There is a booming tendency to hire offshore developers in IT enterprises worldwide, which brings about cost reduction and productivity boost. Compared to Eastern Europe and Eastern Asia countries, Vietnam emerges as a relatively new market with cheaper costs, well-trained IT workers, and more supportive policies.
Vietnam has offered more incentives and amending requirements to attract more investors in the high-tech industry. Despite the adverse impacts of the pandemic Covid 19, Vietnam‘s IT industry continues thriving. Hence, Vietnam stood out as a promising land for companies to set up their dedicated development team.
In this article, we will go through information about offshore development and the reasons why Vietnam is the top choice to hire offshore developers.
What is an offshore development center?
The term offshore refers to sending business operations to a faraway country, where your dedicated offshore development team runs things distantly. Hence, Offshore Development Center is the practice of companies to hire offshore developers with software development services in remote destinations instead of doing it locally. The dedicated offshore development team functions as a branch or a subsidiary of the company in another country.
The rising demand for software development worldwide has made offshore development centers a trend in recent years. Modern technology has erased geographical barriers and turned the world literally into a global village. As a result, a dedicated development team located in another country has proved to be highly productive and cost-effective. When companies hire offshore developers, they can save time to focusing on main tasks. They can also save money by utilizing much lower living standards.
Hiring offshore developers is suitable for both startups and enterprise companies. The offshore development center provider will support your company with its facilities and infrastructure instead of starting everything from scratch.
Benefits and challenges when you hire offshore developers?
When you hire offshore developers, you will receive various benefits but face a few challenges. However, the benefits overweigh the potential challenges.
1. Reduce costs
The dedicated offshore development team is often placed in countries that have lower living standards. They can utilize the cost disparity to cut costs in facilities, equipment, materials, labor, maintenance to save money for other purposes. Besides, it appears to increase business output and promote sales in another market to hire offshore developers.
The headquarter can save a great amount of money on IT infrastructure because the offshore development center provider has already set up the necessary infrastructure. The holding company doesn’t have to start everything by themselves.
2. Increase productivity
A dedicated development team will manage your operations well and promote your business process. Customers now require the products and services to be deployed as soon as possible. It is a good idea to offshore the design, development, and testing of their products.
Hiring offshore developers will increase productivity in recruiting, optimizing financial issues, human resources, and office budgets. The company can get exposure to the enormous talent pool with dedicated development teams at lower costs.
3. Work with a dedicated development team
The headquarter company can get access to an enormous talent pool at reasonable prices. They have high-quality expertise in developing customized software for your targeted customers. The dedicated offshore team is typical for flexibility, exceptionally specialized skills, and experience. They strictly obey the project timeline and ensure to accomplish tasks on time.
4. Expand into foreign markets
Moving your software development to another country makes it easier to expose to customers and understand them. Your company can make use of the ODC provider‘s local reputation to build your image and grow your business in the local market. Therefore, you can increase the sales volume and the bottom line.
If you want to know more about why an offshore development center can speed up your business growth, you can read this blog: https://bsscommerce.com/blog/offshore-development-center-speed-up-business-growth/
1. Time zones
The offshore development team may work at hours nearly opposite to that of the headquarter company. Offshore development requires good time management and an appropriate schedule.
2. Cultural Barriers
Language barriers and working culture may cause obstacles in team cooperation. The offshore team and the holding company must overcome these issues to maximize productivity.
3. Communication issues
Positive communication and cooperation among members with related departments play a key role in stimulating business operation and product development.
With the help of technology, communication over the continent is no longer a big deal. However, physical interaction is much more effective than virtual communication. Companies need to adopt innovative technology to manage team collaboration well and eliminate geographical barriers.
4. Security risks
Data leakage is a crucial problem to take into consideration. If you hire offshore developers from another country, it may move in tandem with much higher risks in ensuring information confidentiality.
Why hire offshore developers in Vietnam?
There is a wide range of reasons why it is wise of you to hire offshore developers in Vietnam. Let’s find out now!
