in Japan. This trend is making it more difficult to cover the demand for IT personnel with Japanese IT specialists alone.
In addition, it can be inferred from the survey results that there are many excellent IT professionals abroad, and that many of them have skill levels exceeding those of domestic IT human resources. The interest and skills of overseas IT professionals form the backdrop of our Overseas IT Talent Recruitment Services.
Advantages of our Overseas IT Talent Recruitment Services
Securing sufficient domestic human resources, especially highly-skilled IT professionals, is a continuous challenge, and the gap between supply and demand will become even wider in the future. Our personnel placement, Japanese language education support and retention support capabilities give us a major competitive advantage in this business area.
Introducing numerous excellent IT professionals to companies in Japan Personnel placement
We collaborate with more than 20 foreign universities, including a top-ranked engineering university in Bengaluru, India, which is regarded as one of the world's three largest IT cities. We have opened the Japan Career Centre in Bengaluru, the first of its kind, enabling us to introduce excellent human resources.
Solid skills cultivated through language training Japanese language education support
We provide Japanese language education in India using the know-how we have cultivated over the years. Graduates of our courses have mastered business etiquette and business Japanese and have a strong understanding of the Japanese culture. These skills give them an advantage in the workplace.
From administrative procedures to post-employment follow-up Retention support
We provide comprehensive support from recruitment to onboarding and retention, so that even those companies who are new to hiring foreign nationals can conduct their recruitment activities with confidence. We translate job offers into English, support local recruitment activities, and provide other support to ensure that foreign personnel can actively contribute to and enjoy working at their new companies.
Industry's first low-cost plan 'Subscription Recruitment'
- Zenken's 'Subscription Recruitment' is an industry-first, a plan that allows clients to pay recruitment fees in monthly installments. This affordable plan makes it easier for our clients to hire overseas IT talent by greatly reducing the cost burden and the risk associated with lump-sum payments, which until now has been a common practice in the industry.
Growth Strategy for the Overseas IT Talent Recruitment Services
Considering the rapid decline in the domestic workforce, we expect the overseas IT human resources market will keep growing and attracting attention. The growth strategy outlined below is based on this outlook.
Market demand for excellent IT talent continues to grow
In the future, finding talented domestic IT personnel will become increasingly difficult. As a result, the tendency to look overseas to secure such talent will strengthen, and the overseas IT human resources market is expected to become a growth market. In response to this market environment, we decided to focus on India and the city of Bengaluru, whose GDP is expected to grow rapidly between 2019 and 2035. We have established a Career Center in Bengaluru, the first such endeavor by a Japanese company, and have built pipelines with top universities producing excellent IT professionals. With a population 10 times that of Japan, India is known as one of the world's leading IT nations, and with its abundant IT human resources, we will develop a sustainable business.
Our ability to provide Japanese language education through our education business
Since our establishment, we have been promoting our education business. One aspect of this business is operating a Japanese language school for foreigners, with the goal to help foreign talent acquire business Japanese skills and successfully work for Japanese companies. We are also developing our own e-learning materials for the Basic Japanese Proficiency Test (JLPT N4). Japanese language education services, cultivated through our language business in Japan, will be provided locally in Bengaluru. In addition to facilitating the IT professionals' employment in Japan, we also differentiate ourselves from the competition by continuing to provide language education after successful placement at Japanese companies, thereby developing human resources who can be effective from the very beginning of their careers.
Message from the Head of Overseas IT Talent Recruitment Services
Head of Overseas IT Talent Recruitment Services Yuichi Kimura
Contributing to solving the problem of a declining workforce and improving Japan's technological capabilities by creating an employment market for highly skilled foreigners in Japan.
Most companies in Japan require high proficiency Japanese language skills but at the same time lack the know-how and support systems to retain foreign workers. This is one of the main reasons for the sluggish growth in the employment of high-level foreign workers in Japan. Moreover, due to high costs involved, thus far only large companies have been able to take on this challenge.
In light of the continuing decline in the domestic workforce and the need to improve technological capabilities to promote DX, it is important for the future of Japan to create an environment where high-level foreign professionals can be hired not only by large corporations but also by small and medium-sized local venture companies.
By combining our know-how and capabilities in the fields of Japanese language training and post-employment retention support (difficult for conventional recruitment agencies to provide), we have created a subscription-model recruitment service aimed at solving the labor shortage issue and improving technological capabilities at small and medium venture companies in Japan.