How to set up an Offshore Development Centre (Dedicated team) in Vietnam

Offshore Development Centre is becoming increasingly popular and standing out among other outsourcing methods recently. And Vietnam is speeding up on the way of becoming one of the top destinations for Offshore Development Centre. If you are considering working with one, this article will give you some useful information and tips.

I. What you need to consider

Pros

Cost-effective

Starting everything from scratch, building the infrastructure to hiring specialists, considering that your company is not working in the software development field, would be time and cost consuming. But with an Offshore Development Centre, all you need to do it to get the whole team along with the equipment and infrastructure. Not to mention that in some Western countries, the cost is much more expensive compared to Asian countries.

To summarize, your project will be finished faster in less time and with less cost if you join hands with an Offshore Development Centre.

Large engineering workforce

In many countries, IT has become a trend for undergraduates. With countries that have a large population such as India, China, and Vietnam, the labor force in the IT field is becoming larger with higher quality. You can find experienced specialists with proven competency and qualifications in an Offshore Development Centre.

Besides, leading Offshore Development Centres often focus on developing their employees’ capacity to deal with all requests from the customers.

One significant benefit that Offshore Development Centre offers you is the continuous technical support throughout the whole process. Not only supporting your company in maintaining system but also preparing for your infrastructure for scale up system to adapt when your number of users increase.

Local management

How can you manage a team between which are 12 hours of time zone differences and thousands of miles apart? Under your supervision, the project manager from the Offshore Development Centre will be in charge of managing the team during the process. The team will have a direct supervisor at their workplace to assure that the project is on the right track.

At AgileTech Vietnam, our PM experts with 10+ years of experience will manage your team from start to finish. They will be your right arm along the entire process.

Cons

Remote management challenges

Different continents mean a huge gap in timezone, which may result in the lack of immediate action in urgent cases.

The language barrier is also another concern as English is not the first/second language in all countries. This can affect the communication between the offshore and in-house teams and the clarity of guidance from the parent company.

Another factor that can affect workplace harmony is cultural differences. Conflicts can happen if there are differences in working style and working environment, especially between the Western and Asian.

Intellectual Property Right Issues

Some software development companies turn Offshore Development Centre into the goldmine illegally by selling the sold products/source code to other companies with cheaper prices. Apps like Uber source code is all over the Internet advertising. This is a serious Intellectual Property Right violation, resulting in a huge loss for customers. In terms of Ethical & Legal work, it is necessary that the Offshore Development Centre assure the Intellectual Property Right for its customers.

Data leakage is another concern when it comes to Offshore Development Centre. It depends on the government of the countries, where your Offshore Development Centre is and the Offshore Development Centre you work with. It’s better to choose a country where you are not required to give access to the restricted data of your company.

Later in this article, we will show you some ways to choose the reliable partners to secure your information.

ll. Why choose Vietnam to set up an Offshore Development Centre

Do you know Vietnam is the new destination for software outsourcing

A strong engineering workforce

IT has become trendy in Vietnam recently as the Vietnamese believe that technology is the leading field that will provide more work opportunities. Vietnam is in the top 10 countries with the most engineering graduates according to the research of the World Economic Forum in 2015 on 128 countries (Forbes). Graduates now have not only in-depth knowledge but also internationally high-ranked basic academic skills to perform the job professionally.

Knowing the importance of English proficiency in the period of international integration, The Ministry of Education and Training has made English a compulsory subject in education, making Vietnam the 7th-ranked country in Asia in terms of English proficiency.

Business environment

By applying the policy of “multi-lateralization and diversification”, Vietnam has been more open to the regional and global economies and attract much more foreign investments. With low labor costs and continuous effort in improving the conditions, including an update on tax incentives, Vietnam is a strong competitor in bringing to foreign business advantage in cost reduction.

With this support, software development companies in Vietnam has grown significantly recently both in quantity and quality, which means you will have a variety of reliable options to choose from.

Stable political and socio-economic environment

The economic development of Vietnam mostly thanks to political stability. Unlike some countries in the region, Vietnam has not been through any serious conflict, enabling undisruptive development since 2019. Therefore, many companies have chosen Vietnam to set up Offshore Development Centre, considering that no wars, riots or political conflicts will affect the process of their projects.

More than 70% of Vietnamese don’t follow any religion, which means there are rarely any conflicts in Vietnamese society regarding religious differences. This creates safety and harmony in the workplace in Vietnam.

III. Checklist to set up an Offshore Development Centre team in Vietnam

Choose the right outsourcing model

Fixed cost model

With this model, you must have a clear and detailed project plan in advance since the budget for the project will be fixed. A fixed price model will work best with small trial projects and protect the customer from any budget fluctuation. You also don’t need much supervision for this project as the plan is communicated transparently right from the start.

However, there are also drawbacks. If you underestimate the budget, the project may come out poor as the vendor can severely cut down costs to meet the established.

Flexible contract base model

With this kind of model, you do not need to have a precise plan in advance and you can adjust along the way until customers are satisfied with the final results. It still requires a document of carefully described specification and functionality along with the costs, timeline and which to deliver in each milestone.

Dedicated team model

Here we come to the ideal model. This model is the most flexible and scalable among the three. You will have full control over the operation process and the team will not only follow the product to its finish but also assure the maintenance and regular update of the project.

Choose reliable partners

Have a look at their work history

You surely don’t want to work with partners with bad reviews from their customers. Search for the most honest feedback on websites like Good Firms or check their portfolio and ranking for more information about their scale.

You can also have a check on their employees to have a better picture of whom you will work with: their recognition, awards, qualifications, years of experience, etc.

Effective Communication

Be sure that your team has a good command of English to prevent misunderstanding. You should discuss with your potential partners thoroughly about your concern and worries to avoid conflicts later.

Get started with your team

First thing first, greeting the offshore team and in-house team.

Communicate your project in the big picture and details to make sure that your team and you are on the same page. Work closely with your team directly or with the PM that is in charge of managing your team to get the ideas across.

Lastly, don’t forget the importance of weekly review. Collect updates about the project and feedback for better performance.

IV. Why AgileTech Vietnam?

Strictly secured information guarantee

When you work with us on a project, each member of the team will have to sign a contract to assure that there will be no data leakage and no intellectual property rights violation.

Excellent and experienced team

Our team includes a variety of technical experts and specialists with years of experience in software developing and team management.

International experience

Since 2015, we have completed more than 80 projects worldwide and delivered the best products to customers in more than 10 countries, mostly in the U.S, U.K, Germany, France, and Singapore.

SUMMARIZE

These are some facts and our sharings about Offshore Development Centre generally and how it is in Vietnam specifically. We hope this article helps you understand more about how the model works and what you should take into consideration when co-operating with one. We want to hear your opinions on this subject as well, share with us at contact@agiletech.vn or (+84) 936 281 059.