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5 Reasons Why Offshore Development Is Needed for IT SMEs


Have you heard about offshore development for IT SMEs? You may not be familiar with offshore development.

Offshore development is one of the outsourced development methods that mainly carries out development work such as software, WEB systems, and applications by utilizing overseas companies and resources.

According to Nikkei Business, the number of Nikkei companies (especially IT SMEs) doing offshore development has increased recently. The reason is that offshore development is a must for IT SMEs.


Reason 1: Expanding technical capabilities

You may have encountered the problem of limited technical capabilities of IT SMEs, especially start-ups and office workers. Are you looking for a talented person who is ready to work?
For example, if you have a matching app production project but your company employees have little experience with matching apps, you will be able to harness the power of programmers from offshore development companies who have a lot of experience in developing matching apps.



Reason 2: Cost reduction

Compared to Japan, Vietnam is cheaper, so it may be advantageous in terms of cost. Instead, according to Nikkei Business, Vietnam’s technological capabilities have improved. The number of human resources who can communicate in Japanese is increasing in Vietnam, and there are abundant high-quality IT human resources.



Reason 3: Solving the shortage of human resources

Are you worried about the shortage of human resources for IT SMEs, especially start-ups?
We have abundant Vietnamese engineers and can support the planning, development and design of digital services. In the long run, Vietnamese IT talent is a solution to the shortage of Japanese talent.



Reason 4: Leading to sales expansion and scale expansion

Offshore development, which expands technological capabilities and helps reduce costs, may lead to sales and scale expansion.
In Japan, there is a continuing shortage of human resources to meet the demand of engineers. Therefore, even if you have a project you want to proceed with, you may not be able to start without an engineer. Don’t you miss the chance to make money? At that time, offshore development seems to be a suitable solution.



Reason 5: Easy to create your own development team

If you outsource development when there are few engineers in the company, the members are often disbanded after the project is completed. Therefore, it is not possible to accumulate development know-how in-house. In the case of offshore development, you can make a contract according to the amount of work, not on a case-by-case basis. Therefore, until the contract time ends, you will be able to request work in the same way as your own personnel.
In other words, it is easy to create a development team dedicated to your company and receive long-term benefits by accumulating skills and know-how.