Risk of Deteriorating Customer Business Conditions, Contract Reductions and Suspended Contract Renewals
First written in FY2017. 1 of 3 entries say "Worsened", first in FY2018. Latest entry: FY2019.
1 other company's latest entry also says "Restated".
- FY2019RestatedAnnual report
「Contracts with many client companies are renewed annually, but they may be terminated before expiration or not renewed due to client companies insourcing operations or outsourcing them to other companies. This could have a material effect on the operating performance of our group.」
The risks of annual contract renewals, early termination and suspension of renewals due to insourcing or outsourcing to other companies have been reconfirmed. - FY2018WorsenedAnnual report
「However, if the business performance of client companies deteriorates, there is concern that the volume of work may change rapidly as they seek to reduce outsourcing costs. Our group will respond by reviewing work assignments for dispatched and fixed-term employees and terminating contracts, but this could affect our group's operating performance and financial position.」
In addition to suspended renewals and early contract termination, the disclosure explicitly identifies the risk of a sharp change in workload due to deteriorating client business conditions and the resulting need to adjust staffing levels. - FY2017First statedAnnual report
「Contracts with many client companies are renewed annually, but they may be terminated before expiration or not renewed due to client companies insourcing operations or outsourcing them to other companies. This could have a material effect on the operating performance of our group.」
While noting that many contracts with large companies are long-term, the disclosure states that most contracts are renewed annually and identifies insourcing, outsourcing to other companies and changes in contract rates as risks to performance.