In Japan, 2007 is the year when the postwar baby boomers start to retire. This, coupled with the falling birthrate, means that companies are encountering a serious shortage of skilled workers -- an alarming condition that has evolved in spite of the economy finally picking up and strong demand particularly in the manufacturing and IT industries. Many of these companies are extending their activities overseas, and they desperately need to secure capable staff globally, regardless of nationality.
To fill such obvious gaps in the labor force, some Japanese staffing companies involved in the dispatch of skilled workers are increasing the employment of technicians from up-and-coming countries such as China and India.
Outsourcing company Pasona Tech will start employing Indian IT technicians from this summer. First, recruited technicians with a science or engineering background will receive training for about four months in the Japanese language and business practices. They will then be formally hired by Pasona Tech as its employees, and will be dispatched to automobile and electrical machinery makers, as well as to the research centers of IT-related firms operating in or outside Japan. Generally, they are dispatched for between one and three years, and many Japanese-affiliated firms headquartered in India have showed interest in hiring such skilled staff as local managers after their contract with Pasona Tech ends.
Having been involved in outsourcing Chinese engineers and technicians since 1998, Pasona Tech plans to dispatch some 200 such staff annually from China and India by 2010, mainly to needy Japanese companies operating overseas.
Fuji Staff is teaming up with Indian universities and institutions to recruit Indian engineers with CAD (computer-aided design) skills to work at Japanese manufacturers. It also provides training in the Japanese language and business practices before sending the staff to domestic automobile and parts makers. Fuji Staff's goal by March 2008 is to start introducing around 30 such workers every year.
Meanwhile, VSN has started employing staff in China and is considering hiring Vietnamese technicians in the very near future. It plans to increase the percentage of foreign staff it employs annually to 10 percent of the total workforce within the next three years.
Other major outsourcing companies such as Meitec and Altech are also greatly increasing the number of Chinese engineers with design and development skills they dispatch to Japanese companies.
Meitec reinforced its efforts to nurture skilled engineers in China by buying up a local engineering training company in January. Through its two fully owned subsidiaries and two local joint ventures, Meitec will accelerate its supply of Chinese engineers to Japanese corporations. It also plans to expand its global activities in other Asian countries.
Altech is another long-standing, major outsourcing company. Its Taiwanese subsidiary founded in 1998 brings together major Taiwanese manufacturers and Japanese corporations, and offers numerous support services such as machinery installment and supplementary design. Altech Beijing, its main foothold in China, focuses on machinery design. While serving as the company's strategic center for global outsourcing activities, Altech Beijing is also involved in training high-level Chinese technicians who are well versed in Japanese business practices.
As the Japanese economy rebounds, domestic manufacturers are expanding their capital investment. But growth will be nullified if there are not enough skilled workers. It also is vital for them to acquire and secure capable managers at their overseas headquarters. Against such a backdrop, Japanese corporations advancing into other countries are urged to employ more local staff. This trend coincides with the popularity of technologically advanced Japanese manufacturers among skilled Asian technicians and engineers.
The Japan Times: March 19, 2007
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