■E-Guardian ＜6050＞ Growth Strategy

1. New BPO and security services released in collaboration with Change Holdings

The domestic BPO market size continues to grow steadily. The reason behind market growth is that as work style reforms progress and human resource shortages become serious, there is a need to focus on core business and reduce costs. Until now, the company has carried out BPO business mainly targeting the entertainment industry, but after the business alliance with Change Holdings, it is a strategy to expand the business area to BPO/security for enterprises (enterprises). In 2024/4, we began providing a “business growth support package” for SaaS startup companies, a “digital/BPO utilization program for new business development” for companies working on new businesses utilizing digital (data), and a “security human resource development security for DX program” to learn practical security measures knowledge and skills for companies promoting DX. Also, “Web Security Countermeasures Pack for Local Governments” and “Hometown Tax Payment Portal Operation Business BPO Service” have been released for local governments and local government-related organizations, and a system for providing services has been put in place. As for the business content itself, it is thought that human resources and efficiency improvement know-how using IT tools etc. that have been cultivated for the entertainment industry until now can be utilized. In the short term, Change Holdings aims to acquire new projects through joint business development while increasing the number of operations outsourced outside the group.

2. Cybersecurity Market Trends and Regulatory Status

Domestic cyber attacks are on the rise year by year. In terms of the total number of observation packets per year (number of packets reaching the darknet range, per IP), which is an index reflecting its seriousness, 2023 was about 2.8 times that of 5 years ago (2018). In the “10 Major Threats to Information Security 2024,” published by the Independent Administrative Institution Information Processing Promotion Organization, damage caused by ransomware (virus) is listed as the number one threat for organizations, and attacks exploiting weak points in the supply chain are listed in second place. Even in cases that occurred in 2023, cases where peripheral companies such as business contractors, business partners, and software developers are targeted have been reported. In threats aimed at individuals, there are many cases where attackers misuse vulnerabilities, etc. of services on the internet, such as shopping sites, etc., steal personal information, misuse credit cards, and send fraudulent emails. There is a possibility that companies, organizations, countries, and local governments in all industries will be targeted, and movements aimed at strengthening security are accelerating. As an example, the Ministry of Economy, Trade and Industry has released “EC site construction/operation security guidelines,” and plans to make it mandatory for businesses that operate EC sites to “implement vulnerability diagnoses” and “introduce identity authentication” around the end of 2024. The Ministry of Health, Labor, and Welfare assumed the risk of ransomware damage, etc., and implemented medical law enforcement regulations revisions in 2023/4 in connection with what occurred at medical institutions, making it mandatory for medical institutions to take measures to ensure cybersecurity. The company's role of being able to perform everything from vulnerability diagnosis to consulting, solution provision, and security training/education in one stop is becoming increasingly important.

(Written by FISCO Visiting Analyst Hideo Kakuta)