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The shortage of personnel - especially software engineering personnel at non-tech companies, is still happening almost every day. If your official demo date is coming but your internal technical personnel is still new to the job? Is your project simply temporary, and it is not required to employ additional staff to cover each of those projects? Or, do you wish to boost operations by researching the market in the nation where your business plans to invest? All of the aforementioned requirements will be met through the utilization of a dedicated team that will be outsourced: ODC stands for offshore development center.
ODCs have been set up by forward-thinking businesses to help even out the cost of expanding their software development operations. With reduced costs, easier taxes, and a worldwide resource of expertise, the case may be made for going global. Don't let the difficulties of finding and recruiting talents get in the way. The following full guide to success today will give you a better look at setting up an offshore development center.
Table of content:
1. What Is An Offshore Development Center (ODC)?
2. Why More And More Companies Opt For Offshore Development Center Service?
3. Offshore Development Center Services - Vietnam Odc Services
5. Setting Up An Offshore Development Center In Steps
6. Things To Keep In Mind And Risks To Avoid When Setting Up An Offshore Development Center
7. What Are The Cost Components Of Hiring The Best Offshore Software Development Team?
8. Offshore Development Center Models
9. How To Manage The Offshore Software Development Team?
In case you need the help of talented Developers, which answer will you think of first? In-house personnel? Not a bad idea. But look at your schedule and see how much time you have left to conduct interviews, select staff, train, take a few more months for them to get used to the environment - the profession… The offshore development center (ODC) option seems to be the ideal alternative if you want to quickly put specialized and competent staff resources to work from the start.
Then, what is an ODC? Simply put, one model for software development is the "offshore development center," or ODC, which is a remote agency in another nation with all the necessary personnel and infrastructure. In addition to the advantages of saving time and budget for points such as recruitment, office administration, facility investment, etc, the ODC model also handles other issues that arise with your own staff such as: taxes, accounting, human resource management - which may relieve stress at the home office.
Why More And More Companies Opt For Offshore Development Center Service?
In establishing an offshore software development center, the price factor sounds quite pragmatic at first. But for SMEs or startups, can they afford to hire new employees and give them a salary every month in the long run? It's a fact to report that, even in this post-pandemic era, not all companies (large and small) can be confident that they will inevitably avoid collapse, which can happen at any time. Following are the main reasons why more and more companies opt for offshore development services:
Choose a reputable offshore development center among the many names in Vietnam ODC Services to entrust your important project to them. Also known as 'try before you trust'. Instead of having to hire offshore developers or an offshore development team freelance, choose an offshore software development company that has a powerful ODC services and a team with at least 400+ employees. Because you will get back the following specific advantages:
? Learn more: Tips For Choosing The Best Offshore Development Company
One of the most typical case studies about offshore software development center establishment at Saigon Technology is Merit Logistics. As an industry pioneer, Merit Logistics has been at the forefront of developing innovative supply chain solutions based on strategic planning to boost partner businesses' productivity and enable operations to function at peak performance.
Merit Logistics has been around for over a century, and in that time we've amassed a formidable logistics team with a track record of success that proves we're true professionals who are eager to lend a hand to any partner firm that needs it. Professional activities, earnings, and maintaining high competitiveness in today's harsh market.
What The Client Wanted
Preferring agile offshore development, the client wished to keep maintaining, as well as developing and rebuilding a rather cumbersome and out-of-date ERP system, whose source code has been developed through many vendors and for many years (6 years).
ERP systems include:
According to the ODC model, the project was divided into 3 main phases. The first phase was to study the current system and document as many business rules as possible in the project.
To the second phase, maintaining the existing system and further improving the necessary features were the core operations. Then, starting to make a completely new system (with new technology), more convenient and easier to use with more performance based on the requirements studied from the old system; as well as performing compare testing to ensure the results of steps.
The third phase was to conduct Android AI applications to support checkin / checkout for Merit employees. The App can work with both old and new systems, allowing the use of a PIN or face to check in/ checkout.
Moreover, this application was designed to meet a variety of working conditions under different light levels and for all employees. (Regardless of age, young, colored, fair skin)
Building a Team
Saigon Technology provided the resumes of the programmers required by the client. Then a dedicated team of required personnel was identified on the basis of the client's approval. In this team, the Project Manager’s primary responsibility was to effectively communicate with clients on all matters relating to the ODC and assign task priorities, supervise the work and guarantee the quality to ensure the success of the ODC.
? Learn more: Case studies - Offshore Software Development at Saigon Technology
Here is the ultimate guideline to set up an offshore software development center:
The following checklist is intended to be quickly referenced by subject matter experts, effectively applied when building an offshore development team:
To ensure that you do not miss any tasks or functions for your project, a rough outline checklist is essential in the first step of this process. To the contrary, fearing scarcity should be your biggest concern! Freely write down all the ideas and concepts that come to mind, even if there are duplicates (which you can easily delete when completing the tasks).
Use search platforms: Names like LinkedIn, Clutch or simply Google. Try to find their name and then simply press Enter to discover more information about them.
Find ways to get in touch with the previous clients of your intended offshore development team: Politely reach out for their former clients and ask if they can share or recommend this partner. Surely a few minutes of communication (if any) will be much more valuable than just reading information about them.
