Analysis of Reasons Behind the Stagnation of Digitalization in Japanese Government Offices
Fax Machines and Seals Still Prevalent in the Public Sector
[Asia Economy Reporter Hyunwoo Lee] Regarding the stagnation of digitalization in Japan, the Cabinet Office of Japan released an internal analysis report stating that IT professionals working in the public sector account for less than 1% of the total, emphasizing the need for investment in nurturing IT talent in government agencies and other public sectors. The analysis suggests that hiring IT professionals is urgently needed to change Japan's offline administrative culture, which is still characterized by fax and seal-based procedures.
According to the Nihon Keizai Shimbun on the 29th, the Cabinet Office of Japan analyzed the reasons for the delay in Japan's digitalization in the "2020 Economic and Fiscal White Paper," to be released early next month, identifying the shortage of IT talent in the public sector as the biggest cause. According to the analysis, the proportion of Japanese IT professionals working in public sectors such as government offices and schools is less than 1% of the total.
The Cabinet Office pointed out that compared to the United States, where more than 10% of IT professionals work in the public sector, Japan's IT investment in the public sector is very inefficient. In major advanced countries, IT professionals work across various public and private sectors, with the proportion employed in the IT industry ranging from about 35.5% to 46.6%. However, about 70% of Japan's IT professionals, including system consultants, system designers, and software developers, are concentrated only in IT-related industries such as software and information processing and service industries, making it difficult to develop customized systems for each field.
Because IT professionals are concentrated only in the IT industry, even if IT companies commissioned to develop systems propose various alternatives, the public sector clients such as government offices lack knowledgeable and appropriate personnel to accept them, making efficient investment and operation difficult. In this regard, the Cabinet Office stated, "It is necessary to reduce the asymmetry of information and knowledge between the client and the contractor," and emphasized that "the Japanese government must increase investment in the IT sector."
Until 2018, software investment in Japan's private sector doubled compared to 1995, but in the public sector, the increase was just under 60%, indicating relatively stingy investment. The Cabinet Office suggested that to spread e-commerce, which is the foundation of consumption in the digital age, "qualitative system improvements such as building efficient ordering and procurement systems are necessary."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
