Software Outsourcing

Building relationships with the client is the cornerstone of custom development. The right type of contract helps minimize risks and increase the chances of a positive outcome for both parties: the customer and the development company. Let's review one of the most common pricing models in outsourcing - Time and Materials contract.

IT outsourcing is a complex and transformational field with a large market share globally. It might appear overwhelming trying to find the right outsourcing partner for your business but if you have clearly set goals and know your business needs, you can surely find the right fit.

The benefits of outsourcing can be substantial - from cost savings and efficiency gains to greater competitive advantage. On the other hand, loss of control over the outsourced function is often a potential business risk.

According to a statistics from Japan's Ministry of Economy, Trade and Industry (METI), Japan has an average of over 100,000 engineers working in the fields of information security, cloud computing and mobile technology. For new technologies such as AI, Big Data, IoT and Robotic, etc., Japan will likely lack about 600,000 IT engineers by 2030.

Is Vietnam Good for outsourcing it? Vietnam software development outsourcing is a promising industry with many years to grow and a lot of potential to explore. In 2018, Vietnam exported $3.5 billion worth of software, according to the Ministry of Information and Communications. Vietnam is rated as the top 5 countries for software outsourcing, as of 2019.

The choice between two outsourcing models should be based on a detailed cost-benefit analysis. If your company needs specialized services not sufficiently available within your own IT department at a specific period of time, staff augmentation is an appropriate variant

In an uncertain and dynamically changing business environment, the demand for expert IT services is constantly growing. However, the lack of skilled software developers is the reality today’s market must face and adapt to.

India and China, have established themselves as leaders in the field. However, the picture of outsourcing services has changed. Several new countries, including Vietnam, are becoming the rising stars in the IT outsourcing market. With strong investment from giant tech companies in the development of a skilled technical workforce, Vietnam is showing to be a promising destination for technology generally and for software outsourcing services particularly. Here is why Vietnam software outsourcing will achieve a top position in global software outsourcing in the very near future.

For many foreign companies, software outsourcing to Vietnam is regarded as an effective software development solution due to its cost-effectiveness and high quality. When compared to developing software in the United States, companies can save up to 90% of costs by outsourcing to Vietnam.

Costs of developing software vary and it’s absolutely logical – each project has peculiar features, the scope of work, timeframes and so on. That’s why during project management cost estimation is crucial on the initial stage to plan a budget properly and achieve successful results eventually.