The high-level expertise of Vietnamese developers
Investment in Vietnam will help companies get access to a skilled and wholehearted IT workforce. Offshore developers in Vietnam have both proficient soft skills and technical skills. Additionally, they are flexible and can meet strict requirements. The number of senior developers in Vietnam with over 5 years of experience accounts for up to 30%.
In 2021, the Vietnamese Ministry of Information and Communications has also claimed to set the goal to refine the labor force’s quality for the Information Technology industry.
According to “Vietnam IT Market Report – Developers Recruitment State 2021” published by TopDev (https://topdev.vn), Vietnam ranks 23rd in hacker rank, 29th in skill value, and is one of the top 6 countries in the top coder.
Governmental supporting policies
Thanks to policies to attract foreign investment and a clear national digital transformation strategy from the Vietnamese Government, Vietnam has become an attractive destination to hire offshore developers for technology and ICT investors. Vietnam is also famous for its competitive costs, many information technology parks, and high-tech parks.
In 2020, many big techs or IT companies and enterprises from other countries started or continued expanding, investing in Vietnam like Qualcomm. In 2021, Hindustan Computer Limited (HCL), one of the 3 largest IT companies in India (Top 5 outsourcing companies in the world) has opened an office in Hanoi and started its development journey in Vietnam.
According to the “Vietnam IT Market Report – Developers Recruitment State 2021” published by TopDev (https://topdev.vn), Vietnam ranks 5th in the global service location index, 13th in the top 50 digital nations, and 18th in the top 100 outsourcing destinations. These promising indexes are set to move up in the future thanks to positive & adaptable changes from government policies.
Compared to Western Europe and even America, Vietnam is well-known for reasonable labor costs, infrastructure, and facilities. Investors in Vietnam can utilize the cost difference to benefit your business. Vietnamese developers are just as skilled as Western developers. However, they are much more dedicated to their work. When you hire offshore developers from Vietnam, you will get high-end services and products and cut expenses.
Although the market is still relatively new, Vietnam will be your top choice with 30-50% cheaper costs compared to India and China. Thus, many businesses consider Vietnam as a destination to hire offshore developers now and in the future.
High-end services and products
In addition to dedicated development teams, Vietnamese offshore developers provide a full-service solution including DevOps and Cloud technologies, Big Data/ Data Science, Machine Learning/Artificial Intelligence, Cybersecurity, Mobile Development, UX/ UI Design, Business Intelligence, IoT/ Robotics, and Game Development.
Most companies in Vietnam adopt a win-win mindset and share responsibilities with customers. On embarking on a partnership with a Vietnamese offshore development center provider, you will be accompanied in your business journey. The dedicated offshore development team will help you to run business smoothly and give you consulting service at any time.
Young and dedicated offshore development teams
Countless software developers in Vietnam started coding at such a young age. It is overwhelming that about 8.24% of them began coding before 20. At present, the number of young developers in Vietnam accounts for up to 54.76% aged 20 – 29 years old.
It is undeniable that the information technology industry is a dynamic and rapidly changing industry. Young developers are usually open to new changes and stay updated with tech news to stay competitive and keep evolving in the industry. More than 50% of Vietnamese developers under 30 years old usually try to learn something new within a few months.
Vietnam as a leading offshore development center – in numbers
1. High rank in the Tholons Global Innovation Country Index
In the Tholons Global Services Index 2020, Vietnam proudly ranks as the #9 Digital Nation. And Vietnam aims to take the lead in the digital country and economy in the ASEAN region by 2030 and allow testing of novel technologies in the national digital industry.
2. A large number of IT and tech foreign-invested companies
Currently, Vietnam is home to about 45,500 enterprises in the ICT industry, including foreign-invested enterprises. According to the Ministry of Information and Communications, The ICT industry yields an estimated total revenue of about 126 billion USD (according to the Ministry of Information and Communications).
3. IT low-cost but well-trained workers
In Vietnam, the price to hire offshore developers rates ranges from $10-$25/ hour. In other Asia countries like India or China, you will be asked to pay from $18 to $50 per hour for the same scope of work. The cost to get a skilled developer with four years of experience is about US$2,000.
