Increase your annual income at a foreign IT company! Characteristics and English level are also explained.

2024.08.30

  • Industry Information
外資系IT企業で年収UP!特徴や英語レベルも解説

I wonder if working for a foreign IT company would increase my annual salary?” but many people may not be able to take the plunge because the hurdles seem too high.

 

In this article, we will explain the annual salary and characteristics of foreign IT companies, as well as the level of English required. We will also introduce some key points for a successful career change, so please take a look.
 

High annual income is not a dream in foreign IT companies! 3 industries and average annual income


Foreign IT companies tend to have higher annual incomes than Japanese IT companies. The graph below shows the average annual incomes of Japanese IT companies and U.S. IT companies for each age group: from 20s to 40s, the annual incomes of U.S. IT companies are almost twice higher than those of Japanese IT companies. It can be said that if you change jobs to a foreign IT company, it is easier to increase your annual salary than if you work for a Japanese IT company.

Reference: Ministry of Economy, Trade and Industry, “Report on the Results of Country Comparison Survey on IT Human Resources” (2016)

 

There are several types of IT companies, each with its own characteristics. Here we will explain the characteristics and annual salary estimates for the following three industries.

Foreign IT manufacturers and vendors
Foreign IT consulting firms
Foreign-affiliated web services

 

Foreign IT manufacturers and vendors

Representative companies: SAP Japan K.K., Adobe Corporation, Microsoft Japan Co.

Average annual salary: Approximately 6.1 to 11.7 million yen

 

The main business is to modify software and hardware developed and manufactured overseas for the Japanese market and sell them.

 

Generally, a manufacturer is distinguished as a producer and a vendor as a distributor. However, since many foreign IT firms have both manufacturer and vendor businesses, they are almost always used synonymously.

 

Foreign IT Consulting Firms

Representative companies: Accenture Japan K.K., Gartner Japan K.K., IBM Japan Ltd.

Average annual salary: Approximately 8.58 million yen to 10.12 million yen

 

The main business is to solve clients' management issues and develop strategies by incorporating IT technology.

 

In addition to specialized IT knowledge, logical thinking and customer negotiation skills are required at the same time.

 

Foreign-affiliated web services

Representative companies: Google, LLC, Microsoft Japan, Inc., Apple Japan, LLC

Average annual salary: Approximately 6 to 11.3 million yen

 

The main business is to develop and release applications and search engines for smartphones.

 

Since demand is increasing as the Internet speeds up, job opportunities are also diverse, ranging from engineers to sales, marketing, public relations, accounting, human resources, and general affairs.

Level of English required for different types of jobs in foreign IT companies


Being in a foreign company does not necessarily mean that you must be fluent in English. The frequency of use of English will vary depending on your position and duties. The following is an explanation of the level of English required for the following three positions.

Sales
Programmer/Engineer type
Project Leader/Manager

 

Sales

Sales positions do not basically require a high level of English proficiency, as most customers are Japanese, even if they are foreign-affiliated companies.

 

In most cases, however, if you can use translation tools, you should have no problem. 500 points or higher on the TOEIC is a good standard.

 

Programmers and Engineers

Programmers, system engineers, and web engineers are generally not required to have a high level of English ability, as they are required to have technical skills such as programming.

 

If you have English language skills sufficient to read notices from your home country, you will be able to work smoothly. In rare cases, English meetings may be required if there are foreign nationals in the company. The standard TOEIC score is 500 or above.

 

Project Leaders and Managers

Project leaders and managers require a high level of English proficiency.

 

A TOEIC score of 700 or higher is a good rule of thumb.
 

Three common characteristics of SEs who earn money in foreign IT companies


SEs who earn money in foreign IT companies have the following three things in common

Highly specialized skills
Advanced communication skills
Management skills

 

If you acquire these skills, you will be one step closer to becoming a profitable SE.

