3 Successful Offshore Development Case Studies and Key Points to Avoid Failure

"I want to learn about offshore development cases and consider if I can incorporate them into my own development."
"I want to understand past cases and know the characteristics of projects suited for offshore development."

To respond to such voices, the offshore development company "Solashi Co., Ltd" in Vietnam introduces the cases they have been involved in so far.

We will focus on projects in the education tech, staffing, and NFT product sectors, explaining the background, approach, and results in detail.

We have also summarized the characteristics of projects suitable for offshore development and common failure cases. We hope this will be helpful as tips for successful offshore development.

Supervisor Profile

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.

3 Successful Offshore Development Cases

Here are 3 successful offshore development cases from "Solashi Co., Ltd", which operates an offshore development company in Vietnam.

EdTech IT Service Development | Edv Path

【Product Overview】

Contract Content	Detailed design, development, testing, operation, maintenance
Development Content	Client-facing screens (Web/API), Admin panel, troubleshooting
Cost	Not disclosed
Duration	13 months (currently under lab-type development)
Team	1 Project Manager/Bridge Engineer, 1 Front-end Engineer, 2 Server-side Engineers, 0.2 Testers
Technology	Nuxt.js (VueJs), Golang, Docker, GCP, Terraform

This is a case where we were in charge of developing an IT service aimed at measuring and improving non-cognitive skills in the educational field.

Development Background

The client was a startup company that faced the issue of not having full-time developers available.

Despite having many projects they wanted to develop, they were unable to proceed, which led them to request our development services.

Development Approach

We defined the development flow and proceeded with the development. The team assigned included two Japanese project managers (PM) and a total of four engineers.

"System requirements such as implementing SSO using Microsoft Azure" were proposed by the business side, requirements that many had not experienced before.

Our engineers and the client worked together to research official documentation, implement the system, and release it, which was a key point in this project.

We believe in the importance of not just having the development company propose future countermeasures but also progressing with development while exchanging ideas with the client.

Thus, we aimed to create a state where both unresolved issues by the client and by us could be tackled by the entire team together.

Development Results

In this case, we completed almost 100% of the tasks by the deadline. Also, at major development milestones, we proposed refactoring and test code development, allowing us to continue progressing the project independently.

Refactoring refers to the process of organizing the internal structure of a program by inspecting and refining the source code. This is done to improve quality and development speed.

By proactively addressing future tasks and involving the client, the cohesion of the entire development team, including the client, has improved.

Staffing Matching App/System Development | NEKONOTE

【Product Overview】

Contract Content	Requirements definition, basic design, detailed design, development, testing, design, release, operation, maintenance
Development Content	iOS/Android apps, Admin panel (Web)
Cost	Not disclosed
Duration	7 months
Team	1 Project Manager/Bridge Engineer, 2 Front-end Mobile App Engineers, 2 Server-side Engineers, 1 Tester
Technology	React Native, PHP (Lumen framework), Vuejs, AWS

This is a case where we were tasked with developing a staffing matching system and app for a client who did not have an adequate environment to release an appropriate system.

The client lacked development flow and structure, which led us to propose solutions to improve their system and app development process.

Development Background

The client did not have any in-house engineers and was manually handling staffing operations. They wanted to reduce the workload and approached a development company for systematizing the operations.

However, issues arose with the product. After delivery, the acceptance was insufficient, and there were explanations from the development company that did not cover all necessary points, which resulted in the product not being used as intended.

As a result, the client was left with a system that had been paid for but was not operational. This led to their approach to us for offshore development services.

Development Approach

Initially, we made minimal improvements to the app before proceeding with major adjustments to make the service more user-friendly.

At the time of the request, the system was not even functioning well enough to pass the app store review.

We rebuilt the core system and brought it to a state where it could be published on the app store in 3 months.

After that, we revised the development flow, extracted feedback from local team members, and clarified the project manager's language for the Vietnamese team to understand the content.

We also proceeded with applying for the Monozukuri Subsidy at this stage.

Development Results

In the end, we were able to successfully release and operate the app without major issues.

Thanks to the Monozukuri Subsidy being granted, we were able to proceed with product improvements with sufficient development funds.

Moreover, the client’s focus on creating the right mindset for setting up a development environment was also a key aspect of this success.

One aspect was creating the financial and managerial environment necessary to secure a budget for development, such as applying for subsidies and securing funds.

The other aspect was cultivating the mindset among employees, who had previously performed manual work and were not familiar with IT, to embrace IT for improving efficiency.

Thanks to these mindsets, the development flow was smooth, and the product is now under maintenance with ongoing improvements.

