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Telemedicine App Development: Features, Costs and Process

The pandemic of COVID-19 has accelerated digital health. As a result, healthcare organizations that want to provide healthcare services for patients from a distance are now focusing on Telemedicine App Development.

According to Statista, the worldwide telemedicine market will be worth $559.52 billion by 2027. As a result, healthcare will unavoidably move online. But what are the advantages of Telemedicine for businesses?

Telemedicine allows doctors and patients to simplify the consultation process and stay in touch at all times. Doctors with private practices no longer need to rent office space, and hospitals can lower readmission rates. Furthermore, each healthcare provider gains a new and robust channel through which to distribute their services. Continue reading to understand how to create a telemedicine app, as well as its pricing and features.

To summarize, the cost of developing a telemedicine app ranges from $20,000 to $250,000. The average cost of developing various types of telehealth apps is:

  • Store-and-forward costs around $20,000 – $40,000 
  • Remote monitoring costs between $25,000 and $100,000 or more.
    • Real-time interactive costs $35,000 – $75,000+

The figures are estimates; the ultimate cost will be determined by the telehealth app’s specifications and functionality.

1. What is Telemedicine?

WHO describes Telemedicine as the “delivery of health care services, where a distance separates patients and providers”. In short, Telemedicine solutions involve using communications technology to link healthcare providers to their patients and each other over great distances. Telemedicine manifests in several ways, all of them centered around data transfer and communications. For example, if your practice consults patients over the phone, you’re already practicing Telemedicine.

In the times of the COVID-19 global pandemic, Telemedicine Software Development became even more relevant and started transforming healthcare to the next stage. The main goal of Telemedicine is to provide patients with quality, cost-effective health services wherever they are. It is precious in remote areas, vulnerable groups, and aging populations.

2. So, How Do Telemedicine Apps Work?

Telemedicine App Development 1

Patients and doctors must have three items to use Telehealth or Telemedicine App:

  • Camera
  • Microphone
  • Custom software

The software is in charge of linking doctors with patients and storing EHRs. The camera and microphone are used to inspect patients and for voice communication. However, there are various types of telemedicine app development solutions.

Let’s go over the following:

  • Video Conference Online – The most often used sort of telehealth app. It allows clinicians to evaluate patients using their devices’ cameras. Sometimes patients already know what is causing their symptoms and only require confirmation of the diagnosis. Patients can make an online appointment with a doctor on their app.
  • Treatment Suggestions – This category includes patients who already have a treatment plan. Users can SMS their doctors questions about their treatment, such as a medicine schedule. Because text messages do not distract doctors from other clients, they are prioritized. These apps frequently contain a voice call capability for more important questions.
  • Prescription Administration – This type enables patients to obtain medication prescriptions online. The technologies that power telehealth apps save users’ EHRs, allowing clinicians to make prescription decisions based on their medical history. Users merely need to apply for a recipe and wait for this appliance to be submitted. They can then bring a printed prescription to the drugstore or just present it on their gadgets.
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3. Types of Telemedicine Applications

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Up to today, there are 07 major types of Telemedicine applications, each of which comes to solve a specific problem for remote patients:

3.1. Telemedicine Networks

Depending on the economic resources available and the needs of the medical professionals involved, there are different ways to distribute medical data. In the US, many hospitals and clinics use dedicated networks to share information. These can be routed over the Internet or use dedicated data lines. There are hundreds of such networks operating in the US today, linking thousands of healthcare facilities.

3.2. Real-time Telemedicine

Real-time Telemedicine, a.k.a live Telemedicine, makes it easy to do a doctor-patient visit anytime, anywhere. Live Telemedicine includes any two-way communications – including video conferencing and phone consultations that let providers and patients communicate in real-time. Assessments of medical history, basic visual examinations, psychiatric evaluations, and even ophthalmic tests can all be done via real-time Telemedicine.

3.3. “Store-and-Forward” Practices

Store-and-forward Telemedicine makes patient records and medical data more accessible across long distances. All sorts of useful medical data (e.g. medical imaging, test results, bio-signals) can be acquired and transmitted across vast distances. The biggest advantage of this type of Telemedicine is that it doesn’t require the simultaneous attention of the delivering and receiving parties. A field technician, caregiver, or specialist can collect the necessary data, upload it, and leave it for a detailed inspection by another provider at a later time.

3.4. Remote Patient Monitoring

Another type of Telemedicine is called remote patient monitoring. Remote patient monitoring allows healthcare providers to monitor patients’ health data from afar, usually while the patient is at their own home. RPM in a Telemedicine App can significantly cut down on the time a patient needs to spend in the hospital, instead letting them recover under monitoring at home.

3.5. Consultation Between Specialists and Primary Caregivers

Telemedicine can improve communication between the members of a medical team. A primary physician can get greater access to a wide range of specialists without requiring any travel. Secure video conferencing platforms make it easy for different professionals to collaborate productively on a given case, with or without the presence of the patient in the communications loop. 

3.6. Medical Imaging

Radiology and other diagnostic specialties deserve special attention in any discussion of Telemedicine. Modern technology has vastly accelerated the rate at which x-rays, CT scans, and other important images are distributed from one medical professional to another. Broadband transmission speeds allow these images to be sent from their point of capture to the physicians and specialists who need them almost instantaneously. 

3.7. Reaching Out To Patients

Thanks to Telemedicine, healthcare professionals have multiple ways to interact with patients in their own homes. Web-based services, such as patient portals, allow providers to share basic information and answer simple questions. More robust connections can let professionals gather data from medical equipment in the home such as pacemakers, fetal heart monitors, and pulmonary systems. Patient portals can be used to recommend health-focused mobile apps or educational materials, such as articles and videos. Patients may even connect with physicians in virtual visits, face-to-face, from their own homes.

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4. Why Build a Telemedicine App?

Telemedicine App Development 5

We now understand the concept of Telemedicine App Development. What, however, are the advantages of this software for both patients and businesses? Let us focus on each of them individually.

4.1. Healthcare Cost Savings

Businesses that use remote healthcare services do not need to rent office space. As a result, more self-employed and experienced doctors will be able to offer their services. They previously worked for a corporation, but telemedicine app features allow them to become self-sufficient and deliver services independently.

Telemedicine app development can assist more than only self-employed doctors. Clinics get increased consumer flow due to patients not having to wait in lines, and the total consultation procedure becomes speedier. As a result, hospitals may generate more revenue in less time. Furthermore, the study found that telehealth apps lowered typical maintenance expenses by 94%.

4.2. Treatment that saves time

Some doctors work in a traditional hospital, while others may be on leave. A sophisticated health screening could take weeks and hours of commute time; however, not with Telemedicine. A person’s time spent seeking health care through telemedicine apps was cut by 56%.

How do you create a telemedicine platform that saves your customers time? Allow consumers to arrange a doctor’s appointment at a convenient time without leaving their homes. The consultation begins on time, so you can schedule multiple meetings in a sequence.

4.3. Improved Access to Healthcare

According to the NRHA, there is a scarcity of healthcare workers. Telehealth apps can be extremely beneficial to folks who live in remote, rural places. If there are no nearby healthcare facilities, having an app and a cellphone network or WiFi is sufficient. Furthermore, citizens from low-income countries can seek counsel from international physicians. In middle-income countries, for example, approximately 75% of patients with mental problems do not obtain treatment. By giving 24/7 online help via cell phones, mental health app development makes it more manageable and effective.

4.5. Doctors’ Effective Time Management

According to studies, approximately 15% of physicians suffer from burnout and depression. Both self-employed doctors and hospital and clinic personnel can successfully manage their time. Doctors will not miss any appointments thanks to the in-app schedule and push reminders.

Companies may sync CRMs with the software while developing telemedicine apps. This telemedicine software feature extends the usefulness of both administrative personnel and clinicians. Administration can monitor the doctors’ workload to ensure a healthy work-life balance, and doctors can request sick days and shift changes through the app.

4.6. EHR Access Made Simple

Telehealth software stores EHRs (electronic health records) so that doctors can access them whenever they want. A centralized location for a patient’s clinical records saves the doctor time. Patients can also be kept up to date on EHR changes. The only issue is security. Leaks of medical records are unacceptable, and a single error can result in massive fines. We’ll get to the safety concerns later. According to HealthIT.gov, 75% of doctors believe their EHR helps them boost patient engagement by providing better patient care and reducing medication errors.

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5. Telemedicine App Development Core Features

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How do you build a telemedicine platform? You must create a feature list and select tools for telemedicine software development. Any telehealth app should include both a physician and a patient interface. Their feature sets will differ depending on their roles.

5.1. Telemedicine App Features for Patients

Registration, video/voice calls, uploading EHRs, and other functions should be available on the patient side.

  • Registration

First and foremost, there is the sign-in option. Because telemedicine apps hold a lot of personal data, such as EHR, a personal account is essential. Furthermore, it is more convenient to manage appointment schedules in-app rather than remembering them. Patients can sign in using their email address or third-party solutions such as Facebook Login and Google Sign-In. Personal accounts, on the other hand, must be secured, therefore use two-step authentication by SMS or email.

  • Profile Administration

Following registration, a user must create a personal profile. It contains general personal information such as name, gender, and age. The user’s EHR is the most essential piece of information in a profile. Doctors can use it to analyze patients’ health problems and review their previous treatment histories. Keep in mind that this information is confidential and should only be available to doctors and the owner. HIPAA standards restrict unauthorized third-party access to EHR, so take this carefully.

  • Filters and Search

Patients will be able to find the proper providers thanks to search algorithms. Users can search by medical specialty, proximity, language, rating, and other criteria using filters.

  • Conferencing via video

A critical component in the creation of telemedicine apps. The video should be transmitted in the finest quality possible so that the doctor can see any potential traumas or symptoms. The audio should be loud and clear as well. Because each user has a unique internet connection, your software must automatically adapt the video quality to avoid buffering. However, you must maximize the real-time connection as much as feasible. Streaming protocols such as RTMP (Real-Time Messaging Protocol) and WebRTC (Web Real-Time Communication) are excellent examples of telemedicine technology for developing a video conversation.

  • Text Messaging

When video calls are not required, customers can send text messages to physicians. Because text messages do not require a separate consultation, this is an option for resolving small difficulties. Video calls can divert the doctor’s attention away from other patients, whereas text messages can be answered in free time. Attaching photographs and files is a fantastic addition to text conversation. Twilio is a platform for creating live conversations for applications in terms of tools. Twilio has recently become a HIPAA-compliant platform, making it suitable for telemedicine app development.

  • Calendar

The in-app calendar allows patients to track and organize doctor visits. If users need to postpone the consultation, they can do so directly in the calendar while waiting for the doctor’s approval. The Google Calendar API can be used to sync the schedule with Google Calendars. As a result, users will receive notifications from Google Calendar and be able to view the given dates via a widget.

  • Payment Details

A critical component in the development of any telemedicine app. You have the option of using a custom payment provider or a third-party system. In any case, keep security in mind. Before utilizing third-party services, you must undertake research and select a reputable provider. When developing your own payment system, adhere to all current data regulations and security protocols.

Stripe, Braintree, and PayPal are the most popular payment gateways for telemedicine app development options on the market. They enable fast transactions and safe payments. Third-party fees, on the other hand, are the tipping point.

Third-party solutions can typically suit all business requirements. If you want to construct a custom payment system, you need to employ a competent software development company.

  • Rating Systems

Rating systems, reviews, and grades will assist patients in locating a reputable physician. You can create a one-to-five scale similar to Uber. Users can rate the doctor and provide a brief note after their appointment. The client’s health is the first goal of telehealth service, so consider the consequences of unethical doctors. Again, you can take Uber’s lead. If the doctor receives a three or lower, they are asked to improve the quality of their service. If nothing changes after a certain amount of time, the account is blocked.

Customers can also receive grades. If a patient was scheduled for an appointment and does not show up, the doctor may give them one for wasting their time.

  • Notifications

If you’ve opted to abandon Google Calendar sync, you must create notifications for your app. They’ll remind users about appointments and keep your app up to date. Firebase Cloud Messaging is a technology that allows you to deliver notifications from your server to the devices of your customers.

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5.2. Telemedicine App Features for Doctors

Some telemedicine app functionalities are also available on the doctor’s side. Some are comparable to the patient’s side, while others are not.

  • Doctor Profile

Doctors must specify their expertise, medical competence, experience, and other information here. The more information doctors reveal about themselves, the more credible they seem in the eyes of their patients.

  • Calendar Administration

You can offer the doctor an admin role in the patient’s calendar using telehealth technology tools. This makes it easy for doctors to fit the appointment into their calendars. Plus, the client will have one less problem to deal with. If a patient needs to reschedule a consultation, they can submit a request to their doctor.

