What is offshore development?

Offshore development is the commission software and applications, and the development of systems to overseas operators and overseas subsidiaries.

Purpose of introducing the offshore development is originally developed cost reduction and profit expansion was expected to cheap labor costs of the local. Simply thinking, in case of develop software and Web system or smartphone application in a country with cheap labor cost, if  man-month and quality is same, development costs will decrease.

However, due to the domestic shortage of engineers (especially Smart phone development engineers) in recent years, we want to secure talented engineers in offshore development.

Investigators of the Information-technology Promotion Agency (IPA), about 45.6% of Japanese IT companies are said to have introduced a technique called offshore development, it has been expected to go increasing its introduction rate in the future you.

Although only large companies until now it has been said that the introduction of offshore development, introduced the offshore development in small and medium-sized enterprises in recent years, has been a successful reduction of development costs, it has become a development technique that fell a more threshold.

The benefits and risks of offshore development

The biggest advantage of offshore development, by the employment of at a low price of engineers with a high level of technology, is that the views the expansion of savings and benefits of development costs.

However, even if the introduction of the offshore development, local operations, infrastructure, cultural barriers, a variety of issues such as human resources not put out the benefits in cost, there is a rather burden increases risk.

Factors that fail the offshore development, or lack of technology and staff to adopt in the field, or delay the delivery time by the lack of communication coming from differences in language and customs and customs, got specifications and different systems have been delivered, sufficient quality It will include that can not be secured.