Japan is steadily expanding its offshore development activities, holding a 15% share in the global offshoring market.
While still smaller compared to the US and Western Europe, Japan’s reliance on offshore partners is accelerating every year, especially among small and mid-sized enterprises.
Japan’s offshore work is concentrated in IT and digital transformation domains.
Cloud and mobile-based systems lead the offshoring demand.
Japan works with multiple Asian countries, but the market is shifting based on cost, capability, and cultural compatibility.
48%
Many firms with Japanese-speaking engineers
Many are Japan-owned
21%
English-language product localization
8%
Low cost, strong engineering base
13%
Large-scale system development
4%
Low cost, proximity to Japan
2%
ICT systems and wartime digital support
Average monthly cost of foreign engineers working with Japanese offshore companies (2023).
$3,367 (+20%)
$2,681 (+27%)
$1,831 (+12%)
$2,389 (-1%)
$2,942 (+49%)
$3,389 (+46%)
Understanding cost expectations is essential before entering the Japanese IT market. Offshore development remains an attractive model for Japanese companies due to talent shortages — but cost variations across countries influence hiring decisions and project budgets.
| Country | Programmer | Senior Engineer | Bridge SE | Project Manager |
|---|---|---|---|---|
| China | 3,367( 20%) | 4,119 ( 19%) | 5,286 ( 6%) | 6,143 ( 7%) |
| Vietnam | 2,681 ( 27%) | 3,275 ( 23%) | 3,849 ( 12%) | 5,292 ( 37%) |
| Philippines | 2,389 ( 1%) | 3,555 ( 7%) | 5,417 ( 14%) | 4,722 ( 8%) |
| Myanmar | 1,831 ( 12%) | 3,611 ( 43%) | 4,555 ( 41%) | 6,500 ( 55%) |
| Bangladesh | 2,942 ( 49%) | 3,075 ( 16%) | 6,064 ( 31%) | 3,909 ( 27%) |
| India | 3,389 ( 46%) | 4,583 ( 33%) | 6,286 ( 39%) | 7,429 ( 33%) |
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