  • Examining EHRs

Doctors, unlike patients, should be able to look at their patients’ EHRs. Make certain that doctors are unable to download EHRs from your database. If they misplace the phone containing this critical information, both of you will be punished.

  • Communication

Telehealth app development necessitates two-way contact between the patient and the doctor. Doctors should be able to text patients to inquire about their therapy and overall health. If a patient requires a scheduled physical examination, the physician should be allowed to schedule visits independently of the client.

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6. Technologies Used in Telemedicine / Telehealth App Development

As can be seen, there are numerous telemedicine app functionalities to be developed. But what is the technology underlying telehealth, and how can you improve your app? The bulk of current development trends can be useful during the building of telehealth apps. Artificial intelligence, the Internet of Things, cloud computing, and other technologies can be applied to your project. Let’s take a quick look at these usage cases.

6.1. Artificial Intelligence (AI)

Chatbots are the most promising AI application in Telemedicine. Doctors are obviously not always available. A simple FAQ chatbot can answer users’ questions regarding the doctor’s availability, competence, and other topics. Chatbots can even book a consultation for a patient who doesn’t have any explicit requirements. Chatbots cannot, of course, prescribe medications or create treatment plans, but they can automate some mundane operations and streamline the doctor’s workflow.

6.2. IoT

Another example of telehealth technology is the Internet of Things. Doctors can monitor a patient’s condition and receive emergency notifications using wearables. Fitness trackers, stress meters, scales, and other devices enable clinicians to collect patient health statistics and change treatment programs based on the data. Smart medicine dispensers enable doctors to schedule pills without consulting the patient. When it’s time to take pills, a dispenser will send notifications to the user’s phone.

6.3. Cloud storage

When it comes to storing all of the collected data, you have two options: cloud vs. on-premise. With an on-premise solution, you must rent a server room, purchase gear, and construct a fault-tolerant network. Eventually, you will have storage that you can manipulate and scale as needed. However, the costs are far higher than they would be with cloud storage.

A gigabit of storage with Amazon S3 costs $0,022 per month. Even if the cost varies depending on your location and the amount of space you require, it is still substantially less expensive than renting and operating your own servers. Furthermore, you do not have to create a security system from the start. Everything was created by Amazon for you.

6.4. Blockchain

Patients and doctors can communicate data in a safe encrypted way thanks to blockchain technology. Given the sensitivity of the data, blockchain becomes a solution to the question of how to make telemedicine software more secure. Healthcare professionals are actively focusing on health information exchanges over distributed networks in order to seamlessly transfer patient data.

6.5. Big Data

A vast volume of data is generated and processed by healthcare organizations. Big data allows healthcare facilities to collect and analyze EHRs (electronic healthcare records). The information acquired can be utilized to improve patient care, give more accurate diagnoses, conduct medical research, and lower healthcare expenditures. Furthermore, Big Data analytics tools can be used to determine the correct dose of medications and develop unique treatment regimens for remote patients.

6.6. Deep Learning

Deep Learning integration helps the telemedicine software to get insights from enormous amounts of medical data. This technology aids decision-making and enables healthcare providers to make more accurate forecasts about their patient’s well-being.

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7. Telemedicine App Development Cost

The cost of developing a telemedicine app is between $75,000 and $250,000. The cost is determined by several aspects, including the type of application, its complexity, the type of team, its technical level, and its location.

We’ll examine three pricing options based on the type of application, team type, and team location. As an example, consider the cost of developing an MVP that requires 1,500 development hours.

7.1. Telemedicine App Development Cost by Team

Development Team Average Cost in $
In House Team 170,000
Nearshore & Onshore Development Companies (US) 250,000
Freelancers 40,000
Offshore Outsourcing Companies (Vietnam) 20,000 – 75,000

We’ll look at the most common forms of teams, presuming the telemedicine app development project is completed entirely under one roof.

7.2. Telemedicine App Development Cost by Location

Location Average Cost in $
Australia 150,000
The USA 250,000
The UK 180,000
Western EU 160,000
Eastern EU 75,000
Southeast Asia 20,000

We investigate the most appropriate regions for founding startups or outsourcing app development.

7.3. Telemedicine App Development Cost by Type

Type of Telemedicine / Telehealth App Average Cost in $
Store-and-forward 20,000 – 40,000
Remote Monitoring 25,000 – 100,000
Real-Time Interactive 35,000 – 75,000

Asynchronous (or store-and-forward), remote (or passive), and real-time (or interactive) are the three most common forms of telemedicine software. Let’s use them as a starting point to estimate how much it would cost to create various types of telemedicine apps.

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8. Monetization Strategies for Telehealth Apps

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Insufficient funding will ensure the short lifespan of any app. The most effective methods of making money off of creating telemedicine apps need to be discussed.

8.1. Freemium

Using a freemium model, the business provides some of its most fundamental offerings at no cost to users. However, a paid membership unlocks the app’s full potential. Customers who paid for the premium version effectively subsidize those who utilize the free version. The more people who utilize the free version, the more people will eventually sign up to pay for it.

When it comes to health and fitness apps, Fitbit is an excellent example because it provides a free version of its software. Even though it isn’t technically medical software, this app’s premium membership does offer helpful information on fitness and health.

8.2. Subscription

Payments to the app’s developer can be expected on a regular schedule, such as monthly, using a subscription business model. In this arrangement, consumers must pay for access to the app whether or not they use it.

Doxy.me serves as an excellent case study for how to implement a subscription business in a telemedicine app. You might follow the lead of Doxy.me and just charge medical facilities for your services. Alternatively, you might require fees from both doctors and patients.

8.3. Fees

This is by far the most common and lucrative way to monetize a telemedicine app. After each patient-to-doctor transaction, the app will take a cut. This business strategy helped Teladoc become the telemedicine industry leader in terms of cost. The services provided by Teladoc, a business-to-business software, are purchased by companies on behalf of their employees. Teladoc, therefore, charges companies for collaborating with their staff in addition to transaction fees.

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9. Step-by-Step on How to Make a Telemedicine App

A telemedicine app for your company is the next logical step. Because of the direct impact on people’s health, developing this kind of app comes with a heavy burden of responsibility and calls for some forethought. We’ve broken this down into manageable chunks and will now go over each component individually.

Step 01: Pick Your Device or OS

Careful investigation will reveal which distribution channels are best for your product. Therefore, if your target market is Android-centric, you can release a Minimum Viable Product (MVP) there first and worry about iOS later. Having your app available on both platforms is a best practice. Reaching twice as many people will cost you twice as much as a single-platform project, but it will be worth it.

Step 02: Choose Your Design

Despite having a great idea for an app, many startups fail because the UI/UX design is poorly executed. Just be yourself, and your customers will come to you. Instead, you should make your Telemedicine app as simple as possible to avoid confusing your users. The consultation is what matters most to both the healthcare provider and the patient, not learning the ins and outs of your app.

Step 03: API Selection

The following are some examples of widely used APIs from outside sources that can be incorporated into your app:

  1. VSee Software Development Kit. It enables you to build telehealth apps for both iOS and Android with end-to-end encrypted video calls. Since the service already includes a built-in server and client, there’s no need to supply a separate server-client pair to make it work within HIPAA regulations.
  2. Vidyo. As a result of this telemedicine API, doctors can have live conversations with their patients. Since it has its own in-built chat feature, it doesn’t need a dedicated text chat API. In addition, group video calls can be held, and the screen can be shared. There isn’t much room for personalization, though.
  3. Twilio. Regardless of the browser or mobile platform, Twilio’s video API can be used. It offers a variety of APIs that can be integrated into your telehealth app, such as ones for texting, calling, chatting, emailing, and faxing.

Step 04: Development

In this phase, we build the app according to the specifications that have been approved. When developing a telehealth app, you have the option of either releasing a minimum viable product (MVP) with a subset of features to cut down on development time and launch costs or releasing a fully-featured telemedicine platform all at once and incurring those costs.

Developing a minimum viable product (MVP) is a great first step because it can help you gain users’ attention and shield your company from financial harm.

Step 05: Perform Quality Control and Testing

It’s crucial at this point to test your product thoroughly and fix any bugs you find. The unit tests on various devices are performed by the QA team after the development team has completed the peer code reviews.

However, the right way to set up QA is to test after each sprint and then plan for final testing that takes care of everything you’ve tested so far. Before releasing your telemedicine app to the public, you should first ensure it can handle a large number of simultaneous users by conducting stress tests.

Step 06: Implementation and Upkeep

Once the preceding steps have been completed, the application is ready for deployment on the servers and submission to the app store. Each year, enhancements are made to the IOS and Android operating systems. That’s why it’s so important to keep a telehealth app up-to-date so it can keep providing the best possible service to its users.

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Since a telemedicine app includes quite some complex features, developers prefer using the top technologies to enhance their performance.

  • Artificial Intelligence (AI): Chatbots are extremely useful for a telemedicine app. They can handle simple FAQs to booking consultations for the users. 
  • Internet of Things (IoT): IoT allows better connection and monitoring between a doctor and their patients. If permitted, the doctor can track their patient's medical records via different equipment, adding to the treatment plan. 
  • Cloud storage: Storing your data on cloud is much less expensive and far easier than operating your own server. 
  • Big Data: Big data allows healthcare facilities to collect and analyze EHRs (electronic healthcare records) to give more accurate diagnose. 
  • Deep learning: The technology provides telemedicine app insights from a massive data pool and aids decision-making and enables healthcare providers to make more accurate forecasts about their patient's well-being.
  • Blockchain: Patients' sensitive data is well-secured thanks to blockchain. 

Developing a telemedicine app may set you back from $75,000 to $250,000.

For a better understanding, let's examine the pricing options based on the type of application, team-based, and location-based. For an MVP requiring 1,500 working hours, here's how much you will pay. 

1. Cost by Team

  • In-house team - $170,000
  • Nearshore & Onshore Development Companies (US) - $250,000
  • Freelancers - $40,000
  • Offshore Outsourcing Companies (Vietnam) - $20,000 to $75,000

2. Cost by Location

  • Australia - $150,000
  • USA - $250,000
  • Western Europe - $160,000 to $180,000
  • Eastern Europe - $75,000
  • Southeast Asia - $25,000

3. Cost by Type

  • Store-and-Forward - $20,000 to $40,000
  • Remote monitoring - $25,000 to $100,000
  • Real-time interactive - $35,000 to $75,000

A telemedicine app may implement one of the following strategies to make money:

  • Freemium: A freemium model is a case certain app features are available to users at no cost, yet the app's full potential can only be unlocked by a paid membership. 
  • Subscription: This is when a user submits payments to the app's owner on a regular schedule, using a subscription business model.
  • Fees: Paying for fee charges are the most common way telemedicine apps monetize. Briefly explain, after each patient-to-doctor transaction, the app will take a cut from there. 

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How Much Does It Cost to Make an App – Full Breakdown

Having a $10,000 budget and a $300,000 budget for a mobile application are vastly different. Both figures, however, can provide an accurate answer to the question “How much does it cost to make an app?”

The problem is that numerous factors can influence app development costs. Do you want to create an app that works on both iOS and Android? What country do you want to hire a development team from? What kind of app do you want to create? The cost of your project will vary greatly depending on the answers to these questions.

At Savvycom, we have created over 100 mobile apps since the company first surfaced in 2009. Being a part of the Apple Consultant Network, our article speaks from our own experience. Let’s delve into the most influential factors influencing mobile app costs and provide real-world app cost examples.

With this information, you’ll be able to estimate the cost of developing your mobile app. Anyway, feel free to contact our managers for a more precise estimate or further consultation.

1. What Factors Influence App Development Costs?

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As with any complicated app development process, a variety of factors can influence the final cost. Here are the most important ones.

  1. App Types (native, cross-platform, hybrid)
  2. Platform (iOS, Android) 
  3. Design
  4. Features/complexity
  5. Developer Rate (varies depending on location, hourly rate, and team size)

1.1. Android and/or iOS

Android and iOS are the two most popular mobile operating systems. They aren’t the only ones, but they rule the mobile world, with Android accounting for 69.74% of the market share and iOS accounting for 29.49% as of 2022, according to Statista.

When you begin working with a project manager on the first rough estimate for your app, one of the things you’ll research is the best platform to build for. What mobile devices does your target audience prefer? For example, 55.26% of mobile users in the United States use iOS, whereas in Poland, it is less than 10%. As a result, before deciding on an operating system, you must first research your target market.

You have three options if your customers use both iOS and Android devices:

  1. Select one platform for your initial app and add support for the other later.
  2. Create two apps right away.
  3. Create a cross-platform or hybrid app (more on those later).

If you choose one platform to begin with, the cost difference will be determined primarily by the length of development. iOS and Android development rates are roughly comparable.

Building an Android mobile app typically takes longer because your team will need to test on a wider range of devices.

