The Era of DX: How Utilizing High-Skilled Freelancers Solves Corporate Challenges (Part 1)

Recently, employment structures have diversified, and many companies now involve not only so-called regular full-time employees but also contract workers, part-time/casual workers, temporary staff, and various other types of personnel. Amidst this, "highly specialized freelance talent" is gaining attention. Rather than mere "outsourcing" or "contracting," utilizing high-skilled freelance talent capable of handling advanced tasks beyond the company's own resources is already becoming commonplace in places like the United States. This trend is gradually spreading in Japan as well.

This time, we interviewed Kunihiko Monbun of GNUS Inc., a company that builds networks with highly specialized freelance talent in the DX field, assigns the optimal personnel based on client challenges, and supports their resolution. In Part 1, we asked about the nature of the "freelance talent" GNUS provides and the benefits of effectively utilizing them.

In the US, the practice of moving between "corporate employment" and "freelancing" is becoming commonplace

Q. I understand that a key framework of GNUS Inc.'s business, particularly in the DX domain, involves "selecting the right freelance members from our network for a project, defining the output for the client together with the assembled team, and making proposals." What kind of people are these "freelance" professionals?

Bunbun: Let me start by explaining what "utilizing freelance talent for DX" fundamentally means. DX covers a broad spectrum, including areas like "data science" and "system development." Within that, we focus specifically on the "product development" domain. For example, when a distribution company wants to create a "payment app" for its customers, they need engineers, designers, product managers, and so on. These individuals are actually already active as freelancers, joining startups or launching their own ventures. We have a network with such talent. We assemble teams composed of freelance members and deliver the output of those teams to our clients.

Their work styles are incredibly diverse. Some operate as "sole proprietors," others belong to startups but take on side gigs at night, and some run companies as "business owners." Even among freelancers, there are "full-time" freelancers and "part-time" freelancers who take on various jobs. Furthermore, even among "full-time" workers, some are sole proprietors while others are active as business owners.

Q. I understand you witnessed firsthand an environment where freelance talent thrives during your time stationed in New York. Were there differences in the work environments between Japan and the US?

Bunbun: Yes, as is often said, I think it relates significantly to the U.S. being "job-based" and Japan being "membership-based." The U.S. fundamentally operates on a "job-based" employment model, and employment periods at a single company tend to be short. According to a U.S. Department of Labor survey, the average number of jobs held between the ages of 18 and 48 is 12, truly making it a "nation of job-hoppers." In this context, working as a freelancer for a certain period isn't particularly unusual. It's common to work at a company for three years, then become a freelancer, and then work at another company again. In Japan, leaving corporate employment often means permanently leaving it behind. In the U.S., however, it's normal to move back and forth between corporate employment and freelancing. There's also the pattern of someone who was freelancing returning to a company after having children.

Furthermore, in terms of the "job-based" system, regardless of which company you work for, each individual builds their career as a specialist. Therefore, even if you become freelance, it's easier to find work. Employers also view job descriptions the same way, whether the person is freelance or a full-time employee. The only difference is the employment status. I think it's an environment where "thriving as a freelance professional" fits quite well.

The key to DX advancement lies in utilizing "high-skilled freelancers" who don't appear in the traditional job market.

Q. From the perspective of employment status, is Japan still lagging behind in "utilizing freelance talent"?

I don't think it's a binary choice between "job-based" and "membership-based" systems. However, in Japan, when companies utilize freelance talent right now, it often boils down to just assigning them routine tasks. Consequently, some companies might assume "freelancers = cheap labor." But the solutions we provide aren't about that. Rather, it's about leveraging freelance designers and engineers who offer higher quality than the company's own full-time employees. That's why we deliberately use terms like "high-skilled freelancers" or "high-level freelancers."

Q. What are the benefits of utilizing such "high-skilled" freelance talent?

If you're currently working in DX , you're probably experiencing this firsthand: even if you want to build an app now, the market continues to face a talent shortage, making new hires incredibly difficult. So where are these capable people? They want to avoid joining large corporations and getting bogged down in tedious internal coordination under the banner of DX. Instead, they choose to work freelance to pursue the work they want flexibly. Consequently, these individuals don't enter the conventional hiring market. We can provide such talented and diverse individuals as resources for DX solutions. The benefit for companies is that they can utilize these talents for optimal projects without necessarily hiring them as employees.

When I was stationed in the US, I worked with a team assembled from freelancers through a startup called Gigster. Back then, even in the US, there was a shortage of companies capable of product development. When trying to collaborate with large development firms, we often heard "resource shortage" as the reason. Even large corporations claimed they lacked resources. However, partnering with Gigster made it possible to match with top talent, such as engineers who had previously worked at major corporations. That's when I realized: "If we can effectively utilize freelance talent, we might solve the problem of resource shortages."

When I was working in the U.S., society as a whole wasn't yet moving toward DX like Japan is now. But today, partly due to the impact of COVID-19, DX has become a critical theme everywhere. In this environment, I believe there's an even greater need than back then to leverage freelance talent to compensate for that "resource shortage."

There's a popular drama where "highly skilled freelance surgeons thrive, free from the constraints of large hospitals." Yet, the concept of such "highly specialized freelance talent" might still be unfamiliar in Japan. However, beyond just the DX field, the trend of "highly skilled professionals choosing freelance work over large corporations" could accelerate across all business sectors. Furthermore, in a future facing chronic talent shortages due to a shrinking workforce, this approach offers a crucial pathway to efficiently solve diverse challenges by flexibly sharing limited talent. In Part 2, we'll explore key considerations when utilizing freelance talent and the importance of accurately assessing their characteristics.

• In the DX Era, Utilizing High-Skilled Freelance Talent Leads to Solving Corporate Challenges (Part 2)

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