Japanese Software Companies guide 2025

The Japanese software industry has experienced remarkable growth driven by the acceleration of digital transformation (DX). When choosing a company, various factors need to be considered, including technical capabilities, corporate culture, and future potential.

This article provides a detailed analysis of 15 major companies and 20 notable emerging companies.

1. Current State and Characteristics of Japanese Software Companies

In recent years, the Japanese software industry has entered a major transition period due to the acceleration of DX and technological advancement.

From large corporations to venture companies, each is leveraging its unique strengths to enhance global competitiveness.

Here, we’ll provide a detailed explanation of industry trends and distinctive initiatives of each company.

Market Size and Growth Potential of the Domestic Software Industry

According to a survey by the Ministry of Economy, Trade and Industry (FY2021), the annual revenue of domestic software operations amounts to 11.9141 trillion yen.

Cloud service development stands out as a particularly high-growth area. This growth is driven by increased demand for SaaS (Software as a Service) and the widespread adoption of cloud-native applications.

In the AI/machine learning field, practical applications of image recognition and natural language processing, along with the development of big data analysis platforms, are progressing.

In the IoT solutions sector, development of manufacturing IoT platforms and smart city-related systems is also accelerating.

Reference: METI Industry Overview (Software Industry)

Areas of Expertise for Japanese Software Companies

Japanese software companies are known for their high-quality development capabilities and meticulous project management.

In embedded software development, they maintain international competitiveness in areas such as

• Automotive control systems
• Industrial robot control
• Firmware for consumer electronics

In the enterprise systems sector, they are highly regarded for developing

• Core business systems (ERP)
• Production management systems
• Financial systems

In mobile application development, they have accumulated extensive experience across various fields, including

• Gaming applications
• Payment and financial applications
• Utility applications

In these areas, Japanese companies are highly valued for their quality control methods and detailed customer support.

Strengths and Challenges of Japanese Companies in Global Expansion

Strengths

In the global expansion of Japanese software companies, high-quality development methods serve as a major strength.

Their strengths include

• Thorough quality control processes
• Robust testing systems
• Long-term maintenance and operation systems
• Active adoption of new technologies
• Continuous investment in research and development
• High expertise of engineers

Challenges

Key challenges include

• Developing global talent
• Improving English communication skills
• Promoting agile development

In terms of business models, there is a need to

• Adapt to subscription models
• Adopt cloud-first strategies
• Promote open innovation

Japanese Software Industry at a Turning Point

Looking ahead, accelerating digital transformation becomes crucial.

Specifically, this includes

• Modernization of legacy systems
• Adoption of cloud-native architecture
• Promotion of microservices

Current focus areas include

• Investment expansion in AI/machine learning
• Practical implementation of blockchain technology
• Preparation for quantum computing

In terms of human resource development, emphasis is placed on

• Establishing remote work
• Realizing diverse work styles
• Implementing continuous technical education

2. Types and Differences of Software Companies

Software companies can be classified based on various aspects such as size, business domains, and technology stacks.

When choosing a company, it’s important to understand these characteristics and make choices that align with your career plans.

Let’s examine the main classifications and selection points in detail.

Comparison of Large Companies and Venture Companies

In the software industry, large companies and venture companies each have distinct characteristics and strengths.

Large Companies

• Characterized by extensive development track records and reliability
• Comprehensive training systems
• Stable compensation and benefits
• Opportunities to work on large-scale systems
• Long-term career paths and systematic technical skill acquisition

Venture Companies

• Active adoption of new technologies
• Quick decision-making
• Flat organizational structures
• Environments for gaining broad experience
• Significant discretionary authority
• Potential for rapid growth

Reference: Definition of Small and Medium Enterprises

Business Domain Differences and Specialization

Software companies vary significantly by business domain.