1.2. Native, cross-platform, or hybrid app

When estimating the cost, the type of app makes the most difference. First, what exactly are these apps?

Native mobile apps are designed exclusively for a single mobile platform. It is impossible for a regular user to run an APK file (executable for Android) on an iPhone or an IPA file (executable for iOS) on an Android device.

Android and iOS use different programming languages and frameworks: Android uses Java and Kotlin, while iOS uses Swift and Objective-C. If your target audience owns both Android and iOS devices and you decide to support both platforms with native apps, you’ll need to create two apps: one for Android and one for iOS.

However, you can build a single app for both platforms (in addition to a web app or a responsive website):

  1. App for multiple platforms
  2. App hybrid
Learn More On: Native Vs Cross-Platform Development: Which one is better?

Cross-platform apps can be written in C# using Xamarin or JavaScript using React Native, while hybrid apps use AngularJS and its Ionic framework. All of these options are compatible with both Android and iOS devices.

You might be thinking right now. Why would I create apps for each platform when I could create a single app for both?

Indeed, developing a hybrid app is faster and less expensive than developing two native apps. However, you should be aware of the disadvantages that cross-platform and hybrid apps bring. Here is a brief comparison:

  Native apps Cross-platform apps Hybrid apps
Pros:
  • Top performance
  • Smooth integration with device OS
  • Can access platform-specific features
  • High responsiveness
  • Great UX
  • Secure
  • Middling price between native and hybrid apps
  • One app for both platforms
  • Easier to update
  • Faster to market
  • Cheap to build
  • Easy to maintain
  • One app for both platforms
  • Faster to market
Cons:
  • Can be costly to build
  • Take significant time to build
  • Limited flexibility
  • Can’t access most platform-specific features
  • Integration is laggy
  • Security issues
  • Low performance
  • Poor UX
  • Slow
  • Security issues
  • Limited access to device hardware
  • No support for platform-specific features

Despite these disadvantages, there are some popular cross-platform and hybrid apps, such as Skype, Slack, and Instagram. The trick is determining what type of app your company requires. Perhaps the disadvantages will be irrelevant to your application. But perhaps they will.

1.3. Cost of App Design

Great visuals are the foundation of a good app, so it’s no surprise that design can influence the cost of developing an app. Custom icons and design elements, such as screens, logos, and buttons, will take time and money to create. In addition, each screen in an app must be drawn separately. Making custom animations is an entirely different challenge, but they are frequently a winning feature.

However, great design does not always imply complex visuals. Sometimes simplicity is the best solution: depending on what your app does, it may be possible to use standard OS-provided elements that don’t take much time or effort to compose.

When it comes to games, design is an especially important component of the cost of mobile application development.

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1.4. Features

The cost of developing an app is largely determined by the number of features — but this is not the only factor.

The complexity of those features can be more influential at times. Some features rely entirely on standard tools and APIs. Others necessitate the use of third-party APIs. A third type necessitates the development of custom algorithms.

It’s something of an industry standard to divide mobile apps into three categories based on complexity:

  1. Simple apps have few features, most of which are either fairly standard or relatively simple to implement. Consider this type of app to be a minimum viable product (MVP), or an app with only the features necessary to collect feedback and validate the app idea. Some finished apps are similarly straightforward. Building a simple app can take between 2 and 4 months and cost between $18,000 and $60,000.
  2. Medium-complexity mobile apps typically take 6 to 10 months to develop. Apps of medium complexity have more screens, features, and complex features than simple apps. If a simple app has a basic login feature, for example, a medium-complexity app would have Facebook integration. That’s just a simple example, but you get the idea. The cost of developing a medium-complexity app will most likely start at $50,000 and can rise to around $130,000.
  3. Complex apps include features such as augmented and virtual reality, bots, payment integration, NFC (near-field communication), and media streaming. Development time can range from 7 months to more than a year, depending on the number of such complex features. The average cost of developing an app with complex features starts at $130,000 and can reach $500,000 or even more.

1.5. Backend

The backend, also known as the server-side, is the part of your app that is invisible to your users but supports some of the more complex features, such as device syncing and push notifications (though the latter can be handled by cloud integrations today). Servers host your databases, custom, and third-party APIs, and other applications.

A backend isn’t required, but if your app requires one, you’ll need to hire a separate developer, such as one who works with Ruby on Rails or Python. And, of course, that developer will raise the price of your app.

1.6. Workload

When asked, “How much does it cost to develop an app?” The answer is typically calculated based on the amount of time required for analysts, developers, designers, and testers to complete all stages of development. However, developers’ work can be calculated in two ways:

  1. In hours, which is the traditional unit of measurement for task complexity. Developers estimate the time required to build each feature, allow for unexpected complications, then total the time for all tasks and multiply it by the hourly rate. Easy.
  2. In story points, a system that is increasingly being used in Agile development. The idea behind the story points system is that instead of attempting to predict how long it will take to develop a specific feature, the feature (or story) is assigned a number of points for difficulty.

Story points are subjective. The team chooses the simplest story (one with the fewest risks and the least amount of effort) and assigns it to two story points. Then all of the other stories are compared to it and given points in comparison. Typically, stories begin with two points. Not 1, because something is always added or removed during development, and a story worth fewer points than the one previously thought to be the smallest may appear.

Learn More On: 08 Best Software Development Methodologies

1.7. Team Size

It’s difficult to estimate the average cost of developing an app without knowing how many people are involved. After all, these are the people you’re paying to do the work.

The simplest app development team consists of the following specialists:

  • There is one project manager.
  • 1-2 platform developers (iOS, Android, web)
  • 1 backend programmer (optional)
  • 1 user interface/user experience designer
  • 1 quality assurance specialist

A single UI/UX designer is usually sufficient for both iOS and Android apps, but an additional web app may necessitate its own designer. A backend developer is required if your app requires a server-side.

This team can be expanded for faster and more complex development, which will impact app development costs.

1.8. Outsourcing vs. Internal Team

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Hiring a team of specialists to sit in your office and work solely on your project is what in-house development entails. Outsourcing means hiring a separate company to do the development for you without having the developers within arm’s reach.

Both options have advantages and disadvantages, but we’ll concentrate on the price differences here. To make a long story short, hosting a team of developers in-house is far more expensive than outsourcing. Having an in-house team means you’ll be paying for the followings:

  • Salaries
  • Taxes
  • Additional office space and workstations
  • Software and hardware
  • Tools for developers
  • Everything you pay for your regular employees’ social benefits and everything else

These costs vary greatly depending on where your office is located. Even general numbers are impossible to state. An in-house team is sometimes justified, especially if you have multiple mobile products that must be constantly updated. In other cases, outsourcing is a better option. And outsourcing can be calculated with some accuracy.

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Get in touch with Savvycom for a free consultation. We’ll help you decide on next steps, explain how the development process is organized, and provide you with a free project estimate.

1.9. Development Team’s Location

The geographical location of the company you’re hiring accounts for the majority of the cost of outsourcing. Here is a list of countries organized by average hourly rates, from the most to least expensive:

  • North America (the United States and Canada) – $100-150 per hour
  • $110 per hour in Australia
  • Western Europe (the United Kingdom, Germany, and Austria) — $90 per hour
  • $50 per hour in South America
  • Eastern Europe (Poland, Ukraine, Romania, and Bulgaria) — $40-50/hour
  • $25 – 30 per hour in Asia (Vietnam and the Philippines).
  • Egypt, Kenya, and South Africa — $30 per hour

We can estimate the average cost of developing an app in different regions using these approximations. To accomplish this, we simply need to go back in time and recall the average development time for each of the three types of apps:

  • Small app for at least two months
  • Average 6 months for a medium app
  • 8 months to more than a year for a complex app

2. The Unknown Costs of Mobile App Development

The cost of developing an app extends beyond the development process. There may (and almost certainly will) be additional expenses to consider along the way. Here are the five most common hidden costs you may not have considered.

2.1. Upkeep and upgrades

The app’s release is undeniably significant, but it is not the endgame. As long as the app is available in app stores, you must maintain it, respond to user feedback, and provide regular updates. According to the Outsystems Survey, the cost of app maintenance during the first year after launch is approximately 50% of the cost of app development. The second year is usually 25%, and each subsequent year is 15-25%.

Maintenance and updating services typically include the following:

  • Optimization of code
  • Server enhancements
  • Application updates and bug fixes
  • New technologies and features
  • Support for new operating systems
  • Scalability of the app

2.2. Infrastructure expenses

These costs are primarily associated with app hosting on servers. The main goal here is to ensure that your platform can handle traffic spikes following the launch. The scalability requirements of your app will determine the cost of these services. Here is a list of infrastructure fees you may be required to pay:

  • Server
  • Storage of data
  • Content distribution networks
  • Integrations
  • Tools for development
  • Load balancing devices
Learn More On: 10 Best Mobile App Development Companies In Vietnam

2.3. Functional expenses

This section’s services are designed to help your app’s functionality. For example, you may need to subscribe to several services and set up third-party integrations. The cost of these services varies according to how many you require, and these expenses frequently include:

  • Notifications via push
  • Notifications via SMS
  • Integration of social media
  • Geolocation
  • Gateways for payments

2.4. Level of app security

While you can completely delegate the development process to the hired team, there are a few aspects we recommend familiarizing yourself with, one of which is security. You can inquire about the development team’s security practices and discuss the best options for firewall protection, secure transactions, and other critical issues. Making the platform as secure as possible may increase the cost of developing an app, but it is well worth the investment.

2.5. Patenting applications

This legal step will protect your intellectual property rights while also assisting you if other app owners falsely accuse you of intellectual property theft. This must be completed before the app is released to the public.

During the patent application process, you will need to specify what makes your app unique, define the aspects of your app that you want to claim ownership of and provide a visual representation of the app.

The cost will vary depending on the country in which you file your patent application and the type of mobile app. A regular non-provisional patent in the United States, for example, can cost between $2,000 and $5,000.

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3. App Development Cost Examples

As evidenced by the preceding, so many factors influence the development process that estimating the cost of creating an app on the spot is difficult. At Mind Studios, we write articles in which we share our insider knowledge of the development of various types of apps, including cost estimates.

Here are several examples of the costs of developing an app for both iOS and Android in 2022, as estimated by The Mind Studios with their $45/hour rate:

  • FitBit-like fitness app — $84,600
  • Tinder-like dating app — $108,470
  • Discord-like VoIP app — $99,950
  • $82,440 for an educational app similar to Udemy
  • Signal-like messaging app — $100,080
  • Headspace-style meditation app — $76,590
  • Postmates-style food delivery app — $130,500-148,500
  • IKEA Place-like augmented reality furniture app — $91,800-124,200
  • $137,700-162,000 for a marketplace app like Etsy or eBay

How much does it cost to create an app you have in mind, and how can you find out? If you know exactly what you want to build, you can either contact an app development company for a rough estimate (which is what our contact page is for) or use an online app cost calculator.

Online cost calculators are straightforward web applications. They allow you to select from a variety of parameters and features, and then automatically calculate a rough estimate based on the rates set by the calculator. When using one, keep in mind that the majority of these calculators estimate the cost very, very roughly. Most are designed to obtain your email address and entice you to contact the development company.

Learn More On: Mobile Banking Application Development: Features & Cost

4. Mobile App Development Cost – Interesting Facts

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As you may have guessed, when we said numerous factors influence app costs, we weren’t exaggerating. And it’s not just the app development options that matter. Post-launch marketing and maintenance costs, economic conditions in the leading software service providers’ countries, and the evolution of the mobile app market all have an impact on the costs to launch a mobile app.

We’ve compiled a list of statistics about app development costs and the mobile app market in general that you may not be aware of.

  • According to the Business of Apps, you should set aside at least $10,000 to plan your app’s go-to-market strategy.
  • The cost-per-install (CPI), which is the price the app marketer pays to engage one user, can be used to calculate the cost of marketing. The iOS CPI in 2021 was $3.6 per app install, while the Android CPI was $1.22 per app install. Overall, app marketing can cost up to half the cost of development during the first year after launch.
  • The average cost of maintaining software and, in particular, applications is approximately 15-20% of the cost of development.
  • According to an Outsystems survey, more than 80% of mobile apps take 3+ months to develop, and 40% of applications take 6+ months to develop.
  • According to Market Research Future, the mobile app development market will grow at a compound annual growth rate of at least 23.80% over the next eight years.
  • According to Globe Newswire, the global mobile applications market is now worth US$ 112.6 billion and is expected to be worth more than US$ 307 billion by the end of 2031.

Given the last two forecasts on the list, it appears that the global mobile app market will continue to evolve at a rapid pace over the next decade, implying that app development costs will not decrease. So, if you’ve been thinking about creating your own mobile platform, now is the time.

