How to build an offshore development center in Vietnam (A-Z)

Offshore Development Centre is becoming increasingly popular and standing out among other outsourcing methods recently. And Vietnam is speeding up on the way to becoming one of the top destinations for Offshore Development Centre. In the article, we will introduce how to build an offshore development center in Vietnam (A-Z).

Vietnam is attractive destination for offshore development center

Vietnam is attractive destination for offshore development center

Benefits that OCD brings to your company

Cost-effective

Building the infrastructure for hiring specialists and developers, it would be time and cost consuming. With an Offshore software in Vietnam, they can do all this for you without any complaints. Especially, the cost in here for this is much more chip compared to Western countries.

Large engineering workforce

In many countries, IT has become a trend for universities. With countries that have a large population such as India, China, and Vietnam, the labour force in the IT field is becoming larger with higher quality. Therefore, you can easily find experienced and high-quality specialists in an Offshore Development Centre.

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

Besides, your business is continuous technical support throughout the whole process. Not only supporting your company in maintaining the system but also preparing for your infrastructure to adapt the number of users increase.

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Product localization

If you want to reach the oversea market, ODC is a nice choice since it does not only bring your enterprise closer to that one specific market but also help in localizing your products. For example, you want to bring your products to Vietnam, then having your ODC in here is a smart move since all of your developers are locals, they can help input some ideas which localize your product for their market.

Offshore development center model

Offshore development center model popular

Offshore development center model popular

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 the 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 clarified 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 and completed timeline.

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. Not only follow the product to its finish but also assure the maintenance and regular update of the project.

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How to build an offshore development center in Vietnam (A-Z)

Setting up an offshore development center in Vietnam is not as hard as you think. Below is a typical checklist for setting up an offshore development center in Vietnam.

✔Location

Choosing the right location is important because it can meet all your requirements and expectations. In Vietnam, Ho Chi Minh City is an ideal place for setting up your offshore development center as this is the economic center of the country with large IT talent pools, convenient transportation and logistics, lower cost of living, full available resources and infrastructure.

✔Cost

Setting up an ODC means you aim for long-term investment and sometimes it still can incur unexpected costs which lead to over budget. Carefully choose the right outsourcing partner solutions, they will show you all the cost of the project. And then, you may have better preparedness for this.

Budget is an important part for choosing offshore development centers, but it isn't everything.

Budget is an important part for choosing offshore development centers, but it isn’t everything.

✔Outsourcing Partner

Partnering up with the right software outsourcing company is crucial as you don’t take much time for recruiting top talents, setting up the office to manage the team and security risks, do all the legwork and legal paperwork, etc. Your partner will provide things and your job provides a detailed scope of the work you need them to do.

✔Communication

The language barrier can be a big problem, make sure you have the offshore development team with good language skills to understand what you mean and carry out your plans accordingly. English is now the second language in most schools and universities in Vietnam.  And so, their English ability is more improved.

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✔Technical Support

Ensure your ODC provides technical assistance before, during and after the project with full responsibility.

✔Security

Find a reliable offshore development company that keeps your company information safe and confidential. Furthermore, they must have a system to prevent data leakage. Last but not least, they must have handled and recovered when accidents occur.

Now, after all the research and consideration of the ODC company, let’s move on to the actual work required to launch an ODC project.

  • Organization restructure with your new team: It is substantial that each member within the team understands their role and responsibilities well right at the start.
  • Create descriptions for all job vacancies: Base on it to evaluate each of offshore development members and give the decision to hire them.
  • Plan your ODC security measurements: What parts of the project will be accessed and authorized by which members.
  • Start the development process management: Select your approach and outline the timeline for each project, whether it is software updates or just reports.
  • Give your new team the time to understand their place in the company: Every member should learn how to report any problems to manage them as quickly as possible.
  • Team management: The offshore development team and the in-house team should cooperate with each other so that they can more effectively work.

If you are looking for an Offshore Development Center to provide solutions for your companies, contact experts at Innotech Vietnam for any questions about Offshore Development!

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