The shortage of IT human resources in Japan

The IT industry in Japan is facing problems with human resources, as follows:
• Population aging leads to annual decrease in the labor workforce in Japan. As for the IT industry, the supply of labor cannot keep pace with increasing demand, and the situation tends to get worse and worse.
• Enterprises sometimes only need temporary IT personnel, but hiring and training the IT personnel is usually a long process. Thus, compared to the cost, effectiveness is not considerable.
• The cost of hiring a Japanese IT employee is high.
Utilizing the plentiful, dynamic and youthful human resources of offshore company opens up numerous staff choices and solves the problems mentioned above. Therefore, in the long run, this is obviously an effective solution.

The shortage of IT human resources in Japan

Benefits of offshore development

The benefits of offshore development are as follows:
• Cost reduction
In the midst of rising in cost per hire for a Japanese IT staff, offshore mandate allows simple tasks such as a data center performed at low cost, without any difference in technical aspects compared to domestic personel.
Additionally, there have been an increasing number of projects on customization, data migration or large-scale business system development, cloud algorithm application, WEB services, etc for the last few years. Recruiting Japanese engineers who can handle such projects is not straightforward due to the high cost and lack of resources.
• No recruitment costs
The initial costs (such as recruitment costs) can be cut down by taking advantage of the offshore company.
• Flexibility in personnel costs, less risk than self-recruitment
Clients can change offshore companies at any time and will not necessarily have to “hold” their employees forever. This helps minimize the human resource risks.
• Customers can directly manage a specific team (direct team)
Depending on the form of contract, the client may request a direct team under their control. Accordingly, the client can use Luvina employees as if they were employees of their own company.

Benefits of offshore development

Vietnam's advantage

• Abundant workforce for Japanese IT industry

  • Population:more than 97 million people.
  • Golden population period:the median age in 2020 is 32.5.
  • Many brilliant students tend to study for higher degrees in science majors, and IT is one of the top priorities. According to the statistics of the Ministry of Education and Training of Vietnam, 50,000 IT graduates with an undergraduate or graduate degree enter the workforce of the IT industry in Vietnam annually.
  • The number of people who know Japanese increases rapidly: according to a quick report of the Japan Foundation in 2018, the number of Japanese learners in Vietnam was approximately 175,000 people, ranking 6th in the world. Compared to the results of the previous survey in 2015, Vietnam was ranked first in the world in terms of the rate of increase in the number of Japanese learners. The number of Vietnamese people taking the Japanese language proficiency test in 2017 was 71,242 people, ranking 3rd in the world and first in Southeast Asia. The Japanese skills of Vietnamese people are gradually improving.

• Low labor cost
   By fiscal year 2019, the unit labor cost (by month) in Vietnam is 1 / 2.5 compared to Japan, and tends to be cheaper than India, China, or the Philippines.
• Geographical advantages
   It takes only 5 hours to travel from Japan to Vietnam (Hanoi) by plane, the time zone difference is 2 hours.
• A pro-Japan country
   The Vietnamese people are hard-working, skillful and have friendly relations with Japan.
• Supported by the Government of Vietnam
   The Vietnamese government focuses on strengthening the IT industry, investmenting heavily in offshore development towards the Japanese market. Therefore, the human resources in the IT industry towards the Japanese market are abundant. Labor costs are consistent.
• Vietnam is a politically stable country

Vietnam's advantage

Development Service - Software Maintenance

Luvina undertakes to develop and maintain, add features to software as well as develop new production software, develop new software in the internal business system of the enterprise.

Features
• For new development or feature additions, we will estimate the effort based on the definition of the work product, expectations, and requirements (documents) provided by the client.
• For maintenance processing, we will estimate the effort over time and number of people after the customer finallize the work size.
• If this service is applied to mid- or long-term developement/operation project, it will be high eficiency.
Benefits
• Labor cost is cheaper than Japan (offshore side will develop mainly).
• Flexible to handle when customers change their expectations or requirements.
• The plans to improve productivity and quality control will be shared with the clients or will be implemented according to the rules of the clients.
• After development is completed, developers will continue the maintenance/operation work, ensure the business handover is carried out efficiently.
Contract type
• For new development/feature additions.
During Definition Desire phase, Requirement Confirmation phases: ODC.
From the detailed design phase onwards: Spot contract will be considered as original contract, in the mean time, the ODC contract will still be used to match up the final requirement.
• For maintenance processing an ODC contract is required.

Operation Service

Operation service is a service that maintains a group of software engineers which is managed directly by the customer for a certain period of time.

Features
• Manage different tasks in a proper way by taking advantage of the time zone difference between Japan and Vietnam.
• The different holidays throughout the year of the two countries make it easier to manage the tasks in a proper way.
• Operate from Vietnam using a specialized internet connection.

