Hiring offshore developers for IT businesses worldwide is an explosive trend that helps reduce costs and increase productivity. Therefore, by supporting Eastern European and East Asian countries, Vietnam has emerged as a relatively new market with cheaper costs, well-trained IT human resources, and more supportive policies. In this article, we will learn about offshore development and why Vietnam is the top choice for hiring offshore developers.
Offshore developers: What is an offshore development center?
Offshore Development Center is a team that provides software development services for companies but is headquartered abroad. Unlike the traditional outsourcing model, this team operates as a subsidiary of the main company, not simply providing services.
In recent years, the growing demand for software development worldwide has made offshore software development centers a trend. Modern technology has eliminated geographical barriers and turned the world into a global village. As a result, a dedicated development team in another country demonstrated high productivity and cost savings. When companies hire overseas developers, they can save time to focus on key tasks. They can also save money by taking advantage of a much lower standard of living.
Hiring offshore developers is suitable for both startups and enterprises. An offshore development center provider will support your company with facilities and infrastructure instead of starting everything from scratch.
Advantages of hiring offshore developers
Hiring offshore developers helps cost savings
Cost reduction is one of the main benefits of ODC development. You can save a lot on labor, office, equipment, and management costs when hiring a team of experts abroad. You can also take advantage of online payment services, online meetings, and project management tools to minimize transaction and travel costs. However, you also need to keep in mind that not all costs can be cut. You still have to pay for costs related to product quality, information security, and compliance with the laws of the relevant countries.
Improve productivity
A dedicated development team will manage your operations well and accelerate your business. Hiring overseas developers will increase productivity in recruitment and optimize financial issues, human resources, and office budgets. Currently, customers require products and services to be deployed as soon as possible. Designing, developing, and testing their products is a good idea.
Talented human resources
Offshore Development Center (ODC) is one of the places with a highly qualified IT team with proven capabilities, skills, and experience. Top ODC companies often focus heavily on honing the skills of their employees to ensure they can provide the best solutions to their target customers. Furthermore, choosing the right location for your ODC will help tap into the local talent pool, in many cases allowing you to increase cost efficiency, speed up the recruitment process, and access talent that is not available locally. your main point.
Market expansion
Moving your software development to another country makes it easier for you to reach and understand them. Your company can leverage the local reputation of your ODC provider to build its image and grow its business in the local market. Therefore, you can increase sales volume and profits.
Risks that may be encountered when hiring offshore developers
Time zone difference
Offshore development teams may work hours that are nearly opposite to those of the headquarters company. Growing abroad requires good time management and a consistent schedule.
Cultural barriers
Cultural differences can lead to different styles in how people work. This difference can cause conflicts during work. For example, people from countries with a laid-back style will feel limited when working with people from countries with a hierarchy. This easily leads to the formation of a negative atmosphere in the company. Therefore, cultural incompatibility can make work less effective.
Legal conflict
Open policy toward foreign companies is one of the factors that businesses need to pay special attention to. Some countries have laws that prevent foreign companies from establishing businesses in their territory, which poses a big challenge for businesses looking to expand abroad.
How do you minimize risks when hiring offshore developers?
- Choose a reputable partner: You should carefully learn about the history, experience, quality, and reputation of ODC companies before deciding to cooperate. You should also consult previous customers and look for relevant certifications or awards.
- Build a relationship of trust: You should maintain regular and transparent communication with your ODC partner about project goals, requirements, expectations, and feedback. You should also respect and accommodate cultural differences and show engagement and support.
- Establish a clear process: You should have a detailed and clear contract with your ODC partner about the terms, conditions, responsibilities, and rights of each party. You should also have a specific and flexible project plan in terms of phases, tasks, resources, schedule, and quality.
- Information and data security: You should apply security measures such as encryption, authentication, backup, and recovery to protect your data from cyber security dangers. You should also comply with laws and regulations related to information security.
Learn about the Offshore developers’ team in Vietnam
Vietnam is the leading offshore development center in terms of quantity
- Ranked highly in the Tholons Global Innovation Country Index
In the Tholons Global Services Index 2020, Vietnam is proudly ranked as the No. 9 digital nation. Vietnam aims to lead the digital nation and economy in the ASEAN region by 2030 and enable the testing of new technologies in the national digital industry.