 

Highly specialized skills

Foreign-affiliated companies are results-oriented, so performance is linked to annual income. Therefore, those who have acquired advanced specialized skills and knowledge can handle a wide range of tasks, which can easily lead to high income.

 

In addition, since foreign IT companies often deal with the latest technologies, trends tend to change rapidly. Those who are sensitive to trends and continue to learn new languages will be able to keep up with the industry and continue to produce results and earn a high income.

 

To become a profitable SE in a foreign IT company, you need to be willing to keep learning to acquire advanced professional skills.

 

Advanced Communication Skills

Engineers in foreign companies who can make money have high communication skills. This is because it is necessary to speak as clearly as possible when there are foreign nationals on the team who have different languages, cultures, and ways of thinking. In addition to speaking, they also need to be able to listen and understand what others are saying.

 

Communication skills are not limited to engineers. As a project progresses, communication across departments, including sales and designers within the company, is necessary. This is because there will be many situations where adjustments will be necessary, such as changes in program specifications and schedules. It is necessary to understand the other party's point of view while communicating our own situation so that both parties can work smoothly.

 

You also need to speak to the client in a way that breaks down difficult IT terminology. If you use only technical terms, it will be difficult for them to understand you and your work will not go well.

 

People who have advanced communication skills can smoothly carry out their work and are recognized as necessary personnel in the company.

 

Management Skills

Management skills are also essential for a profitable engineer. This is because as one's position increases, management skills are needed to manage people, time, project budgets, and all other aspects of the job.

 

For example, you will share progress with the client and manage the progress of the entire team. During the course of a project, you may be consulted by team members. Depending on the progress of the project, there may be a need to consider the budget, such as whether or not to add new staff.

 

If you have management skills, you may be able to pursue a more senior position. If you are in a position such as technical manager or management manager, you will certainly be able to increase your annual salary.
 

4 Rewards you can get at a foreign IT company


At a foreign IT company, you will experience four types of satisfaction that you cannot get at a Japanese IT company.

Opportunity to experience the world's most advanced technology
Evaluation based on results
Growth as a global human resource
Easy work-life balance

 

Let us explain what kind of satisfaction you can expect.

 

Opportunity to experience the world's most advanced technologies

Foreign IT companies tend to spend more on R&D than Japanese IT companies. As a result, there are many opportunities to come into contact with new technologies. Technologies such as AI and blockchain originated in Europe and the United States. By changing jobs at a foreign IT company, you may have the opportunity to work with these cutting-edge technologies and build systems.

 

As an engineer, you will be able to acquire cutting-edge skills and increase your market value by being involved in cutting-edge technologies.

 

Evaluation based on performance

While Japanese IT companies follow a “seniority system,” foreign IT companies follow a “performance-based system. There are no differences based on age or gender. Therefore, those who can produce results will be highly motivated in their work.

 

Growth as a global human resource is possible.

Working for a foreign IT company means working with people from many different nationalities and putting yourself in a global environment.

 

Diversity is now a hot topic in Japan, but at foreign IT companies, diversity is the base of the company. Working in such an environment, you will naturally learn to accept other people's values and ways of thinking, acquire communication skills and the ability to respond flexibly, and grow as a global human resource.

 

Easy to maintain a good work-life balance

Foreign-affiliated companies emphasize “work-life balance. For this reason, flexible working hours and full remote working are available, as well as sick leave and family care leave in addition to paid vacations. We offer a flexible work environment where you can take vacation without hesitation as long as you produce results.

 

The ability to switch on and off allows us to work hard without sacrificing our personal lives.

Important! Two points of difference between foreign IT companies and Japanese IT companies


 

Compared to Japanese IT companies, foreign IT companies have many advantages such as higher annual income and more challenging work, but there are also some things to be aware of. However, there are also some things to be aware of. However, there are also some things you need to be aware of.

Foreign IT companies are a harsh world for those who cannot produce results.
Benefits at foreign IT firms differ from those in Japan.

