Many professionals considering a career change in the SES (System Engineering Service) industry struggle with choosing the right firm or fearing “black companies” (exploitative workplaces).

While there are many major SES companies, judging them solely by size can lead to regret.

This article explains how to evaluate firms using objective data, such as securities reports, and provides practical expertise for selecting a high-quality employer.

1. Fundamental Knowledge Before Choosing Major SES Companies

To succeed in your career change, you must understand the essence of the SES model and why choosing a “major” player is advantageous.

Understanding the SES Structure

SES is a contract type where IT companies provide engineering expertise to client projects. Legally classified as a “quasi-delegation contract,” the SES firm manages the work, and the client has no direct command authority.

The defining feature is “on-site work” at the client’s office. While this allows clients to scale skills as needed, the industry often suffers from a multi-layered subcontracting structure.

As projects move from primary contractors to secondary or tertiary ones, middleman margins increase, lowering the engineer’s unit price.

Why You Should Choose Major SES Companies

In this industry, “Major” signifies a superior position in the subcontracting hierarchy.

2. 4 Metrics to Evaluate Major SES Companies

To avoid failure, you need clear criteria based on objective data.

Metric 1: Revenue and Financial Stability

Financial Standards for Major Players:

• Revenue: ¥100 billion or more.
• Operating Profit Margin: 5% or higher (Industry average is 5–7%).
• Equity Ratio: 40% or higher (Indicates financial health). Firms with higher revenue often have direct deals with financial institutions, major manufacturers, and government agencies, securing high-value projects.

Metric 2: Interpreting Salary Data

Don’t take “Average Salary” at face value.

• The Average Salary Trap: Reports often include high-paid management, which can skew the numbers. For instance, a ¥6.5M average might only mean ¥4.2M for someone in their 20s.
• Salary Breakdown: A healthy structure relies on a high base salary rather than overtime pay.
• Return Rate: Calculated as (Monthly Salary / Client Billing Price) x 100.
  • 70%+: High return.
  • 60-70%: Healthy level.
  • Below 50%: Suspicion of excessive middleman profit.

Metric 3: Judging Workstyle via Overtime

According to the Ministry of Health, Labour and Welfare, the industry average is 16.3 hours/month.

• Under 10 hrs: “White” environment.
• Under 20 hrs: Ideal target for top-tier firms.
• Over 45 hrs: Problematic; near legal limits.

Metric 4: Remote Work Reality

As of 2026, the hybrid model (2–3 days remote, 2–3 days on-site) is the standard for major SES companies. Total telework implementation in the IT sector is around 60%, but this varies by the specific client project.

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3. How to Research Companies via Securities Reports

The most reliable information is found in the “Yukashoken Hokokusho” (Securities Report) via EDINET.

Steps to Access Reports:

1. Access EDINET.
2. Search by company name.
3. Select the latest “Securities Report.”

5 Key Sections to Check:

1. Employee Status: Check average age (35–40 is standard) and tenure (5+ years is good).
2. Business Condition: Is revenue increasing over the last 3–5 years?
3. Financials: Confirm the 5% profit margin and 40% equity ratio.
4. Shareholder Status: Is it an independent firm or a subsidiary?
5. Corporate Governance: Check internal control systems and executive compensation.

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4. 7-Item Checklist to Avoid Black Companies

If a company meets 3 or fewer of these items, investigate the risks thoroughly.

Checklist

• [ ] 1. Public Disclosure: Does the firm actively publish financial data?
• [ ] 2. Tenure: Is the average tenure 5 years or more? (Industry average turnover is ~11.8%).
• [ ] 3. Overtime Data: Do they clearly state average hours (e.g., “15.5 hours/month”)?
• [ ] 4. Return Rate: Is the return rate 60–70% or higher?
• [ ] 5. Project Choice: Do they have “assignment interviews” where you can voice preferences?
• [ ] 6. Training: Do they offer specific support for certifications and external seminars?
• [ ] 7. External Reviews: Does the firm score 3.0+ on sites like OpenWork or Glassdoor?

Questions to Ask During the Interview

To verify if a company is truly a “white” (healthy) employer, ask these specific questions:

• “What is the actual average monthly overtime for engineers?” (Check if they provide a concrete number).
• “To what extent are an engineer’s preferences reflected when assigning projects?”
• “Is it possible to decline a project if it does not align with my career goals or preferences?”
• “What is the actual utilization rate of your certification support system?” (This reveals if the system is actually used or just for show).

