No.2680
03/26/2021
Digital-Engineer HR Services Market in Japan: Key Research Findings 2021

Digital-Engineer HR Services Market Size (Total of 3 Markets) in FY2019 Rose by 13.5% on YoY to Attain 909.0 Billion Yen

Yano Research Institute (the President, Takashi Mizukoshi) carried out a research on the markets of training services, temporary staffing services, and recruitment services specific to digital engineers, and found out the market trend by category, trends of market players, and future perspectives.


Transition and Forecast of Digital-Engineer HR Services Market Size (Total of 3 Markets)
Transition and Forecast of Digital-Engineer HR Services Market Size (Total of 3 Markets)

Market Overview

The FY2019 digital-engineer HR services market size which is the total size of three HR markets specific to digital engineers (i.e. training services, temporary staffing services, and recruitment services) was estimated to have risen by 13.5% on a YoY basis to 909.0 billion yen.

In the status where the domestic population is diminishing, enterprises have concerns over shortage of manpower and labor that can affect negatively to the business activities and operations, reducing the competitiveness. As a solution, the demand for achieving business innovation by using IT and digital technologies to improve and streamline the business processes has been increasing, together with the demand for human resources equipped with IT or digital skills, and for HR services specific to IT and digital engineers. Decline of the market size in FY2018 stemmed from the decreased number of temporary workers due to revisions of the Labour Contract Law and the Worker Dispatch Act, which scaled down the digital-engineers staffing service market, the largest market segment.

Noteworthy Topics

Market Influence by COVID-19 Pandemic

For FY2020, the COVID-19 pandemic has harmfully affected the market. While the markets of digital-engineer training services and digital engineer temporary staffing services are likely to be below the previous fiscal year results, the digital-engineer recruitment service market is expected to expand, though the growth rate may slow down.

For the digital-engineer training service market, because of poor business performance caused by the COVID-19 pandemic, the training size and frequency have been reduced, as the training budget curtailed, implementation of training avoided, and training shifted to online, reducing the unit price. The market, therefore, is likely to face negative growth.

The digital-engineer temporary staffing service market has seen some delays in dispatching of digital engineers in the COVID-19 calamity, reducing the operation rates. In addition, avoidance or diminishing of utilizing temporary workers has become more apparent at the companies that requested temporary staffing, more so for the jobs that do not require special knowledges and skills (which is the largest customer segment,) seemingly causing the market to downturn.

On the other hand, the digital-engineer recruitment service market has continued being in demand, despite some negative influences including delays in recruitment activities. The market is expected to continue expanding, although the growth rate may slow down.

Future Outlook

The market environment has completely changed in FY2020, because of COVID-19 infections. The total digital-engineer HR services market size in FY2020 is expected to decline by 1.4% on a YoY basis to end up with 896.5 billion yen, as the negative influence since the final period of FY2019 has become obvious in the digital-engineer training service market and the digital-engineer temporary staffing service market.

Nevertheless, as the concerns over manpower shortage harmfully affecting the business activities and operations to continue, the demand for developing and utilizing digital engineers is likely to increase furthermore, which is expected to expand the entire digital-engineer HR services market once again.

Research Outline

1.Research Period: December 2020 to February 2021
2.Research Object: IT personnel training service providers, IT personnel temporary staffing services, IT personnel recruitment service providers, etc.
3.Research Methogology: Face-to-face interviews by the expert researchers, surveys via telephone, FAX, and email, and literature search

Digital-Engineer HR Services Market

The digital-engineer HR services market in this research refers to: 1) digital-engineer training service market, 2) digital-engineer temporary staffing service market, and 3) digital-engineer recruitment service market. Digital engineers referred to here are broadly-interpreted IT and digital personnel dealing with IT or telecommunications, programmers and system engineers (SEs) who construct, operate and implement the systems (regardless of skill levels and IT categories), the specialists of digital technologies and data analysis (i.e. data scientists, AI engineers,) system architects, DX project leaders (project producers,) and project planners (business designers.)

1) The digital-engineer training service market targets training services for corporate employees (concluding corporate contract) to make them learn the knowledge and skills of IT and digital technologies in a broad sense (regardless of skill levels and IT categories.) The following examples exemplify such services: Development of programmers and SEs, offering web-related skills, information processing skills, and PC skills, development of specialists regarding digital technologies or data analysis (i.e. data scientists, AI engineers,) development of system architects, DX project leaders (producers,) and project planners (business designers,) etc.

2) The digital-engineer temporary staffing service market refers to the market of the services that dispatch IT engineers (including information processing engineers and telecommunication engineers.) The specialty of technologies and knowledge, or the skill levels of such engineers do not matter. They are dispatched to perform overall business processes in the technological fields (IT, software, information processing), which include development of systems/applications, cloud environment, and web systems, database construction, and IT infrastructure (consultation, designing, construction, operation, and maintenance of network and/or servers.) In addition, human resources that can deal with AI and other state-of-the art technologies are also included (data scientists, AI engineers.)

3) The digital-engineer recruitment service market refers to IT engineer-specific recruitment services among the whole recruitment services that the providers offer. The services include recruitment of IT engineers (information processing and telecommunication engineers,) human resources that can deal with AI and other state-of-the art technologies (data scientists, AI engineers,) DX project leaders (project producers,) and project planners (business designers.)

<Products and Services in the Market>

Digital-engineer training services, digital-engineer temporary staffing services, digital-engineer recruitment services

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