日本語
Offshore development offers many advantages, such as cost reduction and securing talented personnel. However, there are also important points to be aware of, such as communication challenges due to language and cultural differences, time zone issues, and difficulties in quality control. By fully understanding these pros and cons and taking appropriate measures, effective app development becomes possible.
"I want to know the benefits of developing an app offshore"
"I want to know the precautions when developing an app offshore"
This article explains the benefits, cautions, and effective approaches to offshore app development for those with such concerns. We will also introduce key points to consider when choosing an offshore development company, so please use it as a reference if you're considering app development.
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 Offshore Development?
Offshore development refers to outsourcing the development of apps or systems to overseas development companies. With the recent increase in IT demand, the shortage of IT personnel in Japan has become a major issue. Offshore development is attracting attention as a means to secure IT talent.
The main outsourcing destinations for offshore development include China, Vietnam, the Philippines, Myanmar, and India. These countries generally have lower wage levels compared to Japan and are known for having a large number of skilled IT professionals.
By outsourcing development to such overseas companies, it is possible to achieve high-quality development while keeping costs down. Another feature is the ability to secure the necessary technologies and personnel for development.
Vietnam is a Popular Country for Offshore Development
Vietnam is particularly popular as an offshore development destination. There are three main reasons for this.
The first reason is that Vietnam has many talented engineers. The country is putting national effort into IT education and is producing a large number of engineers with advanced technical skills.
The second reason is the high compatibility with Japan. Vietnam is a pro-Japanese country with a deep understanding of Japanese culture. The Vietnamese people are known for being diligent and earnest, similar to the Japanese, which makes communication easier.
The third reason is geographical advantage. Vietnam is geographically close to Japan with a small time difference, making local visits and regular meetings easier.
Related article: 8 Reasons Why Vietnam is the Best Choice for Offshore Development and How to Choose a Reliable Company - Solashi
For these reasons, Vietnam is gaining high popularity as an offshore development destination. According to a 2023 survey by offshore-kaihatsu.com, Vietnam ranked number one in the "Offshore Development Destination Country Ranking".
Reference: Offshore Development White Paper (2023 Edition)
Offshore App Development Costs
Offshore development is said to make it easier to keep development costs low. But how much does it actually cost to develop an app offshore?
This section explains the monthly engineer cost rates and the general cost range for app development. If you are considering offshore development, please use this as a reference.
[By Country] Monthly Cost Rate per Person
Here is a summary of the cost rate per person per month by country:
| Country | Programmer | Bridge SE | PM |
| China | 50.01 | 79.29 | 92.14 |
| Vietnam | 40.22 | 57.73 | 79.38 |
| Philippines | 35.83 | 81.25 | 70.83 |
| Myanmar | 27.47 | 68.33 | 97.50 |
| India | 50.83 | 94.29 | 111.43 |
(Reference: [Latest 2023] Vietnam Offshore Development Monthly Cost Rate │ offshore-kaihatsu.com)
- Programmer: Responsible for writing actual code and building the foundation of the software.
- Bridge SE: Acts as a liaison between Japan and the local team, supporting smooth development by overcoming cultural and language barriers.
- PM: Oversees everything from project planning and progress management to risk control.
If you'd like to learn more, please check out the following article as well:
Related article: Offshore Development Costs: Country-Specific Rates and Cost-Saving Tips
App Development Cost Estimates
The cost of app development varies depending on the type of app, its features, and the workload involved. Below is the estimated cost range by app type when outsourcing to a Japanese company:
- SNS App… 5 million to 10 million yen
- EC App… 1 million to 3 million yen
- Game App… 3 million to 10 million yen
Although costs such as Bridge SE personnel expenses are incurred in offshore development, it may still be possible to keep development costs lower than with a Japanese company.
At "Solashi Co., Ltd", we carefully select Vietnamese engineers with advanced skills, enabling us to deliver high-quality apps at low cost. We build optimal development structures tailored to customer needs to achieve cost-effective app development.
Feel free to contact us first.
Japanese PMs Handle Communication
Looking for an Offshore Development Company
For such individuals, we recommend Solashi’s Vietnam offshore development
Benefits of Developing Apps Offshore
The main advantages of offshore app development are the following three points.
- It helps reduce development costs
- You can secure highly skilled IT talent
- You can strengthen your development system
We’ll explain each of these advantages in detail.
It helps reduce development costs
The greatest benefit of offshore development is the significant reduction in development costs. In Japan, due to a chronic shortage of IT personnel, labor costs for immediate contributors are skyrocketing. In contrast, in offshore destinations like Vietnam or the Philippines, wage levels are relatively low, allowing for lower personnel costs.
Even for the same scale of app development project, using offshore development often allows you to proceed more affordably than developing domestically in Japan.
Therefore, offshore development is a very effective option for app development projects with budget constraints. For companies aiming to develop high-quality apps within a limited budget, it can be an attractive solution.