System Integration Field

• Main focus: Building core systems, implementing ERP systems, modernizing legacy systems
• Required skills
  • Project management capabilities
  • Deep business knowledge
  • System design abilities

Package Software Development Field

• Primary activities
  • Developing general-purpose software
  • Customizing package products
  • Product maintenance and support
• Required expertise
  • Product development know-how
  • Marketing perspective
  • Usability design skills

Web/Mobile Application Development Field

• Core activities
  • Web service development
  • Smartphone app development
  • UI/UX design
• Required skills
  • Frontend technology expertise
  • Mobile development framework knowledge
  • Design sensibility

Technology Stack and Development Method Trends

Technology stacks and development methods vary significantly depending on company size and business domain.

Large Companies

• Preferred languages
  • Java
  • C#
  • COBOL
• Commonly used frameworks
  • Spring Framework
  • .NET Framework
  • SAP
• Development methodology
  • Primarily waterfall development
  • Emphasis on quality control processes

Venture Companies

• Preferred languages
  • Python
  • Ruby
  • JavaScript/TypeScript
• Modern frameworks
  • React/Next.js
  • Ruby on Rails
  • Flutter
• Development approach
  • Emphasis on Agile development
  • DevOps practices
  • CI/CD implementation

Future Technology Trends

Cloud-native technologies are becoming increasingly important as future technology trends.

Current Adoption Trends

• Containerization using Docker/Kubernetes
• Microservice architecture implementation
• Serverless computing adoption

Emerging Technologies

• AI/Machine learning frameworks
  • TensorFlow
  • PyTorch
  • scikit-learn
• Low-code/no-code platforms
  • Bubble
  • OutSystems
  • Microsoft Power Platform

3. 15 Notable Major Japanese Software Companies

Japan’s major software companies possess extensive development track records and stable management foundations, serving as important venues for engineers’ career development.

Here, we’ll introduce 15 particularly noteworthy companies in detail, discussing their strengths and distinctive initiatives.

We’ve selected companies based on various criteria such as strength in core system development, focus on cutting-edge technology research, and promotion of global expansion.

TIS Inc.

• Established: 2008 (through merger)
• Capital: 10 billion yen
• Employees: 21,972
• Business: System development, SI, consulting, outsourcing

A major system integrator providing IT solutions to various industries including finance, manufacturing, and services.

Particularly strong in

• Payment system development
• Cloud integration
• Security solutions Recently focusing on cloud service expansion, broadly supporting corporate DX initiatives.

Hitachi Solutions, Ltd.

• Established: 2023
• Capital: 20 billion yen
• Employees: 14,470
• Business: Software/service business, information processing equipment sales

As Hitachi Group’s IT service company, they provide a wide range of solutions.

Areas of expertise

• Social infrastructure system development
• IoT platform construction
• AI solution provision Particularly highly regarded in core system development for manufacturing and financial institutions.

SCSK Corporation

• Established: 1969
• Capital: 21.5 billion yen
• Employees: 16,296
• Business: BPO (Business Process Outsourcing), IT hardware/software sales, IT management, and more

As Sumitomo Corporation Group’s IT company, they focus on manufacturing industry solutions.

They have distinctive characteristics in manufacturing ERP and global IT services, with digital engineering being particularly notable. They have extensive experience in production management system and quality control system development.

Systena Corporation

• Established: 1983
• Capital: 1.5 billion yen
• Employees: 5,758
• Business: Solution design business, framework design business, IT service business, business solution business, cloud business

Known as a company strong in mobile and Web-based development, with particularly extensive experience in smart device development.

Provides a wide range of services including smart device solutions, business application development, IT infrastructure construction, and more. Their development capabilities utilizing the latest mobile technologies are highly evaluated.

NTT DATA Corporation

• Established: 1988
• Capital: 142.5 billion yen
• Employees: 193,513
• Business: System integration, network system services, consulting

Japan’s largest IT company, specializing in developing and operating large-scale systems, particularly in public and financial sectors.

They have overwhelming achievements in government system development and financial institution system construction. Their global expansion is also a strength, with active overseas business development.

