Why Offshore Development Is The Best Method For Business

In the year 2019, the IT sector had spent about $1,000 billion, which still is expected to reach more.  But the lack of IT talent has pushed the demand of human resources around the world. Which is also Japan ‘s situation that their population cannot meet the demand of IT sector. Although this is just one of the problems, Japan should continue to consider why Offshore development method is still the best for business. The following article will show some points which Offshore development is a must-have one.

1. Low Expense With Quality Product 

Japanese businesses don’t pay attention to developing countries much for offshore development. For statistics, they just spent $954 million which reached only 1% of the domestic IT marketplace. Lately, Japan is considering Vietnam as a new destination for offshore development, simply because they can get the lower expense with quality products.

For Vietnam, the country is proving their role in the offshore development industry, when Japan companies pay less for IT technicians. Less 30% to 60% for offshore development is the fee in Vietnam  but still keeping productivity. Which shows China offshore development is higher from 30% to 40% .

For corporate Japan, this is a great investment for money-saving to look for an offshore company in Vietnam, but they can place trust in the output of quality products.

2. Best Way To Reduce The shortage of IT Technicians

The shortage of IT Technicians is a long-term issue, in the past 10 year, the number of IT students was down about 10%. But the situation still remains due to the cryptocurrency exchange Coincheck Inc. in 2018, which deterred companies from employing IT engineers in Japan.

From the perspective of Japan, the in-house teams are limited from the country, and as the result, looking for a source of employees to fill up the empty is a first priority. In that case, Asian countries are providing solutions of offshore development such as Vietnam as they can ensure the human capital with a range of IT generations who are available to work.

3. The First Choice For Smart App

Mobile app is the trend not only in Japan, but across the globe, the evidence shows that the number of downloading on the smartphone unceasingly rose from 178.1 to 205.4 billion in 2017 and 2018. And in 2019, half of the internet users of the world are suffering by smartphone, this will promise to enhance in the next coming years.

Obviously, smartphones will dominate the market, so Japan is focusing on this much. However, The in-house team cannot meet the demand of the market, so they need offshore development from foreigners like Vietnam.

In Vietnam, they acquire a lot of IT engineers who can take full responsibility with the requirements from the Japan site. Some offshore companies are emerging as BAP where they have experience in many projects in the Japan market, therefore, there is no doubt that they can meet the needs of all of Japanese customers well.

4. Optimizing With Website App

Although the speed of smartphones experiencing is high, there are many companies still using web apps. In order to meet the requirement, businesses like e-commerce, banking, healthcare also build their own web app that customers can access with ease.

However, the fee of web apps in Japan is very costly, and they have a tendency of finding the Asia countries for offshore development services. Basically because they can get the soft price from them such as Vietnam, China, India.

This is a list of good points from offshore development that business must consider when having an intention to use. For offshore development in Vietnam, there are many IT generations to fill up the shortage of human capital, and the cost of development is cheaper than other Asian countries including China, or India, but quality products are the same. We hope  this can answer the questions about offshore development enough.

For BAP Co., Ltd, we have four years of offshore development in the Vietnam market. Furthermore, we have an abundant group of IT engineers to conduct projects from Japan, and they have language skills for Japanese excellent as well. If you are looking for an offshore development company, don’t hesitate to contact us for consultation.