SHIFT

Basic Information

Stock Code
3697
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
September 2005
Listing Year
November 2014
Official Website
https://www.shiftinc.jp/
TSE Information
TSE Information
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Overview

SHIFT is a Japanese software testing specialist company founded in 2005, holding a solid position in the quality assurance field with extensive operational capabilities as a leading company.

Current Situation

SHIFT recorded consolidated net sales of approximately 64.9 billion yen and operating profit of approximately 7.4 billion yen for the fiscal year ended August 2022, maintaining top-class performance in Japan in the software quality assurance and testing business. Based in Minato-ku, Tokyo, it operates test centers in major cities nationwide, with a customer base centered on manufacturing and IT companies. It is expanding its business scope through a wealth of subsidiaries and diverse service offerings, with strengths particularly in consulting, non-functional testing, and integration with quality platforms. It is actively pursuing an M&A strategy to accelerate entry into new markets and technology areas. It also focuses on human resource development through collaborations with educational institutions and its own certifications, leading industry quality standards. Moving forward, it aims to leverage technological innovations in AI and automation to strengthen customer DX support while pursuing business growth with a view to sustainable social contributions.

Trivia

Interesting Facts

  • SHIFT's company name was inspired by Nissan Motor's catchphrase 'SHIFT_the future'.
  • Operates the testing specialist educational institution 'Hinshitsu University' contributing to engineer development.
  • In-house developed test management tool CAT has permeated as an industry standard.
  • Implemented over 15 M&As after listing to accelerate business diversification and growth.
  • Has multiple domestic and international subsidiaries to address global markets.
  • Also offers quality assurance services for the gaming industry.
  • Has a history of operating an SNS service using GPS functions.
  • Contributes to improving corporate software testing outsourcing rates.
  • Established 'Software Bug Day' in 2015 to raise quality awareness.
  • Participates extensively in government and public projects.
  • Deploys test BPO services on the largest scale in Japan.
  • Contributed to the industry's first public release of web-based test management tools.
  • Can provide diverse non-functional testing services on a one-stop basis.
  • Offers both cloud service type and packaged types.
  • Education programs used as pre-employment criteria certifications for testers.

Hidden Connections

  • Founder Daigo Shimoage from manufacturing consulting, leverages quality improvement expertise.
  • Collaborates with numerous game companies, strong influence in game testing field.
  • Subsidiary SHIFT SECURITY serves as core in security diagnostics field.
  • Established specialization by focusing on test operations outsourcing.
  • Partnered with multiple IT vocational schools and other educational institutions.
  • Member of Japan Business Federation (Keidanren), strengthening industry influence.
  • In-house CAT introduced in many IT companies outside the industry.
  • Acquires technology and customers from market competitors through aggressive M&A strategy.

Future Outlook

Growth Drivers

  • Expansion of demand for high-quality software testing accompanying DX promotion.
  • Popularization of efficient testing services leveraging AI and automation technologies.
  • Strengthening education and development systems to resolve talent shortages.
  • Acceleration of new functions and market expansion via M&A.
  • Growth in non-functional and security testing markets.
  • Expansion of global customer base and overseas market development.
  • Establishing competitive edge through strengthened integration with cloud services.
  • Increasing demand for system quality in government and public sectors.
  • Growth through technological innovations in test automation and RPA areas.
  • Rising needs for supporting quality culture cultivation in customer companies.
  • Social responsibility and strengthened compliance in quality assurance.

Strategic Goals

  • Achieve more than double sales growth domestically and internationally.
  • Become industry leader in AI-driven test automation technology.
  • Expand and promote internal and external human resource development programs.
  • Promote global deployment of quality assurance platforms.
  • Form and practice sustainability-focused corporate culture.
  • Increase business ratio in non-functional testing and security fields.
  • Promote diversification and sophistication of DX support services.
  • Further expand diverse technologies and customer bases via M&A.
  • Establish and strengthen governance system fulfilling social responsibilities.
  • Strengthen long-term partnerships with clients.

Business Segments

Software Testing Outsourcing

Overview
Comprehensive outsourcing of customers' test processes to achieve quality improvement and cost reduction.
Competitiveness
Abundant educational expertise and large-scale operations
Customers
  • Major IT companies
  • SIers
  • Manufacturing IT departments
  • Financial institutions
  • Telecom carriers
  • Game development companies
  • Healthcare IT companies
  • Government offices
Products
  • Test design
  • Test execution
  • Agile development support
  • Test automation support
  • Non-functional testing
  • Quality management consulting

Quality Assurance Consulting

Overview
Strategic services to strengthen customers' quality management systems and support digital business.
Competitiveness
Business improvement expertise and diverse support menu
Customers
  • SIers
  • Large company information systems departments
  • Independent software companies
  • Prime vendors
  • Emerging technology companies
Products
  • Quality improvement support
  • Business process analysis
  • In-house test organization development
  • RPA implementation support
  • Fire Rescue

System Inspection and Security Diagnostics

Overview
Comprehensive security and non-functional testing to support customer safety.
Competitiveness
Advanced technical capabilities and abundance of track record cases
Customers
  • Financial institutions
  • Public institutions
  • Major IT companies
  • Telecom operators
  • Manufacturing
Products
  • Vulnerability diagnostics
  • Performance evaluation
  • Infrastructure verification
  • Diagnostic in-house support
  • Penetration testing

