IT Recruiting: Gearing up or Slowing down?

Back to Contents of Issue: September 2002


The IT recruitment game demands top performers from all participants on Today's competitive job market.


A decade-long recession and structural economic reforms don't sound like your typical career catalysts. However, the influx of Western multinational companies into Japan and massive corporate layoffs at major Japanese companies have created opportunities, as well as a competitive environment requiring recruitment companies to step up their services and job candidates to get with the times. We sought counsel from the key players.

Can you describe the history of your company?

Mark Stoneman, president, Stoneman Corporation: "Historically, we focus on IT recruiting in Tokyo and the majority of our clients are multinational organizations."

Krishna Mahalingam, managing director, A.C.E. International: "Originally incorporated in 1984, the current name reflects our international reach in terms of client and candidate profiles. We are not a firm that particularly specializes in recruiting for foreign IT firms, but focus on recruiting for international financial institutions and foreign law firms."

Koichi Sakuma, president, R.P. Square: "We are a manpower outsourcing company which was established a year back with the main focus of meeting the demands of the Japanese market for bilingual highly skilled and experienced IT professionals. We have the capabilities to match over a thousand candidates from India with Japanese entities."

Simon Childs, managing director, CDS: "CDS focuses on key managerial and board level positions in a variety of start-up and blue chip IT companies."

Mark Saft, representative director, The Ingenium Group: "Although a relatively recent entrant to the Tokyo recruiting market, we currently have approximately 20 recruiters and researchers working in five specialist practice areas including: financial services, IT and engineering, professional services, consumer goods and life sciences."

Adriana Alexandrescu, IT director, Executive Search International: "ESI is a management consulting firm specializing in executive search and selection. We have been serving the business community in Japan since 1969."

Richard Bysouth, director, CareerCross Japan: "Having worked as a recruiter in Japan for many years and having used various advertising mediums, I came to realize that the market needed an efficient online presence. Since September 2000 we've filled this need of online advertising for bilingual staff in Japan."

Emile Goldberg, representative director, James Harvard International Asia: "Founded in London in May 2000, James Harvard International is a privately owned global technology recruitment partner. We opened our Tokyo office in September 2001 to enable ourselves to service a select number of clients on a global basis."

Markus Leach, president/CEO, JCI Consulting: "JCI Consulting K.K. is a company that Tim Ondo and I formed last year. Both of us have been recruiting in Japan for nearly 10 years."

Cynthia Green, senior vice president, PANACHE Corporation: "PANACHE was founded seven years ago with three staff and has grown to over 200 employees in various IT professions today. We provide multinational companies with a vast array of services, specializing in IT job placements, IT temporary staffing, outsourcing solutions, system support, the development of customized systems and interactive marketing solutions."

Michelle Ash, bilingual career coordinator, Human Resources International: "A semiconductor/machinery manufacturing company in Shinjuku was having trouble filling staffing demands, and this lead them to start up a recruiting agency, Human Resources International Co. (HRI). Today, we have branched out to Meguro, Osaka and Yokohama including departments dealing with specialized fields such as IT and bilingual."

Terrie Lloyd, Founder, Jon Doherty, CEO, Daijob.com: "DaiJob.com was founded in January 2000 as an online recruiting operation and embarked on a major TV advertising campaign to establish ourselves as a consumer brand. The strategy was very successful, and now the company is the third largest online recruiting destination, in terms of traffic and yen value, and the largest online recruiting destination for bilingual recruiting."

Mathew Gollop, managing director, Connected Group: "We were founded in Hong Kong in 1997, primarily focusing on IT and investment banking before developing into IT vendor, telco and other technology-related sectors. In 2001, the company also began to focus on the Japanese market."

Junji Fukada, president, Ixsus Inc.: "While Ixsus is a relatively young company, its core members together have over 60 years of experience in the Japanese human resources industry. Our extensive knowledge of Japanese employment laws and personnel practices, combined with our broad human resources network, enable us to respond quickly and appropriately to client's personnel needs."