4. A labor force with English proficiency
Vietnamese IT workers virtually have a decent command of English. According to the English Proficiency Index in 2014, Vietnam ranked 2rd in the world with the most English proficient IT workforces in 2014 and 5th in Asia with the fastest improvement in English skills. This guarantees that setting up your dedicated development team in Vietnam will not face any communication barriers.
5. Dedicated development teams
A Vietnamese is expected to work six days a week, for eight hours a day. However, it is common for many IT workers to spend much longer on the job than the current legal limit. The majority of Vietnamese software developers deem that coding isn’t just something they do at the workplace or during working hours. 76.2% of respondents to a survey said they code outside of work.
More than 50% of Vietnamese offshore developers under 30 years old usually try to learn something new within a few months. They are excited to adapt their new knowledge to every project they handle.
Here is the TOP 12 OFFSHORE DEVELOPMENT TEAMS IN VIETNAM you should not miss!!!
Tips to hire offshore developers
Consider your requirements
Based on studies and data, Vietnam is a profitable proposition to hire offshore developers. Every project has different requirements to fit the business model and goal. Therefore, you need to figure out what you expect before you pick any country as the final choice.
Research is a must-have step to enhance the quality of your future dedicated development team. Besides, figures and data are within your reach. Take full advantage of surveys, journal guidelines, consultants to verify the analytical procedure. Remember to get information, advice, guidance from others to diversify your information resources.
Choose the right country to set up your dedicated development team
Find the appropriate country based on your budget and requirements. You also need to consider both labor cost and quality to cut costs but get excellent service. The time zone difference may cause problems, so make sure to acknowledge it.
Understand the offshore development center provider
Check the company profile and read their customers’ feedback before building a partnership. In addition, take a look at their previous projects. Spend time scanning their Facebook, Linkedin, Twitter to know more about them. Choose the provider with a good reputation, reasonable cost, experience, English proficiency, and full service.
If you want to hire offshore developers in Vietnam, BSS Commerce is the top choice. You can find out why at https://bsscommerce.com/blog/bss-commerce-is-on-clutchs-list-of-top-ecommerce-development-companies-in-vietnam/
Create a business strategy and team development plan
Working with an IT team located remotely, you should identify all obstacles, risks, relevant solutions, both short-term and long-term business goals, vision, and mission. Because it is essential to build a proper business plan and anticipate all potential pitfalls to run your business smoothly.
Understand the laws
Before your dedicated development team comes into operation, you must know the local legislation so that you commit to the rules. For instance, after your product development process finishes, you need to understand the process to obtain a patent for your product. It is a complicated process, and you need to investigate the local jurisdictions to not fall into a trap.
BSS Commerce – a reliable offshore development center
In conclusion, hiring a dedicated offshore development team is a practical option for all companies. A business partnership with an ODC provider leads to a wide range of advantages for the holding company. With our diverse expertise and over 9-year experience, BSS Commerce is the perfect choice to hire offshore developers in Vietnam. Additionally, our extensive and dedicated development team is ready to be deployed at any time for your eCommerce development needs.
We provide a wide range of offshore development services like:
- Ecommerce Development
- Module Creation and Customization
- Mobile Development
- Product Development
- PIM Development
- PWA Development
- Custom ERP Development
- AI & Automation Development
Our dedicated development team is made of young and high-quality experts. Moreover, our certified tech experts have English proficiency and a modern mindset to eliminate communication obstacles. BSS Commerce provides excellent services and products ranging from apps to extensions with immediate support.
Regarding cost, we continually add value to optimize clients’ business at such a competitive price. We treat customers with respect and great service. We also not only meet but try to exceed clients’ expectations.
With more than nine years of experience in eCommerce with over 500 successful projects for worldwide clients, we’re confident to assure you that BSS Commerce is the perfect offshore development center provider for any business of any scale.
If you want to learn more about the offshore development center from BSS Commerce, you can check out at https://bsscommerce.com/offshore-development-center.html
CONTACT NOW to let us know your problems. We are willing to support you every time.