Japanese IT Industry Growth and Career Opportunities

Japan’s IT industry is experiencing a major transition period driven by accelerated digitalization and technological evolution.

High-growth companies, backed by substantial profits, are actively investing in employee compensation, with an increasing number of firms offering average annual salaries exceeding 10 million yen.

This article provides a detailed explanation of the latest trends and characteristics of growth companies in the IT industry, as well as key points to consider when changing jobs.

1. Latest Trends Among Growth Companies in Japan’s IT Industry

Japan’s IT industry has been undergoing significant transformation in recent years, accelerated by digital transformation and the emergence of new technologies.

Let’s take a detailed look at the trends among companies that continue to grow in this environment.

Top 10 Companies by Revenue and Their Characteristics

The top 10 companies in Japan’s IT industry by revenue feature major corporations with stable performance and advanced technological capabilities. Let’s examine the characteristics and strengths of each company in detail.

1st Place: NTT (Nippon Telegraph and Telephone Corporation)

• Company Name: Nippon Telegraph and Telephone Corporation
• Established: April 1, 1985
• Capital: 938 billion yen (as of March 31, 2024)
• Number of Employees: 338,467
• Revenue: 13.3745 trillion yen

NTT is a leading telecommunications infrastructure company in Japan.

The company offers a wide range of services including fixed-line telephones, optical broadband, and mobile communications. A notable feature is its research and development division, which holds approximately 19,000 patents.

With over 900 group companies including NTT Docomo, NTT has achieved 11 consecutive years of profit growth. In fiscal year 2023, it reached record-high profits, demonstrating steady growth.

Reference: Securities Report: NTT

2nd Place: Sony Group

• Company Name: Sony Group Corporation
• Established: May 7, 1946
• Capital: 881.4 billion yen (as of March 31, 2024)
• Number of Employees: 113,000
• Revenue: 11.26 trillion yen

Sony Group is characterized by its diversified business portfolio.

Based on precision equipment manufacturing such as cameras and game consoles, it has expanded into a wide range of businesses including music and film entertainment as well as insurance and financial services.

Particularly driven by strong sales of PlayStation 5, Sony achieved significant growth in fiscal year 2022, with a 16% increase compared to the previous year.

Reference: Securities Report: Sony Group

3rd Place: Hitachi

Company Name: Hitachi, Ltd. Established: February 1, 1920 Capital: 463.4 billion yen (as of the end of March 2024) Number of Employees: 268,655 Revenue: 9.7287 trillion yen

Hitachi has evolved from a traditional manufacturing company to focus on IT fields.

The company has concentrated on consulting and software development, strengthening its cloud service offerings. It has expanded its IT business through group companies, with particular emphasis on strengthening information and communication systems business centered around Hitachi Solutions.

Reference: Securities Report: Hitachi

4th Place: Nippon Steel

Company Name: Nippon Steel Corporation Established: October 1, 2012 Capital: 419.7 billion yen (as of March 31, 2024) Number of Employees: 113,639 Revenue: 8.868 trillion yen

Nippon Steel effectively applies technology cultivated in the steel industry to the IT field.

The company promotes IT business development by leveraging its experience in complex system operations, actively expanding its information systems business through NS Solutions.

It has steadily built up achievements in manufacturing, finance, and public sectors, increasing its presence in the industry.

Reference: Securities Report: Nippon Steel

5th Place: SoftBank Group

Company Name: SoftBank Group Corp. Established: September 3, 1981 Capital: 238,772 million yen (as of the end of March 2024) Number of Employees: 65,352 Revenue: 6.7565 trillion yen

SoftBank Group develops its business based on telecommunications services.

In addition to providing mobile devices and internet line services, it has built a diverse business portfolio including PayPay, ZOZO, and LINE.

The company is also actively expanding into new fields through investment activities, broadening its growth potential.

Reference: Securities Report: SoftBank Group

6th Place: SoftBank

• Company Name: SoftBank Corp.
• Established: December 9, 1986
• Capital: 214.394 billion yen (as of March 31, 2024)
• Number of Employees: 55,400
• Revenue: 6.084 trillion yen

SoftBank focuses on telecommunications and digital services.

While providing mobile and broadband services as its foundation, the company is venturing into e-commerce and fintech businesses.

