With predictions for IT spend in the UK tipped to slow, the Japanese securities industry offers an oasis of activity.

IT consultant Celent is anticipating that the securities industry in Japan will up its spending on technology by 16% in 2008, to an estimated $3.6bn. This is relatively conservative in comparison to 2007’s 24% surge in IT spending, but well above predicted rates in the West.

But should you be packing your bags and heading for the land of the rising sun, in search of bountiful opportunities in both brokers and investment banks?

James Incles, managing director of recruiters Morgan McKinley Tokyo, reckons certain roles are open to UK techies, but others are a closed door: “For some roles, such as domestic fixed income, candidates will typically need an understanding of local markets and Japanese government bonds. However, there are opportunities for which local knowledge isn’t essential, such as quantitative developer and fixed income developer roles, and these are therefore suitable for international candidates.”

Yamiko Manchu, author of the report, says that straight-through processing, electronic trading and risk management will be key areas of focus for Japan’s brokers and securities firms.

Business continuity planning (BCP) solutions will also benefit from increased IT spend, as it’s soon to be clamped down upon by Japan’s financial regulator.

Manchu says: “This year they will also look into more strategic IT investments, such as algorithmic trading.”

Another big area will be on meeting the requirements of the Tokyo Stock Exchange, which will be upgrading its equity trading system by 2009-10. The average mid-sized broker will have to spend around $1m on related improvements, reckons the report.

Geoff Song, of recruiters T2 Tokyo, says the IT recruitment market in Japan isn’t as pretty a picture as the Celent survey seems to paint: “There are certainly a lot of roles available at the moment, but it’s nowhere near as solid as a couple of years ago. Experience in Europe or the US is valued, and many firms are looking for a broader range of experience than simply Japanese. However, Japanese language skills are a prerequisite for most of these roles, so we find that most applicants from other markets have an Asian background.”

The Celent survey took in responses from 316 brokers.