First step in global talent strategy: Why 'India' will change the future of Japanese companies
As acquiring global talent becomes more important, the country Japanese companies should focus on as the first step is “India.” It has advantages that other countries do not have, such as population, IT skills, and English proficiency.
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Japan faces a 'talent crisis' and the need for globalization
Many Japanese companies face hiring difficulties, particularly in the IT, manufacturing, and R&D sectors, where there is a chronic shortage of personnel. The most serious issue is that domestic supply is not keeping up with the rapid digitalization, along with declining birth rates.
It is not realistic to supplement this shortage solely through domestic human resource development.
Therefore, it is essential to implement a global talent strategy that integrates talented individuals globally early and develops them within the company.
The key here is the decision of 'which country to recruit from,' and the most focused answer in recent years is India.
Why 'India': Overwhelming superiority compared to other countries
There are many articles that simply introduce India as an "IT powerhouse," but in reality, there are more structural advantages that are difficult to reproduce in other countries.
First, in terms of population, it has the largest young population in the world, and the workforce aged 18-30 will continue to increase for several decades. On the other hand, many Asian countries are aging, and the base of young workforce is decreasing.
Furthermore, in the following points, India is in a position that stands out more than other countries.
About 20% of the total population can use English fluently (largest scale globally)
The number of science and engineering students is the largest in the world
The IT/BPO industry is mature, making it easy for young people to gain practical experience
Western-style education and evaluation standards have permeated
Strong overseas orientation, actively building careers across countries
Even among English-speaking personnel, the Philippines has limited breadth in IT/engineering, Vietnam has many IT personnel but unstable English proficiency, and China faces issues with politics, visas, and salary levels.
When viewed in terms of overall points, India is the country that most highly meets the elements expected by Japanese companies.
The strength of Indian talent as 'immediate force'
India's technical universities offer not only theoretical lessons but also practical-oriented education extensively. Especially in top to mid-level universities,
Long-term internships
Corporate collaboration projects
Hackathon participation
AI and data science curricula
are standardized.
Therefore, during student development, many can handle industry-level programming, problem-solving, and technical communication in English, resulting in rapid assimilation post-onboarding.
There is also an increase in Japanese learners, with more cases of students obtaining N3~N2 levels before joining.
There is high regard for cultural understanding and diligence, and compatibility with manufacturing and Japanese companies is observed.
Why Japanese businesses should first consider India
The reason why India is the best candidate for Japanese companies is not simply because "it is excellent."
There are more practical and strategic reasons.
India is the only country with a long-term supply of young talent.
Abundant young people meet both English proficiency and technical skills.
There is a certain number of people with a strong overseas orientation who are positive about working in Japan.
Salary levels are lower than in Europe and America, and the balance of recruitment costs is good.
The number of students learning Japanese is increasing, improving recruitment compatibility.
Furthermore, in India, there are many students motivated by the desire to "work abroad for the first time,"
so, there is an advantage in securing "growth potential type" young people who match well with Japanese companies' nurturing style.
Combining these conditions, India becomes the optimal solution as the first step to fill the human resource shortage of Japanese companies.
Reason why country besides India rarely top choice
We will organize why India is prioritized over other countries.
China: Political risk, visa restrictions, and rising salaries are significant.
Vietnam: Many young people, but English proficiency and expertise vary greatly.
Philippines: High English proficiency, but engineering sector is limited.
Indonesia: Large population, but science and technology depth is still developing.
Europe and the Americas: High salary levels and fierce competition for talent.
As this comparison shows, only India simultaneously meets the criteria of English proficiency × IT skills × young population × salary balance.
Against this structural background, more companies are choosing India as the first overseas recruitment destination to optimize their recruitment strategies.
For successful hiring in India, a local understanding partner is essential
While hiring in India has significant advantages,
the quality difference among universities
evaluating Japanese learners
understanding placement systems
the cultural gaps with Japanese companies
and so on, these are areas requiring specialized knowledge.
Successful companies do not simply post job openings, but rather,
collaborate with partners who have local networks and provide comprehensive support from university selection to post-hiring onboarding.
By screening candidates based on 'ability' instead of university names and supporting pre-employment Japanese language training and cultural understanding, stable success can be achieved even with the first hire in India.
Summary
India has all the necessary elements that Japanese companies need to advance their global expansion—population, technological capability, English skills, and an overseas orientation. Compared to other countries, it can be said to be the 'best-suited country for Japanese companies' long-term and structurally.
At Phinx, we leverage our network with local universities and Japanese language schools to carefully select and introduce students with the skills and cultural adaptation abilities that companies seek. For companies looking to fully globalize their human resource strategy, please feel free to consult us.
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