- A large number of foreign-invested companies in IT and technology
Currently, Vietnam has about 45,500 enterprises in the IT industry, including foreign-invested enterprises. According to the Ministry of Information and Communications, the IT industry brings in an estimated total revenue of about 126 billion USD (according to the Ministry of Information and Communications).
- IT human resources are low-cost but well-trained
In Vietnam, the cost of hiring foreign developers ranges from $10 to $25 per hour. In other Asian countries, like India or China, you will be asked to pay between 18 and 50 USD per hour for the same scope of work. The cost to get a skilled developer with four years of experience is around $2,000.
- The workforce is fluent in English
Vietnamese IT staff mostly have good English proficiency. According to the 2014 English Proficiency Index, Vietnam ranked 2nd in the world with the IT workforce most fluent in English in 2014 and ranked 5th in Asia with the fastest rate of improvement in English skills. This ensures that establishing your dedicated development team in Vietnam will not encounter any communication barriers.
- Dedicated Offshore developers
A Vietnamese person is expected to work six days a week, eight hours a day. However, it is common for many IT employees to spend more time on work than the current legal limit. The majority of Vietnamese offshore developers believe that coding is not just something they do at work or during work hours. 76.2% of respondents in 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 apply their new knowledge to every project they handle.
Why should you hire offshore developers in Vietnam?
Offshore developers in Vietnam have high professional qualifications
Investing in Vietnam will help companies access highly skilled and dedicated IT human resources. Offshore developers in Vietnam have both soft skills and proficient technical skills. Additionally, they are very flexible and can meet strict requirements. The number of senior programmers in Vietnam with over 5 years of experience accounts for 30%.
In 2021, Vietnam’s Ministry of Information and Communications also announced its goal of screening the quality of human resources for the information technology industry.
According to the “Vietnam IT Market Report: Developer Recruitment Status 2021” published by TopDev, Vietnam ranks 23rd in hacker ranking, 29th in skill value, and is one of six countries ranked as top programmers.
Government support policy
Thanks to policies to attract foreign investment and a clear national digital transformation strategy from the Vietnamese government, Vietnam has become an attractive destination for hiring foreign developers for technology investors. and IT. Vietnam is also famous for its competitive costs and many information technology parks and high-tech parks.
In 2020, many large technology and IT companies and enterprises from other countries will have started or continued to expand and invest in Vietnam, such as Qualcomm. In 2021, Hindustan Computer Limited (HCL), one of the 3 largest IT companies in India (one of the Top 5 outsourcing companies in the world), opened an office in Hanoi and started its development journey in Vietnam.
According to the “Vietnam IT Market Report: Developer Recruitment Status 2021,” published by TopDev, Vietnam ranks 5th in the global service location index, 13th in the top 50 digital countries, and 18th in the top 100 software outsourcing destinations. These promising indicators are forecast to grow shortly thanks to positive and adaptive changes in government policies.
Reasonable costs
Compared to Western Europe and even the US, Vietnam is famous for its reasonable labor costs, infrastructure, and facilities. Investors in Vietnam can take advantage of cost differences to benefit your business. Vietnamese developers are just as skilled as Western developers. However, they are more dedicated to their work. When you hire foreign developers from Vietnam, you will receive premium services and products as well as cut costs.
Although the market is still quite new, Vietnam will be your top choice, with costs 30–50% cheaper than India and China. Therefore, many businesses consider Vietnam a destination to hire foreign developers now and in the future.
A young and dedicated offshore development team
Many software developers in Vietnam started coding at a young age. What is surprising is that about 8.24% of them started coding before the age of 20. Currently, the number of young programmers in Vietnam accounts for 54.76% of the age range of 20–29 years old.
It cannot be denied that the information technology industry is a dynamic and rapidly changing industry. Young developers are often open to new changes and stay up-to-date with technology news to stay competitive and continue growing in the industry. More than 50% of Vietnamese programmers under 30 years old often try to learn something new within a few months.
TWENDEE – A reliable offshore development center
Twendee is one of Vietnam’s leading blockchain companies, with over 4 years of experience and almost 60 customers from all over the world. We are motivated by a strong goal to pursue professional standards, establish sustainable values, and become a global-class organization with an international working environment.
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