Outsourcing to Vietnam: A Step-by-Step Guide
Nowadays, outsourcing software development has become more popular around the world. Previously, India and China were known as leaders in the sector because of their human resources, prices, and experience. But now, everything has changed gradually through the emergence of new developing countries, including Vietnam, which is recognized as one of the bright stars of the outsourcing market. There are many reasons why many foreign companies think about outsourcing to Vietnam.?
Should foreign companies hire outsourcing??
Customers who are new to outsourcing could worry about many problems. For example, technology providers abroad cannot commit to high-quality work, collaborate with on-site workers, or have the ability to meet defined objectives and milestones in comparison to on-site teams. Moreover, difficulties involving language barriers, distances, and maintaining contact may make many companies afraid of hiring software outsourcing.??
However, outsourcing is still a popular choice for many enterprises in recent years. Many outsourcing firms provide solutions at low costs, but still make sure that services are of the best quality, deliver the highest level of commitment, adhere to strict specifications, and meet all deadlines required.?
Why do so many companies?choose Vietnam for software outsourcing??
Although outsourcing to Vietnam has only around?20-year history, this nation soon catches up with the tendency to hire offshore providers in IT enterprises worldwide and becomes a new potential technology market generally and an offshore software development destination in particular. Here are the top reasons why software outsourcing to Vietnam is the top choice for a wide range of businesses.??
Low cost??
Software outsourcing to Vietnam is famous for its cost-effectiveness when compared to most of the providers coming from Eastern Asia, Eastern Europe, and many other nations. In fact, outsourcing to Vietnam could help to save up to 90% in comparison to the US. Furthermore, if you keep assuming China and India are the cheapest custom software development vendors, please think again! In recent times, hiring offshore outsourcing to Vietnam could help enterprises save 30% to 50% compared to India and China. This is one of the significant reasons why so many global businesses have been switching their software & IT outsourcing to Vietnam.??
A young and well-educated workforce??
Vietnam is known as a country with a young population. In Vietnam, around 65%-70% of the population is under 40, and approximately 31% is from 20 to 39. This advantage in terms of age suggests that around half of the population is suitable for joining the workforce. Besides, Vietnam also has a literacy rate of 96%, which means that almost the entire work-ready population has an education.?
In general, Vietnam has become a new, bustling IT outsourcing destination because of both the quantity and quality of its skilled labor force.??
Socio-economic stability??
Economic stability??
Vietnam’s GDP grew by 5.03% in the first three months of 2022 and is expected to reach 6.5% for the whole year. Unlike many other nations, the impact of the COVID-19 pandemic is not severe. Vietnam’s economy is evaluated as healthy and growing rapidly.??
Political stability??
There are several countries on the globe facing disputes and conflicts, but Vietnam is not one of them. Vietnam has been a politically stable nation for more than 30 years, with the same party in power since Vietnam’s 1975 reunification.??
Ethnic and religious stability??
Vietnam is primarily?free of ethnic and religious conflict. More than 95% of Vietnam’s population is ethnically Vietnamese, and over 80% of the individuals do not identify themselves with any specific religion. Many researchers confirm that Vietnam has one of the most secure and safe environments for investment, given the conflicts in Ukraine and several other regions of the world.??
Potential business environment??
Outsourcing to Vietnam is developing thanks to part of the potential business environment. Vietnam nowadays is a free market with a lot of warm and welcoming policies for overseas investment. This funding gives Vietnam's software developers the chance to grow in technical skills and gain international experience, which are necessary for supplying professional services to clients now and in the future.?
Here are the top investors in Vietnam as the leading tech co-operations:??
Language & communication??
Many decades ago, English may have been considered a barrier for Vietnamese people since most of the students in Vietnam only learned some other foreign languages like French, Chinese, and Russian. But now, everything has changed, and English has become the most common foreign language in Vietnam’s universities.? ?