You can secure highly skilled IT talent
In Japan, it’s increasingly difficult to secure engineers with advanced skills. On the other hand, overseas there are many talented individuals well-versed in the latest technologies. Offshore development makes it easier to secure such IT personnel.
You can strengthen your development system
Utilizing offshore development allows you to enhance your development capabilities. There are two main reasons for this.
First, by leveraging unique technologies and know-how not found in Japan, your own technological capabilities and development system can be significantly improved.
Second, building long-term partnerships enables smoother communication and deeper trust between teams.
Offshore development is not just a cost-cutting measure — it can be seen as a way to strengthen a company’s development capabilities.
Points to Watch Out for in Offshore Development
While offshore development offers many advantages, there are also some things to watch out for.
- Differences in language and culture
- Influence from the local conditions of the development country
- More challenging quality control compared to domestic development
Let’s go over these points along with countermeasures.
Differences in language and culture
Differences in language and culture can become communication barriers. Without sufficient communication, misunderstandings may occur, potentially leading to project delays or decreased quality.
To avoid these issues, the following countermeasures are effective:
- Hold regular meetings: Check progress and share issues to detect misunderstandings early.
- Establish communication guidelines: Clarify how to communicate and prevent misinterpretation.
- Utilize bridge engineers: Use bridge SEs who understand both cultures and business customs as intermediaries.
Properly implementing these measures minimizes risks from cultural and language differences and enables smooth project progression. The role of bridge engineers is particularly important. With both technical and linguistic skills, they serve as a bridge between both sides, enabling more effective communication.
At Solashi Co., Ltd, we have many Japanese staff members who are well-versed in business operations. They understand both Vietnamese and Japanese language and culture, enabling smooth communication. If you're interested, feel free to contact us.
Influence of the Situation in the Development Country
Offshore development carries the risk of being affected by the social and political situation in the development country, so caution is necessary. Specifically, the following risks can arise:
- Political Risk: In unstable regions, there is a possibility of demonstrations or regime changes.
- Infrastructure Risk: Issues with communication infrastructure could halt development work.
- Economic Risk: Fluctuations in exchange rates or inflation may cause costs to rise beyond expectations.
To mitigate these risks, selecting a stable country politically and economically is important. Choosing a country with stability can increase the project's overall stability.
More Difficult Quality Control Than Domestic Development
Offshore development primarily relies on remote communication, making it easier to overlook detailed progress checks and testing. Therefore, without experience in offshore development, maintaining consistent quality can become challenging.
The following methods can be effective in addressing these challenges:
- Conduct Regular Quality Reviews
- Set Detailed Quality Standards
- Utilize Online Tools for Thorough Progress Management
Furthermore, selecting an offshore development company with Japanese staff allows for management based on an understanding of Japan's quality standards. By establishing an appropriate quality management strategy, risks like schedule delays and quality degradation can be reduced, resulting in high-quality development.
The Process of Requesting App Development from an Offshore Development Company
The typical process for requesting app development from an offshore development company is as follows:
- Clarify the Purpose of App Development
- Define Requirements to the Best of Your Ability
- Select the Country and Development Company to Outsource to
- Request Estimates
- Review and Finalize the Contract
- Finalize Specifications and Features
- Develop the System
- Operate the System
1. Clarify the Purpose of App Development
First, clarify the purpose of developing the app. Examples include the following:
- Attracting a New Customer Base
- Improving Operational Efficiency
- Cost Reduction
- Providing a New Service
Additionally, at this stage, define the target user needs and market. By sharing this with the development company, you can progress the development efficiently towards a common goal. You will also be able to receive proposals from the development company aimed at achieving these objectives.
2. Define Requirements as Much as Possible
Although it is possible to leave the requirement definition to the development company, it is important to perform as much of it as possible within your company. By organizing the requirements internally, communication with the development company becomes smoother, preventing misunderstandings. Even if it’s not perfect, it is crucial to summarize the basic requirements.
If this is particularly difficult, consider using development companies that offer consulting and hearing services.
Our company, Solashi Co., Ltd, also accepts inquiries from customers who are unsure about how to define their requirements. We can propose the most suitable app based on your needs and business. Please feel free to contact us first.
3. Select the Country and Development Company to Outsource to
Select the country and development company for offshore development. There are many offshore development companies, and each company has different expertise and costs.
The selection of the development company can greatly influence the success of the project. Choose the development company carefully.
We have detailed explanations of the top 7 countries for offshore development, so please check this out as well if you wish.
Related Article: Latest Trends in Offshore Development and Rankings of Popular Countries! Features of the Top 7 Countries
4. Request Estimates
Once you have narrowed down the list of potential development companies, request estimates from each. Requesting estimates under the same conditions from all companies makes it easier to compare them appropriately.