5. Mobile App Development Costs by Types

So, how much money does it take to launch an app? To answer this question, the development team must first understand the type of application you wish to create. There is no one-size-fits-all solution, but each type of mobile app has a standard set of features that will allow the team to create a rough estimate for the project quickly. In the table below, we’ve compiled a list of some of the most common app types. Remember that the estimates are based on a $25 hourly rate.

Type of app Examples Timeline Average cost
Basic app with a minimum number of features Video player, calculator 1 month $8,000+
Data-driven app Weather 1 month $8,000+
Authentication app McDonald’s Loyalty App 3 months $20,000+
Social networking app Instagram, Facebook 3 – 9+ months $20,000 – $100,000+
eCommerce app Etsy, eBay 6 months $60,000+
Marketplace app Amazon, Booking.com 6 – 9 months $60,000 – $100,000+
On-demand app Uber, Postmates 8 – 12 months $70,000 – $100,000+
eLearning app Duolingo, Udemy 4 – 6 months $40,000 – $60,000
Healthcare app Headspace 5 – 8 months $50,000+
IoT app Nest, Garmin Connect 4 – 6 months $40,000 – $60,000+
Video Streaming App Netflix, Hulu 6 – 9 months $60,000 – $100,000+

These are only a few of the most common types of mobile apps. If you have an idea for something unique and even innovative, please contact our business development team. We will gladly listen to your idea and answer all of your questions.

Learn More On: The Essential Guide To Software Development Services

6. How to Reduce App Development Costs

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If the prices listed above make you nervous, here’s a list of seven things you can do to cut the cost of mobile app development.

  • Make a thorough plan

Can you draw it? Better yet! Bring a clear idea and a way to properly explain it to developers.

Make a list of the app’s technical specifications and requirements.

This can prevent miscommunication, nervous breakdowns, and financial loss. In our previous article, we discussed the significance of requirements.

  • Outsource

Outsourcing is significantly less expensive than hiring an in-house team, especially if you hire a team from a region with reasonable hourly rates.

  • Beginning with a test

Although it may appear obvious, not everyone does this. Early testing helps you find bugs that, if not fixed quickly, can lead to more bugs in the future, necessitating the rework of entire features.

  • Create an MVP/MLP

A minimum viable product, also known as a minimum lovable product, can assist you in gathering data and avoiding mistakes long before you launch.

  • Maintain regular contact with developers and check on progress

This will keep you and your team on the same page and help you avoid major mid-development changes or adjustments.

  • Find a reliable mobile app development company

It is sometimes better to pay a little more for a development team that is experienced in your field and has a good reputation. Examine previous projects and reviews on professional websites such as Clutch.

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7. How to Precisely Estimate App Cost?

At Savvycom, we estimate the cost of app development in six stages:

  1. You get in touch with us and tell us about your project.
  2. We are contacting you to gather general information.
  3. Our project managers conduct preliminary research and develop a rough estimate.
  4. We will contact you with our estimate.
  5. If everything is in order, we will begin a more in-depth discussion with you about the functionality and content of your app.
  6. Based on all available information, we create a more precise estimate.

After the final app development cost estimate, there may be adjustments if new features are added or additional technology is required. Slight cost adjustments are possible with any changes. However, the cost rarely deviates significantly from the final estimate.

Before app development begins, reputable software development firms will usually provide you with a rough estimate of the mobile app development cost. The quote is based on your project description, as well as your business and technical needs. This data is compiled and summarized in a preliminary list of features.

It’s also worth noting that initial estimates and actual application development costs don’t always match up. Aside from the obvious assumption that the estimate was incorrect in the first place, another common cause of the mismatch is a change in the app development scope. This can occur if:

  • Midway through the project, the client decides to increase the number of features or make other significant changes.
  • The MVP launch or soft launch, during which initial feedback is gathered, indicates that the team needs to make some significant changes or even look for entirely new solutions.

Fortunately, in most cases, these disparities can be avoided by investing time and money in the proper discovery stage. That is the first thing Mind Studios does after accepting a new project. During the discovery stage, we determine whether there is a market need for the app, which features the target audience will require, and how we can differentiate the new product from the competition.

8. App Cost By Stages of Development

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The entire app development process can be broken down into four major stages. Let’s look at how much each of them might cost and how much of the overall process they compensate for. Remember that the calculations below are based on a $25 hourly rate and apply to medium-complexity projects like an on-demand delivery app or a fitness app.

  1. The discovery stage is when the team analyzes the market and the target audience, calculates the risks, and develops solutions that will help the app succeed.
    Time and cost estimates: 80 hours, $2,000
  2. The UI/UX design stage is when a team of UI/UX designers decides on the app’s features and develops its visual concept. The outcomes of this stage are presented in the form of prototypes — visual mockups of each app screen.
    Time and cost estimates: 160 hours, $4,000
  3. The development stage is when a team of developers turns the prototypes into a fully functional mobile application. The following estimate includes iOS, Android, and backend development.
    Time and cost estimates: 2080 hours, $52,000
  4. Testing is the process by which QA engineers test the app and look for bugs to report to the development team so that they can be fixed.
    Time and cost estimates: 200 hours, $5,000

The project management component is an additional important component of the overall development cost. It is not a stage in and of itself, but rather a tool that assists the client and team in staying on the same page throughout the collaboration. This service takes 200 hours on average and costs $5000 for a medium-complexity project.

Learn More On: IT Outsourcing Vietnam – Ideal Destination For Growth Hacking

9. Conclusion

There are numerous factors that can influence the cost of developing a mobile application, including whether it is native or cross-platform, simple or complex, and developed in North America, Asia, or Eastern Europe. Even with the statistics on app development costs in 2022, making an accurate estimate without knowing the specifics of the project is difficult. However, in this article, we’ve covered the most common types of mobile apps on the market, so you can get an idea of how much your project might cost.

If you’d like a more accurate estimate for a mobile app, our business development team will gladly conduct a free consultation for you.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

Savvycom follow 6 stages to estimate the total costs, this is also the common process for other firms:

Stage 1. A client gets in touch with Savvycom about their project.

Stage 2. We contact our client to gather general information about them and the project.

Stage 3. Our project managers conduct preliminary research to develop a rough estimate.

Stage 4. We discuss with the client our rough estimated cost for the project.

Stage 5. Then, we carry out an in-depth consultation and discuss the app's functionality and design.

Stage 6. With all the information, we can deliver a more precise estimated cost for the app development project.

 

As discussed in the article, development costs are impacted by many factors. Thus, the costs may vary widely. 

If the rate is $40/hour, here is how much to pay for an app:

- Simple app: $40,000 to $60,000

- Average app: $60,000 to $150,000

- Complex app: from $300,000

In case you want to reduce the costs, it is suggested to outsource from countries like Vietnam. You will be able to own an app with the same quality but for a more affordable price.

Building an app is not cheap, but there are several ways to get around it and lessen how much you need to pay.

1. Make a detailed plan 

List out clearly what your app will need, what it serves, your strategy, and your budget for the project.

2. Outsource

Outsourcing is a clever way to save money, especially if you hire a team from a region with more reasonable rates. 

3. Test frequently

It is advised you test your app as soon as possible to find bugs and fix them before they require more effort.

4. Create an MVP/MLP

A minimum viable product (MVP), also known as a minimum lovable product (MLP), can assist you in gathering data and avoiding mistakes long before you launch.

5. Contact your developers & check on the progress frequently

Doing this keeps you and the developer team on the same page and helps you avoid major mid-development changes.

6. Find a reliable mobile app development company

Cutting costs is a goal for any business, but sometimes it is worth paying a little extra to get the quality product you desire. 

 

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What Is IT Outsourcing? Everything There Is To Know About Outsourcing Services

If the question is what is the most time- and cost-effective way to achieve the best results, the answer is IT outsourcing. Web and app development, quality assurance, UX/UI design, business analysis, DevOps, and marketing are examples of outsourced IT services.

By 2026, the revenue of the IT outsourcing sector is expected to reach $3.59 billion in the United States alone. This figure indicates that more businesses will outsource IT services, and even more will use them. For greater business efficiency, Google, GitHub, and Slack all prefer to outsource some of their tasks.

You have in front of you a comprehensive information system outsourcing guide that reveals the essential secrets of successful Outsourcing. Here’s a preview of the information treasures that await you:

  • Key outsourcing models and IT outsourcing services
  • In-Practice IT Outsourcing Advantages
  • What advantages can you gain from outsourcing IT services depending on your industry?
  • Factors influencing the cost of outsourced IT services
  • Finding outsourced IT service providers: a step-by-step guide

1. What Are Outsourced IT Services?

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IT outsourcing is the process of hiring third-party service providers to deliver some of the client’s IT processes. Outsourcing IT services aims to assist clients in developing digital products and solutions while lowering costs, accelerating time to market, and providing access to the best experts from various industries.

You can work with an onshore or offshore software development company depending on the purpose of your service outsourcing. In 2022, the following areas and benefits are on the list of top IT outsourced service locations:

  • Asia – low-cost labor with a relatively high level of service provision
  • Eastern Europe – low-cost services with high quality, strong technical experts
  • Latin America and Mexico have low development costs and no significant time differences.
  • The United States is the global development center, with no time difference but high prices.

Companies in Asia are increasingly being used for IT outsourcing. The region is unique in nature and provides numerous advantages.

Learn More On: IT Outsourcing Vietnam – Ideal Destination For Growth Hacking

2. What the IT Outsourcing Industry Looks Like Right Now

So, how does the outsourcing IT services industry look today? The industry is thriving, and nothing appears to be slowing its expansion. Here are some statistics to help you assess its size and perspective:

  • In 2019, the global outsourcing market revenue was estimated to be $92.5 billion. The market is expected to generate $359.8 billion in revenue by 2021. At a CAGR of 4.5%, the market will reach $425.19 billion by 2026. (Statista, 2022).
  • The market for outsourced IT services is expected to grow by $97.51 billion at a CAGR of 4.58% between 2020 and 2024. (Technavio, Jan 2020).
  • In 2021, approximately 25% of all companies increased their outsourcing investments (Flexera)
  • Small businesses planned to outsource some tasks in 2021 to improve efficiency and access needed resources (Clutch, 2021)
  • In 2020, 70% of businesses used an outsourced IT services provider to cut costs. (Deloitte)

Without a doubt, the market for outsourcing IT services will continue to expand due to its benefits and the increasing demand for software development services.

3. List of IT Outsourcing Services

When we talk about outsourced IT services, we mean virtually any service. The following are some of the most common software development services that you might be interested in:

  • Outsourcing software development is common among businesses requiring assistance in transforming an idea into a technical project. Development, design, quality assurance, DevOps, and other services are available.
  • Web and mobile app development services assist businesses in expanding their mobile and web presence by developing applications for the most popular mobile operating systems, such as iOS and Android.
  • Software support – After a product is released, businesses must continue to work on improvements, bug fixes, and the maintenance of their solutions.
  • Quality assurance is a critical outsourced IT service that enables businesses to test solutions to ensure that their performance and functionality meet business requirements and are bug-free.
  • UX/UI design – This service assists businesses in developing the visual aspects of their software solutions and defining the user experience. 

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4. IT Outsourcing Models

IT outsourcing services are classified into 3 categories based on their location:

  • Onshore Outsourcing entails hiring a team from within your own country, such as when a company from the United Kingdom collaborates with a local development firm.
  • Nearshore Outsourcing entails hiring a company from a nearby location, such as when a company from the United States hires a team in Mexico or Latin America.
  • Offshore Outsourcing entails hiring professionals from afar, such as a company in the United States hiring a team in Asia.

Outsourcing is a broad term that encompasses several more specific concepts. Let’s take a look at some of the most common types of IT outsourcing:

4.1. Staff Augmentation

This model of outsourced IT services is ideal for businesses that already have an in-house development team but lack specific skills such as DevOps or designers. Because companies do not always want to hire an entire team, IT staff augmentation allows them to quickly find the required talent while avoiding the hiring process’s bureaucracies.

4.2. Dedicated Team

SVC July Thumb 16

A small corner of Savvycom HQ In Hanoi

This type of IT services Outsourcing is appropriate for long-term projects that necessitate the participation of an entire development team. Because the development team works remotely, you can save money on recruitment, management, and office expenses.

4.3. Project-based Team

This model of outsourced IT services is appropriate for projects that require 3 to 9 months of active development. This model enables businesses to complete the required work quickly and without a lengthy recruitment process.

4.4. Offshore Dedicated Center (ODC)

This model is appropriate for large projects and companies that want complete control over the development team. Rather than hiring a team on-site, they can establish a dedicated development center in a country with better tax systems and lower labor costs. You have the option of opening your own office or partnering with an outstaffing vendor who will handle recruitment and hiring on your behalf. The team will work from your partner’s offices, and you will have complete management control.