Unlike other Asian languages such as Indian, Chinese, or Thai, Vietnamese uses the Latin alphabet the same as English. That is why Vietnamese people have few barriers to learning and using English. Most of the students who graduate from universities in Vietnam have been through years of English training. Especially in the IT field, the majority of developers in Vietnam can use English fluently in four skills while working on software outsourcing.?
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Outsourcing to Vietnam - How to select?the right partner?for you??
Guideline for Offshore Outsourcing to Vietnam?
Here are basic steps-by-steps to help you proceed with your outsourcing initiatives.??
1st: Figure out the goals and scope of the project?
A project’s failure is usually for popular reasons, like a lack of mutual understanding about the project's goals and background. This issue is even more complex when it comes to outsourcing, as your provider is a newbie to your business, culture, and market landscape.??
That explains why it is vital to define precisely your business requirements and have a clear list of objectives before launching any project.?Specific?points to include are deadlines, features, tasks, expenses, timeline, the scope of work, technologies, intended features, etc.??
2nd: Make a list of potential software outsourcing providers and narrow it down?
To choose the right partners for your business, consider searching these sources to get to know them.??
Make the most of this powerful tool by using relevant keywords during searching. Some suggested common phrases are?"software outsourcing firm in Vietnam" or "Vietnamese offshore outsourcing companies."??
This is known as the safest source, but it is not popular. Ask someone who knows about outsourcing to Vietnam in your network; they might give you many valuable insights.?You could even end up hiring the software development partner thanks to their understanding. ?
There are other platforms like G2.com, sortlist.com, and Clutch.co that you could use to learn about benchmarking against competitors or client reviews of vendors. Next, try to narrow the list down to just below ten providers.??
3rd: Connect with and select the best vendor for your needs?
Start by connecting with each provider on your list and discussing your plan with them.?Then, evaluate potential candidates through details such as their levels of expertise, resource availability, degrees of knowledge, case studies, communication skills, etc.?Remove unsuitable outsourcing providers and shorten the list to 3-5 best-fit partners. Choose the right vendor for your business and keep the rest as your backup selection.??
4th: Create a win-win contract ??
Please take note that contract specifications may differ based on specific cases. But necessary terms include notice periods, payment terms, a non-solicitation clause, confidentiality & data protection, jurisdiction, and intellectual property rights. To achieve a contract that works for both, do not underestimate any single contract aspect. The advice here is to consult a lawyer to avoid issues with your outsourcing provider during cooperation.??
5th: Build an effective communication and management system?
To prevent problems involving communication gaps, you and your team should build efficient communication channels at the early stage of the project. Consider using several pre-built project management solutions such as Jira, Trello, and ClickUp to support the work. And do not forget to have regular updates and follow-up through meetings or reports to ensure problem-solving ability and mutual understanding.?
Why TECHVIFY when outsourcing to Vietnam??
At TECHVIFY, we offer custom outsourcing solutions that allow enterprise owners greater operational competitiveness and increased business value.?
TECHVIFY is one of the rapidly expanding software development outsourcing providers. We have become a reliable software partner for many enterprises in Singapore, Japan, the US, Europe, and more.?
We have 200+ highly qualified IT experts and engineers who have years of experience developing overseas projects. They could help you develop custom software development solutions to suit your business's specific demands and requirements. More than that, by supplying time zone aligned services, our developers are always ready to listen thoroughly to all your requests and support you 24/7, all day and night.?
Unlike other regular providers, we don't just stop at supplying output products after meeting the required deadlines and milestones; we also consult with clients from the idea stage to the project's subsequent phases. We ensure our valued customers have the best-quality applications on time and at the lowest cost. TECHVIFY's ultimate goal is to generate long-term value throughout our clients' digital transformation processes.??
Because of our years in the market working with many big global partners, TECHVIFY has the capability and experience to complete any size outsourcing project from start to finish with results that will exceed your expectations.?
Our experts are ready to be here to listen and have a remote consultation with an excellent project idea from you.???