Putting Your IT Skills to Work in Tokyo

Our 2nd annual IT job and salary survey

Apart from pandering to your base desire of wanting to know what others around you are earning, this survey of foreign information technology (IT) professionals working in Tokyo offers a sense of the kinds of jobs that are available, the skills you will need to get such jobs, and the typical compensation such work can bring.

The industry areas covered in this article include the marketing of computer systems and services; the creation of customized programs, Web pages, and ads for the Internet; and the installation, maintenance, and support of computer systems and networks. While this covers a good cross-section of IT jobs, note that the positions discussed in the article are, for the most part, those available at foreign companies. Keep in mind that, especially if you speak the language, there are opportunities in Japanese firms as well.

(Note that, given the sensitivity surrounding salaries, interviewees were given the option of anonymity. A few, though, were willing to be quoted on general IT issues.)

by John Boyd

Japanese information technology (IT) companies are understandably predisposed to hiring Japanese staff, given the obvious advantages that natives have in their own language, culture, and business environment (particularly when it comes to interfacing with Japanese customers). Nonetheless, even in such areas as marketing and sales, there are opportunities for bilingual foreigners in Japanese IT organizations in Tokyo.

The greatest opportunities for gaijin (foreigners), though, are at Tokyo-based foreign firms. One American marketing manager who worked for two Japanese IT companies (where he eventually commanded an annual salary and bonuses of over ¥10 million), and who is currently employed at a foreign-owned computer systems integrator, cautions that he only knows of one foreign marketer employed today in a Japanese company. On the other hand, he says it is common to find foreigners in non-Japanese firm IT marketing jobs. "Most foreign companies want to bring Japanese marketers up through the system. The best way to do this is to mix experience --i.e., the gaijin -- with a motivated Japanese employee, and provide specialized training where appropriate."

Caution: paradigm shift

A major shift in the Tokyo IT employment scene that has been gaining momentum since Computing Japan published a similar survey last year is that job openings in IT are expanding well beyond the traditional core employment segment of MIS (Management Information Systems) activities carried out in the large multinational companies. The forces driving this change include the Internet, the increase in computer networks, and the move to downsize computer systems. These are areas where foreign IT professionals are often ahead in experience, given the relative slowness of many Japanese companies in picking up on these technologies.

Nevertheless, corporate Information Systems (IS) roles continue to pay the highest salaries, and such jobs provide employment for a relatively large group of foreigners. Traditionally, IS people have been the backroom staff who take care of running a company's computer and communications systems. In large corporations, this often means looking after mainframe and midrange systems, and generally requires a grounding in older programming languages such as COBOL.

But since the advent of downsizing -- the move away from mainframes to smaller, more flexible systems -- first foreign companies, and now a growing number of Japanese firms, have been introducing powerful servers and local area networks (LANs) of PCs and workstations. Over time, these systems are being integrated to form client/sever configurations in order to meet new and changing IT needs, such as the wide distribution of corporate information to those who can best use it.

All this requires IT people experienced in UNIX, and more recently engineers (holders of appropriate degrees or certificates in specific technologies) or "techies" (self-taught people who have an aptitude for things IT) with a knowledge of the newer operating systems like IBM OS/2, Microsoft Windows NT, or Novell NetWare. And in a demanding multivendor environment in the financial industries sector, for instance, you may need to have at least a working understanding of all these technologies.

Says one IT manager in his late 30s, employed by a European securities company, "I look after the network, PCs, communications.... I do everything except software development." He explains that this means covering UNIX, NetWare, Windows NT, VMS, and even Apple Macintoshes. (Though when problems or installations get down to the real nitty-gritty level, he turns to outside vendors for help.) An entry level IT person at his company, he says, can expect to start from around ¥5 million annually. "This can climb to ¥8 million, inclusive, after a few years of experience. And a manager can expect to earn ¥10 to ¥12 million."

Big name US securities companies and banks often pay administrators significantly more. Financial-sector IT managers can earn a "¥12 to ¥18 million base, with bonus packages worth up to 25% more," says a headhunter specializing in placing such staff. IT people who focus on a single technology may get paid more or less than the going rates, depending on their specialization and how much in demand it happens to be.

Several IT administrators said that generalist IT professionals who also have a good knowledge of UNIX usually get paid more. "UNIX specialists are the creme de la creme," says a British IT chief at a European-based manufacturing company. And "UNIX skills are even more valued now, with the Internet boom," points out Jef Fisher of Horton International, an executive search firm in Tokyo.

On the other hand, the administrator of a local area network or a corporate database can expect "¥7 to ¥12 million, plus a bonus, depending on experience," says an American head hunter. The director of the IS department in a major financial services corporation -- particularly a veteran company person sent out on a rewarding ex-pat package -- can earn considerably more: ¥20 to ¥40 million per year was the range that emerged in my survey. For the rare case of a trusted technical whiz with executive status -- a person who not only keeps the enterprise's computer systems purring but who also employs IT to drive the company's strategy, or in some other way doubles as a senior executive -- an ex-pat package as high as ¥60 million annually, or even up to ¥100 million, is not unheard of.

Feet on the ground

But coming back down to terra firma: "The bubble economy days of very high salaries being thrown at anyone who could click a mouse are long over," stresses Horton International's Fisher. After the bubble burst, he says "many computer jobs were shipped overseas to cheaper markets like Hong Kong and Singapore. Some companies even pulled the plug and left."

Now, as the economy brightens again, Fisher observes that positions are starting to return because "strategies to support Tokyo from overseas to save money have not worked very well for most firms. Nevertheless," he cautions, "companies are much more careful about hiring. You must be very good to get a chance at the high paying jobs."

