Vietnam Software Outsourcing might be Small, but it’s Mighty!

vietnam software outsourcing, software outsourcing in Vietnam, IT outsourcing in Vietnam

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— The success of Vietnam software outsourcing industry worries Indian partners as companies such as Intel, IBM, Samsung Display, Nokia and Microsoft continue to invest in Vietnam.

India has for many years been considered the world leader in business process outsourcing (BPO), but time has changed everything. According to the Nasscom Trade Association, the Indian BPO industry has just witnessed the largest decline in the number of jobs in seven years, while the information technology (IT) unemployment rate has increased for two consecutive years.

While India adjusts to meet demands and expectations, it is time for new areas to emerge as software outsourcing centers.

According to Forbes, Vietnam is known as a small but very powerful outsourcing workshop in Asia – Pacific region. Few believe that Vietnam can become a second Silicon Valley, but the spirit of technology and countless talents make people really think of the beginning of the US technology industry in the past.

why vietnam software outsourcing

The history of IT outsourcing industry in Vietnam

The truth is that Vietnam software outsourcing industry is quite young. More than a decade ago, a number of multinational technology companies like fram^, Intel or Oracle have started exploiting the workforce in this developing technology industry in Vietnam. In addition to developing new policies that attract high-tech businesses, Vietnamese government has invested heavily in STEM education, and as a result, there’s an abundant workforce with excellent technological skills.

Since then, the IT and software outsourcing industry in Vietnam has grown significantly. Vietnam rose five places to the Global Services Location Index, a ranking of outsourcing services from A.T. Kearney consultancy. The success of Vietnam’s IT industry worries Indian partners as companies such as Intel, IBM, Samsung Display, Nokia and Microsoft continue to invest in Vietnam.

The potential in the eyes of foreign investors

Perhaps some foreign enterprises are expecting more solidity from Vietnamese outsourcing service providers. The difference in institutions as well as culture makes them a little bit afraid. However, Vietnam is still considered very suitable for technology working and development.

Vietnam’s economy has changed rapidly. From the foundation of agriculture, Vietnam has now transformed itself into a modern, developed business market.

Vietnam joined the World Trade Organization (WTO) in 2007 and has made a lot of efforts to open the door, making it easier for foreign businesses to access. Investment from abroad helps economic growth, and in the past 10 years, adaptive culture has brought a skilled IT force.

In-house Software Development vs Outsourcing - The Good, the Bad and the Ugly.

Technology experts in Vietnam very quickly become part of the global customer network, ready to challenge the standards and constantly innovate.

Vietnam’s education system is also working hard to ensure that English becomes a second language rather than just a foreign language, sending a strong message that English proficiency is very important for Vietnam.

Also, Vietnamese people are very loyal to the company they are doing. This stems from loyalty to the family. In India, the Philippines or Malaysia, engineers often accept to go abroad to pursue a career, while many Vietnamese engineers often want to work close to home.

Vietnam software engineer resources

Vietnam is working hard to develop a highly skilled workforce to compete with regional neighbors such as Singapore, Malaysia and the Philippines, and commit to higher education and STEM. For example, Cornell University, USA is consulting to develop a world-class university in Hanoi, while Fulbright University will soon open a branch in Ho Chi Minh City.

With an ongoing investment in university-level research and science, Vietnam is ensuring that the majority of university graduates will have STEM degrees.

The gender diversity in technology fields in Vietnam is also impressive. Currently, fram^ is using more female employees than men, and women are leading, advancing on a par with men.

The challenge and opportunity

Viet Nam is currently the IT and software outsourcing center. Vietnam has strengths in: technology, financial services, media, games, software integration. Many businesses are also looking here for emerging trends like AI, machine learning and block-chain at a reasonable cost.

For most businesses, the biggest challenge in Vietnam is to adapt with a team of skilled engineers 5,000 to 10,000 miles away. The only way is by training and connecting. Training a remote team in the way that internal staff members are trained will lay the foundation for success, creating a unified process.

