SHIFT has set “SHIFT1000” mid-term strategy targetting net sales of ¥100 billion by 2025. As part of our efforts to achieve our goals, we are promoting our business with the aim of achieving accelerated growth based on the 3 domains. The size of the software testing (quality assurance) market, which SHIFT considers to be its main business area, is approximately ¥5 trillion, or about 1/3 of the ¥15 trillion of software market in Japan. As there are no competitors that could pose a threat in this market, we believe that the key to future growth lies in how quickly we can capture the market share in this “Blue Ocean”.
Organic Growth in Existing Businesses
In our current main business, software quality assurance business, “sales capability” and “recruitment capability” would be two important basics to grow.
SHIFT is focusing its efforts on recruiting activity to hire talented personnel to meet the growing demand towards our business.
SHIFT implemets several tactics to recruite more engineers under this circumstances where Japanese IT market faces shortage of IT personnel.
- Developing and introducing SHIFT’s original examination, called “CAT examination”
- Conducting video recording job interview
- Focusing on referral recruitment
Utilizing CAT examination enables SHIFT to recruit talented personnel who are not neccesarily experienced ones in IT market. At the same time, those who was “non-IT personnel” could grow to “IT personnel” through experiences in SHIFT, which not only brings success to our further growth, but also, consequently generates IT personnel and contribute to mitigating a social issue in Japan.
SHIFT enforces its sales system, by cultivating existing customers (increasing net sales per customer) and increasing the number of new customers. Here below includes actions taken to strengthen sales activities.
- Increasing the number of sales personnel
- Monitoring by Michio Sasaki, Outside Director of SHIFT who were CEO of Keyence corperation
- Visualizing sales activity thouroughly and overseeing KPIs
Further M&A-Driven Growth
We are aggressively conducting M&A with the objectives of strengthening our service structure, enriching a comprehensive service portfolio in software development projects, enhancing our service provision capabilities, and acquiring a customer base. SHIFT segments the roles in the software development area and prepares M&A mappings. In this context, we are promoting the selection of target areas and companies.
１．M&A policy for selecting candidate
- Companies which covers areas that SHIFT currently does not.
- Small and midium sized IT companies that employ talented engineers but struggle with business succession.
- Major prime vendors which have user companies as thier customers.
- Companies which handle information about personnel, products, and resources to strengthen our platform business.
*Refere to below for further information about platform business.
２．M&A decision making policy
Additionally, SHIFT also considers perspectives below to make decisions in M&A.
- Whether their added value is high enough and unit price improvement can be expected
- Whether their customer population be utilized
- Whether they immediately contributes to profit over its goodwill
- Whether the acquisition price is relatively cheap (aroud 5 to 8 times EBITDA)
Check the link below for further information about group companies.
SHIFT has developed various kinds of business including our current main business, software quality assurance, and accumulated wide range of knowledge about IT industry. Such knowledge includes software development by industry or sector, infromation about skill and unit price for engineer, order amount and credit information for development projects. SHIFT would develop a matching platform based on our knowledge accumulated, which could match engineers who seek projects to work on and projects who seek engineers to assign.