Learn More On: Offshore Development Center (ODC): The Ultimate Guide

5. Outsourcing IT Services: Pros and Cons

Several reasons why small, medium, large, and even enterprise businesses turn to outsourced IT services. Reduced development costs, access to a larger talent pool, increased expertise, and other benefits are on the list.

Let’s take a closer look at the top 07 advantages of IT outsourcing.

5.1. Reduced Expenses

The primary reason for the popularity of outsourcing IT services today is cost reduction. This is possible for a variety of reasons, including:

  • Lower hourly rate – Some parts of the world, such as the United States, United Kingdom, Canada, and Australia, are extremely expensive to run a business in. Because of lower labor costs, outsourcing services to Asia can reduce development costs by up to 70%.
  • Paying only for work completed – one of the primary advantages of outsourcing IT services is that you only pay for work completed. When there are no tasks for a QA engineer, for example, you do not pay for their time in the same way that you do for full-time employees.

5.2. Access to Global Talent Pool

Local hiring is extremely limited. Even if you have offices in several cities, the professionals you can hire are limited to these locations. When you relocate globally, you can gain access to the best talents on the global market, including some of the most elusive experts in the world who are extremely unlikely to relocate.

5.3. All-Encompassing Expertise

A software developer cannot be expected to know everything. Even after you’ve hired a team, something could go wrong with your project. You would need to spend a lot of time on recruitment and twice as much money on salaries if you had an in-house development department. With outsourced IT services, you can hire a professional to work on your project for a week or two as soon as the need arises.

5.4. Reliable Technicians & Qualified Service

IT Outsourcing Services Savvycom 3

When you use outsourced services, you do not have to manage the recruitment process yourself. You can rely on the outsourcing firm to identify and hire the best professionals for your project. While this is true, it is far easier for these companies to hire top-tier IT talent than it is for you to hire them for a one-time project.

5.5. Significant Time Savings & Flexibility

A faster time to market is an undeniable advantage of IT outsourcing services. Because you won’t have to waste time hiring a team, you can begin the development process sooner. This means you can start the project sooner.

5.6. Ability to Upscale Quickly

You might find that your project has taken off one day. While this is good news, it will have an impact on the business because you will need to rapidly scale the development team. With in-house tech departments, you may have difficulty finding the necessary professionals right away.

Outsourced IT services alleviate these issues because vendors typically have a few experts who can supplement your team. Even if no experts are available, outsourcing companies have a large pool of professionals who can quickly join them on the project.

5.7. Uninterrupted Workflow

All of the benefits mentioned above lead to an uninterrupted workflow when all processes run smoothly and without hiccups.

A software development vendor handles the most time-consuming tasks: recruitment, office maintenance, and all employment-related paperwork. As a result, you can focus on business-related tasks while professionals work on the technical aspects of the project.

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6. Disadvantages of Outsourcing IT Services

Outsourcing carries risks because you entrust a significant portion of your work to a third-party vendor. Let us look at some of the disadvantages of IT outsourcing services:

  • Security concerns – When collaborating with a third-party company, you must fully understand how your partner handles security concerns and what security protocols are in place. Otherwise, you risk violating local security regulations, which could result in heavy fines or successful hacker attacks on your digital product.
  • Potential downtime can occur with both onshore and offshore Outsourcing. You may experience downtime if certain issues arise. If there are no professionals available to resolve the problem as soon as possible, it can harm your company’s reputation and cost you money.
  • Missed objectives – the primary goal of an outsourced IT services provider, is to deliver results based on your business objectives. You may not get the desired results if your objectives are not aligned.
  • Limited scalability – if you don’t have a lot of experience in software development, you won’t know whether or not the software was designed with scalability in mind. Every product should be designed with the future in mind. However, some vendors choose to sacrifice future scalability for faster product delivery, resulting in unexpected future project growth problems.

Fortunately, by selecting the right vendor, you can mitigate all of the risks associated with outsourced IT services. We’ll go over the process in greater detail later in this article. Now that we’ve discussed the benefits and drawbacks of outsourcing IT services let’s move on to the next section.

7. Industries that Can Benefit the Most from IT Outsourcing Services

Outsourced IT services are valued across all industries. Nonetheless, companies in specific industries are more likely to take this approach than companies in other industries.

Consider the following business domains that outsource the development of software development solutions to third-party vendors.

7.1. Healthcare & Medical Industry

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This is yet another industry that is reaping the benefits of IT outsourcing. Companies typically use third-party vendors to gain access to a larger talent pool at a lower cost. The medical industry can develop a wide range of mobile and web applications, as well as internal systems for managing staff and hospital processes.

Learn More On: Medical Web Development: Design, Features

7.2. On-demand Economy Domain

The on-demand economy is rapidly expanding, and the market will grow by $1,57 trillion at a CAGR of around 49% between 2020 and 2024. This is why the number of startups in the industry is increasing. These businesses frequently outsource development to third-party vendors in order to reduce time to market and focus more on business operations and processes.

7.3. E-commerce & Retail

eCommerce and retail are two other growing industries. By 2020, global online sales will have surpassed $4.2 trillion.

Innovative technologies such as ERP and CRP systems can benefit eCommerce and retail. Augmented reality, computer vision, and machine learning are actively disrupting the industry by bringing a new level of shopping experience to the consumer. Artificial intelligence elevates shopping personalization to a whole new level.

7.4. Banking & Finance

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Without a doubt, the banking and finance industries can count on money. As a result, it is actively investing in outsourced IT services to develop financial solutions, HR applications, and marketing applications. The main goal is to reduce development costs while involving the best industry experts and maintaining a high level of service delivery.

Learn More On: Mobile Banking Application Development

7.5. Automotive & Transportation

Outsourced IT services are also heavily used in the automotive industry. The industry is undergoing rapid transformations, and there is a growing demand for various in-vehicle options and systems. You can develop navigation and geospatial systems, route and fleet management systems, warehousing solutions, and other software solutions that help to streamline industry processes.

8. Outsourced IT Service Costs – Main Factors

The primary concern with outsourced IT services is the cost associated with them. The average cost of IT outsourcing services is not less than $50,000. However, the figure can change depending on a variety of factors.

The following are some of the factors that influence the final development cost, which can vary depending on the following:

  • Specifications of the Service

The more complicated the project, the more money you’ll have to pay. In terms of web development, for example, a one-page website will be much less expensive than an eCommerce marketplace.

  • Professionalism of Engineers

The cost of outsourced IT services is directly related to the level of professionalism. Senior professionals, for example, can charge several times more than middle and junior experts. However, higher prices guarantee higher competency and the assurance that you will not need to change the code of your app due to its poor quality.

  • Vendor Rates

You could pay as little as $25 per hour or as much as $250 per hour, depending on the vendor’s level of expertise. Vendor rates are determined by the location of the Outsourcing, the complexity of the project, and the business model. In a moment, we’ll go over key pricing models.

  • Region

The location of the vendor will be the first indication of their prices when selecting an IT outsourcing service. For example, going to Asia is the most financially viable option for high-level and affordable information technology outsourcing services. When compared to other regions, development costs in the United States can double or even triple.

  • Model of Collaboration

The outsourcing model also influences the cost of outsourced IT services.

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9. How To Actually Outsource Effectively: Step-by-Step

Choosing an outsourced IT services provider to work with is a strategic task that should be taken seriously. We will go over the process’s 8 key steps so that you can navigate all of them and select the best partner.

9.1. Select a Region and Country

Identify and analyze all available outsourcing locations based on skills, time differences, English proficiency, cost options, and any potential cultural differences that may interfere with the development process.

9.2. Select an Engagement Model

Do you want to be actively involved in the project and manage your team directly? Or do you want to focus on business tasks while entrusting the development to the experts? Your response will have a direct impact on the type of business collaboration model you’ll need to select.

Learn More On: 08 Best Software Development Methodologies

9.3. Create an RFP or RFI

Create a Request for Proposal (RFP) or Request for Information (RFI) that includes all project details, expected results, and the entire scope of work for outsourcing.

9.4. Select the Best Vendors

Shortlist 3-7 vendors for your project using platforms such as Clutch, ITFirms, and the Manifest. Contact them and send them your RFP to gain a better understanding of their processes and proposals.

9.5. Examine PFP Responses

Analyze responses and provide feedback. To select the best options, you may need to organize a stakeholder meeting and shortlist 1 to 3 vendors.

9.6. Conduct a video interview

Hold video meetings with the chosen vendors to learn about their expertise and assess their overall fit for your company.

Learn More On: The Essential Guide To Software Development Services

9.7. Utilize the Vendor Assessment Matrix

Create a vendor assessment matrix with key decision factors and weigh each one. This method will assist you in narrowing down vendors who are the best fit for your project.

9.8. Make final calls and negotiations

Conduct the final round of phone calls with the top 1-2 vendors. Choose a vendor and sign a contract. Congratulations! You’ve successfully chosen a vendor for outsourced IT services.

10. Savvycom – The Perfect IT Partner For You. When?

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We’re almost there, but there’s one more question to be answered. How will you know when you need to find an outsourcing firm? When deciding whether or not to hire a team, consider the following factors:

  • If you lack in-house IT expertise

This is the most common occurrence, particularly among small businesses that require the assistance of developers but do not have, do not want, or cannot afford an in-house team. Outsourced IT services enable you to collaborate with the best experts without making large upfront time and financial investments.

  • If you want to save money and find genuine experts

If this is the case, hiring help will allow you to mash two potatoes with one fork. Some tasks can be outsourced to offshore locations, allowing you to hire the best experts at lower costs.

  • If you need to supplement your in-house team

IT outsourcing services can be beneficial even if you have an in-house team. A business can outsource additional tasks such as regulatory compliance, software support, and even customer service.

  • If you want to use the best, most recent, or most mature technologies

Experts in Machine Learning, Artificial Intelligence, and Big Data are extremely expensive. Hiring in-house experts may not be an option if you need to incorporate some of the most recent innovations into your project due to the associated costs. Outsourcing IT services allows you to gain access to the most coveted talents without having to sell your kidney.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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Outsourcing IT services are specified into 4 models:

  • Staff augmentation: Businesses with in-house teams often prefer this model. It allows them to hire only the required talents (like DevOps, designers, etc.) without the hiring process's bureaucracies.
  • Dedicated team: If your business needs an entire team for a long-term project, this is the solution for you. 
  • Project-based team: This model is appropriate for projects that require 3 to 9 months of active development.
  • Offshore dedicated center (ODC): This model is suitable for large projects and companies that want complete control over the development team. If you choose ODC, the firm will establish a development center in the country with better tax systems and lower labor costs.

IT outsourcing services are beneficial if you do it right. And in order to outsource efficiently, avoid making these mistakes:

  • Not research before choosing a vendor
  • Make unclear requirements and miscommunicate
  • Outsource companies that are not in sync with modern technologies and trends
  • Work with a lack of basic technical know-how on your end
  • Underestimate Quality Assurance (QA) or Testing

To be able to select the best partner for your business, it is advised that you follow this process:

  1. Select a region and country (based on the required skills, costs, and other factors regarding your business and project)
  2. Select an engagement model (whether you prefer complete control or entrust it to the experts)
  3. Create an RFP (Request for Proposal) or RFI (Request for Information) with all project details and work scope for outsourcing.
  4. Shortlist the best vendors and send them your RFP/RFI to see their proposals.
  5. Examine PFP responses to pick out 1-3 best vendors.
  6. Conduct video interview(s) to assess their fit to your company
  7. Use a vendor assessment metrix with key decision factors and weigh each one to decide on the final vendor to become your partner.
  8. Make the final calls and negotiations. Now all you need to do is sign a contract with your vendor!

IT outsourcing services mean big help for many industries, even the ones you have thought that there is no need for outsourcing.

But the following industries are the ones expected to expand remarkably with the support of IT outsourcing services:

  • Education
  • Healthcare and Medical 
  • Banking & Finance
  • On-demand economy domain
  • E-commerce & retail
  • Transportation & Logistics
  • Media
  • Government
  • Construction
  • Tech 

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5 SaaS Tools to Improve Customer Success in Retail

Business realities, client needs and digital advancements have made customer success an important aspect of any retail business. That is why, as of 2020, 90% of organizations have a dedicated customer service role

Little wonder, customer success managers are constantly thinking of new ways to attract and keep consumers as well as develop new tactics for maximizing growth and value. This is where SaaS tools come in. These tools help retailers manage every aspect of the customer journey – from awareness to advocacy. 

What are SaaS customer success tools? How do SaaS tools improve customer success in retail business? What are the qualities every SaaS customer success tool must have? What SaaS tools can improve customer success in retail? All these questions and more will be answered in this article. In the end, you will be properly informed on the best customer success SaaS tools for your retail business.

What Are SAAS Customer Success Tools?

