SCSK

Basic Information

Stock Code
9719
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
October 1969
Listing Year
February 1989
Official Website
https://www.scsk.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
NSSOL, TIS, Nomura Research Institute, Simplex Holdings, OBIC, Otsuka Corporation, Dentsu Soken, BIPROGY, NTT Data Group, DTS

Overview

SCSK is a major SIer in the information and communications industry of the Sumitomo Corporation Group, founded in 1969, achieving stable growth through its proprietary development technologies and extensive customer base.

Current Situation

In the fiscal year ending March 2024, SCSK recorded consolidated sales of approximately 480.3 billion yen and net profit of approximately 40.5 billion yen, maintaining a stable financial base. As a consolidated subsidiary of Sumitomo Corporation, it provides system solutions to diverse industries and holds strong market competitiveness in the system integration business. While pursuing technological innovations such as its proprietary development language Curl, it promotes ESG management and strengthens environmental response capabilities through decarbonization solutions with Persefoni. Its mid-to-long-term strategy emphasizes the utilization of AI and DX technologies and business expansion through the subsidiary acquisition of Net One Systems, enhancing its presence in the industry. It also focuses on active talent development and work-style reforms to build a sustainable growth foundation.

Trivia

Interesting Facts

  • Historical background of being spun off from Sumitomo Corporation's information systems division
  • Rare in possessing proprietary language Curl while maintaining neutral system development
  • Aired its first national TV commercial in 2022 to boost recognition
  • Absorbed and merged CSK in 2011, adopting current name
  • Core systems company for Sumitomo Group in IT industry
  • Planning large-scale TOB to fully subsidiary Net One Systems
  • ESG management highly evaluated domestically and internationally
  • Past reports of employee misconduct, but swift responses taken
  • Numerous offices nationwide for regionally rooted services
  • Unique corporate culture balancing IT neutrality and uniqueness
  • Strong inter-company ties as participant in Sumitomo Corporation Group PR Committee
  • Broad customer base providing system solutions to diverse industries
  • Proactive in adopting and promoting AI and cloud technologies
  • Early introduction of climate change management platform for decarbonization
  • One of Japan's historic companies in system integration industry

Hidden Connections

  • Strong influence across Sumitomo Group due to origins in Sumitomo Corporation's information systems division
  • Maintains unique technological position distinct from independent SIers through Curl language development
  • Aims to strengthen both network and systems via integration with Net One Systems
  • Pioneering role in Japan's decarbonization efforts through partnership with Persefoni
  • Secures stable financial base and management via Sumitomo Corporation investment
  • Deep ties to Japan's economy through involvement in core systems across industries
  • Strength in quality management via subsidiaries like Veriserve in verification field
  • Worked to enhance brand recognition as IT company through TV commercials

Future Outlook

Growth Drivers

  • Expansion of DX (digital transformation) demand
  • Market growth in AI adoption support services
  • Rising needs for decarbonization and ESG solutions
  • Increased public sector orders from government IT investment boosts
  • Customer expansion via strengthened network integration services
  • IT adoption promotion in work-style reforms
  • Expansion of system services to global markets
  • Integrated solutions through collaboration with Net One Systems
  • Increasing demand for cloud services
  • Growing needs for cybersecurity enhancements

Strategic Goals

  • Become top domestic SIer through management integration with Net One Systems
  • Achieve top-class ESG ratings
  • Expand into new business areas leveraging AI and IoT technologies
  • Reach 1 trillion yen in sales domestically and internationally
  • Enhance IT services for work-style reform support
  • Expand decarbonization solutions business
  • Secure top talent through improved employee satisfaction
  • Become leading company in cloud and DX fields
  • Build IT service platform for global deployment
  • Strengthen trust via advanced security responses

Business Segments

System Integration

Overview
Provides comprehensive system construction services from planning to development, operation, and maintenance.
Competitiveness
Vendor-neutral technological capabilities
Customers
  • Financial institutions
  • Manufacturing
  • Distribution
  • Public institutions
  • Telecommunications carriers
Products
  • ProActive ERP
  • Custom software development
  • System operation and maintenance
  • Cloud services

Network Product Sales

Overview
Strengthens sales channels and implementation support for Yamaha products.
Competitiveness
Stable supply and support system
Customers
  • Small and medium enterprises
  • Large corporations
  • Government offices
Products
  • Yamaha routers
  • Switches
  • Wireless LAN equipment

Software Package Sales

Overview
Sales and customization of business support packages for corporations.
Competitiveness
Flexible development tailored to customer operations
Customers
  • Manufacturing
  • Services
  • Retail
Products
  • Business support ERP
  • Accounting software
  • Cloud integration tools