ITOCHU Techno-Solutions Corporation

• Established: 1979
• Capital: 21.9 billion yen
• Employees: 11,574
• Business: Computer/network system sales and maintenance, software contract development, information processing services, scientific/engineering information services, support, and other services

Provides a wide range of IT services from infrastructure to application development.

Strong in cloud services and security solutions, and scientific system development. Particularly highly regarded for solution development utilizing cutting-edge technology.

Nomura Research Institute, Ltd.

• Established: 1965
• Capital: 25.6 billion yen
• Employees: 7,206
• Business: Consulting, financial IT solutions, industrial IT solutions, IT infrastructure services

Known for developing sophisticated financial systems leveraging financial engineering expertise. Has abundant experience and technical capabilities in securities trading systems, asset management, and fintech solutions.

Continues to provide innovative solutions combining financial industry expertise with latest technologies.

NEC Solution Innovators, Ltd.

• Established: 1983
• Capital: 8.6 billion yen
• Employees: 12,589
• Business: System integration business, service business, infrastructure software development business, equipment sales

As NEC Group’s core software development company, provides advanced solutions.

Focuses on service development utilizing cutting-edge technologies such as AI/IoT solutions, cloud services, and security measures. Particularly proud of numerous achievements in administrative and social infrastructure system development.

FUJISOFT Inc.

• Established: 1970
• Capital: 26.2 billion yen
• Employees: 18,219
• Business: Software development, system integration, product services

As an independent major software manufacturer, has extensive development experience. Covers various technical domains including embedded software development, mobile applications, and robotics development.

Particularly in the embedded systems field, provides high-quality development services for various industries including automotive and consumer electronics.

OBIC Co., Ltd.

• Established: 1968
• Capital: 19.1 billion yen
• Employees: 2,107
• Business: Business package software development/sales, system integration

Product portfolio

• Core business systems
• Accounting systems
• HR/payroll systems
• Business efficiency solutions
• Integration services

Dentsu Research Institute, Inc.

• Established: 1975
• Capital: 8.18 billion yen
• Employees: 4,349
• Business: System integration, consulting, providing solutions supporting social and corporate transformation

Focus areas

• Digital transformation (DX)
• Advanced technology R&D
• Marketing technology integration
• Global network development
• Data-driven solutions

Sky Corporation

• Established: 1985
• Capital: 1 billion yen
• Employees: 3,787
• Business: Development/sales of in-house package products, system development, software evaluation/verification

Specializations

• Security software development
• IT asset management software
• Security solutions
• Cloud services
• System evaluation services

Monster Lab Co., Ltd.

• Established: 2006
• Capital: 1.9 billion yen
• Employees: Not disclosed
• Business: Digital product development, DX support, UI/UX design

Core competencies

• Digital transformation solutions
• UX/UI design excellence
• Global development capabilities
• International team management
• Innovative digital solutions

Cybercom Co., Ltd.

• Established: 1978
• Capital: 390 million yen
• Employees: 1,272
• Business: Software development, services, facility business

Key strengths

• Embedded software development
• Business solution development
• Communication control software
• Technical services
• System integration expertise

iret, Inc.

• Established: 2003
• Capital: 70 million yen
• Employees: 1,215
• Business: Cloud-based systems and smartphone app development, UI/UX design

Specializations

• AWS implementation support
• Cloud managed services
• Security operations
• KDDI Group collaboration
• Cloud integration services

4．AI and Machine Learning Companies

CREX Inc.

• Established: Not disclosed
• Capital: Not disclosed
• Employees: Not disclosed
• Business: Consulting and development work related to metaverse, AI, and DX

Has achieved rapid growth as a company specializing in AI-powered image recognition technology. Provides innovative solutions in the field of industrial image recognition through development of proprietary deep learning algorithms.

Particularly highly evaluated in real-time anomaly detection system development, with increasing adoption in manufacturing industries.

HEROZ Inc.