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Employing SaaS customer success tools is part of the digital transformation objectives of many retail businesses in a bid to cut costs. These tools  essentially provide a complete 360-degree perspective of your customers. They make it possible for your customer service team to determine whether clients need more help buying and using your product or service. They also help locate where there might be potential sources of friction during the customer journey.

How Do SAAS Tools Improve Customer Success in Retail Business?

They improve customer satisfaction

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SaaS customer service tools help you to develop a program for client feedback so that you can collect crucial information and identify dissatisfied customers. When this information is compiled, you can see trends and find answers.

For instance, SaaS customer service tools can assist you in determining whether your nurturing programs are successful in improving your client’s satisfaction or not. These tools make it easier and more organized to manage the data you have and monitor customer satisfaction

They help reduce churn

Retail businesses must deal with two different types of churn: voluntary churn and involuntary churn. Voluntary churn involves the following, among others:

  • Onboarding issues
  • Poor client fit
  • Substandard product quality
  • Inadequate or nonexistent customer assistance

Involuntary churn, on the other hand, is usually caused by the following, among others:

  • Expiring cards
  • Hard declines following fraud attempts (if the card data have previously been stolen)
  • Soft declines following credit limit peaks
  • Outdated billing information
  • Charges not marked as recurring

A customer success tool assists you in lowering the quantity of churning consumers, regardless of the reason behind it. In fact, since involuntary churn is entirely preventable, you can reduce it by a higher percentage without putting in any work. Just having the right customer success tools will do the trick.

They promote efficiency by automating tasks and processes

Automation encourages proactive, tailored interaction, which results in a more consistent experience, boosts renewal rates and lowers expenses. This is one of the keys to successful digital transformation. The tasks customer success tools let you automate include the following:

  • Allocating accounts to customer success team members
  • Creating assignments for customer success managers to contact prospects and clients in a proactive manner
  • Sending emails to clients who have low engagement
  • identifying very promising clients who would make excellent referrals, case studies, or testimonial subjects

They help keep every team member abreast of customer issues 

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The customer success team and processes can be disorganized without a centralized system in place to monitor consumer communications, health, or behavior. Your customer success team won’t know what strategies to use to keep customers or measure the effectiveness of current strategies. 

A good customer success tool makes a whole lot of difference. It keeps all members of your team on the same page. Every customer success metric is monitored regularly. This helps with strategizing and improves efficiency.

05 SAAS Tools To Improve Customer Success in Retail

Carto

Carto is one tool that gives you great CPG data analysis needed for customer success. It transforms spatial data into better behavioral marketing, more effective delivery routes, among others. With Carto, your customer success team can understand where and why things happen, improve business procedures, and forecast future results.

Key features and benefits

  1. Cloud connectivity and integration: With Carto, you can sync with the most popular cloud data platforms and analytics programs like Amazon Redshift, Databricks, Google BigQuery and Snowflake. It removes all scalability restrictions and ETL complexity.
  2. Data enrichment: This tool lets you access over 11,000 geospatial datasets. Retail companies can easily access thousands of public and premium datasets that are always on through Carto’s Data Observatory. As a result, there is an improvement in their geographical analysis with information on POIs, people mobility, credit card transactions, and more.
  3. Spatial analysis: Your data analysis is sped up using Carto’s services, which include geocoding, routing, isolines, and base maps. Run advanced analytics natively on the top cloud platforms or conduct analysis from your Jupyter notebooks.
  4. Solutions and visualization: With Carto, you can quickly create location intelligence apps or use one of their templates. This gives your team a solution they’ll use on a daily basis, whether it’s for supply chain optimization, market analysis, site selection, or out-of-home advertising.

Freshdesk

Freshdesk is a help-desk ticketing solution for offering omnichannel customer support and consistently recognizing consumer needs. The platform offers a variety of customer assistance options, including field service, Freshchat, contact centers and a support desk.

Key features and benefits

  1. Omnichannel accessibility: This customer service tool organizes all communications on a single platform and provides consistent customer assistance across a variety of channels.
  2. Automated help desk: Freshdesk has built-in capabilities for automating help desk agents’ repetitive activities so they can focus more on providing excellent customer service.
  3. Contextualized service: By utilizing customer history to have contextual interactions that can engage customers, Freshdesk ensures a tailored user experience.
  4. Analytics-measure and enhanced efficiency: Retailers can utilize Freshdesk analytics to pinpoint issues and enhance the effectiveness of their help desk.
  5. Resourceful service: Freshdesk provides live chats that start when a customer abandons their shopping basket. Rapid responses from Freshdesk to consumer requests can lessen cart abandonment.

Clearbit

A bird’s eye view of your complete customer base, market, and prospects is possible, thanks to the data activation platform, Clearbit. The platform’s comprehensive view enables retail companies to pinpoint target markets and monitor client interaction. Businesses can concentrate their efforts and workflows on valuable prospects in order to convert them into clients.

 

Key features and benefits

  1. Data-driven lead generation: To generate customer profiles, Clearbit uses customer information from the company’s current integrations. Consequently, by using these profiles, retailers are able to compile a list of worthwhile prospects with the highest level of intent.
  2. Improved income analytics: Businesses can concentrate on what generates revenue for their company by using enhanced revenue analytics from Clearbit. 
  3. Hyper-personalization: With Clearbit’s hyper-personalized approach, businesses can generate demand by connecting with customers through customized ads and campaigns.
  4. Integrations: To assist organizations in pushing and syncing data across all systems they are connected with, Clearbit provides integrations to popular CRM platforms like Segment, Hubspot, among others.

Salesforce

Salesforce is the world’s top customer relationship management tool. It is a platform for collaboration that brings all business teams together to concentrate on attracting new clients and retaining current ones.

Key features and benefits

  1. Contact management: Salesforce uses data derived from communications, interactions of accounts, pivotal contacts, usage of the product, among others, to improve the customer experience. Businesses can access social media analytics directly from the Salesforce platform.
  2. Tasks automation: Salesforce provides a Visual Workflow that makes it simple for retailers to create and automate their processes.
  3. Custom 360: Salesforce gives every team in a company a complete picture of the client, ensuring that every team has access to the same information.
  4. Compact CRM: Salesforce allows users to log calls, view dashboards, and reply to leads from any part of the globe using their mobile devices.
  5. Dashboards: With Salesforce, you have access to real-time, and accessible dashboards that show a business’s progress at any time.

Delighted

Delighted is a real-time survey feedback platform. It is used to gather and arrange useful user feedback. Delighted’s surveys are used to gather feedback from your company’s clients, staff members, or goods.

Key features and benefits

  1. Automated surveys: Retail businesses can plan the delivery of surveys using Delighted’s autopilot features. Additionally, the platform distributes follow-up surveys in a manner that doesn’t offend the users.
  2. Omnichannel feedback: Delighted enables users to provide feedback on the application or device of their choice.
  3. Customization: Companies can add their logo, colors, and other branding elements to their surveys to give them the look and feel of their companies. From their domains, they can also send emails with surveys.
  4. Analysis: Delighted provides retailers with real-time dashboards, survey stats, and automated feedback reports so they can examine customer input and implement the necessary changes.

Wrapping Up

The significance of customer success cannot be underestimated in the retail business as the customer is critical to any enterprise. This importance has made it necessary to seek tools that boost customer success in retail. 

SaaS tools that would improve customer service should grow customer satisfaction, reduce churn, increase efficiency and keep every team member on the same page. Go through the tools recommended in this article and choose the one(s) that suit your business needs.

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Medical Web Development: Design, Features and Technologies

The coronavirus epidemic has increased the market for medical specialists. Hundreds of millions of people search the internet for health-related information. The number of searches regarding Healthcare Services has risen by 20% in the last few months.

As they try to adjust to this new reality, many businesses are in desperate need of medical web growth. The business’s website is the face of its medical practice. Because people these days are very demanding, having a website for medical services is almost a requirement. The medical site must be convenient and user-friendly in order to have a pleasant experience for patients. We’ve put together a detailed guide on medical website development, design, and growth to address all of these concerns.

This article will discuss medical website development and design, as well as the associated challenges and costs. We base our knowledge on extensive research gathered while working on various health-related web and mobile projects. Continue reading to learn more about the processes, or scroll down to get a reasonably accurate quote.

1. Why Would You Need an Up-to-Date Medical Website

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There is no doubt that healthcare providers require websites — of course, they do. A website is an excellent investment for any business these days. It’s almost as if you don’t exist if you don’t have an online presence. While one can debate the truth of this statement regarding a personal Facebook page, there is no second opinion when it comes to growing a business.

Medical website development can provide numerous advantages to a healthcare facility:

  1. Increased accessibility – A website is more accessible than a call center because it does not require as many employees, provides patients with visual information, and does not have phone queues. While you may keep your call center for those, who do not use the internet for whatever reason, having a website will significantly reduce the workload on your employees.
  2. New marketing opportunities since patients can find your clinic online, which is where most people look for information these days. People who aren’t your patients will be able to find your clinic with professional search engine optimization and a solid medical information database on your website.
  3. You can provide all of your clinic’s information in one location – This includes information about the doctors you employ, their credentials, your clinic’s services, and so on.

This is only the tip of the iceberg, but these advantages would be enough reason to create a great website and app for your clinic. That was prior to COVID-19.

As the pandemic demonstrated, one of the most critical services is online access to healthcare. For many businesses, this was the final push toward digitization, but for healthcare providers, the COVID-19 impact was so massive that it’s still difficult to comprehend.

From now on, the digitization of healthcare will almost certainly be much faster, and no clinic can afford to fall behind.

Whether it’s the general difficulty of moving large amounts of data from paper to computer or government-imposed bureaucracy, the medical industry still has a long way to go in terms of digitization. However, the procedure has begun. More hospitals and clinics are implementing electronic health record/electronic medical record (EHR/EMR) systems and telemedicine.

  • EHR/EMR systems: Healthcare facilities use these systems to keep track of their patient’s medical records.
  • Telemedicine Websites: On-demand Doctor Websites / App (Aka, Telemedicine) is a branch of medicine that focuses on delivering healthcare services over the internet, including scheduling, consultations, and prescriptions. Developing a telemedicine platform is similar to developing an online medical website, although there are several variations.
Learn More On: Top 10 Reasons Why You Should Update Your Website Now

2. Main Usage of Medical Websites

Aside from the accessibility and marketing requirements mentioned above, developing a healthcare website can help your medical establishment — a clinic, a hospital, a lab, or a doctor’s practice — perform better. We want to go over a few of them here.

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2.1. Communication Channels Between Doctors and Patients

A clinic web portal can provide more than just a phone number for patients to call in order to schedule an appointment with a doctor. You can also set up a chat and/or video call with the doctor on a regular basis. This will reduce the need for at least some personal visits and improve the experience for busy patients.

2.2. Means of Automating Specific Features

When it comes to certain tasks, a chatbot can be even more efficient than a human employee. A machine-powered assistant, for example, will make fewer mistakes, such as mishearing a patient’s preferred date and time for an appointment. A bot can also assist patients in renewing or ordering prescriptions.

Non-urgent questions can be submitted via an online form; doctors will review and respond to them later. No form will be accidentally misplaced with proper design and sorting features.

All of this will free up time for your employees to perform administrative tasks that robots cannot yet perform.

2.3. Educational Resources

A health portal of some kind is a massive win for a medical establishment. Instead of relying on search engines and social networks, you can post scientifically supported health information so that patients have a reliable source.

Simultaneously, a health portal accessible to doctors can be used to create a database of clinical decisions for future reference. This will undoubtedly be beneficial in many cases, shortening the time required to treat patients.

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3. Medical Website Development | Key Considerations before starting

Nowadays, there’s no doubt that all healthcare providers need a website. It’s almost as if you don’t exist if you don’t have an online presence. Although one can debate the truth of this statement when it comes to a personal Facebook page, there isn’t much space for debate when it comes to growing a company, especially in the healthcare sector. Your solution will be reliable and quick thanks to the best medical website development practices combined with new technology.

3.1. HIPAA and HITECH compliance

Patient care providers deal with protected health information (PHI) on a regular basis. PHI refers to all health-related information that is covered under HIPAA rules. Data on health conditions, symptoms, insurance, patient forms, and financial qualifications are all examples of confidential data.

HIPAA compliance is required for a medical service provider’s website. HIPAA defines the protocols for handling, storing, and transmitting personal health information. HIPAA is based on four basic rules:

  • The Privacy Rule
  • The Security Rule
  • The Enforcement Rule
  • The Breach Notification Rule

An organization must meet all of the required data handling requirements, appoint a HIPAA compliance officer, prepare and publish a policy, and ensure data encryption to become HIPAA compliant. HIPPA is augmented by the Health Information Technology for Economic and Clinical Health Act (HITECH), which offers patients additional protection.

