At 112Hub, we pride ourselves on ourability to connect businesses with the right software development partners,guiding them through every step of the process, from discovery to delivery.Over the years, we’ve honed our expertise in this area, becoming trustedadvisors for companies of all sizes and industries. One particular case,however, stands out not for its success, but for the lessons it taught us aboutthe complexities of international partnerships and the importance of clearcommunication.
In mid-2021, we were approached by a largeJapanese corporation, a leader in its field with over 10,000 employees anddevelopment centers across Japan and China. This company, which had alreadymade a name for itself in advanced technology and manufacturing, was seeking toexpand its software development capabilities. After hearing about oursuccessful partnerships in Europe, particularly in Romania, they decided toexplore the possibility of working with Romanian software suppliers. The goalwas to find a flexible and reliable team that could support the company’sgrowing needs in cloud computing solutions.
The Beginning: Laying the Groundwork fora Successful Collaboration
We kicked off the project with greatenthusiasm, confident that our expertise would deliver the same high-qualityresults we had provided to other global clients. The process began smoothly,with a series of discovery meetings to fully understand their needs, timelines,and expectations. The Japanese company wanted a supplier that could scalequickly, with expertise in cutting-edge technologies like machine learning,cloud computing, and IoT integration.
Over the next four weeks, we presented acarefully curated list of Romanian software suppliers. We evaluated eachsupplier on key factors such as technical capabilities, team size, scalability,and cost-effectiveness. By the end of the process, we had narrowed it down tothree top contenders, each with strengths that aligned closely with theclient’s needs. Our role, however, went beyond just providing names—we playedan active role in the decision-making process, assisting in evaluating eachsupplier's proposals and preparing a detailed analysis of their strengths andpotential risks.
The Process: Overcoming Language, LegalBarriers, and the Sokaiya Clause
While the initial stages were promising,the project soon became more complex. We found ourselves facing significantcommunication barriers. The company’s decision-making team in Japan primarilycommunicated in Japanese, and while we had a translator on hand, the nuances oflanguage made discussions slower and more prone to misinterpretation. Beyondjust translating during meetings, we also had to translate key legal documents,such as NDAs and contracts, from Japanese to Romanian—a task that required precisionand careful review to ensure all parties were on the same page.
During this phase, we encountered somethingentirely new to us—an explicit sokaiya clause in their NDA. Sokaiyarefers to a type of corporate sabotage where individuals infiltrate a company’sboard with the intent of undermining its operations for the benefit ofcompetitors. While sokaiya activities are well-known in Japan, we had neverencountered this issue in an international NDA before. It was eye-opening tosee how seriously Japanese corporations take the threat of corporate espionage,with detailed provisions in their contracts to prevent it.
The inclusion of such a clause forced us tore-evaluate the entire legal document. We had to ensure that our Romaniansuppliers fully understood the implications of sokaiya activities and thattheir contracts would offer similar protections. This process required multiplerevisions and extensive communication between our legal team and the client’slawyers. While we were familiar with NDAs and corporate security measures, thespecific cultural and legal context of sokaiya added a new layer of complexitythat we hadn’t faced before.
This translation and legal process aloneaccounted for hours of additional work, as we had to ensure that every detailof the contracts met both Romanian and Japanese legal standards. We workedclosely with the client’s legal team, going through numerous back-and-forths tofinalize terms that protected both parties from risks, including those relatedto sokaiya activities.
The Setback: A Sudden Silence
After more than a month of effort, we feltwe were nearing the finish line. The client had selected a supplier, and wewere in the final stages of preparing the project kickoff. However, just as wewere expecting to move forward, something strange happened—silence.
Follow-up emails went unanswered. Scheduledcalls were missed without explanation. Days turned into weeks, and despite ourpersistent efforts to re-establish contact, it became increasingly clear thatthe client had gone cold. This was highly unusual for such a large company,especially one that had been so engaged throughout the process.
We had invested over 150 hours of work, notonly in supplier selection but also in legal document translation, projectmanagement, and client advisory. We had prepared offers, attended countlessmeetings, and done everything in our power to ensure a successful partnership.Yet, despite all our efforts, the client simply disappeared.
Reflecting on the Experience: LessonsLearned
This experience was undoubtedlyfrustrating, but it also provided valuable insights into the challenges ofinternational business development, particularly in markets like Japan, wherebusiness culture and communication expectations can differ significantly fromwhat we are used to in Europe. Japanese businesses often take a long-term viewof partnerships, and decisions are made carefully, sometimes over extendedperiods. The inclusion of the sokaiya clause in their legal documents was alsoa stark reminder of the differences in corporate risk management approachesbetween regions.
There are a few key takeaways from thisexperience that have shaped how we approach future partnerships:
- Cultural Understanding is Key: We learned the importance of not just translating language but also understanding the cultural nuances that guide business decisions in different regions. In Japan, relationships are built over time, and it’s crucial to adapt to their decision-making processes. The sokaiya clause was an eye-opener in understanding the local business landscape and the emphasis on corporate security.
- Document Clarity: Legal and contractual documents in international partnerships must be clear and agreed upon by all parties. We now place an even greater emphasis on early legal alignment, especially when unique clauses like sokaiya are introduced, to avoid miscommunication later.
- Flexibility in Expectations: Not every project will go according to plan, but maintaining professionalism and keeping channels open for future opportunities is vital. While this particular project didn’t move forward, we remain hopeful that the relationship could be rekindled in the future.
In the end, while the partnership didn’tmaterialize as we had hoped, we continue to value the opportunity to work withglobal clients and navigate the complexities of international business. Eachproject, whether successful or not, leaves us better prepared for the next.
While we didn’t manage to close this deal,at least we’ve learned to double-check NDAs for sokaiya clauses. Afterall, the last thing we need is someone joining our team just to sabotage us—andwith our luck, they'd probably start by recommending decaf coffee in the breakroom!
