HOME Press release

What is Lab-type Development? Advantages and Disadvantages, and Differences from Contract-type Development.

What is Lab-type Development? Advantages and Disadvantages, and Differences from Contract-type Development.

What is Lab-type Development? Advantages and Disadvantages, and Differences from Contract-type Development.

Lab-type development is one of the methods used in offshore development. Even if you have heard of lab-type development, many may not be familiar with its details.

This article explains the basics of lab-type development. It will clearly describe the advantages and disadvantages of lab-type development, its differences from contract-based development, and the types of projects it is suitable for.

If you are considering offshore development and want to learn more about lab-type development, be sure to read to the end.

Akira Shimazoe

CEO of Solashi Japan LLC. Engaged in the development and operation of internal systems at Suntory. Founded Yper Inc., serving as CTO and CPO, contributing to product launch and growth.

What is Lab-type Development?

Lab-type development is a development method used when the ordering party outsources development tasks to a development company. The contract is concluded for a certain period (approximately 6 months to 1 year), and it is commonly used in offshore development. The contract type falls under the quasi-entrustment contract category.

In lab-type development, the development company is required to perform the tasks, and the deliverables are not the target for compensation. The ordering party can communicate with the development company's bridge SEs or PMs while the development progresses.

Lab-type development is considered suitable for execution in the Agile model.

The Agile model involves working through the "planning → design → implementation → testing" phases for each feature, progressing the development bit by bit.

The characteristic of Agile is that development can begin from parts where requirements and specifications are already decided, without waiting for the entire project details to be finalized.

Six Advantages of Lab-type Development

Here are six representative advantages of lab-type development.

  1. IT resources can be secured for a certain period.
  2. Cost reduction can be achieved.
  3. System development know-how can be accumulated.
  4. Flexible response to specification changes.
  5. Development can progress with speed.
  6. Small-scale startups are possible.

Let’s explain these in more detail.

Securing IT resources for a certain period

In lab-type development, IT personnel can be secured as an exclusive team for a certain period.

Since contracts are based on period and person-month labor, not deliverables, the team members remain the same throughout the contract period, allowing for smooth information sharing.

During the contract period, a stable development system can be established.

Cost reduction

Cost reduction is also one of the advantages of lab-type development.

In lab-type development, costs are controlled by adjusting the period, so there are no separate estimates. The number of IT personnel and the period are set in the contract.

In contract-based development, such costs would be required separately. Moreover, outsourcing to Japanese system development companies tends to incur higher costs.

Our company, "Solashi Co., Ltd", operates an offshore development company in Vietnam and also supports lab-type development. Let's compare the cost of lab-type development with Japanese development companies.

▼ Outsourcing to a Japanese development company
Development period: 3 months
Number of employees: 2
Cost: Approximately 5.4 million yen

▼ "Solashi Co., Ltd" Lab-type development
Development period: 3 months
Number of employees: 5 + support from senior members
Cost: Approximately 4.04 million yen
(Reference: Company Overview)

As shown, you can establish a low-cost and enriched development environment compared to proceeding with development within Japan. Additionally, it is attractive to build a well-rounded personnel structure.

If you would like a specific estimate for lab-type development, please contact "Solashi Co., Ltd".

Accumulating System Development Know-How

By introducing lab-type development, know-how required for system development, from upstream to downstream processes, can be accumulated.

In contract-based development, which focuses on completing what is presented by the ordering party, many post-requirement definition processes are often entrusted to the development company.

On the other hand, lab-type development involves more collaborative development between the ordering party and the development company, providing many opportunities for the ordering party to gain development-related know-how.

For example, the following skills and knowledge can be accumulated:

  • Efficient progress of requirement definition
  • Basic design output and detailed design input for improving quality
  • Improving velocity (development team speed and workload)
  • Refreshing technical stack (programming languages, frameworks, libraries, tools)
  • Effective team building

By accumulating such know-how, you can expect faster development and improved productivity. When launching new projects, the required man-hours can be significantly reduced.

Flexible Response to Specification Changes

With lab-type development, even if specification changes or feature adjustments occur, they can be flexibly handled. This is because, within the contract period, IT personnel resources can be utilized freely.

"Solashi Co., Ltd" can also respond flexibly to tasks other than specification changes. While working on system development, we also take on the following wide-ranging tasks of a different nature.

  • Building owned media
  • Framework version upgrades

We are committed to fully supporting your business expansion while working on system development.

Development Can Be Progressed with Speed

Speed is another advantage of lab-type development. If you can organize a team that meets the required development specifications, you can create a system that allows you to start development quickly.

In contract-based development, work cannot begin until all requirements are defined and estimates are made. In lab-type development, by adopting the Agile model, development can proceed locally without waiting for all requirements and specifications to be finalized, making it faster.

"Solashi Co., Ltd" offers various proposals to streamline operations. Through the services and frameworks we propose, projects can be progressed quickly.

By allocating as much time as possible to engineers for development, and having quality assurance experts handle project management tasks concurrently, we can achieve not only speed but also high quality.

Small-scale Startups Are Possible

Lab-type development allows for small-scale project startups. Because it is based on period and person-month contracts, resources can be adjusted as needed according to the ordering party's requirements.

You can utilize a lean startup approach to develop prototypes at low cost and proceed with the business while monitoring progress.

"Solashi Co., Ltd" also offers proposals incorporating lean startup strategies. By keeping costs down and identifying the next challenges, this approach is ideal for releasing new services.

お知らせ一覧