Good, yes -- but not necessarily a company veteran. "I know an IT guy who got ¥160,000 a day," says a headhunter who has placed 12 IT people with foreign-based companies in the past year. "He was working independently as a consultant [for a financial company] 20 days a month, and just finished up a five-month contract." In this particular case, the person had good presentation and management skills to supplement his technical prowess. The downside of the arrangement, however, is that now the contract has been completed, this same IT consultant is in his second month of unemployment.

He may well need the rest. According to the same headhunter, financial companies who pay big look for younger people with high energy levels willing to commit fully to the job. "They pound these guys; they get what they pay for." He adds that you won't likely find an IT head in the financial industry who is as old as 50.

"It is demanding in terms of hours," admits an American IT manager at a foreign securities company. "A 9-to-5 day is not possible." In April, a particularly busy month for his company, he says days commonly began before 7:00 in the morning and didn't end until 11:00 at night. He was also expected to "work many weekends."

Systems integration

Downsizing and networking has created a need for systems integrators and computer support companies, like Fusion Systems Japan and LINC Computer (formerly a sister company of magazine publisher LINC Japan; recently acquired by Electronic Data Systems Corporation). Such foreign-owned companies are usually happy to employ knowledgeable foreign IT staff and managers.

"In 1995, Fusion hired 27 engineers, relatively evenly divided among software engineers, network engineers, and application engineers," says Michael Alfant, president of Fusion. Of the 27, only 7 were Japanese, though Fusion has an open policy on hiring. "We'll hire any talented engineer we can find, given our rapid growth," says Alfant, who offers no insights as to why foreigners fill most of the slots.

Headhunters say salaries for computer support firms vary enormously. An entry-level person with no working experience may start out as low as ¥3 million per year (about the same as an English conversation teacher in Tokyo). Experienced people, though, especially if they hold an engineering certificate in a technology that's in demand, are estimated to come within 20% to 30% of what a similar IS person in the financial sector earns. Fusion is only willing to say it pays "competitive market salaries, with some unique perks -- including stock options and bonuses based on company profitability and individual performance, as well as employer-paid health insurance."

Internet IT

The IT world is fast expanding beyond IS and managing or supporting the computer systems of multinationals. The past couple of years has seen the explosive growth of the World Wide Web, the graphical subnetwork that has helped make the Internet a household name. This phenomenon has produced a rash of new IT openings, many of which are being filled by foreign techies who have the edge in experience (and certainly in language on the English-language-dominated Net).

A number of foreign start-ups have recently entered the IT arena, or have reset their goals in order to exploit the craze in anything Internet: Global OnLine Japan (GOL), Internet Access Center (IAC), and WebMasters, for example. IAC is a thriving IT company that has built a fast-growing business around electronic communications and the Internet. The company covers everything from providing Internet access, training, advertising, and content creation to software development and offering an electronic news service. And in a back-to-the-future move, it recently acquired city magazine Tokyo Journal with the intent of mining its content for Internet consumption.

"In hiring," says IAC founder Brad Bartz, "I don't care about nationality. Bilingualism is important, though, due to the nature of our business." What Bartz looks for in IT managers is "self-starters who can solve technical problems quickly and without direction, and who know how to delegate." He finds such skills often come more readily in foreigners than Japanese. "It seems that foreign staff, generally speaking, have more ability to be creative managers and to jump-start things. I assume this is a cultural difference."

Bartz acknowledges that IAC doesn't pay "anywhere close" to what IT people in the securities industry can make. Pay is high for an Internet-focused company, though, he contends, with salaries of managers starting from around ¥6 million per year. "We are looking also at stock options and profit sharing," he adds.

Some parting advice

For those readers attracted to the work (or the money) and who want to get on the IT fast track in Japan, commonly given advice is to become licensed or certified in one of the hot technologies of the moment. Currently, these include Lotus Notes, Windows NT, UNIX, and NetWare. The programming languages most sought now are C++, C, Visual Basic, and Java, Sun Microsystems' new object-oriented Internet programming language.

English-language IT certification courses are rare in Japan, so to get a certificate a trip back home would be in order if you aren't bilingual. One company mentioned above, Fusion, got round this problem by bringing over a Novell NetWare instructor for a month from the US, in order to have some of its staff become Certified NetWare Engineers (so there may be occasional opportunities to study locally, if you can wangle your way in).

Once you are certified, the best advice may be to get an entry-level position at a financial company. Put your know-how to work there, and build up your experience and a reputation. "Given two or three years of that kind of experience," says one IT manager, "you can go anywhere."

Maybe even as far as a job that pays ¥100 million a year?



SIDEBAR

Speaking the language


Besides technical experience, fluency in Japanese is a skill that many IT companies seek -- but there are exceptions. "Some companies say they will only hire bilingual staff," notes Horton International's Fisher. "But when pressed, compromise is often the solution, and they will sacrifice Japanese ability for technical skills."

"There is a wide range of skill when it comes to bilinguality," observes a headhunter. "A lot of the Japanese in IT speak English; not all, but many. A lot of the [communications] work gets down to reports -- which are done mostly in English, if we're talking about the major American or European financial companies." Most foreign firms will be satisfied with a technically skilled person who doesn't speak much Japanese, since most of the sensitive and important conversations will be in English.



(c) Copyright 1996 Computing Japan magazine. All rights reserved. May not be reproduced in part or in full, by any means, without the explicit written consent of the Editor-in-Chief or Publisher. http://www.computingjapan.com/