If everything goes smoothly in peace, that's okay, both sides can work in harmony. But what if there was a conflict? Are you sure they will always 'fair play' in this situation, or will they lock all codes? My sincere advice is that you should negotiate to always have access, the account owner, in your hands on all types of accounts created.
In your initial conversations, be sure to familiarize yourself with certain processes in their work as your legal entity. And remember, NDA (non-disclosure agreement) is also an important factor for offshore software development teams.
Frankly, the software outsourcing model that is most suitable for you at the time you have decided to read this line, is Time & Material. Shortly, you’d carry out the payment according to the capacity and performance of the work they bring – based on the price list and negotiated price regulations. Since the fixed price will include a minimum of 25% additional costs to deal with possible risks. So it can be said that the price will be pushed up.
I'm sure it won't be necessary to say too much about this item, because Slack, Jira, Trello, Zoom, Notion... are so famous around the world right now - especially after the last lockdown to avoid the raging pandemic. onion. It sounds simple, but it is better to prepare carefully about everything in advance than to passively wait for the partner to suggest the following, right?
To hire offshore developers or to partner up with an ODC team, there will be time zone differences. Confirm in them what you need to accommodate time zone differences: If you have an ODC team, and they are working while you are sleeping, you can simply ask for a work result and you will get it when you wake up.
A demo of the MVP (minimum viable product) presented at the end of each sprint is considered quite important. Since the MVPs will be the determining factor for the correctness of the whole campaign and project.
Hiring an offshore software development team or specifically using the best Vietnam offshore development center service will certainly require more money than just hiring freelancers without certification and training.
In which, service price in target market, labor cost, equipment investment price, extra effort price... are the main cost components of hiring the best offshore software development team. And the sum total of these expenses is what you may expect to pay. And the following will be the factors influencing the price of software developed offshore:
The budget for software outsourcing is involved by the scope of the project, as it will also include the time and effort of the offshore software development team involved. The number of team members required and the total cost of developing software offshore both increase proportionately with the amount of features and other aspects that must be considered.
The scope and budget of a project are affected by several professional choices made during its development, such as the architecture, the user interface and user experience designs, the tools and methods used… Depending on the difficulty and how tight the deadline, the price of Vietnam offshore development center service may vary.
Obviously, the expertise and experience of the offshore software development team also affects the offshore software development cost. Hiring a competent team of senior developers and experienced consultants will definitely drive up the entire project's overall cost.
It's possible that the offshore software development team may tack on additional fees for things like delivery and upgrades, licenses, and other infrastructure charges. Of course, we can all prevent this to some degree if we ask the vendor detailed questions and ensure they are dedicated to transparency from the start.
Based on global averages for software development company rates, using web app development as an example (if you're also interested in web design and searching for a provider, this would be fairly ideal pricing estimate), we recommend the following price points for software products:
With a straightforward framework, uncomplicated needs, and a straightforward supply chain. We have one month to finish such Simple applications for $3,00 to $17,000.
As the sum of money increases, it becomes necessary to maintain a high level of professionalism and client dedication. It takes around three months and costs between $17,000 and $55,000 for the professional level.
The best user experience and user interface (UX/UI) in the world may be found in web applications. At this stage, owners may successfully automate their businesses to generate a steady profit. Complex projects take us between 6 months and a year to complete and cost between $55,000 and $80,000.
Because it has to accommodate businesses of various sizes, from startups to multinationals. It took us more than six months to learn the ins and outs of corporate culture and successfully execute the massive project that cost well over $100,000.
This ODC model is where a complete team is assembled in accordance with the project's requirements. It's helpful in a broad range of situations, such as when maintaining and growing legacy systems, offering assistance for it, or building brand new code.
With input from the client's headquarters, your chosen offshore development center assembles a team to carry out the product's delivery by jointly planning, researching, analyzing, designing, and supervising the necessary activities.
When it comes to offshore development center services, using this strategy, the offshore team you chose would set up an offshore development center, recruit key personnel on your behalf, and then hand over the operation as a fully working regional office.
The following are critical attributes of any ODC (or Offshore Software Development Team):
There are various managerial considerations to bear in mind while working with an offshore software development team:
The key distinction is how to handle problems often experienced by offshore team:
As a software developing team with many years of experience, we don't consider difficult factors as 'disadvantages'. Because simply, they are just points where the two sides are not satisfied or have not come to an agreement with each other. Everything is going on with this life, we - the staff members of Saigon Technology, prefer to use the word 'yet' rather than using another negative connotation.
Saigon Technology, with nearly 10 years of operation in the field of software engineering, has helped many partners – mainly SMEs, succeed with high quality software products, and from those products, they could conquer and serve their customers better. The range of services that we are offering stretches from finance, healthcare, banking, logistics... with the names of customers from powerful countries such as the US, Australia, Germany, the Netherlands, France, Belgium, and Singapore…
As one of the leading software outsourcing companies in Vietnam - recognized by VINASA, Saigon Technology is constantly devoted to contributing to bringing good values ??to the international IT industry in general and Vietnam in particular. Do you have questions, ideas, cherished plans? Let us listen, give you advice and support. Free quotes are awaiting!
As a Leading Vietnam Software Development Outsourcing Company, we dedicate to your success by following our philosophy:
YOUR SUCCESS IS OUR MISSION.