In the last few years, Offshore Development Center has increasingly stood out as the most popular model among other outsourcing methods. Like other tech giants, Vietnam is also working very hard to make it to the list of the top Offshore Development Centre destinations globally. The country has attracted the attention of many multinational companies due to its expanding opportunities and booming opportunities.
Creating an ODC (Offshore Development Center) offers is one of the best options for entering Vietnam’s promising market. Here we will give you useful tips and information to set up an ODC if you consider building one in Vietnam.
What is an offshore Development Center?
As the name suggests, Offshore Development Center (also known as ODC) is an offshore team of developers that offers software development services to the company, but with its location abroad. This means that an ODC is a subsidiary of a company that operates in another country. The Offshore Development Center is increasingly becoming a popular model for various companies, including enterprises and startups, and one of the fast-growing forms of partnership in Vietnam.
So, how do you set up your Offshore Development Center in Vietnam?
Setting up an ODC in Vietnam may pose some challenges, but it is not as hard as most people tend to think. Here are some of the factors that you need to consider when setting up an Offshore Development Center in Vietnam.
Location
The most important factor to look out for when setting up an ODC in the country is a perfect location that meets all your expectations and requirements. For instance, Ho Chi Minh City offers an ideal location for building your ODC as it is the biggest urban center in Vietnam. The city has large pools of IT talent, logistics, convenient transportation, infrastructure, resources, and low living cost.
Outsourcing Partner
Choosing the right IT outsourcing company plays a key role in the success of your offshore development center. The right outsourcing partner will provide full assistance in setting up the office, recruiting top talents, managing security risks and team, and, most importantly do all the legal paperwork and legwork for you.
Cost
When it comes to any investment, the cost is always a major factor as it determines what you are capable of achieving in your project. Setting up an offshore development center is a long-term investment, which means that you should consider all the costs that might potentially arise in the future. This will help you choose the ideal solutions that will allow your business to save a lot of money to invest in other fields. Consequently, it is advisable to choose an outsourcing partner that charges reasonable prices and without any hidden cost.
Offshore Team
Once you choose the right IT outsourcing partner, the next thing should be ensuring that your partner hires a team of professionals with adequate skill sets and experiences, dedication, work motivation, and the commitment to push them in the long run. The ideal offshore team should feature the right combination of senior developers and a project manager to ensure things are done according to plan and on time. It is also good to ensure that your offshore team can work successfully with minimal supervision.
Communication
Communication is important when carrying out software development projects as the team understands what you mean. It also makes it easy to pass any necessary information to them. Choosing a team with the right language skills solves the language barrier problem and allows the team to attend to your plans accordingly. Fortunately, English is now the second language in most universities and schools in Vietnam; besides, Korean, Chinese, French, and Japanese are also popular in most institutions as well.
Apart from the language barrier, the other challenge that affects the offshore development team is working on different time zones. Therefore, it is also advisable to ensure your partner chooses a flexible team to allow you to have time for a Scrum, Q&A, and daily meetings.
Control
If you are planning to set up an ODC in Vietnam, you should ensure that the outsourcing partner follows your company’s guidance, guidelines, culture, and regulations perfectly to allow you to keep track of their operations. You should also control your budget, predict the unexpected expenses and know what you want and its cost and plan for them with your outsourcing partner.
Technical support
It is also good to ensure that your offshore development center provides technical assistance with full responsibility before, during, and after the project.
KPIs (Key Performance Indicators) and Metrics
Ensure that your ODC is aware of your Key Performance Indicators (KPIs), define your goals, and discuss how they meet your expectations, budget, and goals. Trains your team on service and product and everything about your goals to allow them to realize your ideas.
Quality Assurance & Testing
This allows for better control of quality as it evaluates the product’s compliance with the original requirements easy and fast. Moreover, it offers valuable insight into the expectations of the end-user.
Security
Lastly, it is important to look for an offshore development company that ensures that your company information remains confidential and safe. Moreover, it should also provide solutions and recovery methods in case of data loss.
How to Set Up an ODC
- Ensure your organization structure suits your new team and ensures that each member understands their responsibilities and roles.
- Plan your ODC security guidelines and measurements. In this case, you need to define the parts of the projects that are authorized and accessed by which members.
- Ensure every job vacancy has its descriptions. You need to pay considering all the aspects of the applicants, including education, qualifications, and soft skills.
- Development process management. Outline the timeline and select your approach for each project
- Allow your team some time to understand their roles and responsibilities in the company.
- Team management. Ensure that the in-house team and the offshore development team work together as one unit.
Conclusion
Offshore Development Center provides great convenience and cost-effectiveness. Therefore, ODC is an emerging trend that is likely to last for years and years. It is advisable to carefully look at the ODC’s requirements before you decide whether to set up one. We believe the information that we have shared here will help you build a successful offshore development center.
Interesting Related Article: “Outsourcing vs Offshoring: Which One is Better for Your Business?“