It has achieved five consecutive years of revenue and profit growth, maintaining stable growth.

Reference: Securities Report: SoftBank

7th Place: KDDI

• Company Name: KDDI Corporation
• Established: June 1, 1984
• Capital: 141.852 billion yen
• Number of Employees: 61,288
• Revenue: 5.754 trillion yen

KDDI continues to grow centered around its telecommunications business.

In addition to its mobile phone business under the au brand, the company is expanding its IT solution and DX support services. With a track record of 22 consecutive years of profit growth, KDDI is also actively investing in new business areas.

Reference: Securities Report: KDDI

8th Place: Mitsubishi Electric

• Company Name: Mitsubishi Electric Corporation
• Established: January 15, 1921
• Capital: 175.82 billion yen
• Number of Employees: 149,134
• Revenue: 5.2579 trillion yen

Mitsubishi Electric has strengths in information and communication systems.

In addition to providing system construction and maintenance services, the company is actively expanding its DX solutions. It has achieved steady growth through the promotion of IT business across the entire group.

Reference: Securities Report: Mitsubishi Electric

9th Place: NTT Data

• Company Name: NTT DATA Group Corporation
• Established: May 23, 1988
• Capital: 142.52 billion yen (as of March 31, 2024)
• Number of Employees: 193,500
• Revenue: 4.3674 trillion yen

NTT Data has grown through its system integration business.

Centered on providing solutions for government agencies, healthcare, and financial sectors, the company operates with over 300 consolidated subsidiaries. It continues steady growth, with quarterly revenue exceeding 1 trillion yen.

Reference: Securities Report: NTT Data

10th Place: Fujitsu

• Company Name: Fujitsu Limited
• Established: June 20, 1935
• Capital: 325.6 billion yen (as of March 31, 2024)
• Number of Employees: 124,000
• Revenue: 3.756 trillion yen

Fujitsu continues to grow as a specialized IT company.

While strengthening its cloud and software business, the company is expanding its IT consulting business. In fiscal year 2023, it achieved record-high operating profit, demonstrating its growth potential.

Reference: Securities Report: Fujitsu

2. Characteristics of High-Profit IT Companies

High-profit IT companies share several common characteristics. Let’s examine these factors in detail.

High Average Annual Salaries Exceeding 10 Million Yen

Top-tier IT companies achieve high salaries due to multiple factors. A major characteristic is the return to employees leveraging high profit margins.

These companies implement performance-based compensation systems and maintain competitive salary levels to secure highly specialized talent.

They also establish mechanisms that directly reflect company growth in employee compensation through performance-linked bonus systems.

Good Employee Treatment and Low Turnover Rates

Many measures are implemented to improve retention rates of excellent talent. The following examples are basic practices adopted by many IT companies.

Flexible work arrangements, skill development support, and long-term growth support systems

• Introduction of flextime systems
• Promotion of remote work
• Development and enhancement of training programs
• Clear career paths

Comprehensive Employee Benefits

These companies prioritize employee work satisfaction and establish comprehensive benefit systems:

Childcare and nursing care support systems
Offering leave systems and financial support beyond legal requirements.

Housing allowances and rent subsidies
Supporting stable living conditions.

Qualification acquisition support
Providing examination fee subsidies and incentives for successful certification, encouraging increased specialization.

Health management support: Enhancing regular health checkups and medical cost subsidies.

3. Characteristics of Japanese IT Companies with High Average Salaries

While the IT industry tends to have higher salary levels compared to other industries, there are companies that offer particularly high compensation levels. These companies actively reinvest in their employees, backed by advanced technological capabilities and profitability.

Let’s take a detailed look at the characteristics of IT companies with particularly high average salaries and the factors that enable them.

IT Company Average Salary Rankings

Let’s examine in detail the companies with particularly high average salaries among Japanese IT firms.

Reference: CareerHigh Job Change: IT Company Rankings, Financial Services Agency: EDINET

1st Place: Just Systems

• Company Name: JustSystems Corporation
• Established: June 2, 1981
• Capital: 10.14651 billion yen
• Number of Employees: 303
• Average Annual Salary: 14.28 million yen

JustSystems, which has achieved an average annual salary of 14.28 million yen, has over 15,000 corporate clients using their business-oriented products.