James Yellowlees, president, Pacifica Consultants: "We were established in Tokyo in 1995. My father was head of HR for Asia Pacifica from 1981-86, so HR Consulting in Japan runs in the family. We work mainly with multinational firms in the Japanese market and with some Japanese firms that have global aspirations."

Jeffrey F. Fisher, president, Horton International Japan: "The company was established in 1995 as a fully retained executive search firm and is part of the Horton International global network. In 1997, Horton International was ranked as one of the top 20 global firms and is ranked in the top 20 today in Executive Recruiter News published by Kennedy Information.

Keishi Takase, executive director, ILAS: "ILAS (International Life Amenity Services Co.) has been doing the personnel search and career consulting business since 1992, as an IBM Japan affiliate and has been contributing to recruiting of clients and candidates. Our consulting staff are all ex-IBM Japan, IT professionals in SE, technical/application consulting and marketing, provide unparalleled recruiting services to meet our clients needs in various industries and provide kind consulting for candidates."

What are some advantages to your company's approach to IT recruiting?

Simon Childs: We have built a strong referral network based on several hundred successful mid-level and board-level IT placements, and we operate with integrity and professionalism as one of Tokyo's few legal and licensed search firms.

Koichi Sakuma: The primary focus of our company is to get candidates from countries like India, which has a vast range of candidates with very high technical skills and are highly motivated to learn the Japanese language. We provide our candidates with full support to adjust in a Japanese as well as a multinational client environment."?

Mark Stoneman: "I have several years of continuous experience in Tokyo and since we're a smaller company I can give very customized service."

Krishna Mahalingam: "The main advantage as we see it is the ability of our consultants to understand the terminologies and the applications because of the knowledge and experience that they possess."

Keishi Takase: "Our focus has been on IT recruiting for quality professionals in application, system design, networking and project management to help companies realize e-business solutions and IT executive management resources toward the next century."

Richard Bysouth: "Since we're an online service, we can be reached seven days a week, 24 hours a day from wherever you can get access to the Internet. We also offer much lower costs, a great deal of flexibility, instant updates, direct applications and are very user friendly."

Mark Saft: "Our strength is in placing bilingual executives and senior managers with our clients. Our greatest strength is in filling the hard to fill positions that other firms often walk away from."

Markus Leach: "Tim Ondo and I have been focused on IT Industry recruiting for the last 10 years. Together, we have nearly 20 years of recruiting experience developing the candidates and the contacts."

Cynthia Green: "PANACHE's approach to recruiting IT professionals is based on 'reputation', creating a win-win situation for both the client and the candidate."

Steve Giles, manager, CDS: "Each client is handled by only one consultant, who will do their best to learn the client's business, take the client's story into the market, and only introduce candidates who fit closely with what the client is looking for. This means fewer resume, less time interviewing, less time wasted and better results."

Adriana Alexandrescu: "A lot of clients who meet with our consultants for the first time are surprised by how open, direct and authentic we are. Our approach in establishing relations with clients and candidates is that we must place their best interests at the top of our lists of priorities."

Michelle Ash: "We specialize in positions for people just starting in the IT industry, which is different from executive search firms. We can help people at the start of their career."

Terrie Lloyd: "Clearly our brand is well known and this creates a huge volume of resume received every month -- between 2,500-3,000 people. Over 80 percent of these applicants are bilinguals, and so we have unparalleled choice of applicants within the bilingual IT recruiting industry."

Mathew Gollop: "The strength of our relationships is based on the fact that we provide honest feedback throughout the recruitment process in order to deliver the best possible solution."

Junji Fukada: "Not only to the IT industry, but also to any industry, we can generally say that being a relatively small company means greater flexibility, allowing Ixsus to provide a responsive, personalized service."

James Yellowless: "Our consultants are IT industry specialists who have actually worked in the industry. They can therefore understand client specifications and requirements and are able to access high quality and appropriate candidates for key positions."

Jeffrey F. Fisher: "Through proactive research, we identify the companies who are compatible with the skill-set needs of our clients and then identify the people within each target company who have a demonstrated achievement record and meet the requirements of our clients."

How is the IT recruiting/job-hunting situation different for foreigners with Japanese language skills and Japanese with English language skills?

