FAQ (Search categories)

FY08/22_Q3

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• About recruiting engineers, recruiting activities in group companies seems to be slow down.

  Group companies are relatively struggling due to factors such as the fact that the lower awareness in Japanese IT industry than that of SHIFT and that the competitiveness of salary level is weak. However, HR members of SHIFT have joined the group companies, and we are implementing support to strengthen various measures, including strengthening relations with agents.

• What is the purpose of the merger through absorption of SystemI and RGA?

  We believe that the merger through absorption of SystemI and RGA have the following merits for the SHIFT Group.
  1. Through this merger with RGA, SystemI will be able to strengthen and expand the infrastructure necessary for the basics of DX (digital transformation), and thus, significantly expand the range of proposals for new and existing customers.
  2. A company such as RGA, who have a high level of expertise and technical prowess, will be able to further increase their strengths and expand its knowledge by participating in various projects in fields specialized by SystemI.
  3. While participating in projects in new fields, RGA has confirmed that there is much client needs in fields such as infrastructure that RGA has traditionally excelled in, exceeds the current capacity of SystemI, and therefore, RGA joining hands with SystemI will lead to vast business opportunities.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-absorption-type-merger-of-realglobe-automated-inc-wholly-owned-subsidiary-by-systemi-co-ltd-wholly-owned-subsidiary/

• Why did the unit price for engineers drop?

  This is because hiring was accelerated in FY2022 Q3 and the operation ratio dropped due to it. This is because April is the busiest hiring season in Japan, and we accelerated hiring in order to achieve our full-year target of 2,400 employees. As a result of this, 917 employees (including newly graduates, consolidated) joined the company in FY2022 Q3. Therefore, the number of engineers exceeded the number of projects, and thus, resulted in a temporal 2-point drop in utilization ratio, affecting the unit price for engineers as well.

• Why did the utilization ratio drop by 2-points?

  This is because April is the busiest hiring season in Japan, and we accelerated hiring in order to achieve our full-year target of 2,400 employees. As a result of this, 917 employees (including newly graduates, consolidated) joined the company in FY2022 Q3. Therefore, the number of engineers exceeded the number of projects, and thus, resulted in a temporal 2-point drop in utilization ratio.

• What are the prospects regarding the hiring of engineers in Q4?

  After the busiest recruiting period in April of Q3, the recruitment speed in FY2022 Q4 will be roughly the same as that of H1. The SHIFT Group aims to hire 2,400 employees for FY2022, and because we have already hired nearly 2,000 employees through FY2022 Q3, we aim to reach our goal in FY2022 Q4.

• What is the recruitment record for FY2021 Q3?

  Although specific figures have not been disclosed, the number of hires in FY2021 was roughly 1,500, while FY2022 Q3 will be around the same level as in FY2021 (approx. 38% = 917 hires in FY2022 Q3 / 2,400 hires target for FY2022).

• Have there been calls to scale back IT investment?

  As of now (July 2022), we have not heard from any clients of the SHIFT Group that customer demand has declined.

• Who make up the 221 new graduates?

  121 are SHIFT (parent) employees and the remaining 100 have joined our group companies.

• Why is there a significant increase in labor costs compared to FY2022 Q2?

  As a premise, personnel costs include the salaries of back-office personnel belonging to the Human Resources Department and the Business Administration Department, as well as the engineers who are currently active. The increase in personnel costs in FY2022 Q3 is due to the fact that the new graduates (121 employees) have been temporarily assigned to the Human Resources Department prior to their actual assignment. Therefore, if you subtract this temporal increase, there is actually no significant change in the growth rate. Additionally, starting from FY2022 Q4, the new graduates will be assigned to their departments and work as engineers, so they will be included in “costs” instead of “personnel costs”.

• The supplemental material shows an excessive increase in the number of non-engineers, but do you plan to continue hiring at a similar pace in the future?

  The reason why there is a large increase in the number of non-engineers in FY2022 Q3 is due to the fact that SHIFT’s new graduates (121 employees) have been temporarily assigned to the Human Resources Department prior to their actual assignment. Therefore, if you subtract this temporal increase, there is actually no significant change in the growth rate. Additionally, starting from FY2022 Q4, new graduates will be counted as “engineers” instead of their previous title of “non-engineers” because they will be assigned and starting their jobs as engineers.

• Does SHIFT plan to continue strengthening their recruiting capabilities?

  Yes, in FY2022, we aim to hire 2,400 employees, but in order to further accelerate growth as a group, we aim to hire 3,000 and 4,000 in the future. To achieve further goals down the line, we will continue to keep strengthening our recruiting capabilities, including the development of a wide range of measures.

• What is IFTEC?

  IFTEC has strength in downstream processing focused on operations in the NI (Network Integration) domain. By becoming a group company of ALH, it aims to expand business in the NI domain together with Survage system, inc., who have also recently become a group company of ALH back in November of 2020.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-acquisition-of-it-solution-business-of-iftec-co-ltd-by-shifts-subsidiary/

• What is DeMiA?

  DeMiA develops web and smartphone apps, and boasts a cast of brilliant young engineers including a former RoboCupJunior world champion, as well as graduates and current students of Kyoto University. They also offer a unique engineer training program which can create and train excellent engineers who can immediately excel in the field of development, and hopefully eventually solve the nationwide problem concerning the lack of engineers in the Japanese IT industry.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-acquisition-of-demia-inc/