This requires setting up a communication system regardless of time and distance, and teams will be working smoothly and coordinating effortlessly. It is important to take advantage of time zone differences to create productivity advantages. The advantage of outsourcing in Asia-Pac for western businesses is the nearly 24-hour production cycle.

While India is facing a number of difficulties, regions like Vietnam are continuing to grow. As with other hotpots other than Asia-Pacific such as Cambodia and Thailand, Vietnam needs to actively train its talents.

Sustainable government investment in STEM education and the expansion of multinational corporations will boost both the workforce and the Vietnamese market.

Founded in 2013 with just a small team of developers, fram^ team has grown into a team of over 130 digital talent working under one goal: to help businesses around the world with premium software outsourcing services to build their custom software at the best price and quality.

What Sets Us Apart In Offshore Software Development?

What Sets Us Apart In Offshore Software Development?

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1. Things to Consider Before Offshoring Software Development

Offshore software development is a great option for you to quickly deploy prototypes and develop software for your company’s future. To develop a software prototype, a local company might charge you tens of thousands of bucks.

However, you can develop a working prototype or full-service software application for a fraction of the price and in significantly less time by obtaining offshore software development services. Here are some of the top things to consider: 

1.1. Find a trusted partner

It is highly essential to have an offshore IT provider that can deliver quality and proven outcomes. Find a company that can deliver extremely qualified candidates when communicating with your current team for a smooth work transition.

By offshoring your development process to a provider, you’ll need to make sure they fulfill the expectations and objectives of your company. Our software development team at Fram^ is able to provide you with a range of case studies to demonstrate how effective our offshore solutions can be tailored to suit your business needs.

1.2. A great record of communication 

Equally important is a company that is prepared to provide coherent updates. You deserve to be continuously updated with the right information to move forward when working with an offshore software development company.

This can help to provide you a better peace of mind and it’s also a great way to build confidence with your offshore service provider. We think that clear and effective communication is essential to your business success.

1.3. Experienced offshore staff augmentation

If an offshore software development company has maintained many of the same staff working there for years, there is a good possibility that they will have excellent corporate morality and an established system not only to develop software, but also to acquire and retain capable talent. It’s always a bonus to work with a group of committed employees happy at work. 

Our senior dedicated team at Fram^ has comprehensive experience offering top IT talents to organizations ranging from start-ups to government and large publicly listed companies. We have a proven track record in attracting and maintaining talent and building a high performance organizational culture.

With outstanding communication skills of our team, effective communication is one of the factors that distinguish us apart from the possibility of hiring directly from South-East Asian countries yourself.

At Fram, we provide cost-effective software solutions for small and medium companies that assist them accelerate time-to-market, decreasing operational costs and drive their client’s maximum value. We are one of the leading offshore software companies in Vietnam that help organizations to improve their web presence and streamlining business processes. Our professional team first listens to your business ideas by adopting a consultative strategy and then transforms them into real-world software applications.

1.4. Custom solutions to solve complex business problems

In today’s rapidly changing business environment, employing custom software applications to enhance customer engagement, optimize business activities and achieve enhanced effectiveness becomes even more crucial for businesses.

At Fram^, we leverage our software developers proven development methodologies and unparalleled technical expertise to define, design and develop robust software applications customized to satisfy your specific business requirements and end objectives. Our range of custom software development services in Vietnam includes:

a. Web application development

Defining, designing and building custom apps customized to satisfy your specific business requirements. The focus is on delivering high quality and easy to scale and maintain customized applications. 

b. UI/UX design and development

Create a user experience that is indispensable beyond visually attractive screens. We create UI/UX designs that enable seamless navigation, quick accessibility of data, and improved functionality.

c. Software as a Service (SaaS)

Use SaaS to manage access to critical applications and software for your business. The service enables you to access applications through the Internet without having to install or maintain them on an in-house server.

d. Testing and Quality Assurance

Forecast real-time software behavior and guarantee perfect output across different platforms and devices for your enterprise applications. Empower your team to build high-quality software products.

