Setting Up Vietnam Offshore Development Centre Service

In recent years, Vietnam software outsourcing has become an ideal choice. This beautiful country has been the destination for IT outsourcing thanks to the competitive labor costs compared to other countries, a large pool of IT talents with foreign language proficiency, and open policies regarding foreign companies of the government.

• Ho Chi Minh City in Top Outsourcing Cities in 8 consecutive years (Tholons, 2009-2016)
• Vietnam is ranked 1 in pioneering location and cost environment (Cushman & Wakefield Business Process Outsourcing and Shaped Service Location Index, 2016-2017)
• Top 10 countries with the most engineering graduates (Forbes, 2015)

In this article, we’ll explore the A-Z guide to setting up the Vietnam offshore development centre service. We’ll explain offshore development center and ODC models and give you a detailed checklist to establish ODC in another country, helping you make the best out of this lucrative business model.

1. What Is ODC – Vietnam Offshore Development Centre Service?

An ODC (Offshore Development Center) is a software development centre service located in another country that can help reduce the in-house cost and workload. Offshore development centers are usually located in Vietnam, India, China, and the Philippines, where living costs are much lower. Besides, those countries also have political stability and available resources suitable for setting up and integrating the process of ODC software.

Here are four simple reasons why clients should set up an offshore development center in Vietnam:

• Cost-Effective: Vietnam offers high-quality software development services at a lower cost compared to other countries. Vietnam’s software development costs are about 50-70% lower than in the US and Europe. This allows businesses to save money while maintaining high standards.
• Skilled Workforce: Vietnam has a growing pool of talented developers who are skilled in the latest technologies. Every year, Vietnam produces over 50,000 IT graduates annually from top universities, such as the Vietnam National University and the Hanoi University of Science and Technology. This ensures that projects are handled by professionals who know what they are doing.
• Cultural Compatibility: Vietnamese professionals are known for their strong work ethic and adaptability, making it easier to align with your company’s values and practices.
• Growing Tech Ecosystem: Vietnam now has 67,311 technology firms. The tech industry is rapidly expanding, with strong government support and a vibrant startup scene. This creates a dynamic environment for innovation and growth.

2. Offshore development center model (ODC model)

The value of a typical ODC is its flexibility and scalability. Whether you need a solution built from scratch or to update an existing application, additional resources can be contracted separately or added to the core team. This offshore development center model should also work well for ongoing maintenance and support.

Typical ODC roles:

• Project Leader

Understand and evaluate your business requirements and challenges, ensuring that expectations are aligned for every project. Manages a team of 5-20 offshore developers, usually assuming a lead developer or delivery manager.

• Senior Developer

Capable of understanding and solving your business needs and managing a team of 2-5 offshore developers. Responsible for the design of the application architecture and the build of the core modules. Generally, he has 5-8 years of experience in the related technical field.

• Intermediate & Junior Developers

Deliver high-quality software according to requirements. Communicates with you in English via email and IM. Each intermediate developer has 3-5 years of experience, and juniors have 1-3 years.

3. How do I set up Vietnam offshore development centre services?

✔Location

Choosing the right location that meets all your requirements and expectations. Ho Chi Minh City is an ideal place to set up your Vietnam offshore software development center. This is the biggest city in Vietnam with large IT talent pools, convenient transportation and logistics, low cost of living, full available resources, and infrastructure.

✔Cost

Setting up an offshore development center means you aim for long-term investment, consider all possible costs, and carefully choose the right solutions. An outsourcing partner with a reasonable price with NO HIDDEN COST.

✔Outsourcing Partner

Partnering up with the right IT outsourcing company is crucial. It will provide you with full assistance from recruiting top talents, setting up the office to manage the team and security risks, doing all the legwork and legal paperwork, etc.

✔Offshore Team 

The offshore development team of professionals hired by your outsourcing partner should have adequate experience & skill sets, work motivation and dedication, as well as commitment in the long run. 

Ensure that your offshore development team can be self-managing and successful. A perfect offshore team is the right mix of senior developers and potentially a project manager to get things done properly and on time.