Koichi Sakuma: "A point of apprehension for hiring a foreigner is the level of Japanese, as business etiquette is very rigid in a Japanese business environment. The level of language skill determines the scope of adjustment in the new environment to quite an extent."

Krishna Mahalingam: "Some firms prefer foreign nationals over Japanese for certain positions, mainly because of the need to integrate operations in different locations with Japan, a situation in which communication and inter-personal relationship carries a lot of weight, an area where Japanese nationals are generally perceived to be unable to cope in an effective way."

Mark Stoneman: "At present, many Japanese companies aren't considering foreigners. Therefore, foreigners have to have a very specialized skill set and speak Japanese very well."

Adriana Alexandrescu: "With several waves of lay-offs in different industries over the past year or so, companies can choose from a wider pool of candidates and tend to choose those only with excellent Japanese language skills; reading and writing abilities included."

Terrie Lloyd: "Japanese are much more likely to get jobs in the current economy. It's unfair, but it's the reality."

Junji Fukada: "If the foreigners are familiar with Japanese culture and society, there would not be any difference."

What specific positions are the most difficult to fill right now and why?

Emile Goldberg: "All roles are difficult to fill right now. As there are more people available on the market today, our clients are not willing to compromise on any of the requirements for their respective positions."

Todd Miller: "Over the past year we have seen increased demand for managers and senior executives at many of our technology clients because of the recent market turmoil which has resulted in a higher level of executive turnover than in the past."

Cynthia Green: "There has been an increase in companies to optimize their existing operations resulting in seeking solutions in ERP consulting. Therefore, there has been a sudden increase in the demand for bilingual SAP consultants."

Steve Giles: "When a single candidate is required to have deep technical ability, strong business skills and a high level of English fluency, this greatly limits the available pool of talent."

Adriana Alexandrescu: "Native Japanese language levels with experience in Sybase or Unix or a position which requires several skills such as an ERP implementation but also requires Unix."

Terrie Lloyd: "Companies are looking for experienced senior managers with bilingual skills and who are still relatively young. These are conflicting requirements, in a country where senior managers don't like to move too much anyway."

Mathew Gollop: "The main area of difficulty remains within niche areas requiring specific business knowledge combined with exact technical skills and bilingual language capabilities."

What opportunities should emerge in the near future and how can potential job-changers prepare to take advantage?

James Yellowlees: "There is a big demand for self-starters and those who are willing to take some risk in terms of compensation."

Tim Ondo, JCI Consulting: "Japanese need to change as a society to keep pace with global competition and they have been. What we are seeing recently is a new breed of Japanese. People that think out of the box and are real entrepreneurs."

Richard Bysouth: "Although the job market has slowed down, there is still, and will continue to be, a great need for skilled and experienced candidates who can communicate effectively in both English and Japanese."

Cynthia Green: "In the future we will see an increase in the need for specialized services such as ERP Consulting, SCM, e-business, SAN or object oriented web technologies."

Steve Giles: "One area which has yet to reach full potential is business intelligence applications, and related technologies. This sector has been growing steadily for several years and continues to do so."

Adriana Alexandrescu: "SCM/CRM systems are still not used as extensively as they could be but this will change in the future. Internet and network security needs will also greatly increase."

Michelle Ash: "The advice I give the most is 'learn the language'! A lot of foreigners have lived a long time in an English only environment and neglected the Japanese language, these people are now finding themselves looking for work and they are being outdone by Japanese nationals who have realized a second language is essential in today's society."

Terrie Lloyd: "The trend changes are starting to materialize now. The biggest opportunity is going to be for CEOs, CFOs and HR people, as foreign companies move in and start buying out Japanese companies."

Mathew Gollop: "The biggest area of growth will continue to be fields such as data storage, CRM, IT security and outsourcing solutions in general."

Obviously, job-seekers in Japan have a wealth of high-quality recruitment companies to select from. The benefit of good service and close attention in tough economic times will no doubt be a welcome relief to those caught up in corporate layoffs or those pursuing their employment dreams. Those overwhelmed by career choices (or lack of career choices) can rest assured that there is a recruitment company out there that matches their needs. n



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