With Japan’s government taking an active role in the development of new technologies such as Artificial Intelligence (AI) and machine learning, and the domestic financial industry enthusiastically endorsing the use of blockchain, IT contracting is a market growing in exponential demand with a pronounced global reach.
As the technology constantly changes and new developments arise all of the time, the skills required are becoming increasingly specialised.
The positions expected to be most in demand in Japan’s IT contracting market throughout this year are:
- Project change management
- Business analysts
- Business process reengineering
- Technology audit
- Technology governance
- Technology development
- Technology networking
- Technology infrastructure
- Engineering infrastructure
- Network engineering
- Data analysis
However, according to Michael Craven, Business Director at Hays Japan, there is a pronounced shortage of specialists throughout the industry, part of which can be blamed on historical business culture practices.
“Full-time employees at domestic companies usually find themselves being transferred through various departments within the organisation,” Michael explains. “This develops them as experts of the company, but as generalists, rather than specialists, meaning that when well-honed specialist experience is needed, they can fall short of what is required.
“This can be seen right throughout industries in Japan, but it is especially pronounced in the IT sector.”
One way of rectifying the skills shortage is in the potential found in the contracting market. Unfortunately Japan has a historical aversion towards this employment form as it has negative connotations of low-skilled workers on ‘haken’ contracts that pay little and are respected even less.
This opinion is something that the Hays IT contracting team, IT Solutions, is going to great lengths to rectify, educating companies on the benefits and efficiency of recruiting candidates with the desired skill sets without the inherent longevity of a permanent hire. The candidates themselves are proving more difficult to convince.
“In Japan, contracts are viewed negatively. However, we are dealing with the more mature end of the client spread, mostly in the financial markets and the IT vendor market where they have a more mature view to contracting, yet it is still a challenge to find the candidates that will consider contracting,” Michael says.
“So, we are working hard to change the view of the candidate contract market by promoting its benefits at seminars and networking events, engaging with candidates to expand on the merits of contracting.”
As Michael and the IT Solutions team are demonstrating, there are many advantages to contracting in the IT industry, particularly for those in the mid to senior-level bracket with a mid-career focus.
“Many consultants are surprised by what they can get in the market from Hays and how we look after them. Benefits such as health insurance and holidays that match up to full time employees are key, as well as remuneration that can exceed that of full-time hires. On top of that we are always trying to upgrade longer term contractors, and our clients frequently recognise the input of contractors who have been successful and encourage us to raise salaries.”
For contractors working in IT contracting, there are advantages outside of pure monetary considerations. Many candidates are looking to change careers or have spent too long as generalists and have missed out on specialist training, and are using contracting as a way of upskilling in desired areas or new technologies without undertaking expensive and time-consuming training programmes.
“In contracting, you don't necessarily have to be a perfect fit as long as you have the flexibility to develop,” Michael continues.
“The contract option gives candidates the opportunity to work within a company that deals with technologies or products that can improve their careers. So, as recruitment consultants we reflect on what they have done in their career so far and say: if you have the chance to work with this company, it is going to put your career back on track.”
Candidates who are flexible, with the desire to improve and develop, can find contracting the first step on a new path. Whether that means realigning their career, switching skill sets into an area of interest, finding a permanent position, or taking advantage of contacting’s flexibility to improve work/life balance, candidates can be assured that contracting in the upper levels of the IT industry is a far cry from the stereotypical view of the ‘haken’ part-time hire.
The IT industry is booming right now, and contracting can be the first step for both companies to fill skills shortages and candidates looking to embark on a promising new career.
To view the full Inside Story of IT Contracting report in Japan, please click here.
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For further information please contact Yuki Noro, Public Relations of Hays in Japan on +81 (0) 3 3560 1529 or [email protected].
About Hays
Hays plc (the "Group") is a leading global professional recruiting group and is celebrating its 50th anniversary this year. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2017 the Group employed 10,000 staff operating from 250 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million; – the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland; – the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, Mainland China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.