How N-Pax Began
In 2000, C-Pax Corporation, a company with head office in Nara City, Japan thought that it would be better to outsource software development from other countries. Although C-Pax was already involved in outsourcing from various countries, they later realized that cost reduction alone should not be the only single factor to consider. Product quality and time factor are equally important, not to mention, the mental stress that usually sets in considering the distance between the host (outsource) country and the main office. After all, the success of software development does not depend on reduced cost alone. Hence, in deciding where to outsource, C-Pax has come up with the following guidelines that the company used in selecting where to outsource its software development requirements:
Although cost is an overriding factor in outsourcing, consideration on rate fluctuations and prospects of the relationship of the Yen with respect to the currency of the host country must be favorable. In software development, on top of the development cost itself, costs such as future support mechanism and changes in specifications are likewise necessary. It is therefore necessary to consider the favorable long term cost components.
Facility To Incorporate Japanese Culture And Custom
In outsourcing from other countries, factors such as language and changes in the character byte size have to be considered. This requires special training and construction of a specialized library. On top of this, the ability to assimilate differences in business culture, the insistence on quality maintenance, and strict observance of delivery dates are but a few absolute conditions in the selection of where to outsource.
Facility In English As Means Of Communication
It is a great advantage to a country where most of the workforce, especially IT graduates, can understand and articulate well in English. In outsourcing, the role of the bridge Sales Engineer (SE) that acts as the link between the client and the host country, where outsourcing is done, is crucial. The host country should have an abundant pool of IT professionals who can understand and express well in standard English which is currently the universal language, as a communication standard. The SE, who is usually a native Japanese speaker, must have an excellent command both in English and Japanese languages as he, too, would interact most of the time equally with both sides. It is always necessary for an SE to have a profound knowledge about Japanese business customs and be very articulate in both languages to avoid miscommunication that may lead to unnecessary delay. Hence, an SE shall not only stay at the host country, but more importantly, play a decisive role in the planning, designing, development and testing of the product.
Ease Of Hiring Qualified IT Professionals
No two countries produce the same number of IT professionals who are qualified enough for a certain job. Qualification to the job is not just simply having a degree or topping in his batch or topping the licensure exam. The prospects should also possess personality traits that would suit them for the kind of job they are into. Thus, the selection process would go beyond the conventional ways of hiring the right people, exercising its best capacity to employ only the cream of the crop.
Favorable Geographical Location
In every business endeavor, location is almost always of paramount importance with respect to the target market. The closer you are to your market, the better. Time difference may be important but not quite. East Indonesia may lie in the same time zone with Japan but they are way too far from each other in terms of nautical miles. Though time difference plays a considerable role during meetings with Japan-based customers, whether virtual or in person. In cases where contacts in person between clients and developers are absolutely necessary, distance in between points should be short enough to travel.
Stable Political Climate And Healthy Economy
Politics and economy do not mix. In general, anything that is muddled with politics can fail. A country with unstable political climate always breeds economic stagnation or worse, economic downturn. Generally, a volatile economy cannot support businesses, regardless of size. No one will conduct a business where economic doldrums and political uncertainty are prevalent. The country’s economic situation primarily depends on its political situation. A stable political climate can invigorate the economy and create more businesses. If political climate is stable, a favorable peace and order is not far behind.
Low Rate Of Employee Turnover
The rate of employee turnover affects the continuity and success of a project. If the rate of employee turnover is beyond the acceptable level, it would cast a spell to the development of the project. Employees should possess character traits such as diligence, self-discipline, trust, confidence, commitment, genuine devotion to work, and self-esteem that would influence their decision to stay or not in the company. If an employee has all these positive traits, chances are, the company would be glad to keep him by giving him a raise, or incentives, or perks as form of appreciation of his job.
Philippines as an Obvious Candidate
With the above guidelines that C-Pax Corporation had set, the search for an outsourcing destination started. The Philippines was an obvious candidate considering the guidelines which were established. Concerned, however with the quality and delivery commitments of Filipino companies, C-Pax conducted about 2 years of evaluation that included several test projects and observation on how the guideline standards are met. To the relief of C-Pax Corporation and Ng Khai group of companies, the software developers showed sense of professionalism, dedication and commitment to quality and delivery, and the reliability that befits an outsourcing partner.
Thus in August 2002, N-Pax was born.