IT

SECTOR
IN
JAPAN
AND
PAKISTAN
BY: LAIBA MARIAM
 Table of Contents
Introduction 1

IT sector in Japan 2

IT sector in Pakistan 3

Summary 4

Conclusion 5

References 6
INTRODUCTION:
The purpose of this report is to evaluate the position of IT sector of
JAPAN & PAKISTAN. The functioning of IT in economic affairs, business, automobiles, agriculture and
medical. The report will focus on the rapid areas of IT such as positive and negative aspects for both
countries. The purpose of this report is to determine the challenges and solutions IT department in Japan
and Pakistan.

Market Size:
This report aims to determine that Japan's IT industry is one of the largest in the country's
economy, with a market size that's growing day by day. It will be 13.124 trillion yen by 1.6% increase year
on year. In 2021, it will be 13.320 trillion yen by 1.5% increase year on year. In 2023, the IT services
market was valued at $70.22 billion. It was predicted that IT market in Japan will grow to nearly USD 5,100
billion in 2024.

Position of IT Sector in JAPAN

Japan's IT sector is one of the world's largest and most advanced sector, with a growing market and
a variety of areas of strength. Japan offers a number of national and local tax incentives that are available to
foreign investors in Japan. In Japan, IT engineers are in high demand and they have a wide range of
responsibilities. IT engineers work in the field of AI, Cyber Security and Video Gaming which is in high
demand in Japan. Advancement in Cloud Native, Intensified competition among IT related companies and
Growth of new platforms are present advancements in IT.
The rapid industrialization and modernization of Japan both allowed and required a massive increase in
production and infrastructure. This includes digital traditional industries like banking, healthcare, and retail.

Major Issues of IT Market in Japan

There are many challenges in IT industry but one of the main challenge Japan faced today is a
shortage of skilled IT professionals. In Japan, there is increased demand for Software Developers, Data
Scientists, AI experts, Cyber Security Specialists and Cloud Solution Architects.
Japan has a collection of IT Engineers but the fact is that the lack of supply. In the field of IT, Japan faced
the drawbacks of Shortage of IT Human Resources and Lack of English Speaking IT Professionals. It might
be difficult for foreign companies in consent Japanese laws & regulations due to verbal problem . Lack of
new born child is also a big challenge faced in Japan.
• Pakistani IT sector has high potential in the sector of DX Manufacturing (Industry manufacturing)

IT SECTOR IN PAKISTAN

Pakistani IT companies regularly earn recognition at international competitions like the Asia
Pacific Information and Communication Technology Awards (APICTA). They stand out in various
categories such as startups, mobile apps, e-learning, e-health, e-government, security and financial
applications.
In Pakistan, the IT sector is expanding or growing rapidly, with a growing digital economy, increased
government investment in technical infrastructure, and the rise of startups and innovation. Pakistani IT
sector playing its great role in Health Tech, Education, Finance and in Agriculture.

Market Size of IT in Pakistan

The Pakistan ICT market was valued at US$ 15.05 billion in 2023 and will grow at a compounded
annual growth rate (CAGR) of 1.87%. In 2028, it reach a value of US$ 16.51 billion. IT sector is one of the
faster growing sectors of Pakistan contributing about 1% of GDP of Pakistan about 3.5 billion USD.

Major issues of IT market in Pakistan

Pakistan faced many challenges in IT sector, but the major challenges are Digital Divide, Skill
Shortages and the risks of Cyber Security. Although, the government of Pakistan still efforts to promote a
Digital Pakistan, combined with increasing private sector investment and innovation, suggest that IT sector
continue a play role central role in Pakistan’s future economic growth.

Japan and Pakistan cooperation in IT sector:

Japan and Pakistan have been working to improve their cooperation in the field of IT sector.
They focus on technology transfer, capacity building and mutual investment. Japan has supported Pakistan
several programs like skill development, including training and scholarships for Pakistani students in IT
fields, advance facility in areas like Software Engineering, AI and Cyber Security. Both countries have also
shared knowledge on data privacy standards and digital economy strategies.
Summary:
Aspect Japan Pakistan
Highly advanced, world leader in
Industry Maturity Developing, strong in IT outsourcing
technology
Leader in robotics, semiconductors, AI,
Technological Innovation Focus on software development, AI, fin-tech
etc.
World-class, reliable internet and
Infrastructure Improving, but infrastructure gaps remain
digital services
Growing, large young workforce, but skills
Talent Pool Highly skilled, but facing a shortage
gap in advanced tech
IT Outsourcing Selective, high-value domestic focus Strong presence in low-cost outsourcing
E-commerce Mature, with advanced digital services Growing rapidly, with room for expansion
Emerging initiatives, but inconsistent
Government Support Strong policies for innovation
implementation
High priority, world leader in cyber
Cyber security Growing focus, but still developing
security
Large, competitive, high demand for Smaller, but expanding rapidly, especially in
Market Size
advanced tech outsourcing
Japanese is the main business
Language Barriers English widely spoken in business settings
language

Conclusion:

In conclusion, Japan’s IT sector is highly advanced with high technologies, whereas Pakistan's IT
sector is become visible, with significant potential for growth in areas like subcontracting, software
development, and digital services. However, both countries have opportunities for collaboration, particularly
in subcontracting, software development, and emerging technologies.

References:
NAME LINK
JAPAN ICT https://www.mordorintelligence.com/industry-reports/japan-ict-market
HAYS https://www.hays.co.jp/en/theinsidestory/technology-job-trends-japan
IDC https://www.intellilink.co.jp/en/business/software/column2023041700.aspx

https://www.idc.com/getdoc.jsp?containerId=JPE50870824
Sustainable IT & https://www.mordorintelligence.com/industry-reports/japan-ict-market
Green Technology
IT RELATED https://www.jica.go.jp/Resource/topics/2022/20221221_01.html
PROBLEMS IN
JAPAN
Limited IT Resources https://www.intellilink.co.jp/en/business/software/column2023041700.aspx
in User Companies
Off-Shoring in JAPAN https://www.ipa.go.jp/archive/publish/hjuojm0000007e6n-att/000085255.pdf

Language Information https://www.state.gov/foreign-language-training/،

Language Biggest https://www.ef.com/assetscdn/WIBIwq6RdJvcD9bc8RMd/cefcom-epi-site/
Barrier reports/2023/ef-epi-2023-english.pdf
Financial Business https://www.fsa.go.jp/internationalfinancialcenter/en/market-entry/
registration/
Import Procedures & https://www.customs.go.jp/english/summary/import.htm
Regulations https://www.customs.go.jp/english/tariff/2017_5/data/import.htm