“We keep posting jobs, but we can’t hire the engineers we need.” Many companies hit this wall. Yet the IT talent shortage is not a problem that hiring alone can solve. In this article, BAP IT unpacks the real causes of the shortage—and the practical solutions that don’t rely on recruitment alone.
01 Why the IT Talent Shortage Exists — The Structural Causes
The IT talent shortage is not a temporary blip. It stems from a structural gap between supply and demand. As DX and AI adoption spread, demand is exploding, while training takes years and supply can’t keep up—and that gap widens every year.
Surging demand
Every industry is digitizing
Every company wants engineers — competition intensifies
Training lag
Supply can’t keep up
It takes years to train a fully capable engineer
Shrinking workforce
The base itself is shrinking
Japan projected to lack ~790,000 by 2030
According to widely cited estimates, Japan alone is projected to lack as many as roughly 790,000 IT professionals by 2030. The root cause isn’t any single company’s lack of effort—it’s the structure of a market where everyone is competing for the same limited pool of talent.
02 Why IT Hiring Is So Hard
A red-hot hiring market. Strong engineers receive multiple offers, and salary levels only climb. Cloud and AI specialists, in particular, are hard to retain even once hired.
Time and cost of recruiting. From posting a role to onboarding the right fit often takes 6–12 months. Meanwhile, development projects won’t wait.
The speed of skill obsolescence. Technology trends shift fast; a skill set that was ideal at hiring time may no longer fit a few years later.
03 The New Talent Challenge of the DX & AI Era
The rise of DX and AI has changed the very nature of the talent challenge. On top of traditional developers, companies now need specialists in data platforms, AI/machine learning, and cloud architecture.
Ironically, while AI streamlines some routine development work, demand for the high-level talent who can design, build, and operate AI is rising. In other words, the shortage of “people with specific skills”—not just “hands”—is becoming more acute.
04 Why Hiring Alone Isn’t Enough
Given the causes above, it becomes clear why recruitment alone can’t fully solve the problem.
▪ The supply itself is short — if the talent isn’t in the market, no recruiting budget can conjure it.
▪ Fixed costs balloon — hiring raises salaries, benefits, and training costs that can’t be scaled down when projects shrink.
▪ The timing doesn’t fit — hiring takes months, but development needs arise “right now.”
▪ It can’t flex with demand — headcount needs vary by phase, but fixed hiring can’t scale up and down easily.
Hiring is an important lever—but relying on it alone is a risk. Combining multiple options becomes essential.
05 Comparing Four Options: Build, Hire, Outsource, Offshore
There’s more than one way to secure development capacity. Understanding each option’s traits—and combining them—leads to the best answer.
The point is not to “pick one,” but to think in hybrid terms: lock down the strategic core with in-house staff and hiring, and flexibly cover fluctuating development capacity with outsourcing and offshore.
06 Practical Solutions to the Resource Gap
07 Why Vietnam Offshore, and Why Now
Among the many offshore destinations, Vietnam stands out as an especially good fit for companies working with the Japanese market.
Key benefits of Vietnam offshore
A large, young talent pool — with a national focus on IT education, capable young engineers are continuously coming through.
Cost competitiveness — secure development capacity with a more efficient cost structure than domestic hiring.
A diligent, Japan-friendly culture — strong affinity with Japanese business culture and a genuine emphasis on careful craftsmanship.
Japanese-language support — with partners like BAP, Japanese-speaking PMs and BrSEs minimize language and specification gaps.
That said, offshore success depends heavily on choosing the right partner. Japanese-language communication, quality management, and depth of business understanding—selecting a partner strong in all three is the key to success.
08 Conclusion: From Hiring “Only” to a Combined Approach
The IT talent shortage isn’t something recruitment alone can overcome. Because it’s a structural gap between supply and demand, what’s needed is a shift in thinking: widen your supply and make how you hold resources more flexible.
Combine build, hire, outsource, and offshore strategically to fit your situation. In particular, Vietnam offshore is a strong option that addresses the supply shortage itself while balancing cost and flexibility.
Struggling with the talent gap?
If hiring can’t keep up or you’re short on development capacity, reach out to BAP. We’ll propose a setup—tailored to your situation—that doesn’t over-rely on recruitment alone.
