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

Author: INNOTECH
Date: 09/11/2020

Offshore Development Center 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 Center. In the article, we will introduce how to build an offshore development center in Vietnam (A-Z).

 

What does ODC meaning?

 

 

An ODC (Offshore Development Center) is a software development center located in another country that can help businesses reduce the in-house cost and workload significantly.

Offshore development centers are usually located in India, China, the Philippines and Vietnam where the cost of living is much lower. Besides, those countries also have political stability and available resources that are suitable for setting up an integration process of an ODC.

 

Benefits that OCD brings to

 

  • Cost-effective

 

Building the infrastructure for hiring specialists and developers, it would be time and cost consuming. With an Offshore Development Center, they can do all this for you without any complaints. Especial in some Western countries, the cost of this is much more expensive compared to Asian countries. As a result, your project could be finished faster in less time and cost if you agree to corporate with an Offshore Development Centre.

 

  • 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 labor force in the IT field is becoming larger with higher quality. Therefore, you can easily find experienced and high-quality IT specialists in an Offshore Development Center.

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

One of the Offshore Development Centre benefits offers 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.

 

  • 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 there is a smart move since all of your developers are locals, they can help input some ideas which localize your product for their market.

Expand the market to a foreign country being on their country’s marketplace is a way to increase the sales volume, reputation, get closer to the customers, and understand their needs better. This is also a way to be physically present in the target market, at the same time reducing logistics costs.

 

Offshore development center model

 

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 is an offshore development center model that 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.

 

Read more: “How many type of software outsourcing contracts are there in the world?

 

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 building 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 software outsourcing partner solutions, they will show you all cost of the project. And then, you may have better preparedness for this.

 

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 managing the team and security risks, do all the legwork and legal paperwork, etc. Your partner will provide things and your job provide a detailed scope of the work you need them to do.

 

Control

 

Your software 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 does it cost, predict unexpected expenses that may arise and plan them with your outsourcing partner.

 

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.

Moreover, one of the biggest challenges with the offshore development team is working in vastly different time zones. Choose a team that is flexible with time will more be suitable. This enables them to have time for daily meetings, scrum, and Q&A.

 

Technical Support

 

Ensure your ODC 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 project, 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

 

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 recover when accidents occur.

 

Read more: “Finding an Offshore Development Company at Low Costs

 

Now, after all the research and consider the element of 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 working.

 

If you are looking for an Offshore Development Center to provide solutions for your companies, we’re happy to grant our services. Contact experts at Innotech Vietnam for any questions about building an ODC!

Email: info@innotech-vn.com