Read more: Best Strategies To Master Offshore Team Management

✔Control

Your outsourcing partner should follow your company’s guidelines, guidance, regulations, and culture perfectly so that you can keep track of what they’re doing and if they’re doing it right. Control your budget, know what you want and how much it costs, predict unexpected expenses that may arise, and plan them with your outsourcing partner.

✔KPIs for quality assurance

Define your goals, let your ODC center know about your KPIs, and discuss how they can meet your goals, budget, expectations, and quality assurance KPIs. Train them about your product and service, and let them know you well to see if they can realize your ideas.

✔Communication

The language barrier can be a big problem. Make sure you have a 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. Chinese, Korean, Japanese, and French are popular languages as well.

One of the biggest challenges with the offshore development team is working on vastly different time zones. Choose a team that is flexible with time zone differences. This enables us to have time for daily meetings, scrum, and Q&A.

Besides, cultural differences may present a few challenges to communication between in-house and offshore teams. Here are 7 Tips to Embrace Cultural Differences with Offshore Teams you can apply to ensure smooth collaboration between team members.

✔Technical Support

Ensure the Vietnam offshore development centre service you choose provides technical assistance before, during, and after the project with full responsibility.

✔Testing & Quality Assurance

Quality Assurance allows for better control of the quality of the application, makes the evaluation of the product’s compliance with the original requirements fast and easy, and provides valuable insights into end-user impressions of the product.

✔Security

Choose a reliable offshore development company that prioritizes the safety and confidentiality of your company’s information. In the event of data loss, it’s essential to understand their recovery methods and solutions.

The offshore development team must handle its clients’ intellectual property (IP) with utmost care. A Non-Disclosure Agreement (NDA) is mandatory at the beginning of every business relationship, clearly outlining the responsibilities of both parties. This NDA is strictly adhered to by all employees, ensuring IP protection as specified in the agreement.

Throughout the project lifecycle, InApps guarantees IP protection in both physical and electronic formats. Security protocols and safeguards are diligently maintained, even after working hours.

✔ ODC security guidelines

The offshore development team must ensure strict confidentiality and security to protect customers’ records and models in every project. Customer data is kept strictly private by using the Active Directory (AD) system to manage client access. Under AD, only authorized staff can view the data, and all copies or versions are logged, allowing customers to check them at any time.

Customer database information is safeguarded throughout the entire project period, with access to sensitive data limited to key personnel only. Equivalent security measures are implemented to prevent data breaches and unauthorized access to the company’s computer systems, ensuring secure delivery services.

4. Set up your ODC service in Vietnam with InApps Technology

InApps is the Top Vietnam offshore software development center. InApps has been recognized by Clutch as a top provider of application development and IT staff augmentation services in Vietnam and Southeast Asia​​​.

Owning a Tech Talent Hub with 5–10 experienced developers and engineers, InApps Technology is proud to give clients 100% satisfaction and trust in their projects.

InApps Technology ODC team

You can focus completely on core activities such as business, sales, marketing, and operations while we are keeping our focus on product development with the following benefits:

• Competitive cost and easy to expand your team
• Good at both technical expertise and English
• 1-month trial and money back if not satisfied
• Transparency is everything for long-term cooperation

Top reasons to hire InApps Technology developers – top provider of Vietnam offshore development centre services:

• English communication— Basically, our team can read and understand spoken English. In 2023, Vietnam ranked 58th out of 113 countries and territories with an EF EPI score of 505/800.
• Cost-efficiency — You can find excellent developers for reasonable rates per hour.
• Good Communication Skills — They are good communicators and aren’t afraid to speak up or challenge you. They want to do a good job and succeed.
• Talented workforce — Young developers who studied and worked abroad in the US, Australia, Northern Europe, or Japan.
• High-level of Tech skills — Excellent at analysis, troubleshooting, and tech solution brainstorming. They are passionate developers who love what they do and desire self-development.

Ready to set up Vietnam offshore development centre with confidence? Let’s Talk! We’re here to help you succeed.