Complete Guide To Offshore Development

Offshore development has played an important role in the global business environment in recent years. Many companies are adopting offshore development because it reduces costs, increases productivity, and allows access to talent around the world. In this article, we will comprehensively explain the benefits and risks of offshore development, as well as the secret to success.

 

What is Offshore Development?

Offshore Development Definition  

Offshore development refers to a development system in which a company outsources software development work to a development team outside its own country. This allows companies to reduce costs while collaborating with highly skilled talent.

Advantages of Offshore Development  

Offshore development has many benefits.

• • Cost Reduction

    Development costs can be significantly reduced by outsourcing operations to countries with low labor costs.

• • Access to Advanced Expertise

    There are many highly skilled professionals offshore, and they often have specialized knowledge in specific fields.

• • 24 Hour Work

    Taking advantage of time differences, it is possible to proceed with the project 24 hours a day.

• • Scalability

    By outsourcing to countries with abundant IT human resources, you can flexibly expand or contract your team depending on the scale of the project.

Popular Countries for Offshore Development  

Popular countries as bases for offshore development in Japan include India, Vietnam, the Philippines, Bangladesh, and Myanmar. China used to be popular, but as labor costs in China have been rising, Japan has begun to choose other countries.

 

Offshore Development Risks and Countermeasures

When it comes to offshore development, unless a proper management system is in place, it will spiral out of control and become a “cheap or bad” service, leading to project failure. Particular attention should be paid to the following points.

Communication Barriers  

Language barriers can be a big problem with offshore development. In order to ensure a thorough understanding, it is necessary to clarify whether the project team’s official language will be Japanese or English. It is also necessary to implement effective communication tools and create appropriate documentation.

Quality Issues 

Although offshore development teams often have highly skilled members, there may be variations in quality. To prevent this, you need to have strict quality control processes and incorporate code reviews and testing into your development process.

Security Concerns  

Data security is a key issue in offshore development. It is important to ensure the use of secure data transfer methods, contractual non-disclosure agreements, and strict adherence to security standards.

Project Management Challenges  

Managing remote teams can be difficult and can impact project progress. It requires the use of effective project management tools and regular progress checks.

 

The Secret to Successful Offshore Development

Selecting The Right Partner  

The key to successful offshore development is choosing the right development partner. It is important to choose a partner who is reliable, experienced, and technically capable. Also, if it is difficult for your company to use English as its official language, you should choose a company that does not have difficulty communicating in Japanese.

Ensuring Clear Communication  

It is important to clearly communicate project expectations, requirements, and goals, and to monitor progress through regular communication. System development projects that are left entirely to the vendor will most likely end in failure. Let’s establish a solid system so that clients and vendors can fulfill their responsibilities to each other. 

Thorough Quality Assurance  

Quality assurance is essential for a product’s success in the marketplace. The following steps are critical to maintaining quality throughout the project and ensuring the final product meets customer expectations.  

• • Continuous Testing

    : Conduct continuous testing throughout the development process to find and fix bugs and issues early.

• • Code Review

    : Conduct code reviews by other developers to maintain code quality.

• • Documentation

    : Properly document the development process and code to facilitate future maintenance.

Selection of Appropriate Technical Staff 

It is important to select the technical staff that best fits the project requirements. This includes programming languages, frameworks, databases, and other tools. Having the right technology stack will ensure a smooth development process and improve product performance.

Ensuring Cultural Fit  

Building a good relationship with your offshore development team is essential to the success of your project. Make sure your team’s culture and values align with your company’s to minimize communication barriers. Especially when communicating with an overseas company for the first time, it is difficult to expect Japanese-style communication (reading between the lines, reading the atmosphere), and the key is to clearly communicate your requirements. Alternatively, consider outsourcing to a business partner who has a solid understanding of Japanese business customs.

 

The Future of Offshore Development

Progress of Globalization  

Offshore development is becoming increasingly important as globalization progresses. Companies can gain a competitive advantage by collaborating with talent from around the world.

Utilization of Emerging Technologies  

Many companies overseas are focusing on developing IT human resources. Beyond outsourcing to Japanese companies, they are expected to provide innovative products and services that utilize emerging technologies such as artificial intelligence, machine learning, and blockchain.