Offshore Development NEC Soft Cop Has 2 Billion Loss
This news was picked up by the magazine company called Niikei computer. NEC Soft Cop has failed offshore development in China, And then they had enormous loss in 2 billion yen.
As long as the author knows, it is not only NEC Soft but also other company has such experiences of case failed. Officers of IT vendors talk about it speak secretly, but it is usually thing looked from my side. The reason is "Tacit understanding" which is Japanese costom of Development commission. Person no matter how excellent technology in China and India can not develop high quality product with ambiguous requirments definition and design document. They can get some benefit by number of engineer and time because they contract their job by man-month unit price of order. Even just waiting or doing by themself untill accurate and detailed work instructions. That is fully natural providence, no body can not blame such circumstances. Western IT vendors dont do such same mistakes, Japan shouldnt do hide such failled case. In that sense, NEC Soft should be evaluate by frankly published althouogh a duty to disclose.
According to the NEC Soft, there are three reasons.
(1)The original schedule was tough.
(2)Development framework as a basis for development was inadequate.
(3)System deficiencies that the use of program components.
They don't blame the chinese vendor at all, it means they admit some trouble to system and how to request to them. Exactly in indeed domestic situation, they ask to subcontracting company even tight schedule. They did order same to Chinese company like Japanese without strict management. Project Manager might have direct responsibility for it, but there were some problem as structure and management mechanisms of compnay.
Anyway if NEC group learn something from this failed case, they can have advantage for strengthen the competitiveness of the future. So they need to consider measures to prevent recurrence as lessons learned in the group to share.