IT Consulting

Overview
Consulting to support customers' IT strategy formulation and optimization.
Competitiveness
Leveraging Sumitomo Group backing and track record
Customers
  • Large corporations
  • Public entities
  • Financial institutions
Products
  • DX promotion support
  • System optimization consulting
  • Security enhancement support

Sustainability Solutions

Overview
Provides climate change management platform through partnership with Persefoni.
Competitiveness
Expertise as Japan's first agent
Customers
  • Corporate customers
  • Public institutions
Products
  • Decarbonization management software
  • ESG data analysis tools

Cloud Integration

Overview
Cloud utilization promotion and system integration support services.
Competitiveness
Strong support through Sumitomo Corporation Group collaboration
Customers
  • IT companies
  • Manufacturing
  • Finance
Products
  • Cloud design
  • Implementation support services
  • Operation support

Security Services

Overview
Advanced security measures provided by SCSK Security.
Competitiveness
Controlled system under Chief Information Security Officer
Customers
  • Large corporations
  • Financial institutions
  • Government offices
Products
  • Information security audits
  • Security operations
  • Risk management

Software Testing and Quality Assurance

Overview
Software quality assurance business in collaboration with Veriserve.
Competitiveness
Advanced testing technology and extensive experience
Customers
  • IT vendors
  • Manufacturing
Products
  • Software verification
  • Quality management services

Nearshore Development Services

Overview
Low-cost, high-quality nearshore development support services.
Competitiveness
Development framework leveraging domestic and international networks
Customers
  • Japanese companies
  • Overseas subsidiaries
Products
  • Offshore development support
  • Project management

Digital Marketing Support

Overview
Design and execution support for customer companies' digital strategies.
Competitiveness
Latest technology adoption and abundant case studies
Customers
  • Retail
  • Manufacturing
  • Services
Products
  • Data analysis
  • Web ad operations
  • Sales promotion tools

Cloud Service Operation Support

Overview
24/7/365 cloud operation support services.
Competitiveness
Stable operations by highly skilled technical staff
Customers
  • Large corporations
  • Mid-sized companies
Products
  • Cloud monitoring
  • Performance optimization
  • Incident response

Training and Education Services

Overview
IT talent development and digital transformation support for corporations.
Competitiveness
Abundant training programs and track record
Customers
  • Corporations
  • Educational institutions
Products
  • IT skills training
  • DX promotion training

Competitive Advantage

Strengths

  • Strong backing from Sumitomo Corporation Group
  • Track record in system integration across diverse industries
  • Differentiation through proprietary technology Curl
  • Stable financial base and profitability
  • Powerful customer network and brand
  • Large number of engineers and advanced technical capabilities
  • Ability to provide diverse IT solutions
  • Deployment of DX support and decarbonization solutions
  • Customer proximity support via multiple domestic bases
  • Global business expansion and overseas collaboration

Competitive Advantages

  • Vendor-neutral development framework
  • Reliability and financial strength from Sumitomo Corporation Group
  • Broad industry network and customer base
  • Technological superiority via Curl language
  • High-quality SI delivery based on extensive business experience
  • Social trust gained from high ESG ratings
  • First domestic agent for decarbonization management platform
  • Strong implementation track record in finance, manufacturing, and distribution
  • Planned business expansion via TOB for Net One Systems
  • Comprehensive strength in diverse B2B services

Threats

  • Intensifying competition from independent SI firms
  • Rapid technological changes in AI and cloud services
  • Challenges in securing engineers due to labor shortages
  • Security risks and data breach concerns
  • Pressure from competitors in overseas markets
  • Revenue impacts from fluctuations in customer IT investments
  • Increased compliance costs from stricter regulations
  • IT budget cuts due to economic downturns

Innovations

2022: Agent Agreement Signed with Persefoni

Overview
Signed Japan's first agent contract for climate change management software and launched decarbonization solutions.
Impact
Contributes to enhancing corporate customers' environmental responses

2024: TOB Planned for Full Subsidiary of Net One Systems

Overview
Plans TOB to make Net One Systems a wholly-owned subsidiary, aiming for business expansion.
Impact
Expects group synergies and market expansion

2021: IT Services Enhancement via AI and DX Promotion

Overview
Accelerates business efficiency and new service creation through AI technology adoption.
Impact
Improves customer satisfaction and profitability

2023: Ongoing Development and Enhanced Utilization of Curl Language

Overview
Advances functional enhancements and market utilization of proprietary Curl language.
Impact
Supports balance of neutrality and uniqueness

Sustainability

  • Continuous high ratings from ESG rating agencies
  • Active deployment of decarbonization solutions
  • Promotion of diverse work-style reforms and human rights respect
  • Strengthening of information security management
  • CSR activities centered on co-creation with local communities