In addition to price, past performance and post-development support systems of each company are also important factors in making decisions. Evaluate these pieces of information comprehensively and choose the development partner that best fits your company’s needs.
5. Review and Finalize the Contract
After selecting a development company, review and finalize the contract. To avoid any disputes, be sure to confirm the following points:
- Contract Type (Lab-type/Contract-type)
- Handling of specification changes or modifications
- Conditions for additional costs
- Ownership of intellectual property rights
It is important to fully understand the contract terms to avoid any disadvantages for your company. If anything is unclear, be sure to confirm with the development company before finalizing the contract.
6. Finalize Specifications and Features
After finalizing the contract, work with the development company to create a detailed specification document. In offshore development, accurate translation of specifications is extremely important.
Implicit understandings may not apply in overseas contexts, so any feature not explicitly outlined in the specification may not be implemented. Therefore, carefully consider and explicitly document even the smallest details.
Additionally, list the minimum required features and requirements. This will help prevent misunderstandings and ensure the app is developed according to expectations.
7. Develop the System
During development, communicate regularly with the team to check progress. Set up weekly online meetings to share progress reports and any issues.
Use chat tools and project management tools to facilitate smooth daily communication and instructions. Directly address any improvements or requests to ensure the project stays on track.
8. Operate the System
Once the app has been reviewed and verified, officially release the completed app. After release, ongoing operation and maintenance are required. This includes fixing bugs, adding new features, and performing security updates regularly.
Therefore, it is recommended to choose a development company that provides consistent support, including post-release maintenance. Additionally, continuously improving based on user feedback is crucial. Maintain a good relationship with the development company and develop the app with a long-term perspective.
Points to Consider When Choosing an Offshore Development Company
Here are four key points to check when choosing an offshore development company.
- Development Track Record
- Security Measures
- Ease of Communication
- Proposal Capability
Let’s go through them one by one.
Development Track Record
When choosing an offshore development company, past development experience is a key criterion. If the company has experience with similar projects to yours, they are likely to be familiar with technical challenges and industry-specific needs.
You can check a company's track record via their official website or informational materials they provide. Specifically, look at the types of applications developed, their scale, technologies used, development timeframes, and the industries of their clients.
Security Measures
Security is extremely important in offshore development. Since awareness of security varies by country and company, it's essential to carefully check how customer information and development data are managed.
ISMS certification is evidence that the company meets a certain level of security standards. You should also verify data encryption, access control, and the frequency of security audits.
Without proper security measures, the risk of data leaks and other issues increases. It’s crucial to confirm that the company has a secure environment for handling your confidential information and to ask about their specific practices.
Ease of Communication
In offshore development, language barriers, time differences, and cultural gaps can pose challenges to the project. Therefore, check if there are staff who can communicate in Japanese, what communication tools are available, and how responsive they are.
The presence of a bridge SE fluent in both Japanese and the local language can be extremely helpful. They can act as a liaison to prevent misunderstandings and ensure smooth progress. Regular meetings and a swift response system when issues arise are also important aspects to consider.
Proposal Capability
Excellent offshore development companies don’t just follow instructions—they proactively suggest improvements and optimal solutions. This kind of proposal capability greatly contributes to project success. Choose a company that can independently propose risk management strategies, cost-saving methods, and more efficient development approaches.
It’s also important that they are knowledgeable about the latest technology trends and industry developments and can apply them to your project. Collaborating with a company that excels in proposal capability enables high-quality app development and maximizes the value of your project.
For Offshore App Development, Contact “Solashi”
This article explained the advantages, precautions, and steps for offshore app development. By leveraging offshore development, you can not only reduce costs but also utilize development teams composed of highly skilled IT professionals.
Choosing the right development company is critical in offshore development. In particular, communication skills and proposal capabilities are crucial. A company that excels in these areas can ensure smooth project execution and deliver high-quality results.
Our company, Solashi Co., Ltd, is an offshore development company based in Vietnam. We have experienced Japanese staff and bridge SEs, and we can support upstream processes such as requirement definition. Our team members are well-versed in business and can propose optimal systems based on your needs.
Additionally, our company can implement rapid prototyping using web frameworks and agile development that balances both quality and speed. Feel free to contact Solashi Co., Ltd for more information.
Akira Shimazoe
Representative of Solashi Japan LLC. Born in April 1989 in Fukuoka Prefecture. Graduated from the Graduate School of Information and Mathematical Sciences at Osaka Prefecture University. Joined Suntory System Technology Co., Ltd., an IT subsidiary of Suntory Holdings, in 2014. Broadly responsible for the development, operation, and implementation of vending machine delivery management, efficiency improvements, and sales management systems. Founded Yper Inc. in 2017, serving as CTO and CPO. Contributed to the launch and growth of the app-linked delivery bag "OKIPPA." Selected for Toyo Keizai's prestigious "Amazing Venture 100" and Forbes' "Forbes 30 Under 30 Asia 2019."