In addition to biannual bonuses, the company has implemented a quarterly profit-sharing system, actively giving back to employees. It also focuses on creating a comfortable work environment for women, maintaining a high female manager ratio of 15.9%.

Reference: Securities Report: JustSystems Corporation

2nd Place: SoftBank Group

• Company Name: SoftBank Corp.
• Established: September 3, 1981
• Capital: 214.394 billion yen (as of March 31, 2024)
• Number of Employees: 55,400
• Average Annual Salary: 13.6 million yen

The company, which has achieved an average annual salary of 13.6 million yen, serves as a holding company handling sophisticated management tasks.

Many experienced managers are employed, and the company has implemented comprehensive work-from-home systems. In particular, it focuses on creating comfortable working environments, such as providing one PC each for office and home use.

Reference: Securities Report: SoftBank

3rd Place: Nomura Research Institute

• Company Name: Nomura Research Institute, Ltd.
• Established: April 1, 1965
• Capital: 25.655 billion yen
• Number of Employees: 16,708
• Average Annual Salary: 12.7 million yen

The company, which has achieved an average annual salary of 12.7 million yen, has established a high-profit business model and actively reinvests in employees under the corporate philosophy that “people are assets.”

In addition to comprehensive employee benefits, the company has successfully reduced overtime hours and increased paid leave usage rates. It also actively promotes occupational safety and health and diversity initiatives. In fiscal year 2022, overtime hours were reduced by 1 hour, and the paid leave usage rate increased by 3.4%.

Reference: Securities Report: Nomura Research Institute

4th Place: SRA Holdings

• Company Name: SRA Holdings, Inc.
• Established: January 28, 1991
• Capital: 1 billion yen
• Number of Employees: 1,397
• Average Annual Salary: 11.78 million yen

The company, with an average annual salary of 11.78 million yen, employs a lean structure centered around managers.

It provides rewards ranging from 60,000 to 300,000 yen for qualification acquisition depending on difficulty, and covers rent up to 71,000 yen, focusing on improving employee benefits.

Backed by high technical capabilities across the entire group, the company provides IT services, consulting, and software development support to various sectors including finance, manufacturing, and research institutions.

Reference: Securities Report: SRA Holdings

5th Place: Mercari

• Company Name: Mercari, Inc.
• Established: February 1, 2013
• Capital: 47.349 billion yen
• Number of Employees: 1,417
• Average Annual Salary: 11.66 million yen

The company, with an average annual salary of 11.66 million yen, is known as a meritocracy rather than a seniority-based organization. Skilled engineers can aim for an annual salary of 10 million yen even in their 20s.

Mercari recommends remote work and side jobs, allowing flexible working styles that suit individual lifestyles.

In addition to operating a flea market app, group company “Merpay” is diversifying its business by offering small loan services and entering the NFT business using blockchain technology.

Reference: Securities Report: Mercari

6th Place: Oracle Japan

• Company Name: Oracle Corporation Japan
• Established: October 15, 1985
• Capital: 25.033 billion yen
• Number of Employees: 2,257
• Average Annual Salary: 11.6 million yen

The company, which has achieved an average annual salary of 11.6 million yen, is characterized by comprehensive incentive systems and proactive mid-career recruitment for securing talent.

As a foreign-affiliated IT company, Oracle Japan offers approximately 600 products, handling everything from product development to sales, implementation, and support in-house. The company is supportive of remote work, with office attendance being essentially optional, and allows for long vacations of a week or more with prior consultation.

Reference: Securities Report: Oracle Japan

7th Place: Dentsu Institute

• Company Name: Dentsu Institute, Inc.
• Established: December 11, 1975
• Capital: 8.1805 billion yen
• Number of Employees: 4,349
• Average Annual Salary: 11.33 million yen

The company, with an average annual salary of 11.33 million yen, actively reinvests in employees backed by a high operating profit margin of 14%.

It has established leave systems beyond legal requirements for employees to balance work with childcare, nursing care, and medical treatment, and has implemented flextime and telework systems, creating an environment where employees can work according to their lifestyle.