 

Foreign IT companies are a harsh world for those who cannot produce results

Unlike Japanese companies, foreign-affiliated companies do not believe in “lifetime employment. Because of the “performance-based system,” if you fail to produce results day after day, your evaluation may be lowered and your compensation may be reduced, or worse, you may be fired.

 

However, foreign-affiliated companies in Japan must abide by Japanese laws. Since they abide by Japanese laws that protect employment, there will be few cases of sudden dismissal.

 

However, if you fail to produce results, it is certain that you will feel uncomfortable. If you change jobs to a foreign company, you must be prepared to keep up your skills and maintain a high level of performance.

 

Benefits at Foreign IT Firms Differ from Japan

While Japanese IT firms offer a full range of benefits, foreign IT firms' benefits packages are often perceived to be less generous, such as “housing subsidies” and “no retirement benefits. This is because foreign IT companies differ from Japanese IT companies in their approach to benefits.

 

Foreign IT companies also offer benefits, but are they the benefits you are looking for? Each company offers different benefits. It is best to check with a recruitment agent to find out what kind of benefits are offered.

 

For more information on benefits at foreign-affiliated companies, please refer to “Misconceptions about Benefits at Foreign Affiliated Companies: A Thorough Explanation of Why They Are Not Good and the Types of Benefits Available”.
 

3 Keys to a Successful Career Change at a Foreign IT Company


Here are some tips on how to successfully change jobs with a foreign IT company.

Show your past achievements and expertise.
Aggressively showcase your English language skills.
Use a recruitment agent that specializes in foreign-capitalized companies.

 

We will explain each of these points one by one, so please refer to them to help you succeed in your new job.

 

Show your past achievements and expertise.

Foreign IT companies are looking for people who can make an immediate impact. Therefore, it is important to show off your past achievements and expertise in order to get a new job with a foreign IT company.

 

Be specific and concise about the projects you have worked on, the areas you have been involved in, and your expertise. By demonstrating that you have the skills and experience that match the company's job opening, you will increase your chances of being hired if the company judges that you can contribute.

 

Aggressively showcase your English language skills.

English language skills are not a negative thing in a foreign IT company. If there are candidates with similar skills and experience, those who can speak English are more likely to be hired.

 

Also, depending on the nature of the work and the position, it may be necessary to exchange e-mails with the home country and submit reports in English. If you have work experience in English or English proficiency of at least 800 points in TOEIC, it is a good idea to actively promote your English skills.

 

Use a recruitment agent that specializes in foreign-capitalized companies.

The best way to find a job at a foreign IT company is to work with a recruitment agency that specializes in foreign IT companies. Even though there are many different types of foreign IT companies, it is not easy to find a company that fits your needs, as there are many different work styles, benefits, and salary packages. It is not easy to find a company that fits your needs, and it also takes time to research any questions you may have.

 

If you use a recruitment agency that specializes in foreign-capitalized companies, they will introduce you to companies that fit your needs and answer your questions on your behalf. They can also offer advice on English resumes and interviews based on their wealth of experience.

 

A recruitment agent with strong expertise in foreign-capitalized companies will be a reassuring partner who will work side by side with you in your job search.

Get both a rewarding and higher annual salary at a foreign IT company!


There are several industries in which foreign IT companies operate, and all of them have higher average annual salaries than Japanese IT companies. Another attractive point is that they are highly motivating, as they are performance-based, so if you produce results, you will be evaluated fairly, and you will have a chance to experience the world's most advanced technology.

 

On the other hand, there are some downsides to working for a Japanese IT company, such as a lack of benefits such as retirement and housing subsidies, and a strict response when you fail to deliver results.

 

It will not be easy to find a company that matches your skills and conditions from among many companies. If this is the case, please take advantage of United World. Our dedicated career counselors will support your job search by introducing you to companies that are a good fit for you, and by researching and informing you of information that may not be written in the job description. We also offer free career advice, so please feel free to register with us.

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