• Established: 2009
• Capital: Not disclosed
• Employees: Not disclosed
• Business: Planning, development, and operation of AI-powered services

A company attracting attention for developing AI-powered games and financial services.

Based on their shogi AI development achievements, they have expanded into AI applications in fintech and cloud-based AI solutions. They are also actively engaged in developing new services utilizing their proprietary AI engine.

ExaWizards Inc.

• Established: 2016
• Capital: 2.4 billion yen
• Employees: 574
• Business: Industrial innovation and social problem solving through AI-utilized service development

Known as a leading company in AI solutions for nursing care and medical fields.

Develops innovative solutions contributing to efficiency and quality improvement in medical and nursing care settings, including automated care record systems, medical image diagnosis support AI, and elderly monitoring systems.

Mobilus Corporation

• Established: 2011
• Capital: 430 million yen
• Employees: Not disclosed
• Business: AI voice recognition system development, contact center AI, customer service AI solutions

Provides AI-powered customer service solutions.

Offers services achieving efficiency and quality improvement in customer response, including AI chatbots, voice recognition systems, and omnichannel response platforms. Possesses particularly high technical capabilities in natural language processing technology solutions.

ABEJA Inc.

• Established: 2012
• Capital: Not disclosed (Total funding over 10 billion yen)
• Employees: 125
• Business: Deep learning image analysis, retail AI analysis, manufacturing quality control AI

Provides innovative solutions as a pioneer in industrial AI platforms.

Develops AI solutions directly linked to practical operations, including retail AI analysis, manufacturing quality control AI, and cloud-based machine learning infrastructure. Has many success cases in industrial AI implementation.

OpenEight Inc.

• Established: 2015
• Capital: 100 million yen
• Employees: 75
• Business: AI video editing platform development, automatic captioning system, video content optimization AI

Has established a unique position as a company specializing in video editing AI development.

Provides innovative solutions realizing efficiency in video production and editing, including AI video editing engine, automatic captioning system, and content optimization AI.

AI inside Inc.

• Established: 2015
• Capital: 1.234 billion yen
• Employees: 118
• Business: AI-OCR development, document reading AI solutions, workflow automation systems

Has achieved rapid growth as a company specializing in document digitization and AI processing.

Develops products supporting business digital transformation, including AI-OCR solutions, document understanding AI, and workflow automation systems. Particularly leads the industry in high-accuracy character recognition technology.

BrainPad Inc.

• Established: 2004
• Capital: 590 million yen
• Employees: 545
• Business: Big data analysis, AI consulting, marketing prediction AI

Provides advanced services in data analysis and AI consulting fields.

Offers comprehensive services leveraging data science expertise, including big data analysis infrastructure construction, marketing prediction AI, and custom AI solution development. Has many success cases particularly in AI utilization in marketing field.

GAUSS Inc.

• Established: 2017
• Capital: 100 million yen
• Employees: 12
• Business: AI package co-development, consulting, public gaming prediction AI

Specializes in corporate AI solution development and has achieved rapid growth. Provides AI solutions realizing business process efficiency, including sales support AI, product recommendation engines, and demand prediction systems.

Possesses particularly high technical capabilities in predictive analytics.

GHELIA Inc.

• Established: 2017
• Capital: 90 million yen
• Employees: 110
• Business: Planning, development, consulting, maintenance, etc. of computer software and systems related to artificial intelligence and applied technologies

Develops innovative solutions utilizing deep learning technology.

Provides cutting-edge AI technologies to various industries, including natural language processing AI, image recognition systems, and voice synthesis technology. Achieves particularly excellent results in complex language processing tasks.

5．Cloud Service Development Notable Companies

Kaminashi Inc.

• Established: 2016
• Capital: 100 million yen
• Employees: Not disclosed
• Business: Development and provision of “Kaminashi” series products, a workplace DX platform

Provides services specialized in DX (Digital Transformation), particularly noted in HR and labor management areas. Their main product, Kaminashi, is a cloud service that streamlines tasks such as shift management, attendance management, and payroll calculation.