They must, first and foremost, have online access to their Secure Health Records and be informed of any data breaches. Furthermore, if a data breach involves the personal details of 500 or more patients, the medical provider must notify the US Department of Health and Human Services or similar.

Similar requirements have been in place in Europe since 2018 in the form of the General Data Protection Regulation, or GDPR. The GDPR applies to all websites that handle user data, not just health-related platforms. Depending on where you’re launching your medical website, you’ll need to check local medical and personal data legislation.

3.2. Detailed Privacy Policy

A strict privacy policy is required for a medical website because it processes a lot of confidential and sensitive data. All users should be able to see the policy, which should outline the types of data you receive, the methods you use, and how you process, encrypt and store data. If you work in the European Union, you can employ a GDPR lawyer to assist you in developing your privacy policy.

3.3. The Use of SSL Certificate

You can use HTTPS and SSL certificates whether or not your medical website sells anything. This security protocol ensures a reliable server link. All data traveling from your website to the servers is encrypted using this protocol. SSL certificates are available in a wide price range, ranging from free of charge to $4,000 per year. The price is determined by the level of security offered and the number of domains for which SSL certificates are available.

3.4. Website Responsiveness (Mobile)

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Website responsiveness became more critical than ever before as the internet migrated from PC to other devices. Any website should look fantastic on a large computer monitor as well as a tablet or smartphone.

If a website fails to have a positive user interface on all platforms, the service provider risks losing clients. Consumers are unlikely to trust any healthcare providers with a badly built website or mobile platform.

According to Statista, around half of all web traffic is generated by mobile devices. Mobile devices (excluding tablets) produced 50.81% of global website traffic in the third quarter of 2020, having steadily hovered around the 50% mark since the beginning of 2017.

Learn More On: Fitness App Development

3.5. Quick Loading Time

Health websites should be lightning fast when it comes to loading times. Users expect a website to load in under 2 seconds on average. If they wait any longer, you risk losing future customers. For medical web growth, fast load times should be high on the priority list. These pages are more likely to rank higher in Google search results and appear near the top.

Google has its own Website Speed Checker that you can verify and identify the reasons which cause your website to become slow.

3.6. Content Rich Websites

The goal of creating a website for a medical practice should be to build one that is full of useful information. At each point of the customer journey, you must provide patients with relevant content. Pricing information, patient testimonials, contact and location information, a FAQ section, and so on should all be included on the website. Pay careful attention to how the “About us” page is built.

According to Business2Community, 70% of small business websites lack a simple Call to Action (CTA) on their homepage. Don’t follow in the footsteps of these companies. Make your medical practice website one of the 30% of businesses with successful CTAs.

3.7. Improve Website with SEO Practices

Search engine optimization, or SEO, is critical to the success of any website. That is yet another reason to have a knowledge base. Relevant information presented by professionals using current SEO best practices will raise your website’s ranking in Google, increasing the frequency with which it appears in search results. More frequent appearances in search results will result in more visitors to your website. Some will click on the link, and some will decide to visit your clinic. That is, if your website is visually appealing and up to date.

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Get in touch with Savvycom for a free consultation. We’ll help you decide on next steps, explain how the development process is organized, and provide you with a free project estimate.

4. Medical Web Design Trends

Clients are easily distracted by the cluttered and disorganized website. Users want to find details quickly and conveniently, so the website should be clear and easy to navigate. Nowadays, patterns shift rapidly, making it impossible to keep up with them all. The most recent developments in medical practice website design are listed below.

4.1. Responsive Website Design

A responsive website is one that is user-friendly. It means that the design of medical websites takes into account various screen sizes and resolutions. Patients nowadays use smartphones and tablets to access information about the hospital. According to Statista, mobile devices account for roughly half of all web traffic.

4.2. Flat Design

The use of minimalistic and succinct elements in user interface design is known as flat design. As a result, you get a simple but striking interface that helps you to concentrate on the website’s content. Furthermore, since flat design uses basic design elements, it can speed up the loading time of a website.

4.3. Micro Animation 

Micro animations, as the name suggests, refer to tiny animated portions of the user interface. Micro animations help to attract users’ attention to your website and make it easier to navigate. Micro animations, on the other hand, should not be used in abundance on your website. They can be used in conjunction with apps.

4.4. Hamburger Menu 

The use of minimalistic and succinct elements in user interface design is known as flat design. As a result, you get a simple but striking interface that helps you to concentrate on the website’s content. Furthermore, since flat design uses basic design elements, it can speed up the loading time of a website.

4.5. Bright colors

Medical Website Development Savvycom 4

The use of minimalistic and succinct elements in user interface design is known as flat design. As a result, you get a simple but striking interface that helps you to concentrate on the website’s content. Furthermore, since flat design uses basic design elements, it can speed up the loading time of a website.

As you can see, users anticipate seeing clean, vibrant websites with animation in the near future. There are numerous medical website design firms that can create a website that meets all of your needs and objectives. Additionally, Savvycom also provides UI/UX design services. If you’re interested, you can learn more about our best work in Medical Website / Mobile App Development by visiting our Behance Account.

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4.6 Accessibility

The goal of web design accessibility is to make websites easier to use for people with disabilities. This is even more important for clinic websites than for other types of websites. When it comes to websites, accessibility features are typically aimed at users with vision impairments and physical limitations, though steps can be taken to assist people with other challenges as well.

Some websites have separate versions of pages designed specifically for people with various types of disabilities. This version is accessible via a button on the home screen or in the menu. However, an increasing number of businesses are incorporating accessibility into the basic design of their websites.

To comply with accessibility guidelines, use high-contrast icons and buttons that are easy to see and understand, as well as keyboard and voice navigation. Inquire with your medical web development company about their designers’ familiarity with accessibility principles.

4.7. Progressive web application

Progressive web applications, or PWAs, are a web development trend used by businesses that do not see the need for or cannot afford to create a mobile app for their business. A PWA is a web page that can be placed on the home screen of a mobile device and accessed similarly to a mobile app. At the same time, because they are web pages, PWAs are more accessible to build than mobile apps and don’t require a lot of storage space or processing power.

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5. Technologies For Developing Medical Website

Websites for healthcare providers vary greatly, and much of the technology used will depend heavily on the exact list of features you wish to implement and the healthcare website developers with whom you will collaborate. Our developers have compiled the technology they employ when working on healthcare projects. If you want to see an example, look at the table below.

Front-end JavaScript, HTML, CSS, Vue.js, React.js, Bootstrap, Highcharts
Backend Ruby on Rails, Elixir/Phoenix, Node.js, Sidekiq
Sign-up/sign-in Facebook API, Google API, Amazon SES
Data storage Amazon S3, Google Cloud Storage
Databases MySQL, PostgreSQL, MongoDB, Redis
Scheduling Google Calendar API
Notifications Twilio
Video calls WebRTC, RTMP
Chat Firebase, Twilio
Payments PayPal, Stripe
Video/audio playback AWS Lambda, FFMpeg, m3u streams

6. Key Features of Medical Website Development

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Whether you run a general practice hospital or a specialized clinic, you’ll need certain basic features.

The most basic option for a clinic website consists of only a few pages and virtually no on-site interactions. Here are the essential features for a basic healthcare website:

  1. The home page – This is where you introduce your facility and highlight everything important — the most popular procedures, any events, or information about your highly qualified doctors.
  2. Contact information – Provide a phone number, email address, and a contact form for your facility.
  3. The address of your clinic, as well as a map of its location.
  4. A page introducing your doctors and detailing their qualifications and work experience.
  5. Photos will enhance the page’s as well as your website’s professional and trustworthy appearance.
  6. Hours of operation – If your doctors have different schedules, providing hours for each doctor will be beneficial.
  7. Testimonials – As previously stated, most people look up information about doctors and clinics online. Positive reviews on your website may influence potential patients’ decisions.
  8. Pricing – Your prospective clients will want to know how much they will have to pay for your services. It may be advantageous to provide discounts, such as for the first visit, or to hold events. However, you must proceed with caution so as not to appear erratic.

The above information can even be implemented on a single scrollable page. A single-page application can also be created (SPA). An SPA is a website that rewrites content dynamically on a single page rather than reloading entire pages when a user moves between them. SPA content reloads faster than traditional website content, making this type of website more appealing to people with slow internet access or limited traffic.

However, if you want to gain a competitive advantage in the medical market, you’ll need a more sophisticated website. You’ll need a patient and doctor side, as well as an admin panel, on your website. A designated employee or a team of employees can manage the clinic’s side of the website in most modern clinics. These workers could be receptionists or medical assistants, and they could also be doctors.

According to experienced healthcare web developers, the following features are beneficial for any modern clinic.

Learn More On: Website Vs. Web Application: Which One Is Better?

6.1. Individual patient profiles

When someone becomes (or wishes to become) a patient of your clinic, they will appreciate the dedicated space where all interactions with your clinic can be stored: all records of a patient’s previous and planned visits, issues that brought them to seek medical assistance, sample results, payment history, prescriptions, and more.

Even if your clinic specializes in one type of medical care, such as a dentist’s office, you still provide a variety of procedures and activities.

Having a personal space necessitates the inclusion of a signup/login feature in your medical practice website development. You might consider integrating registration via Facebook or Google for user convenience, but be cautious not to allow third parties access to your patient’s health information.

6.2. Scheduling

The ability to schedule an appointment online without making a phone call is beneficial to both patients and doctors. It reduces the workload of receptionists who schedule appointments for patients who call or visit the clinic.

To schedule appointments through a website, your medical website developers must create an interactive calendar that syncs with servers and updates frequently to avoid double bookings.

6.3. Notifications

Implement notifications to remind users of upcoming appointments, blood test results, or prescriptions that are ready for pickup. Push notifications are an option if you’re creating a PWA. You can use notifications in a personal space or an automatically triggered email or text message on a traditional website.

6.4. Base of knowledge

When they suspect they or someone they know is ill, they look for a doctor. You can create a knowledge base for the ailments you treat to make it easier for users to find doctors. This knowledge base’s information must be true and verified. It may include a general overview, symptoms, and treatment methods, among other things. People should always learn from a reputable source that is informed by the World Health Organization and compliant with health-related legislation rather than from a random person on Instagram who may or may not make things up.

6.5. Search

Users should be able to search for information on a large hospital’s website if they’re creating one.

  • Names of doctors
  • Departments
  • Procedures and tests
  • Symptoms
  • Keywords

A smaller specialized clinic, such as a dentist’s, gynecologist’s, or therapist’s office, will have fewer categories, but some.

6.6. Video consultations via the internet

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Telemedicine has been on the rise for some time now; it saves time for people who are always on the go, as well as people with disabilities who may have difficulty visiting a hospital. With the COVID-19 outbreak, telemedicine has become the primary option for healthcare, as hospitals have become overcrowded, sometimes quarantined, and people have been confined to their homes.

There are several methods for managing online consultations. The best option is to have a video chat option right on the website, but incorporating this type of functionality may prove to be a financial and technical challenge. Another option is to use an API to integrate a third-party video conferencing service, and this is less expensive, faster, and just as effective.

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6.7. Chat

Chat functionality can be used in conjunction with (or instead of) video conferencing functionality. For many people, on-site consultation with a medical specialist is more convenient than a phone call. Patients can also use a chat to book appointments and obtain prescriptions, as well as by clinics to notify patients of new appointment times and test results, send payment reminders, and so on.

6.8. Online transactions

If you’re delivering prescriptions or integrating online consultations into your website — whether through video, chat, or both — you’ll need to provide your users with ways to pay for services without having to visit the clinic. You’ll need to integrate a payment gateway for this. Choosing a payment service is critical. Such services have varying fees and terms of service, and your development firm can conduct research and present you with several options.

6.9. Admin Interface

Your clinic’s website will need to be managed. Designated employees, such as assistants or receptionists, will be responsible for checking and updating schedules, as well as sending patients any relevant information, such as test results. Administrators should also have the ability to add and remove doctors and other employees.

An admin panel’s design is typically much simpler than a client-side website’s. There’s no reason to make an admin panel look flashy, and a functional and efficient user experience is far more important than a beautiful interface.

7. Cost For Medical Website Development

You’ll need to know exactly what features you need, settle on a template, and select an outsourcing web development company to estimate the exact cost of medical clinic website development. Rates vary from one IT Company to the next. Based on the features mentioned above and our own design and development speeds, Savvycom can give you a very rough estimate.

The following experts would be required for a medical website development project:

  • Project manager
  • Web designer
  • Frontend developer
  • Backend developer
  • Quality assurance specialist

A hospital website will take about 5 to 7 months to create. The development cost can start at $50.000. And you can hire more than one designer, frontend/backend developer, or QA specialist to expedite development. Of course, the price will rise under these circumstances.