2. Leverage our unmatched technology expertise!

Technological convergence has opened several possibilities for software development. Our dedicated development team at Fram^ uses both mainstream and emerging technologies to build robust, scalable and secure custom software products. We have experienced in software complexity at multiple levels and provide offshore software development services across a multitude of platforms and technologies. This includes:

  • HTML5, CSS3, JavaScript, and more : Frontend
  • ASP.NET, Java, PHP, Node.js, C++ : Back-end and Desktop Apps
  • iOS, Android, Windows Phone, Apache Cordova, etc : Mobile Apps
  • SQL Server, MySQL, SQL Azure, MongoDB: Databases
  • Joomla, Magento, Drupal and WordPress : Open-source CMS
  • Zend, CakePHP, Kohana, Code Igniter, etc : Frameworks

3. What sets us apart in offshore software development industry?

As one of the leading offshore software development company in Vietnam, Fram^ has an established track record of delivering robust software solutions to organizations around the world. We are a team of extremely experienced and skilled software developers in Vietnam that works in accordance with standardized techniques and processes.

Here are some reasons why clients choose us as their offshore software development company in Vietnam:

  1. Established development methodologies and processes
  2. Better processing of upgraded technologies
  3. Well experienced and skilled software developers
  4. Follows legal and regulatory compliance
  5. Customer oriented best engagement models
  6. Company owned well facilitated infrastructure
  7. Support and maintenance services by our dedicated support team
  8. Competitive pricing. Request a FREE QUOTE now!

In-house vs Outsourcing Software Development – Which is Better For Small & Medium Businesses?

software development outsourcing vs in-house, in-house software development, software development outsourcing

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Weighing up the pros and cons of in-house vs outsourcing software development is an increasing necessity for many businesses. Questions of cost, quality and capacity must be carefully answered, if the finish line is ever to be reached with a cost-effective product that satisfies or even exceeds expectations.

With every project having its own requirements, there is no definitive answer as to which is the optimal approach between in-house vs outsourcing software development. However, there are certain factors to consider before choosing the right path.

1. In-house software development

Just as “Every coin has two sides”, there’re advantages & disadvantages of having an in-house development team.

1.1. The advantages

a. Long-term product development

The often grueling process of taking a product from beginning to launch requires a flexible, devoted team who’s able to adapt to any changes. By geographical proximity alone, an in-house team is better than a remote one to do so.

b. Shared vision

The IT team plays a vital role in most businesses today as they work and learn about your website, app and entire infrastructure everyday. The understanding of who your company is and what your goals are takes time and effort to impart.

c. Increased control

  • Are you a priority for your developers?
  • How can you be sure that they sustain the quality standards that are pivotal for the future maintenance of your product?
  • How much are you going to end up paying?

These are the questions you would never have to ask if you have an in-house development team.

d. Shorter turn-around time

Local teams can offer closer monitor of the development process and quicker response when urgent issues do arise. Direct communication with the team provides an increasing level of input and the ability to identify potential problems ahead of time, which can ultimately lower costs in the long-run.

e. Improved productivity 

Teamwork and collaboration breed productivity, it is difficult to replicate the existing culture of an in-house team when outsourcing. You could hire top freelance specialists, but if there are cultural clashes, your project will surely not run as efficiently as it can.

1.2. The disadvantages

a. Broader skills on demand

When developing an app or a software, you want experts who are best-fitted for your project. They can be found, but you’ll most likely to look beyond your own team. If the product has technical shortcomings due to a lack of specialized expertise, the long-term costs can be astronomical.

b. Complicated hiring process

  • What are your IT department core function?
  • What do you need to focus?
  • Do they have time and crucially required know-how for your project?

