Abenomics in Japan is expected to increase the demand for tech workers over the next two years

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Abenomics in Japan has continued to show positive impact on countrys 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, 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: In 2014, to develop telecom infrastructure, government plans to invest in photonic network technology and network 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. 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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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 Tokyos 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

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.