Case study: Enterprise system development for Japanese telcos

The need for unification in the digital telecom era

In the telecommunications industry, customer experience is king. Modern users expect seamless, instant, and unified services, especially in payments. However, many major network operators in Japan still use separate, legacy payment systems. These platforms lacked cross-carrier interoperability. As a result, this created fragmentation and hindered the launch of new digital services. The IT Source – a global partner for software development and AI services, specializes in solving precisely these types of large-scale digitization challenges.

Digitizing a fragmented payment system

Leading Japanese telecommunication operators recognized the urgent need for transformation. Their current systems were outdated and disconnected, leading to significant challenges. For instance, the lack of interoperability made processing payment transactions between different carriers complex and inefficient, creating a poor end-user experience. Furthermore, because the system was not fully digitized, it resulted in slow, costly, and error-prone manual workflows. This ultimately created barriers to innovation, as the old platform was too inflexible to design and implement new web services. The situation demanded more than a simple application; it required a full-scale enterprise system development initiative.

Building a dedicated offshore development center (ODC)

Instead of a short-term project, The IT Source proposed a strategic partnership model: Lab Type Development [ODC]. For three years, we established a 15-member multi-functional team a group with deep expertise in enterprise system development that acted as a dedicated extension of the client’s own R&D department.

Our process covered the entire product development lifecycle, from detailed design to development, testing, and deployment. Technically, we implemented a modern microservices architecture to ensure the new web services could be developed and scaled independently. Quality and stability were paramount, ensured by a comprehensive testing strategy including Unit Testing, Integration Testing, and performance testing with tools like JMeter, all integrated within an automated CI/CD pipeline.

A unified and future-ready payment platform

After a three-year close partnership, The IT Source successfully delivered a brand-new, cross-carrier payment system that provided immense strategic value.

The successful launch of the new platform delivered an immediate and tangible impact. For the first time, cross-carrier transactions could be processed smoothly and instantly, dramatically improving the payment experience for millions of end-users across Japan.

However, the project’s true success lies beyond this initial victory. By replacing their fragmented legacy systems, the Japanese telecom operators now possess a modern, digitized, and scalable payment infrastructure. This new foundation does more than just solve their immediate problems; it empowers them to confidently develop and launch innovative digital financial services, securing their competitive edge for the future.

The power of the ODC partnership model

The success of this project is a clear testament to the power of the Offshore Development Center (ODC) model. For complex, long-term digital transformation initiatives like this enterprise system development project, building a dedicated team that develops deep domain expertise and partners with the business delivers superior results compared to traditional project-based approaches.

Architect your future with a true partner

Ready to move beyond short-term projects and build long-term value? A dedicated Offshore Development Center (ODC) is more than just a team; it’s a strategic asset for innovation.

Schedule a strategic consultation with The IT Source’s experts and let’s co-design the dedicated team that will drive your next major digital transformation.