Reference: Securities Report: Dentsu Institute

8th Place: Recruit Holdings

• Company Name: Recruit Holdings Co., Ltd.
• Established: August 26, 1963
• Capital: 40 billion yen
• Number of Employees: 51,373
• Average Annual Salary: 11.19 million yen

The company, which has achieved an average annual salary of 11.19 million yen, operates services with industry-leading recognition such as SUUMO and Zexy.

It has implemented employee-focused systems such as “STEP Leave,” which allows for up to 28 days of leave, and the “Anniversary Allowance,” which provides 50,000 yen when using paid leave for four or more consecutive days, emphasizing employees’ private lives.

Reference: Securities Report: Recruit Holdings

9th Place: Sony Group

• Company Name: Sony Group Corporation
• Established: May 7, 1946
• Capital: 881.4 billion yen (as of March 31, 2024)
• Number of Employees: 113,000
• Average Annual Salary: 11.13 million yen

The company, which has achieved an average annual salary of 11.13 million yen, has implemented measures such as raising base salaries and establishing systems that properly reflect performance in compensation to prevent the loss of talented personnel.

Sony prioritizes work-life balance and has introduced a “Flexible Work System” that allows unlimited telework days.

Backed by high profits across the entire group, the company has realized continuous improvement in employee benefits.

Reference: Securities Report: Sony Group

10th Place: BayCurrent Consulting

• Company Name: BayCurrent Consulting, Inc.
• Established: April 18, 2014
• Capital: 282 million yen
• Number of Employees: 4,321
• Average Annual Salary: 10.74 million yen

The company, which has achieved an average annual salary of 10.74 million yen, has established a business model with high gross profit margins.

BayCurrent specializes in strategy development and implementation leveraging IT, including IT implementation and DX support, providing services across various sectors such as telecommunications, retail, finance, and infrastructure.

Its qualification acquisition support program covers self-learning costs up to 200,000 yen, supporting employee skill development.

Reference: Securities Report: BayCurrent Consulting, Inc.

4. IT Companies with Particularly Promising Growth Prospects

In the IT industry beyond 2025, new growth areas such as DX (Digital Transformation), Metaverse, and SDGs are expected to drive development.

Companies with pioneering initiatives in these fields are anticipated to experience further growth.

Here, we will explain notable companies in each field and their specific initiatives.

IT Companies Notable for DX Promotion

Let’s look at companies and initiatives that are particularly notable in digital transformation (DX) promotion.

NEC (Nippon Electric Company)
Developing AI and biometric authentication technologies, promoting smart city projects, and enhancing cloud services.

SoftBank
Focusing on 5G technology deployment, IoT platform construction, and digital payment service expansion.

Fujitsu
Advocating a cloud-first strategy, strengthening AI solution development and DX services for the manufacturing industry.

IT Companies Promoting the Metaverse

There is also an increasing number of companies expected to grow in metaverse-related businesses.

Sony Group
Developing VR/AR technologies, producing entertainment content, and building metaverse platforms.

NTT Docomo
Expanding XR (Extended Reality) business, providing metaverse services utilizing 5G, and supporting business in virtual spaces.

KDDI
Developing dedicated metaverse platforms, providing enterprise solutions, and focusing on virtual shopping mall development.

SDGs-Focused Companies Attracting Investor Attention

Companies actively working toward Sustainable Development Goals (SDGs) are also attracting attention.

NTT
Developing green technologies for environmental impact reduction, promoting social issue-solving DX, and practicing sustainable management.

KDDI
Utilizing renewable energy, supporting regional society digitalization, and developing environmentally conscious telecommunications infrastructure.

5. Japanese IT Companies Popular as Career Destinations

When considering a career change to the IT industry, salary level is not the only criterion.

It’s important to comprehensively evaluate various factors such as benefits, work-life balance, and career growth opportunities.

In addition to the companies in the previously mentioned rankings, let’s discuss the characteristics of IT companies that are popular as career destinations.

Focus on Benefits and Work-Life Balance

Popular IT companies as career destinations implement various initiatives to improve employee satisfaction. Let’s check the characteristics of representative companies.

Benefits and work-life balance arrangements are points that job seekers consider as important as salary.

LINE Yahoo Corporation

Characterized by investment in cutting-edge technologies and an open corporate culture.