IT Platforms and Tool Provision

Overview
Deploys various tools and cloud services to support efficient test operations.
Competitiveness
Continuous improvement of in-house products and service deployment
Customers
  • Test specialist companies
  • IT service companies
  • Software development companies
Products
  • CAT management tool
  • Cloud testing infrastructure
  • SaaS testing services

Human Resource Development and Education Services

Overview
Operates educational programs to promote quality assurance skills and human resource development.
Competitiveness
Systematic curriculum aligned with practical work
Customers
  • General companies
  • Test engineers
  • Students
  • IT educational institutions
Products
  • CAT Certification
  • Hinshitsu University
  • Test technology training

Competitive Advantage

Strengths

  • Abundant track record in software testing business
  • Unique education and certification services
  • Nationwide network of test centers
  • Business expansion through active M&A
  • High technical capabilities and customer trust
  • Quality improvement through specialized focus
  • Comprehensive service portfolio
  • High-quality non-functional testing
  • Cloud-based test management tool development
  • Ability to meet diverse customer needs
  • Advanced security diagnostic technology
  • Efficient operations through large-scale organization
  • Human resource development leveraging education partnerships
  • Multinational group expansion
  • Track record with government projects

Competitive Advantages

  • Domestic largest position in software testing specialization
  • Possesses unique education systems like CAT Certification
  • Diversified business areas through abundant M&A track record
  • Enhanced responsiveness with test centers in major cities nationwide
  • Business efficiency and quality management via in-house tools
  • High capabilities in quality assurance-focused consulting
  • One-stop provision of diverse non-functional testing services
  • Specialized service deployment leveraging rich industry knowledge
  • Flexible customer response despite large-scale organization
  • Ensures customer safety with advanced security diagnostics
  • Efficiency through test automation support and RPA promotion
  • Global responsiveness utilizing overseas subsidiaries
  • Reliability and brand power in quality education
  • Capability to provide full range of outsourcing services
  • Mature service system and high customer satisfaction

Threats

  • Pressure to adapt to rapid technological innovations in IT industry
  • Intensifying price competition from competitors
  • Changes in testing demand due to advances in AI automation
  • Challenges in talent acquisition and rising costs
  • Decrease in outsourcing due to customers' in-house promotion
  • Impact of reduced IT investment due to economic conditions
  • Increasing demands for advanced security risk measures
  • Expanding barriers to new entry in global markets
  • Operational impacts from changes in legal and regulatory environment
  • Management risks from M&A integration difficulties
  • Delays in responding to changes in quality standards and industry norms
  • Increasing competitive pressure from emerging tech companies

Innovations

2021: Development of AI-Powered Test Automation Technology

Overview
Actively introducing AI technology to improve quality and efficiency.
Impact
Achieved 20% reduction in testing time and improved accuracy

2022: Opening and Promotion of CAT Certification to the Public

Overview
Opened certification used in hiring exams to the general public to expand recognition.
Impact
Standardization and strengthening of test engineer development

2023: Enhanced Functionality of Cloud-Based Test Management Tool

Overview
Expanded SaaS version functions of CAT to improve operational efficiency for user companies.
Impact
Improved customer satisfaction and increased new customer acquisition

2024: Launch of RPA One-Stop Quality Support Services

Overview
Started quality assurance services specialized in robotic process automation.
Impact
Planned revenue expansion into new areas

2020: Established Local Subsidiary in Vietnam to Strengthen Global Expansion

Overview
Strengthened bases and utilized local talent for Asian market expansion.
Impact
Contributes to improved overseas project responsiveness

2022: Strengthened Security Diagnostics in Non-Functional Testing Area

Overview
Developed new services to address security risks.
Impact
Contributes to improved customer trust

2021: Online Expansion of Quality Platform 'Hinshitsu University'

Overview
Promotes industry human resource development with materials and practical courses.
Impact
Contributes to industry standardization and technological uplift

2023: Release of New Test Support Tool for Agile Development

Overview
Supports rapid and continuous testing.
Impact
Contributes to improved customer development efficiency

2024: Acquisition of New Software Development Subsidiary via M&A

Overview
Acquired subsidiary to expand functions and diversify business.
Impact
Contributes to sales growth and technological strengthening

2020: Strengthened Business Efficiency through In-House DX Promotion

Overview
Renewed in-house IT systems and workflows.
Impact
Achieved 15% reduction in operational costs

Sustainability

  • Promoting reduction in environmental impact through digitalization
  • CO2 emission reduction via telework implementation
  • Ongoing promotion of social contribution activities and education support
  • Diversity promotion and improved work environment
  • Strengthened security for customer data protection
  • Commitment to Sustainable Development Goals (SDGs)
  • Efficient use of IT resources and waste reduction
  • Hosting technology utilization events in collaboration with local communities
  • Employee health promotion and enhanced welfare benefits
  • Active introduction of Green IT products
  • Improved customer satisfaction through continuous quality improvement activities
  • Human resource development support through education programs