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 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.
• Abundant workforce for Japanese IT industry
• 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
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 in Vietnam is cheaper (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.
Features
• Manage different tasks in a proper way by taking advantage of the time zone difference between customers’ side 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 customers’ local time and calendar.
• Minimize costs for simple/high-cost tasks from customers’ data centers.
• Attract human resources easier than Software Development.
• Luvina is 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 is willing to send people to customers’ side 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.
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.
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.
Structure | • 10 people |
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 |
Structure | • 10 ~ 15 offshore members |
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 |
Structure | • 10 ~ 15 offshore members |
Technology | • J2EE |
Customer | • Operation field: SI company • Overview: Specializing in CRM system |
Project overview | • Time: 18 months |
Structure | • 20 members |
Technology | • Java Swing |
Customer | • Operation field: SI company • Overview:
|
Project overview | • Time: 6 months |
Structure | • 30 offshore members |
Technology | • VB6 • 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 |
Structure | • 20 members |
Technology | • VB6, C, .NET1.0 |
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 |
Structure | • 30 offshore members, 1 BSE works onsite in customer's office |
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 |