The company promotes flexible working styles, with systems designed to meet diverse employee needs, including remote work allowances, relaxed commuting expense limits, and cafeteria-style benefits.

Business is centered around the communication app “LINE” and the comprehensive internet service “Yahoo! JAPAN,” providing news, weather, traffic information, and more.

LINE Yahoo Corporation

NRI Netcom

A company that supports employee career development through skill improvement support, qualification acquisition incentives, and in-house job posting systems.

Flexible working arrangements are possible through flextime, work-from-home systems, and hourly-based paid leave.

As part of the Nomura Research Institute Group, the company provides consulting and marketing in the web business sector, as well as software development, sales, and maintenance.

NRI Netcom

NS Solutions

The company provides opportunities for experience across multiple business domains and supports employee career development through young talent development systems and technical improvement support programs.

Comprehensive benefits focused on the future include defined contribution pension plans, asset-building savings plans, and various insurance systems.

NS Solutions is part of the Nippon Steel Group. It handles information system consulting, software development, and operation.

NS Solutions

6. How to Choose IT Companies and Keys to Successful Career Changes

To succeed in transitioning to an IT company, it’s necessary to carefully assess the company’s growth potential and future prospects while considering how well they match your career plans.

Here, we’ll explain specific points for company selection and practical steps to lead your career change to success.

Checkpoints for Assessing Company Growth Potential

When evaluating an IT company’s growth potential, analysis from multiple perspectives is important.

Assess technological capabilities by examining investment in research and development, number of patents, and initiatives for new technologies. Possession of proprietary technologies, quality and quantity of engineers, and technical education systems are also important judgment criteria.

Market competitiveness is another important evaluation point. Analyze market share of main businesses and their trends, and competitive advantages compared to rivals.

Transaction records with major companies, existence of continuous business relationships, and customer satisfaction levels are also important indicators in judging a company’s growth potential.

Understanding Company Future Prospects from Financial Indicators

A company’s financial condition is an important indicator in judging future prospects.

Growth Indicators: Check sales growth rate, operating profit growth rate, and trends in order backlog.

Profitability Indicators: Analyze operating profit margin, ROE (Return on Equity), and gross profit margin.

Stability Indicators: Consider equity ratio, current ratio, and interest-bearing debt ratio.

Points for Analysis

It’s important to check 3-5 year trends, comparisons with industry averages, and presence of seasonal variations. Additionally, scale of capital investment, implementation of M&A, and human capital investment status are important elements in evaluating a company’s growth initiatives.

Steps to Successfully Change Careers to Growth Companies

To succeed in changing careers, it’s important to proceed systematically from the preparation stage.

1. Conduct self-analysis and company research Take inventory of technical skills, business skills, and qualifications. At the same time, set short-term and medium-to-long-term goals, and clarify desired job types and roles.

In company research, gather detailed information such as technology stack, development methods, and project examples, in addition to basic information like business content, management philosophy, and organizational structure.

2. Prepare applications and interview strategies In application preparation, it’s important to create a resume that quantifies project achievements, technical experience, and results. Also prepare a portfolio that compiles personal development achievements, technical blogs, and contributions to OSS.

For interview preparation, prepare to demonstrate technical strengths, problem-solving abilities, and coding test strategies for technical interviews. Show compatibility with corporate culture by emphasizing shared values, communication skills, and team work experience.

3. Understand the job market and gather information Deepen understanding of the job market by grasping market trends, analyzing job trends, and confirming salary ranges. Using multiple agents, especially industry-specialized ones, enables access to non-public job openings.

Thorough information gathering is also important, including utilizing review sites, creating connections with employees, and checking industry news.

By following the above steps and key points, you can increase your chances of successfully transitioning to a growth company. It’s particularly important to improve technical skills while researching companies and understanding market trends.

7. Japanese IT Companies Will Continue to Grow

Japan’s IT industry is expected to continue growing, but careful judgment is required when selecting companies.

It’s important to thoroughly consider a company’s growth potential, future prospects, benefit characteristics, and how well they match your career plans.

If you’re considering a career change to a growth company, please use the points introduced in this article as a reference for systematic preparation.

■Related article

The following article explains in detail the characteristics of 15 major Japanese IT companies and 20 notable companies to watch.