Benefits of the service
• Respond “24 hours a day, 365 days a year” customer’s requests according to Japanese time and calendar.
• Minimize costs for simple/high-cost tasks from Japanese data centers.
• Attract human resources easier than Software Development.
• Luvina are able to cope with wide scope of process because we have sufficient resources to fill the lack of skills (training in Vietnam) for the customers' operations handling (Not only the system operation of server/network but also the design and structure are supported ...).
• As for system construction, Luvina are willing to send people to Japan to deal with it.
Contract type: ODC

Example of offshore operation in Luvina:
Offshore operation in Luvina means that Luvina's operation team connects to the environment of the customer’s system side using the offshore environment by remote access and then perform the following operations:
• System monitoring: Periodically check whether the systems are working properly (Confirm operation status).
• System failure troubleshooting: In case an operating system failure occurs, we will report the failure and operation status to the person in charge, then immediately investigate the cause and scope of effect of the failure, and consider what would be the temporary/permanent countermeasures.
• System integration: When a product is released, we create an installation procedure and perform the installation work according to that procedure.
• System building: Build a new system to improve/expand the current system.

Migration Service

Migration is a service that helps convert between platforms or environments such as OS, data, or programs.

Service demand
• For those who are satisfied with the existing system and want to continue using it, but due to the need for hardware update, they have to change to the latest OS environment.
• For those who want to change to the latest environment (OS…), but don’t really need new development because it costs a lot of money and time.
• For those who feel insecure because of frequently anti-virus software running.
• For those who want to modify the system but they have difficulties maintaining the development environment.
Benefits of the service
• When developing overseas, customers are often concerned about the time, cost, risk, etc. related to transmitting the request. However, thank to the Migration service, there is no need to explain the requirements during development, so the problem will be resolved. Therefore, it can be said that offshore development in Vietnam is very cost effective for system relocation.
• Regarding problems that arise when changing to a new system: In fact, due to many different language specifications, porting work is difficult and requires new development phases such as Definition/ Design/ Development/ Testing/ Preparation for installation... Simply building similar systems will not make the most of the existing resources, which is costly and time-consuming. Moreover, the simple web conversion can result in messing up the current interface which is simple and handy for the user.
In response to those problems, Luvina's Migration service uses know-how, processes, and conversion tools to make the most of available resources, thereby, shortening the construction period and reducing costs.
We have gained a lot of experience in operating and understanding systems that we did not develop from maintenance projects, so understanding source code is one of our strengths.

【About the type of contract】
< ODC>
• ODC development service is type of contract that maintains a group of software engineers managed by the customer for a certain period of time, suitable for agile development projects.
• During the term of the contract, a customer can freely use the team. In terms of team building and business management, Luvina will join hands with the Customer.
• Customers can manage projects through their own team management.
< Spot>
• Spot is a type of contract in which products are developed within a specified period of time.

Software Development Process

Luvina can perform tasks from the design, development, maintenance, and renewal of IT products. Our strength is to bring value to clients as a long-term partner, accompanying throughout the entire product life cycle.

Professional fields

Financial system

  • Banking
  • Stock exchange
  • Insurance
  • Trust investment

Industrial service system

  • Nursing - Health
  • Tourism - Aviation
  • Transportation
  • Construction site management
  • Electrical monitoring control
  • CRM - Customer relationship management
  • Sales management

WEB

  • E-commerce
  • Search engine
  • Digital marketing
  • Recruitment site
  • Smartphone application

Embedded control system

  • Factory Automation
  • Bus information

Package software Installation support/customization

  • ERP - Enterprise resource planning system
  • Accounting
  • CMS - Content management system

Platform technology

Tools

  • Rational rose; enterprise architecture
  • Github; gitlab
  • Jtest
  • Gulp
  • Adobe xd; adobe photoshop
  • Operation tool (zabbix, jenkins, vmware esxi, kvm, docker, ansible)
  • Kubernetes

Framework

  • Struts, Spring, Hibernate, MyBatis,SpringMVC, SpringBoot
  • JUnit, NUnit, PHPUnit
  • JMetter, Selenium, Appnium
  • Smarty, PHPCake, Ethna, PEAR, Symphony
  • HeartCore, Fatwire, OutSystems
  • Play
  • Ionic, Meteor, Xamarin
  • JHipster
  • React Native, React JS

Language

  • Java,.NET, Cobol, PHP
  • Object C, Groovy, Ruby, Python, Scala
  • HTML5, CSS3, JavaScript
  • Pro*C, PL/SQL
  • Cshell

