[Webinar Recap] Can In-House Development Cut Costs? How the Hybrid & BOT Model Solves The Problem?

November 1st, 2024

The webinar “Can In-House Development Cut Costs? How the Hybrid & BOT Model Solves the Problem?” was successfully held on 30 October 2024.

In the Webinar, Mr. Kentaro Yamada, one of Japan’s leading digital transformation (DX) experts, analyzed current problems in securing the IT workforce in Japan. Besides, he introduced the Hybrid & BOT model as an ideal solution to the significant shortage of IT resources.

Shortage of IT resources in Japan

Japanese businesses have increasingly relied on in-house development because of its advantages, especially in project security. However, this trend also led to significant difficulties in ensuring IT resources. Mr Yamada referenced a report by the Ministry of Economy, Trade and Industry showing that by 2030, there would be an IT labor shortage of approximately 590.000 people. During the session, he identified 3 main reasons for this problem: a scarcity of qualified IT professionals, escalating hiring costs, and high turnover rates.

In fact, many Japanese companies consider outsourcing to be a potential solution to deal with this shortage. Although this approach is ideal for the short term, it may not effectively address resource needs in the long run.

Hybrid & BOT model

In response, Mr.Yamada introduced a new solution: the Hybrid and BOT model, which can minimize all the limitations of the existing models.

The Hybrid & BOT model includes two different ones: the Hybrid and the BOT. In fact, the Hybrid model can be considered the first step towards deploying BOT in the long term. The speaker also highlighted the Hybrid & BOT model’s ability to maintain a stable IT workforce in the long term.

The webinar outlined the advantages of the Hybrid & BOT model in the medium and long term. In the medium term, this solution is outstanding with its rapid and flexible resource adjustment, cost optimization, quality assurance, and the ability to ensure resource stability. Actually, the Hybrid & BOT model allows businesses to flexibly scale the development team according to project demands. As such, companies can maintain a lean core team while utilizing an outsourced workforce for specialized tasks, significantly reducing fixed employment costs.

In the webinar, the speaker also explained how businesses can benefit from the Hybrid & BOT model in the long run. The model allows businesses to reduce costs, leverage local knowledge, transfer gradually, and minimize risks. For companies seeking to expand to a new foreign market, the outsourcing partner will help them cover office setup, optimize daily operations, and provide local expertise. This approach reduces upfront expenses and allows for a smooth handover.

To further illustrate the effectiveness of the Hybrid & BOT model, Mr. Yamada presented a case study that detailed its application in a specific project, providing attendees with valuable insights into its structure and workflow.

Conclusion

The Hybrid & BOT model will be a perfect solution for companies, not only in Japan, to cope with IT workforce challenges. This model not only addresses resource shortages but also supports long-term cost savings and flexible resource management.

Thank you to everyone who joined Miichisoft’s webinar, “Can In-House Development Cut Costs? How the Hybrid & BOT Model Solves the Problem.” We hope that this webinar provided valuable insights and practical solutions that can help your company navigate existing challenges effectively. We trust that the Hybrid and BOT model will offer an adaptable, long-term approach to meeting your specific business needs.

If you have any questions about the Hybrid & BOT model or offshore services, please don’t hesitate to reach out. With over six years of experience in outsourcing, Miichisoft is well-equipped to adapt to your evolving needs. Let us support you in securing effective IT workforce management through the Hybrid & BOT model.