Sansan Inc.

• Established: 2007
• Capital: 6.9 billion yen
• Employees: 1,982
• Business: Planning, development, and sales of DX services that transform work styles

A leading company in corporate cloud business card management services called Sansan.

Provides services for effectively managing and utilizing business contacts, including business card digitization, business network analysis, and sales intelligence functions.

freee K.K.

• Established: 2012
• Capital: Not disclosed
• Employees: 1,722
• Business: Development and provision of cloud accounting software and HR/labor software

As a pioneer in cloud accounting and HR/labor software, promotes DX for small and medium enterprises.

Offers comprehensive services streamlining corporate management, including cloud accounting software, payroll calculation systems, and expense settlement cloud.

Rakus Co., Ltd.

• Established: 2000
• Capital: 378.37 million yen
• Employees: 2,561
• Business: Cloud service development/provision, IT human resource development

Continues growth as a company providing business efficiency cloud services. Provides solutions streamlining daily business processes, including email sharing systems, expense settlement cloud, and attendance management systems.

Wovn Technologies Inc.

• Established: 2014
• Capital: 5.367 billion yen
• Employees: Not disclosed
• Business: Development and provision of website multilingual solution “WOVN.io”

Gaining attention as a distinctive company providing website multilingualization services.

Offers innovative solutions supporting corporate global expansion, including real-time translation functions, multilingual SEO support, and global site optimization.

Cybozu Inc.

• Established: 1997
• Capital: 6.13 billion yen
• Employees: 1,276
• Business: Provides groupware and business app development platform, main products are kintone, Garoon, Cybozu Office

A pioneer in groupware, providing business efficiency tools like “kintone” and “Garoon”. Particularly strong in cloud services for small and medium enterprises.

ANDPAD Inc.

• Established: Not disclosed
• Capital: 11.692 billion yen
• Employees: 693
• Business: Providing “ANDPAD” cloud service promoting construction site DX, digitization of work such as construction photo/drawing management, process management, safety management

Provides DX solutions for the construction industry. Offers a platform for unified cloud management of construction site progress, photo/drawing sharing, and process management.

Money Forward, Inc.

• Established: 2012
• Capital: Not disclosed
• Employees: Not disclosed
• Business: Platform service business

Develops financial management services for individuals and corporations. Provides a wide range of financial-related services including cloud accounting software, cloud payroll calculation, and expense settlement systems.

SmartHR Inc.

• Established: 2013
• Capital: 99.9 million yen
• Employees: Not disclosed
• Business: Planning, development, operation, and sales of cloud HR/labor software SmartHR

Has achieved rapid growth as a leading company in cloud HR/labor software.

Provides services promoting digitization of HR/labor tasks, including automation of labor procedures, employee information management, and social insurance procedure support. Offers innovative solutions particularly in streamlining complex administrative procedures.

Ubie, Inc.

• Established: 2017
• Capital: Not disclosed
• Employees: 245
• Business: Providing AI medical questionnaire system “Ubie Medical” for medical institutions and “AI Medical Consultation” for general consumers

A company promoting DX in the medical field, developing AI medical questionnaire systems. Representative services include “Ubie Medical” for medical institutions and “AI Medical Consultation” for general consumers.

6. Rapidly Changing Japanese Software Companies

The Japanese software industry is experiencing rapid transformation through technological innovation, making company selection increasingly crucial. While large companies offer stability and comprehensive training systems, venture companies provide opportunities for quick growth and innovative technology adoption.

The industry is actively embracing digital transformation, with focus areas including legacy system modernization, cloud-native architecture adoption, and AI/ML integration. Companies are also adapting to new work styles, emphasizing remote work options and continuous learning.

Success in this evolving landscape requires both technical excellence and strategic career development, balancing traditional Japanese values of quality with innovative approaches to technology and business.