This is an example where we not only supported system construction but also proposed better development methods to guide the client’s business growth.

NFT Web Service Development

【Product Overview】

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Contract Details	Requirements definition, basic design, detailed design, development, testing, design, release, operation, maintenance
Development Details	Client-facing screens (Web / API), admin dashboard, implementation of smart contracts using ERC721
Cost	Confidential
Duration	7 months
Team Members	Project Manager/Bridge Engineer 1, Front-end Engineers 2, Back-end Engineers 2, Tester 0.2
Technologies Used	Material UI, Next.js, Node.js, Solidity, Polygon network, Alchemy, IPFS, AWS

This case dealt with a new service related to NFTs that does not yet exist in the Web3.0 space. Web3.0 refers to the concept of the next-generation internet.

Background of Development

The representative of the client had a wealth of IT knowledge but struggled to find time for development tasks. As a result, they requested our company to handle the development work.

The client's request was to develop a web service that realizes one form of NFT, Free Mint/Free Transfer.

Specifically, the service is as follows:

A marketplace where gas fees are not required for Minting or Transferring NFTs
A service where you can receive Art NFTs to support solving social issues through crowdfunding

Both of these are still not common technologies, but we worked together with the client to carry out the project. During development, we also applied for manufacturing subsidies and deepened our discussions with the client.

Development Approach

First, we conducted a protocol specification investigation for blockchain, set up a testnet, and estimated costs.

The next step was designing and constructing features such as integration with payment services and automatic issuance of invoices and receipts.

Usually, the client conducts technical research and testnet setup. However, we participated in these stages, which enabled us to prove that the client's idea was feasible.

This approach is uncommon and not often seen in typical development companies.

Development Outcomes

In this project, the significant outcome was overcoming difficult challenges together with the client and bringing their idea to life.

The challenges we overcame are as follows:

Many protocols we had already researched had to be abandoned during the specification process.
→ We conducted new research on an entirely new protocol.
The payment service we had planned to use suddenly became unavailable.
→ We explored, researched, implemented, and released a new payment service.

What we continue to aim for is shaping and growing our customers' ideas for manufacturing. We want to support companies in Japan that have ideas but face IT challenges preventing them from realizing those ideas.

By overcoming many challenges with the client, we were able to provide support that led to business growth.

3 Common Failure Cases in Offshore Development

Looking at the offshore development industry as a whole, there are not only success stories but also failure cases. Here are 3 common failure cases in offshore development for your reference.

Low-Quality Deliverables

This occurs when development is entrusted to a low-cost company, and low-quality deliverables are provided.

The technical skills and quality control systems vary among offshore development companies. If you entrust development to a company that is cheap but lacks stable quality, defects are more likely to occur.

Examples of low-quality deliverables include:

Programs that do not function correctly
Source code with low readability and prone to bugs

In offshore development, the kind of response that is common in Japan may not be expected.

If you have the mindset that "even if something is not written in the specification document, the person in charge will handle it implicitly to ensure quality," it can lead to failure.

To prevent quality degradation, it is necessary to give clear and detailed instructions at each step. Since communication takes time, this may result in higher costs.

A System Was Delivered That Was Different From What Was Expected

This case happens when a system is delivered that differs from the original expectations.

This typically occurs when a primary contractor cannot properly organize the requirements, and a secondary contractor is responsible for both design and development.

Offshore development often sees this issue in business system development.

If there is a gap between the requirements and the design, and development proceeds according to schedule, an unexpected system is created when it is implemented.

After reorganizing the requirements, it may become clear that a completely different system is needed, and attempting to redo the development will likely exceed budget and time limits. Eventually, an unusable system may be produced.

No Return on Investment

This occurs when the expected return on investment is not achieved. It is commonly seen in cases where the system specifications are not clearly defined.

Due to the lack of clear specifications, unnecessary or ineffective features may be added to the system, leading to the end of development.

Other reasons for poor ROI include "increased labor costs" or "ineffective use of IT resources."

If cost performance is a priority, defining specifications is essential. Furthermore, it is important to select a development company that can optimize IT investment according to the project's scale.

4 Types of Projects Suitable for Offshore Development

Here are four types of projects suitable for offshore development.

Projects that require flexibility
Globally standardized products
Projects requiring advanced or cutting-edge technology
System maintenance and operation

Compare these characteristics with the type of project you are considering.

Projects That Require Flexibility

Offshore development is suitable for projects that require flexibility. Some projects require ongoing adjustments and changes to specifications, which need to be addressed each time.

