Our Group aims to expand our high-value-added stock-type business, which is not a typical labor-intensive business in the IT services industry, but for further growth, it is essential to recruit and train talented personnel.
As IT penetrates all industries, competition for IT personnel is becoming increasingly fierce not only among companies in the same industry, but also among other industries and venture companies.
In order to expand our business in the future, securing human resources will become a lifeline, and we will need to continuously recruit talented employees.
Regarding regular recruitment of new graduates, we will hire personnel with high potential, and in mid-career recruitment, we will hire a wide range of experienced personnel who can be used as immediate capabilities.
Issues to Be Addressed
① Securing Human Resources
② Impact of Foreign Exchange Fluctuations
Of the products handled by the Group, the majority of products purchased from overseas are contracted in U.S. dollars. Sharp fluctuations in foreign exchange rates may affect our group's business, performance, and financial position. For this reason, we enter into forward exchange contracts to hedge the risks associated with exchange rate fluctuations. In addition, we negotiate prices with our customers in accordance with foreign exchange market conditions.
③ Prompt response to changes in the market environment (needs)
Recognizing that the world is irreversibly changing, our business must respond quickly to the ever-changing market environment (needs). In our business domain, the spread of open source software and the trend toward cloud computing are accelerating the in-house production of software development, and the era in which IT can only be handled by companies with high technical expertise is coming to an end. The Group's response to this trend includes the following six points.
a. Strategically shift technical resources that have been deployed for contracted development for specific customers to “developing our own original services” and “increasing our own added value”.
b. Accelerate the business development of our proprietary cloud services, which are best practices targeting specific markets and operations.
c. Explore the utilization of data obtained through cloud services by using Big Data analysis, Business Intelligence (BI), Artificial Intelligence (AI), etc.
d. As measures to expand market share and business with immediate effect in product sales and service development, we will actively consider business alliances and M&A with external companies including venture companies, universities, different industries, other companies in the same industry, and businesses that could complement our group's business, with an eye on open innovation. e. Providing cyber security technology
e. Amid the trend toward the provision of cloud services as a form of cybersecurity countermeasure technology, we will accelerate the development of integrated security operation and monitoring services and other services in order to increase our unique added value.
f. Based on the recognition that we live in a world where data creates value and businesses are converging into B2C and C2C, we will consider developing consumer-oriented businesses in our specialized areas.
④ Funding for Large Ongoing Transactions
In recent years, the cybersecurity field has become increasingly cloud-based, with a trend toward larger ongoing business contracts with customers, such as multi-year subscriptions. In such cases, the collection of funds from customers is made every single fiscal year, while in some cases, payment to overseas vendors is made in advance in a lump sum, which may cause cash flow burdens. Therefore, we will closely monitor the gap between the collection cycle and the burden of advance payments, and carry out planned cash management.