Risk of weak contract development business due to customer budget cuts
First written in FY2020-Q1. 4 of 11 entries say "Restated". Latest entry: FY2024-Q3.
1 other company's latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「Meanwhile, demand for products and services related to corporate capital investment and systems investment has begun to show some signs of recovery.」
Demand related to corporate capital investment and systems investment showed some signs of recovery from the previous weakness caused by budget reductions and customers bringing work in-house. - FY2023-Q3MitigatedAnnual report
「In contract development as well, ERP (enterprise resource planning system) implementation support and maintenance projects, the company's main line of business, have progressed steadily as on-site productivity improved,」
Contract development, which had been weak due to customers reducing budgets and bringing work in-house, has progressed steadily, supported by improved productivity in ERP implementation support and maintenance projects. - FY2023-Q2MitigatedAnnual report
「Against a backdrop of continued strong demand for technology professionals in the systems development market, the operating margin improved significantly due to factors including progress in the optimal and focused allocation of engineers at major customers, the persistently high proportion of engineers working remotely, and reductions in various expenses through efficiency improvements. In contract development, ERP (enterprise resource planning system) implementation support and maintenance projects, the company's main line of business, also progressed steadily as on-site productivity improved.」
While contract development had previously been weak due to customers reducing budgets and bringing work in-house, demand for technology professionals has been strong and contract development projects have progressed steadily. - FY2022MitigatedAnnual report
「Orders for contract development are showing signs of recovery as customers have begun restarting development projects that were postponed during the COVID-19 pandemic.」
Demand for contract development, which had been weak due to customers bringing work in-house and reducing budgets, showed signs of recovery as postponed projects restarted. - FY2022-Q2RestatedAnnual report
「In contract development projects, demand remained depressed as customers continued to bring development in-house and cut budgets for development projects amid the prolonged impact of the novel coronavirus.」
Demand for contract development remains weak due to customers bringing development in-house and reducing project budgets. - FY2022-Q1RestatedAnnual report
「Amid the prolonged impact of the novel coronavirus, demand for engineer dispatch services remained depressed as customers continued to bring development in-house and cut budgets for development projects.」
Demand for contract development and engineer dispatch services continues to be weak due to customers bringing development in-house and cutting budgets for development projects. - FY2021-Q2WorsenedAnnual report
「Revenue declined in both the core technical support-type projects involving the provision of personnel and contract development projects, as the impact of the novel coronavirus led customers to bring development in-house, cut budgets and postpone development schedules, resulting in shorter working hours and other effects.」
In addition to the existing weakness in contract development caused by budget cuts, customers brought development in-house, postponed development schedules and shortened working hours, resulting in lower revenue from both technical support-type and contract development projects. - FY2021-Q1WorsenedAnnual report
「In contract development projects, the number of orders won fell short of plan due to customers’ in-house development and budget cuts resulting from the impact of the novel coronavirus.」
In addition to the long-standing weakness in contract development caused by customers’ budget cuts, the impact of the novel coronavirus and customers bringing development in-house caused the number of orders to fall short of plan. - FY2020-Q3RestatedAnnual report
「Contract development projects were significantly affected by customers’ budget cuts and other factors. In addition, the cost of relocating 株式会社イーアイティー’s head office in December last year and the impact of intensifying mid-career hiring activities also contributed to performance below the same period of the previous year.」
Weak contract development due to customers’ budget cuts and other factors continued, while head-office relocation costs and increased mid-career hiring activity also contributed to performance below the same period of the previous year. - FY2020-Q2RestatedAnnual report
「In the system development-related business, the company secured stable orders for conventional technical support-type projects involving the provision of personnel, and business remained firm. However, contract development performance was significantly affected by customers’ budget cuts and other factors, resulting in performance below the same period of the previous year.」
Customers’ budget cuts and other factors continue to be cited as causes of weakness in contract development projects, with the risk continuing to affect performance. - FY2020-Q1First statedAnnual report
「Contract development performance was below the same quarter of the previous year, having been significantly affected by customers’ budget cuts and other factors.」
Customers’ budget cuts and other factors materialized as a decline in contract development performance, contributing to lower revenue and profit in the system development-related business.