In particular, if you want to proceed with development flexibly without defining deliverables or responsibilities in advance, we recommend lab-type development.

Lab-type development is an offshore development contract where you pay according to the workforces and hours. You can freely use human resources without additional fees during the contract period.

You can also adjust the number of staff according to the project progress. For more details, please refer to "What is Lab-type Development? Merits, Demerits, and Differences from Contract-based Development".

Lab-type development is said to be compatible with agile development. Agile development divides development into small cycles and gradually implements functions.

"Solashi Co., Ltd" offers small start options through lab-type development. Even companies introducing offshore development for the first time can proceed with system development within a limited budget and with the minimum required resources.

Also, it is possible to start development in an agile way even without a specification document.

Most of our clients, including startups and those launching new businesses, prioritize release over specifications, releasing prototypes first, and then improving quality and expanding functions.

With rapid prototyping using web frameworks and an agile development approach, we achieve development that balances quality and speed. If you're interested in lab-type or agile development, please contact us.

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Globally Standard Products

Products widely used globally, such as the following, are considered easier for offshore development to succeed.

If the system is used in the outsourcing country as well, it is easier to explain the detailed specifications.

EC Sites
SNS Apps
Corporate Websites

Development based on cultures not commonly found in the outsourcing country (such as car sharing or waste sorting) may take longer.

Projects Requiring Advanced or Latest Technologies

Offshore development is suitable for projects involving advanced technologies such as AI and blockchain.

Even if your company does not have the expertise in these technologies, you can assign developers with the required knowledge to the development team.

Countries famous for offshore development, such as Vietnam and India, are known for their high-level IT talent.

Particularly, Vietnam is putting a lot of effort into training IT professionals, with the aim of producing 1.5 million IT specialists by 2030.

There are many talented engineers capable of handling advanced and latest technologies. If you're considering high-difficulty development, Vietnam could be an excellent outsourcing choice.

System Modification & Maintenance Operations

Offshore development can also be effectively used for system modifications and maintenance.

Modification: Adding or changing functionality to an existing system
Maintenance: Tuning databases or fixing bugs

Modification and maintenance must continue until the service ends for the relevant system.

If a company lacks personnel, they may want to avoid dedicating valuable resources to endless tasks.

By outsourcing modification and maintenance tasks to offshore development companies, you can free up resources, which can then be allocated to new business development.

Appropriate use of offshore development for modification and maintenance not only resolves resource shortages but also helps create a growth-oriented business environment.

Two Key Success Points from Offshore Development Case Studies

Let's explore key success points from offshore development case studies.

To succeed in offshore development, it is essential to clarify what you want to achieve and choose the right company.

Clarify What You Want to Achieve

You need to articulate as specifically as possible what part of your business you want to automate, store, accelerate, or manage.

If you provide a vague request, there is a chance that the system developed will differ from your expectations.

For example, instead of saying "We want to automate luggage management," clarify your request: "We want to assign a number to each luggage item and manage its status in the system." Be as specific as possible.

It is also recommended to involve professionals in the requirements definition. When developing based on existing workflows, you need to articulate what you want to achieve and what the system is responsible for.

This requires introducing frameworks for thinking and appropriate questioning. Professionals can help you articulate your goals effectively.

Choose a Development Company with a Proven Track Record

When outsourcing offshore development, choose a company with a proven track record.

Offshore development proceeds through the following flow:

Choose the country and company for offshore development
Compare multiple companies through estimates and interviews
Sign a contract with the selected company
Track the project's progress
Review the deliverables

The first step, choosing the right company, is crucial. Companies with many successful case studies have accumulated knowledge on how to make projects successful.

Here, focus on finding success stories that are similar to your company's desired project. It will help ensure smoother operations after the project starts.

Key points to check include:

Development scale
Content of the deliverables
Development period
Team size

Additionally, having experience working with Japanese companies is important. Companies with Japanese PMs or bilingual bridge SEs make communication smoother.

For Offshore Development, Trust Solashi with Proven Success Stories

If you're considering offshore development, we recommend "Solashi Co., Ltd", a development company in Vietnam.

We have a wide range of successful case studies, from "projects started without an established development environment" to "projects developed using cutting-edge technologies."

Our company is committed to business growth. We not only reduce costs but also focus on understanding your business and building services together.

Many IT professionals graduated from top universities, including Hanoi University of Science and Technology
Capable of handling cutting-edge technologies
Japanese-speaking PMs with high technical skills are available
Communication in Japanese is no problem

For offshore development, trust "Solashi Co., Ltd", which is committed to your business growth.

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."