Red Flags: Companies to Avoid at All Costs

If you encounter any of the following traits during the recruitment process, it is highly recommended to withdraw your application:

• Hostile Interviewers: An overbearing or intimidating attitude during the interview often reflects the internal culture.
• Rushing the Decision: Pressuring you to accept an offer immediately (e.g., “Give us an answer by the end of the day”).
• Reluctance to Provide Paperwork: Being hesitant to issue an official “Notice of Working Conditions” (Rodo Joken Tsushisho).
• Vague Compensation: Unclear methods for calculating overtime pay or hidden “fixed overtime” traps.

■Related Reading

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5. Representative Major SES Companies and Their Features

FUJISOFT INCORPORATED

• Revenue: Approx. ¥302.1 billion
• Average Annual Salary: Approx. ¥6.2 million
• Employees: Approx. 15,000
• Market: Tokyo Stock Exchange (TSE) Prime (Source: Securities Report for the fiscal year ending December 2023)

As one of the largest independent SIers, Fujisoft holds strong expertise in telecommunications, social infrastructure, and automotive software. With an average tenure of over 11 years, it boasts a high retention rate and operates its own dedicated technical training centers.

DTS CORPORATION

• Revenue: Approx. ¥100 billion
• Average Annual Salary: Approx. ¥5.7 million
• Employees: Approx. 2,800
• Market: TSE Prime

DTS is highly specialized in financial systems. The company maintains an operating profit margin of over 7%, demonstrating exceptional financial stability within the industry.

NSD CO., LTD.

• Revenue: Approx. ¥100 billion
• Average Annual Salary: Approx. ¥6.5 million
• Employees: Approx. 3,200
• Market: TSE Prime

NSD is particularly strong in the retail and service sectors. It features a turnover rate of just 3.5%—one of the lowest in the industry. Furthermore, its equity ratio exceeds 65%, indicating an incredibly solid financial foundation.

6. Efficient Job Hunting via Recruitment Agents

Using agents is highly recommended to access “hidden” jobs (approx. 70% of the market).

Key Tips:

• IT-Specialized: Use agents like Leverages or Mynavi IT who understand SES technicalities.
• Verification: Ensure the consultant can discuss actual overtime and project types.
• Comparison: Register with 2–3 agents to cross-verify the accuracy of information.

■Related Reading

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7. Career Paths at Major SES Companies

SES should be viewed as a launchpad for your long-term career.

Typical Career Stages:

• Years 1–3: Skill acquisition in downstream tasks (Coding, Testing, Maintenance).
• Years 3–7: Transition to upstream tasks (Design, Planning, Requirements).
• Year 7+: Management or Specialist roles (PM, PMO, Tech Lead). Salaries can reach ¥8M–¥10M+.

■Related Reading

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8. 5 Steps to Succeed in Joining Major SES Companies

1. Self-Analysis: Categorize your “minimum” and “ideal” conditions for salary and workstyle.
2. Research: Use the 4 metrics and Securities Reports to filter candidates.
3. Documentation: Quantify your achievements (e.g., “Reduced processing time by 30%”).
4. Interview Prep: Prepare to discuss specific technical challenges and how you solve them.
5. Condition Negotiation: Always verify the breakdown of the base salary and overtime in the final offer letter.

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■Succeed in Your IT Career Transition to Japan

Starting your career in Japan’s IT industry requires more than just technical skills—you need comprehensive support from visa assistance to interview preparation and cultural coaching. BLOOMTECH Career for Global offers end-to-end career support to help foreign IT engineers successfully transition into rewarding positions at reputable Japanese technology companies.

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9. FAQ Regarding Major SES Companies

Q: Should I avoid SES entirely?

A: No. The “avoid SES” warning applies to small, low-tier subcontractors. Major firms offer stability and high-value experience.

Q: Can I transition from SES to a SIer?

A: Yes. The diverse project experience and client-facing skills gained at major SES firms are highly valued by large SIers.

10．Research is Key to Selecting Major SES Companies

Success in the SES industry depends on your ability to look past branding and analyze hard data. By mastering the use of Securities Reports and following the 7-item checklist, you can secure a position that offers both financial reward and professional growth.