Risk of Labor-Hour Overruns and Losses on Customization Projects
First written in FY2022. 4 of 5 entries say "Materialised", first in FY2023. Latest entry: 2026-08-14.
Commerce One Holdings moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Softel Co., Ltd., which provides the Tsuhan Suru Kura service, focused on proposing customization projects that were in strong demand among customers. On the other hand, increasing customization complexity in large-scale projects caused delivery delays, while the associated engineering costs also increased, resulting in lower revenue and lower profit than in the same period of the previous year.」
More complex requirements for large-scale projects caused delivery delays and higher engineering costs, resulting in lower revenue and lower profit at Softel. - FY2023MaterialisedAnnual report
「Delays in large-scale projects caused by shortages of development personnel and other factors led to a decline in net sales. Operating profit remained below the initial forecast as delays in large-scale projects pushed up the cost of sales.」
Delays in large-scale projects due to shortages of development personnel, the resulting impact on net sales, higher cost of sales and weaker-than-expected operating profit all materialized. - FY2022First statedAnnual report
「Recently, however, customer needs have become more diverse, and there have been cases in which the required work hours increased after an order was received. If work exceeding the hours initially specified in the requirements definition is required after an order is received and the related costs cannot be passed on through the selling price, individual projects may become unprofitable, which could affect the Group's operating results.」
The risk was first specified in concrete terms that work hours may increase after an order is received as customer needs become more diverse, and that individual projects may become unprofitable if the additional costs cannot be passed on through pricing.