What is the market value of foreign engineers in Japanese companies?

The number of foreign engineers working in Japan has been increasing in recent years, and the market value of foreign engineers in Japanese companies is high. So, why is the market value of foreign engineers so high? In this article, we will explain the actual situation and reasons for the market value of foreign engineers in Japanese companies.

We will also introduce you to ways that foreign engineers can find jobs that suit them, so this is a must-see for anyone thinking of working as a foreign engineer in Japan. Find out about the market value of foreign engineers in Japanese companies and find a job that matches your own value. If you are having trouble finding a job in Japan, please use the job agency “G Talent”, which specializes in foreign engineers.

The market value of foreign engineers in Japanese companies is high

価値上昇のイメージ

The shortage of IT personnel in Japan is becoming more serious, and the Ministry of Economy, Trade and Industry's “Survey on IT Personnel Demand” released in 2019 reported that IT personnel are in short supply due to changes in the IT demand structure.

According to the report, there will be a shortage of 220,000 IT personnel in 2018, 260,000 in 2019, and 300,000 in 2020, and it is expected that there will be a shortage of approximately 410,000 to 790,000 IT personnel by 2030. Depending on how IT progresses in the future, it can be seen that the shortage of IT personnel in Japan is extremely serious.

One area that is attracting attention as a way to make up for the shortage of IT personnel is the recruitment of foreign IT engineers. According to the “Notification of Employment Status of Foreigners” published by the Ministry of Health, Labour and Welfare, the number of foreign engineers working in Japan with a visa that allows them to work in Japan, “specialist/technical field status of residence”, is increasing year by year, and their market value appears to be increasing.

In 2021, 394,509 people were working in Japan with the above visa, an increase of 9.7% compared to the previous year. Comparing the five years between 2014 and 2019, the number of foreign nationals working with the same visa status in 20 In 2014, the number of foreign nationals working in Japan with the same status of residence was 147,296, while in 2019, this figure was 329,034, recording a 2.2-fold increase over the five-year period. Against the backdrop of the continuing shortage of IT personnel in Japan, it can be predicted that the market value of foreign engineers will continue to rise in the future.

Reference: 「外国人雇用状況」の届出状況まとめ【本文】(令和3年 10 月末現在)/厚生労働省

What countries do foreign engineers working for Japanese companies come from?

複数の外国人の会話シーン

According to the “Employment Status of Foreigners” report by the Ministry of Health, Labour and Welfare, the countries of origin of foreign engineers in the IT and other information and communications industries are mainly from East and Southeast Asia. China is in first place, followed by South Korea in second place, Vietnam in third place, and the United States in fourth place.

There are also many foreign IT engineers from the Philippines, Nepal, Indonesia, Brazil and Peru working for Japanese companies. This shows that the market value of IT engineers from all over the world is high, regardless of their nationality.

Reference: 「外国人雇用状況」の届出状況表一覧(令和3年10月末現在)/厚生労働省

Reasons for the high market value of foreign engineers

世界地図

There are five reasons why foreign engineers are highly valued in Japanese companies.

  • Shortage of engineers in Japanese companies
  • Many Japanese companies are looking for excellent engineers who can hit the ground running
  • Able to bring in ideas that Japanese people don't have
  • Able to invigorate the company
  • Support for overseas expansion

Shortage of engineers in Japanese companies

In many Japanese companies, a serious shortage of engineers is a problem. In particular, Japan is seriously behind in IT education, and programming and IT education, which have been introduced in other countries 5 to 10 years ago, will only become compulsory in elementary schools in Japan in 2021. In other words, Japanese IT education is more than 5 years behind that of other countries.

This delay in education is one of the reasons why there is a shortage of Japanese engineers. In order to solve the shortage of engineers in Japan, the market value of foreign IT engineers is increasing.

Reference: 日本は遅れてる?海外のプログラミング教育の現状!/コエテコ

Many Japanese companies are looking for excellent engineers who can hit the ground running

The market value of foreign engineers is increasing because many Japanese companies are looking for excellent engineers who can hit the ground running. Many Japanese companies used to hire large numbers of new graduates and then train them in-house over time. On the other hand, educational institutions around the world are training excellent human resources who are just as capable as those who can be immediately put to work upon graduation from university.

For example, at Mercari, 90% of the new graduate engineers hired in 2019 were foreign engineers from countries such as India. Some of the students from India were hired as excellent human resources after graduating from ITT, India's most prestigious and famous IT university.

There are also countries like Vietnam that are developing their own IT human resources development policies. Rather than competing with each other to recruit talented people in Japan, where the labor force is declining, it is easier to find people who can be an immediate asset if you look at the world. This is one of the reasons why foreign engineers have a high market value.

Reference: メルカリの新卒エンジニア9割が外国人、インドの次はどの国から採る?/DIAMOND online

Able to bring in ideas that Japanese people don't have

Foreign engineers have ideas and concepts that Japanese people don't have, and they are also quick to catch up with IT trends, which is another reason for their high market value. The world trends and ideas that foreign engineers bring to Japanese companies expand the information network and job options.

There are systems and services that are commonplace overseas but do not yet exist in Japan, and there are also things that Japanese people would never think of. Because there is the possibility of coming up with ideas from completely different angles that Japanese people would never think of, this could be the impetus for the development of new products and services.

Reference: 外国人ITエンジニア採用のメリットと注意点!/MichaelPage

Able to invigorate the company

Working with foreign engineers can revitalize the company, which is another reason why they are highly valued in the market. Many foreign engineers are very serious about their work, and they can deliver excellent performance even under tight deadlines and development conditions. Many of them also have a strong desire to grow, so working with foreign engineers can also be a stimulus for Japanese employees.

