What is offshore development

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What is offshore development? image Offshore development refers to outsourcing various tasks such as various web services and application development, service maintenance and operation, data input, etc. to overseas companies in order to reduce development costs. Many domestic companies are using this method as it has the advantage of reducing costs and securing human resources. There are various countries that request development, but countries in Southeast Asia such as the Philippines and Vietnam, where labor costs are low, and countries such as China are often cited as candidates. There are two main types of contract methods for offshore development: contract type and laboratory type . Each method is different, so it is best to choose the method that suits your company's direction.

Difference between contract type and laboratory type The contract type (also referred to as the contract type) is a contract type in which the entire process from requirements definition to design, development, Phone Number List and testing of the service you want to develop is negotiated and delivered by the deadline. Basically, development is done on a case-by-case basis, so the advantage is that quality is guaranteed and there are no fixed costs after delivery. In addition, the human resources involved in development are set up by the contractor, so there is no need for engineers or schedule management skills. This makes it an easy contract method for beginners to consider . However, the disadvantage is that if there is a change in the specifications or additional development occurs, costs will be incurred each time, so depending on how the order is placed, it can become expensive. On the other hand, the lab type refers to a contract type that allows you to secure excellent engineers exclusively for your company for a predetermined period of 6 to 12 months.



In addition, even in the laboratory type, we have a "remote team" that uses online tools such as Zoom to conduct development while interacting with the site, and employees of the ordering company go to the site and interact directly with the site in the country where they are dispatched. There are two types of "resident teams" that conduct development. Since the contract is not for each project, a laboratory type contract is more suitable for medium- to long-term development than a contract type contract . Let's take a deeper look at the advantages and disadvantages of the lab type. Advantages of laboratory-type offshore development The advantage of the lab type is that you can improve the development environment by increasing human resources, and you also accumulate in-house know-how regarding offshore development.