Market environment

Market Price of Offshore Development

Japan - 4,500 USD - 6,500 USD.
China - 2,300 USD to 3,200 USD
Vietnam - 2,000 USD
India - 2700 USD

Price per man-month

Domestic Agency for offshore developers

offshore-kaihatsu.com is a directory website and agency that allows developer get price quotation from many offshore developers at once.

Number of offshore developers per country,

China (22)
Vietnam (47)
India (10)
Philippines (8)
Indonesia (6)
Myanmar (4)
Thailand (2)
Bangladesh (2)
Croatia (1)
Mongolia (1)
Korea (1)
Singapore (1)
Sri Lanka (1)

Localized website

Most companies on the website has Japanese localized version on their website.

42% cost down

The website says that most on average customers lowers cost by 42% by using offshore development services.

Bridge SE

Bridge SE (System Engineer) is a unique position in offshore development. BSE helps bridging a Japanese customer and an offshore developers. Many offshore developing companies have native Japanese BSE.

Key roles that BSE play are…

• Translate the applications’ requirement, questions and inquiries from Japanese to Vietnam Developer team and vice Versace.
• Communicate with Japanese Customers on all project-related matters via email, Skype or Online-meeting, etc.
• Frequently & actively contact customers to clarify and prepare detailed requirement contents.
• Manage project and work closely with Project leader to monitor and control project.

Localized business processes

Most Japanese customer prefers doing business in the Japanese way, for example, having invoices, quotes, and contracts in Japanese.

Value proposition to Japanese leads

Average hourly rate of developer in Eastern Europe is 20 to 40 USD whereas average hourly rate in India is 12 USD.

remote working

Remote work saves money. We all know that and companies that sooner adapt themselves will win the cost competition. Companies that cannot adapt to remote development will be eventually left behind the competition and lose.

You as a pilot case of remote development will be value adding to Japanese customers.

offshore development to global development

Japanese companies have to be able to globalize development process in order to compete developers abroad soon or later to catch up the race to the bottom price.

However, most software companies in Japan are failing to get out of their comfort zone which is traditional Japanese business process.

Working with you will necessitate Japanese companies to adapt international business process. It will be a challenge for them but it will bring them benefit in long run.

You as a pilot case of international development will be value adding to Japanese customers.

European offshore developers are more skilled than Asians.

It is said that European offshore developers are more skilled and quick to adapt the latest technology than east asian developers.

Price and my share

Price

Price you can quote for offshore development is 4,000 USD a man-month or 20-40 USD an hour.

My share

20%. Estimating my workload, 20% sounds fair to me.

My responsibility

My responsibility will be a lead generation, negotiation in the beginning, and translation of applications’ requirement.

However, I won’t be working as a full-time like a Bridge SE because that is not in accordance to the value position which is internationalization and remote working.