Finding and vetting the right people is a skill in and of itself. It is a process fraught with many hidden costs and the one you never want to get wrong.

c. Hard training effort

Even after finding a suitable developer, on-boarding is a lengthy and possibly never-ending commitment. Developers’ skills need constantly updating and trying to adapt, and shoehorning your in-house team into each new project is an unrealistic approach that will produce sub-standard results.

d. Lower productivity

Unless you are planning on constantly developing new software, it will be difficult to fully utilize the talent that you have hired and paid a top developer salary. Placing an extra burden on your existing IT team could also diminish their ability to support your core business functions. An overworked employee can quickly become an unhappy one.

e. Hidden costs

A highly competent and fit-for-purpose in-house team would surely brings great efficiency and productivity to a project. But assembling and maintaining such a team is at best extremely costly and at worst unfeasible. With salaries, benefit packages and project administration among a growing list of costs you will have to meet, in-house teams can become expensive endeavors.

2. Outsourcing software development

Similar to the in-house, there’re strengths and weaknesses when it comes to outsourcing.

2.1. The strengths

a. Efficient use of resources

Outsourcing can greatly reduce project up to 60% overheads. By harnessing lower labor costs and advantages such as more working hours due to time zone differences, a dedicated software development team can offer higher levels of productivity at a reduced cost.

b. Higher flexibility

Specialized vendors are able to ‘parachute in’ to work to your schedule and project requirements. This means you can build a highly tailored offshore development team specific to the development and evolution of your project. This can be achieved much quicker than building your own in-house team.

c. The ability to scale up easily

With a team of senior engineers, digital and creative talent plus established QA/ QC system, professional outsourcing software development companies like Fram^ often have the capability and experience to go successfully from development to market.

d. Specialized outsourcing

Once you have decided to outsource, the challenge becomes finding the right talent to deliver results for your project at a competitive price. There is an ever-increasing market to outsource software development. Many companies have specialized expertise and experience in various markets to bring you top talent from emerging markets.

e. Focus on core competencies

Like in any production line, the division of is key to efficiency. By working with an outsourcing partner, the development work is streamlined. This leaves you to focus on your company’s daily business operations.  

2.2. The weaknesses

a. Unexpected costs

The Aberdeen Group reports that 76% of outsourcing customers paid more than anticipated in order to reach completion of their projects. Often these costs are incurred by inefficient vendor management and project administration. Outsourcing providers need to have sufficient organizational capacity to meet your needs, to prevent any headaches in your accounting department.

b. Hidden costs

Some contractors will offer an eye-catching rate per hour, but if they are providing you with inexperienced developers, you will end up with non-scalable and low-quality code. A sub-par product will cost you much more in the long run, than paying for the best talent available. It is possible to find professional outsourcing vendors who source and vet top talent for you at a reasonable costs.

c. Risk of varying quality

With huge pools of outsourcing developers available in markets such as Vietnam, India, and Bangladesh, the benefit of having a wide range of choices available is complicated by the wide range of quality also available. Open and direct communication channels are vital for trust and understanding between the in-house and outsourcing development team.

d. IT contractors high hourly rate

If you choose to use a freelance developer you may find the required expertise comes at a premium. Often freelancers will work on more than one project at a time and where your project’s importance will fall is anyone’s guess. You need to be able to ensure your project is prioritized as much by your dedicated development team as it is by you.

e. Security and confidentiality

The risks of a breach are present in-house and are even more prevalent when outsourced. Any company considering contracting work out must be able to feel confident of the integrity of their partner, this can only be done through due diligence and an extensive search for a reputable outsourcing company.

In summary,

With upsides and downsides of both the in-house and outsourcing software development, it is a matter of examining your own needs and goals before choosing the path you wish to take.

If you plan to compete with the giants of your industry for a long term, confidently assemble a sustainable team to build and tend to your product, in-house development could be the best option.

If you are a startup with a limited budget, a company pushing for a three month MVP or an in-house team that needs to expand with specialized experts, let’s try outsourcing to software companies in Vietnam.

Outsourcing is growing so fast according to Deloitte’s 2016 Global Outsourcing Survey. It cites cost-cutting, the ability to focus on core business and capacity issues as the most prevalent reasons to hire a development team outside of their own business structure.

It is an increasing challenge of finding the right talent at the right price. With more and more success stories like Skype and GitHub coming from outsourcing developers, it comes as no surprise that more companies are now going down the path of outsourcing software development services.