Database

  • Oracle, SQLServer, DB2
  • MySQL, Postgres
  • MongoDB, Hive, MariaDB
  • AWS Aurora, Dynamo DB

Platform, AppServer

  • Tomcat, JBoss, Weblogic, GlassFish
  • Apache, IIS, Ngnix
  • AWS
  • Dynamics AX, Grandit

OS

  • Linux
  • Windows
  • Sun Solaris
  • iOS, Android

New trend technology

Big Data

  • Spark
  • Mapreduce
  • Hbase
  • Datastage
  • Talend job

AI

  • Computer Vision
  • Natural language processing
  • Scheduling
  • Alexa

BlockChain

  • Ethreum
  • Digital Mining

RPA

  • UIPath
  • Automation Anywhere

IOT

  • Raspberry pi Zero
  • Raspberry pi 3

Front End

  • HTML5, CSS3
  • Node JS, Bootraps, Jquery, Angula JS, React JS
  • Vue JS, ES6, Riot JS

The management system of labor safety and hygiene

Structure

• 10 people
• Offshore project
• Japanese SE

Technology

.NET, Core 2.1, C#

• AWS

Customer

Operation field: SI company

• Overview: The company has a scale of several hundred people, specializing in developing and selling ASP, package for construction industry

Project overview

• Time: 6 months
• Size: 66 man-month
• Participation stage: From design stage
• Major: The labor safety management system used by Japanese construction companies

Renewal web for EC system

Structure

• 10 ~ 15 offshore members
• Customer visit Vietnam regularly (Once or twice a month)

Technology

• JEE7: JSF, CDI, EJB, JPA, JAX-JSJEE7: JSF, CDI, EJB, JPA, JAX-JS

• Elastic Search

• MapR-Hbase

Customer

Operation field: EC company

• Overview: Semiconductor chips online selling company

Project overview

 Time: 12 months
• Size: 150 man-month
• Participation stage: Design, Development, Test
• Major: Perform Web renewal for EC system and develop additional modules for processing large amounts of data
• Related to the entire EC business including: Sales management, inventory management, import management, logistics management

CRM system integration

Structure

• 10 ~ 15 offshore members
• 6 design members, 1 Japanese SE

Technology

• J2EE
• Oracle

Customer

Operation field: SI companyOperation field: SI company

• Overview: Specializing in CRM system

Project overview

Time: 18 months
Size: 150 man-month
Participation stage: Design, Coding, Test
Major: CRM system integration when merging large retail companies

Electricity station monitoring training system

Structure

• 20 members
• Offshore project

Technology

• Java Swing
• Use Thin client to test

Customer

Operation field: SI companyOperation field: SI company

• Overview:

  • The company specializes in development and operation of thermal electricity and nuclear electricity allocation systems
  • A subsidiary of a well-known manufacturer
  • Company size: 1000 people
Project overview

• Time: 6 months
• Size: 100 man-month
• Participation stage: Coding, UT, IT
• Major: Developed Japanese thermal power station monitoring and training system

Banking system

Structure

• 30 offshore members
• Review with Chinese partners

Technology

• VB6VB6

• COBOL

• Pro*C

Customer

Operation field: SI company

• Overview: The company partially listed on the stock exchange, with a size of more than 6000 people

Project overview

• Time: 3 months
• Size: 100 man-month
• Participation stage: Detailed design, Coding, Test
• Major: Converting the message classification system of investment and trust banks, converting languages from VB6, Pro * C to Cobol. Because converting can not be done automatically, you must read and understand the old source code, based on that, rewrite the design and development

Credit card registration system

Structure

• 20 members
• Offshore project
• 2 BSE works onsite for the first 2 months

Technology

• VB6, C, .NET1.0
• .NET4.0

Customer

Operation field: SI company

• Overview: The company specializing in operating and selling network equipment.The parent company is a large company with 800 people

Project overview

• Time: 6 months
• Size: 100 man-month
• Participation stage: Migration, Development, Test
• Major: Converting the registration system of a Japanese credit company from VB6, C to .NET
• In which one part is developed with Scratch, the rest is converted with tools

Professional nursing care insurance system

Structure

• 30 offshore members, 1 BSE works onsite in customer's office
• The peak stage requires 70 members

Technology

• J2EE

• Postgres

Customer

Operation field: The company specializes in nursing, providing nursing systems and human resource. 

• Overview: The company partially listed on the stock exchange, with a size of more than 1000 people

Project overview

• Time: 12 months
• Size: 300 man-month
• Participation stage: Detailed design, Coding, Test
• Major: Development of specialized systems for nursing care facilities (Nursing Planning - Nursing Operations - Request for Payment) in ASP format

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