Japan SMEs face DX hurdles amid IT talent shortages

Japanese small and medium-sized enterprises (SMEs) are facing a significant dilemma regarding digital transformation (DX). According to a survey by G-BOON, while nearly 58% of SMEs express an intention to promote DX, over 74% of those experiencing a shortage in information systems personnel do not plan to hire new full-time employees.

Reasons for the lack of hiring include concerns over increasing fixed labor costs amid economic uncertainty, the high cost of competitive IT talent, and the perception of information systems departments as management costs that do not directly generate profit.

In parallel, professional guidance for those seeking careers in the sector suggests that growth-oriented individuals should look for DX and AI companies that offer exposure to cutting-edge technology, high levels of autonomy, and dense talent environments. Experts categorize these companies into four types: technology-specialized, AI consulting, business foundation, and industry transformation models, noting that avoiding companies that only perform Proof of Concept (PoC) trials is crucial for long-term skill development.