Xware Corporation

Message from the President

  In the once-in-hundred-years disastrous economic market conditions, many corporations point out IT investment as the first target for budget reduction. As a result, today, even in our IT industry, many companies have continually gone out of business due to the recession.
  Even under these circumstances, however, it is also true that there are a number of “go-go” companies. Bankrupt companies and vibrant companies coexist. This bipolar phenomenon, even in the IT industry, may come from the fact that they have had different attitudes toward system development.
  In fact, as much as 80% of all businesses in the IT industry are so-called SE service companies operated on the profit model of “gaining on an hourly work basis.” This model can function to secure profits by hiring a lot of engineers and making them work for more than a certain number of hours. But, on the other hand, in general contracts based on the “paid-by-the-work” business model, payments are made not for the time but for the results, therefore, to secure profits, high technological capabilities, high productivity, and high managerial competence are required.
  When the economy is booming, as engineers tend to be relatively scarce, the “paid-by-the-hour” business model, which does not particularly require high technological capabilities, can be still effective. However, this type of business model makes it rather difficult to improve engineers’ skills, nor helps companies accumulate expertise. As a result, when such companies are hit by a bad economic recession like this, the model becomes an immediate factor to deprive the companies of work.
  We at Xware have been fortunate enough to have a lot of work requests from our customers despite the recession and, in some cases, unfortunately, cannot help but decline to accept some of their requests. I think it is nothing but the result of our working faithfully with our Xware motto: “Let’s provide our customers with such added values that no other company can provide!”
  Being constantly in the forefront of the IT industry not because of our company size but because of our technological edge, we will fully utilize our expertise and contribute to the improvement of the skills of IT engineers in Japan.

Kazutoshi Takimoto
President

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