The outsourcing of software development projects has become quite popular in recent years, and Asia, specifically Vietnam, has become a hub for software development outsourcing. In the flow of digital transformation and the 4.0 revolution, the country has experienced rapid growth in the tech industry and, thus, has become a preferred destination for businesses seeking to outsource their software development projects. In this blog post, we’ll explore the reasons why Vietnam has become an attractive offshore software development destination for businesses of all sizes.
What Is Offshore Software Development?
Offshore software development is the practice of hiring a remote team of software developers, often located overseas, to develop software products or services for a company. This process involves outsourcing the software development work to a team outside of the company’s physical location. Offshore software development is often used to reduce costs and take advantage of specialized expertise that may not be available locally. The team of developers works remotely to design, develop, test, and deploy the software product or service, collaborating with the client company and following their specifications and requirements.
What Is an Offshore Development Center?
For more information, an offshore software development center (ODC) is a dedicated facility located in a country different from the client’s, where a team of software developers, designers, and other IT professionals work on software development projects. These centers are established to leverage cost advantages, access a larger talent pool, and facilitate round-the-clock operations. Compared to nearshore outsourcing, offshore is a more advantageous option.
Companies often choose to set up an ODC when they want to:
- Reduce development costs: Offshore centers typically have lower labor costs compared to their onshore counterparts, allowing companies to save on project expenses.
- Access global talent: With an ODC, companies can tap into a diverse talent pool with specialized skills and expertise that might not be readily available in their home country.
- Improve time-to-market: The time zone differences between the client and the offshore center can enable round-the-clock development, speeding up project completion and reducing the time-to-market.
- Enhance scalability: An ODC allows businesses to quickly scale their development teams up or down based on project requirements and deadlines.
- Maintain focus on core business activities: By outsourcing non-core tasks to an ODC, companies can concentrate on their primary business objectives and strategies.
However, it’s essential to consider potential challenges such as communication barriers, cultural differences, and data security concerns when establishing an offshore software development center. Proper planning, clear communication, and effective management can help overcome these challenges and ensure successful project outcomes.
Why Offshore Outsourcing in Vietnam?
There is more than one good reason why the Vietnam offshore development centre is the right decision for any business that strives to farm out its IT needs:
Cost-effective software development
One of the key reasons why businesses outsource their software development projects to Vietnam is the cost-effectiveness of the software development services. Software outsourcing companies in Vietnam offer affordable yet high-quality services compared to their counterparts in the Western world. This is due to lower overhead costs such as labor, office space, and taxes. Thus, businesses can save up to 60% on their software development projects, or even more.
Skilled and Experienced Workforce
Vietnam is home to a young and talented workforce skilled in software development. The country has a thriving tech ecosystem, with many universities offering computer science programs. Graduates are well-equipped with the latest technology trends and tools for software development. Additionally, many senior software developers have acquired experience developing software for international clients, giving them insights into global best practices.
Strong Government Support for Tech Industry
In addition to the skilled workforce, the Vietnamese government has implemented policies to support the tech industry’s growth. This has created a favorable environment for tech companies to thrive. The government has invested in infrastructure such as high-speed internet, which is essential for software development projects, and supports tech-focused initiatives such as startup accelerators.
High-quality Services
Vietnamese software development companies are known for providing high-quality services. These companies have developed expertise in various software development areas, such as web development, mobile app development, and software testing. They also have experience working with international companies and implementing quality assurance procedures that provide reliable results.
Ease of Communication
Vietnam has a growing number of tech businesses with international clients. As such, communication barriers such as language and time zone differences have been addressed. Many Vietnamese software development companies have English-speaking teams to cater to international clients’ needs. They also have established communication and project management procedures that make collaborating with international clients efficient.
Growing IT Industry
The Vietnam government has been actively promoting the growth of the IT industry, resulting in a burgeoning tech ecosystem. As a result, the country is home to many software development and IT service companies, making it an ideal destination for outsourcing IT-related tasks.
Political Stability and Safety
Vietnam enjoys a stable political environment and low crime rates, making it a safe destination for outsourcing. The country’s government is also committed to attracting foreign investment and improving the business climate, ensuring a supportive environment for outsourced projects.
Time Zone Compatibility
Vietnam’s time zone (GMT+7) offers excellent compatibility with many Western countries, allowing for seamless communication and collaboration between teams. This means that businesses can work closely with their Vietnamese partners without having to worry about significant time differences. Or businesses can take advantage of the time zone difference to have a Vietnamese team working while they are not.
Cultural Compatibility
Vietnamese culture shares some similarities with Western cultures, making it easier for businesses to establish rapport and work effectively with their Vietnamese counterparts. English is ubiquitously spoken in the country, and the Vietnamese people are known for their strong work ethic and dedication to delivering high-quality results.
Vietnam’s offshore software development industry has shown steady growth in recent years and is poised to continue its growth trajectory. Cost-effective services, a skilled workforce, strong government support, high-quality services, and ease of communication make Vietnam an attractive offshore outsourcing destination for businesses. With Vietnam having established itself as a key player in the tech industry, it is not surprising that many businesses are seeing the benefits of outsourcing their software development projects to the country.
