The report discusses about how President Abe is helping Japan overcome the shortage of Tech workers

1. Abenomics in Japan is expected to increase the
demand for tech workers over the next two years
Abenomics in Japan has continued to show positive impact on
country’s economy with GDP witnessing an annualized growth of 4
percent in first half of 2013. The third arrow of Abenomics –
‘Growth
Strategy’
aims
to
reduce
corporate
taxes,
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ease
regulations, relax labor laws and sign international free-trade
agreement to revitalize industries and create new markets for
certain sectors. Majority of reforms under ‘Growth Strategy’ are
expected in 2014 which are in turn expected to drive the demand
for IT professionals. Our research indicates that about 9,00011,500 new jobs are expected to be created in IT services and
software development domain by 2015. The following are some of
the government reforms that are expected to create demand for IT
professionals in Japan:

virtualization technologies. This is expected to create demand
for managed services, network security and data center
services in the country.
In 2015, government plans to undertake cyber security
measures for information sharing between businesses and
governmental organizations. This is expected to create the
need for IT security consultants and professionals in the
country.

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In 2014, to develop telecom infrastructure, government plans
to invest in photonic network technology and network

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Mr. Abe plans to deregulate sectors such as energy and health
services which are expected to drive investments. By end of
2013, government plans to undertake measure to accelerate
usage of ICT in medical care, nursing care, and preventative
care and transform health records in electronic format.
Similarly, ‘Intensive Action Plan for Regulatory and Institutional
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2. Reform to Expand Utilization of IT’ will be formulated to ensure
usage of IT in various sectors.

By early 2014, the government is expected to formulate
policies to promote the utilization of big-data technologies to
store public information.
These government measures will open up new opportunities for
service providers thus, creating a spike in demand for IT service
professionals. TCS aims to double its revenues in Japan from
about USD 0.5 million to USD 1 billion and plans to setup a
development center, considering the macro- economic policy
changes that will take place in the country. Infosys is also planning
to setup a center in Japan. Major service providers such as NEC,
Fujitsu and IBM are also expected to ramp up their workforce in
the country.
In addition, Abenomics aims at developing the research
ecosystem within universities. The government aims to fund and
support about 1,500 full-time research positions within universities
by 2016. It also aims to attract additional 30,000 foreign students
(20 percent increase) in 2015, and target about 300,000 foreign
students in 2020, twice the current figures. This is expected to
contribute to aging workforce in the country.
To encourage movement of highly skilled foreign nationals, the
government plans to create preferential immigration policies for
foreign nationals. In addition, by the end of 2013, the government
also plans to review the current annual income criteria for
certifying overseas personnel. Moreover, the period of stay for
attaining permanent resident status is expected to be reduced
from current 5 years to 3 years. This is expected to attract about
100,000 skilled engineers and researchers in the county by 2020.
The government also plans to set up special economic zones
known as ‘Abenomics Zones’ in Tokyo, Osaka and Nagoya in
order to create a business friendly ecosystem for foreign
companies. To attract expatriate talent, these zones will also have
direct connectivity from Tokyo’s Haneda Airport, better medical
services and international schools to provide education.
About two-thirds of Japanese women leave the workforce post
maternity. To include more women in the workforce, government
plans to fund initiative that includes re-learning programs post
maternity and develop internships programs for homemakers. By
2015, this is expected to increase percentage of women in mid

3. and senior level roles to 10 percent (from current 5 percent) and to
30 percent by 2020.
However, majority of these policies and reforms planned are
provisional and implementations are yet to commence. Currently,
companies face various challenges in terms of rigid employment
system and high taxes.