Foreign engineers bring different cultures and values into the company, and this can sometimes lead to a shift from inefficient work practices to more rational methods. Exposure to different values can lead to the creation of a flexible and diverse organization.

Reference: 不安だった初めての外国人採用、今は“日本人職員に刺激を与える存在”に。活躍の鍵は「安心して仕事ができる環境づくり」/Touch! PERSOL

Support for overseas expansion

英語新聞とPCと眼鏡

There are also market value reasons for hiring foreign engineers who can support overseas expansion, such as becoming a bridge when expanding the company's services overseas. There are many companies that want to expand not only into the shrinking Japanese market, but also into the world. Rather than having Japanese people who don't know the local area working on projects, the presence of foreign engineers who know the real market and can understand foreign languages is a great support.

Reference: 外国人労働者を採用するメリット6つ|採用する時の注意点も紹介/株式会社オープンアップITエンジニア

How foreign engineers can find jobs that suit them

There are three ways for foreign engineers to find jobs at Japanese companies with high market value.

  • Use job sites specializing in foreign engineers
  • Use job agencies for foreigners
  • Search for companies that are hiring foreign engineers

Use job sites specializing in foreign engineers

There are various job sites in Japan, but because general job sites have a large number of companies listed, it is difficult to find jobs for foreign engineers. If you want to efficiently find jobs for foreign engineers with high market value, try using a job site that specializes in foreign engineer employment. Because companies that want to hire excellent foreign engineers are registered, you can save time and effort collecting information and reach many companies.

One of the leading job sites specializing in foreign engineers is "GitTap". With over 500 jobs registered from global companies, you can find a job that matches your preferences. When you register, you may receive a job offer from a company, so why not start with a free registration?

Use job agencies for foreigners

If you are looking for a job in Japan for the first time, you may need support not only with finding a job, but also with things like designing your career in Japan, interview practice, and obtaining a visa. For people like this, we recommend using a recruitment agency that provides various types of support, rather than a job search website. They can assess each job seeker's skills and aptitude, and introduce them to companies that match their skills. You can also leave it to them to provide support for things like writing a resume and interview practice, which are different from other countries.

We recommend the recruitment agency 'G Talent' for foreign engineers. Only carefully selected, high-quality companies from over 300 companies are registered, and registered users can take Japanese interview lessons for free. Please feel free to register as you will be supported by bilingual advisors who are familiar with the IT industry.

▶︎To register "G Talent" is HERE

Search for companies that are recruiting foreign engineers

Even if you don't use job sites or recruitment agencies, it is possible to search for companies that are recruiting foreign engineers and reach out to them yourself. Some Japanese IT companies have their own recruitment sites, so if you apply directly, you can save yourself the trouble of going through a recruitment agency.

In this case, you will have to communicate directly with the company yourself. You will need a work visa to work in Japan, so make sure you check how much support the company will provide.

Reference: 転職は直接応募が有利なの?メリット・デメリットを知っておこう!/イーキャリアFA

3 things foreign engineers should check before working for a Japanese company

英語ノートと書類

Although Japanese companies have a high market value for foreign engineers, the following points must be taken into account in order to continue working comfortably at a Japanese company.

  • Need a work visa to work at a Japanese company
  • Need to be able to speak basic Japanese
  • Be aware of differences in values and culture

Need a work visa to work at a Japanese company

Foreign engineers need a work visa to work in Japan. There are several types of work visas, and foreign engineers can work in Japan if they obtain a “highly-specialized professional” visa or a “technology, humanities, and international services” visa with the “technology” status of residence.

There are conditions for obtaining each type of visa. As it takes around 2-3 months from the time you prepare the documents to the time the application is processed, you should start preparing for your visa as soon as you receive your job offer.

Reference: 外国人労働者のエンジニア就労ビザ取得/就労ビザ申請サポート大阪

Need to be able to speak basic Japanese

In order to work comfortably in a Japanese company, you need to be able to speak basic Japanese. This is because you will need basic Japanese when communicating with your team members and participating in business negotiations with customers.

Even if you only learn the basic IT terminology and words commonly used in business situations, it will be useful in your day-to-day work. However, some IT companies have English as their official company language, or they employ bridge personnel to help with communication between foreign and Japanese engineers, so they have created an environment where foreign engineers can work even if they don't understand much Japanese. There's no need to worry too much, but it's not a bad idea to learn at least the minimum level of Japanese and manners.

Reference: 英語公用語化でエンジニア採用応募者が激増 IT企業が見出した、グローバルに働く秘訣/logmiBiz

Be aware of differences in values and culture

腕組みをする外国人男性

If you are aware that there are differences in culture and values between Japan and other countries, you will be able to work in Japan without suffering culture shock. For example, in other countries, people are valued for their willingness to speak up and make suggestions, and for their willingness to take on new challenges without being afraid of making mistakes, but in Japan, there are also environments where people are expected to follow their boss's instructions without asserting their own opinions too much.

There are many differences in values and culture in the business world, so it is important to understand these differences so that you don't suffer culture shock every time you encounter them.

Reference: 異文化理解のメリットとは?異文化理解の必要性や注意点も紹介/Bizmates Blog

The market value of foreign engineers is high! Let's find a workplace that suits you!

In this article, we have explained the market value of foreign engineers in Japanese companies. The market value of foreign engineers in Japanese companies is on the rise, and the number of foreign engineers working in Japan is also increasing. The trend of hiring excellent foreign engineers will continue to accelerate in the future.

If you are a foreign engineer looking for a company that suits you in Japan, we recommend the recruitment agency “G Talent”, which specializes in hiring foreign engineers. Bilingual consultants support the matching of foreign IT engineers with Japanese companies that are actively hiring foreigners, and help you to start your career in Japan. If you are an IT engineer interested in a career in Japan, please use 'G Talent'.