If you’re on a tight budget, you can skip features you believe can wait and implement them later. However, we recommend preliminary research to determine whether certain features are essential. While the medical industry is still in its early stages of digitization, your competitors are also preparing. Proper research will assist you in prioritizing which features to implement.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across a variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

A medical website should at least have these features: the homepage, contact information, location, a page for doctors' profiles, photos, operation hours, testimonials and a pricing page.

These are the most basic features that a medical website needs, so that its customers can have enough information about your healthcare facility.

The upcoming trends for medical website designs include: Responsive design, Flat design, Micro animation, Hamburger menu, Bright colors, Accessibility and Progressive Web App (PWA). 

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Top 10 Software Development Companies in Vietnam

Vietnam’s Information and Communications Technology (ICT) sector has an average yearly growth of 9.8% for the last five years with annual revenue of $110 billion in 2019, a 14% contribution to the country’s GDP. Thanks to its growing IT infrastructure, improving logistics and regulatory environment, and business-friendly economic reforms – it is now emerging as an outsourcing destination in the Asia-Pacific region. Therefore, outsourcing to Vietnam has become a strategic option for businesses wanting to cut cost on fixed headcount. 

In this article, we are going to audit the state of outsourcing in Vietnam, as well as publishing a list of 10 best software development companies in Vietnam so that you have a full view of why and how you can hire software development services in this competitive market.

1. Why Outsource To Software Development Companies?

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During this pandemic, businesses across the world are cutting down on local staff. Some are deferring their planned IT projects until a more stable time, and some are canceling projects indefinitely. The savior for all such companies is IT outsourcing.

Outsourcing is a business practice in which certain company functions are assigned to outside service providers rather than performed in house. In other words, a company seeks external help or support to perform some of its business activities so it can stay focused on core business goals while saving time and money. In today’s tough scenario, businesses can survive through software outsourcing services – and some businesses might even be able to come out of this pandemic doing well.

The outsourcing industry has been an integral partner in companies’ crisis responses across sectors. Offshore software development to another country such as Vietnam is a smart decision that companies should consider to maximize their productivity in a cost-effective manner. This proven approach has led to many successful projects, as it allows a business to focus on its core competencies. It should be used as a strategy that can really boost a business.

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2. Vietnam – Ideal Destination For Offshoring

1. Pandemic Stabilization

Recognizing that its medical system would soon become overwhelmed by even mild spread of the virus, Vietnam chose prevention early and on a massive scale. The country reported one of the least cases in Southeast Asia with minimal deaths. We are also featured in various reputable newspapers for our relentless efforts and successful pandemic countermeasures. This has given businesses based in Vietnam a head start over global competitors at this time.

Update 16/5/2022:

  • Over 80% of Vietnam’s population has been fully vaccinated.
  • Vietnam has dropped the Covid-19 test requirement for foreign arrivals from May 15
  • The recovery rate is 87.5%, while the Fatality rate is only 0.4%

2. Cost-Effectiveness

Top Software Development Companies In Vietnam | Savvycom -2

According to Innotech, outsourcing software development in Vietnam costs 50% less than the rivals from India and China. Anderson Vietnam also estimates that outsourcing per person in Vietnam is only $20,000 per person a year compared to $40,000 per person in India. These figures are convincing enough to place Vietnam as the top future contender for offshore development projects. 

As Indian companies enter the maturing cycle, the cost differential between India and Vietnam will increase even further. The outsourcing costs in India are most likely to increase in the coming years.

3. Potential Workforce

Human capital in Vietnam is witnessing positive trends. Some of the most notable highlights in Vietnam IT workforce in recent years are:

  • Top 7 countries in Asia with the highest EF EPI Average.
  • Top 5 countries in Asia with the fastest improvement in English skills.
  • Top 10 countries in the world with the most engineering graduates.
  • Top 10 countries of origin of international students in key study-abroad markets.
  • Top 10 countries in Asia Pacific with the highest Human Capital Index.
  • Top 10 in regional groups in global attraction and global knowledge skills.
  • Top 30 countries in the world and top 2 in SEA countries for basic academic skills.

Moreover, Vietnam has a population of over 90 million people and over 60% of the population is under 30 years of age. With that being one of the countries with a young population, the Vietnamese – or Vietnamese workforce specifically – are perceived to be fast learners, dynamic, innovative, tech-savvy and flexible to changes. 

4. Knowledge & Skills

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As the surge of technology is making a significant impact on every generation, more and more STEM majors, schools and academies are opened to encourage the young to invest their talents in technology and relevant sectors and hone their skills. The rapid development in both quantity and quality of IT education in Vietnam provides an extensive supply of software developers for Vietnam outsourcing companies in the years to come. 

On the other hand, Vietnam students are often appraised for their fast absorption of knowledge, most of them have good to excellent academic background as certified by standardized exams, endorsements from global recruiters, honours and awards. 

5. Vietnam’s Developers Ranking

Skillvalue 29th

worldwide in developer skills charts of skillvalue’s report 2018

Topcoder Top 6

worldwide in developer skills charts of topcoder report 2016

Hackerrank 23rd

worldwide in developer skills charts of hackerrank’s report 2016

AI Development

The first two scientific researches at neurips – top 1 conference in the world about artificial intelligence in canada from artificial intelligence research lab vinai research

Workers in Vietnam have extensive English language training. Because the majority of the software engineers you’ll be hiring are college graduates, they’ll have attended English classes throughout the years and will most likely be fluent in English already.

With that said, it is considerably easier to outsource to other countries when you have solid English communication abilities. If you want to work in software engineering or business process outsourcing, you should have excellent communication skills.

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3. Top 10 Software Development Companies In Vietnam

A glance back at 2021 from Savvycom Team

Many organizations would be unable to increase their efficiency and achieve the desired level of satisfaction without software development companies’ assistance and technological expertise. With the ever-increasing technical demands, it’s critical to choose the right company to guide you through the process and help you find the best solutions. Here are some of the top software development companies in Vietnam in 2021 that will find the most cost-effective ways to achieve their objectives:

1. Savvycom

Savvycom is one of the leading Information Technology companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in finance, healthcare, and retail for domestic and international businesses. Headquartered in Hanoi and with three representative offices located in Ho Chi Minh City, USA, and Australia, the company’s mission is to leverage engineering resources in Vietnam and empower businesses worldwide by utilizing the power of technology, becoming a leading IT company in the ASEAN region and beyond.

The company’s successes are reflected in its 100+ endorsements from clients, including Fortune 500 companies, in its receipt of more than 20 international honors and awards, and in its strategic partnerships with technology brands such as Apple, AWS, and Microsoft.

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Clutch:

The Manifest:

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2. KMS Technology

KMS Technology is a U.S.-based engineering and services firm with development centers in Vietnam, founded in 2009. International clients rely on KMS Technology because of the high quality of its products and the expertise of its Vietnamese engineers.

KMS is dedicated to making a long-term social impact by partnering with non-profit organizations that provide fair and better employment opportunities for disadvantaged students. In Vietnam, the company collaborates with universities regularly, participates in IT training activities and specialized events, and sponsors scholarship programs.

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3. Rikkeisoft

Rikkeisoft provides software services and solutions for clients worldwide, ranging from Web/Cloud Systems, Mobile Applications, Games, and Blockchain to AI, IoT, Business Processing, and Embedded Systems. Eight years after being founded in 2012, they have successfully established three branches around Vietnam and three affiliated companies. They take pride in our mission of building better lives through advanced technology for people. Their vision is to have 10,000 employees by 2025 and become one of the top Vietnamese software development companies in Southeast Asia.

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4. Positive Thinking Vietnam

Positive Thinking Company is a global independent tech consultancy group with a team of more than 3,500 talented tech specialists on the ground in over 35 cities across Europe, the USA, Asia, Australia, and Africa, they serve clients of all sizes. They believe collaboration betters our world. Their unique open ecosystem model allows us to deliver end-to-end tech solutions. Their services draw on a wide array of expertise, including apps & platforms, security, cloud, data & analytics, hyper-automation, and digital workplace.

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5. CMC Global

CMC Global is a subsidiary of CMC Corporation with the goal of bringing Vietnamese ICT products, solutions, and services to the international market. We are proud to be the leading company in Vietnam in providing a wide variety of comprehensive IT Solutions & Services, ranging from traditional services to Digital Transformation, as well as Consultancy, to organizations worldwide, having been established in March 2017 as a strategic move by the Corporation to enter the global stage.

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6. Tpp Technology

In Viet Nam, TP&P is one of the leading, highly diversified, and pioneering IT service providers and investment management firms. TP&P applies its extensive experience and specialized knowledge to various technology startup investment and service provision strategies, including software development, development and cloud management, and business consulting.

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7. Smart OSC

SmartOSC is a full-service e-commerce agency that was founded in 2006. Lotte, Courts, PayPal, Boozt, SpaceX, Smartbox, eWAY, Priceline Pharmacy, Club 21, Delta Apparel are among the company’s more than 500 global clients. SmartOSC has a global presence with 500+ employees and offices in Vietnam, Australia, Singapore, the United States, and the United Kingdom as of January 2017.

SmartOSC provides consulting, UI/UX design, development, and managed services, among other things. The technical and business expertise of the company is based on a few platforms: Magento, Sitecore, Adobe, Hybris, and Kentico.

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8. NashTech Vietnam

NashTech strives to create a nurturing environment that facilitates the growth of our employees, professionally and personally. They put effort, determination and ambition into creating a second home for their employees, where everyone is encouraged to be their most authentic self.

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9. Orient Software

Orient Software began operations in 2005. Orient is currently one of the leading software development companies in Vietnam. Orient’s strong team of 315 skilled and experienced IT experts collaborate to provide software development solutions to clients with small to corporate-sized businesses worldwide after more than 15 years of providing professional IT solutions.

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10. Saigon Technology

Saigon Technology Solutions is Vietnam software development outsourcing company focused on delivering cost-effective solutions to its clients. Its customers are located in the US, the UK, Australia, Germany, and the Netherlands. Their services include custom application development, web application development, and mobile application development. It is listed among the top software development companies around the world. Additionally, Saigon Technology Team also provides .NET Core, Java, PHP, ReactJS, Angular, Azure, AWS, microservices, and machine learning. Some of its impressive clientele include Kaercher, Abbott, Panasonic, Topicus, and DMI Inc.

Learn More About Saigon Technology On:

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From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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The Ultimate Guide On Telemedicine Software Development In 2023

People’s consumption of healthcare services has been influenced by post-pandemic realities. After experiencing the benefits of the remote format, according to Mckinsey, more than 40% of surveyed consumers said they would continue to use telehealth after the lockdowns. Thus, telemedicine software development is an excellent investment.

Furthermore, global circumstances increase the demand for online healthcare services. Telehealth websites and mobile apps are beneficial for modern people. Instead of scheduling an appointment with a doctor, waiting in a long line, or risking exposure, they can schedule an appointment with a therapist and receive care in a few clicks.

Telemedicine software solutions will also benefit doctors and hospitals. Private medical practitioners will no longer need to rent office space, and healthcare facilities will be able to reduce the number of hospitalizations. Furthermore, both parties gain a powerful channel for distributing their services.

However, telemedicine software has unique characteristics that you should be aware of. So here’s a comprehensive guide to developing telehealth software. We’ll review how to build a telemedicine platform, key features, and monetization strategies.

1. So, What is Telemedicine?

Telemedicine Software Development 1

Instead of in-person visits, Telemedicine uses electronic communication technologies and software to track and treat patients. Simply put, Telemedicine is a method of providing medical care to patients over the internet. Its primary goal is to offer people on-demand access to various medical services while reducing doctors’ workload. Telehealth or Telemedicine software solutions allow patients to contact their doctors from afar at any time, and healthcare practitioners can better manage their resources and attract new patients without incurring high costs.

1.2. Overview of the Telemedicine Market

The telemedicine market is currently at its peak of success, with many optimistic predictions. In 2021, the global telemedicine market was worth $72.7 billion, and it is expected to grow to $168.4 billion by 2026. The reason for this is that virtual care delivery is a reaction to social distancing demands that have been implemented in many countries. Furthermore, Telemedicine enables healthcare providers to communicate with patients more effectively and provide better solutions to their health concerns.

Learn More On: All You Need To Know About Software Development Process

1.3. Technologies Behind Telehealth / Telemedicine Software

  • Conferencing via video – Sometimes, patients already know what their symptoms mean and want the diagnosis confirmed. Users can receive virtual consultations via the camera of mobile devices, desktop computers, or web applications, thanks to advances in audiovisual technology. Instead of standing in line, they can schedule an online consultation with a doctor.
  • Store-and-Forward – This functionality allows recording, storing, and transmitting patients’ medical records to various healthcare professionals at another location to create a treatment plan without requiring an in-person visit. It’s also great to examine visible symptoms like bruises using photos.
  • RPM – Remote patient monitoring (RPM) refers to using cloud computing technology to collect patient-generated data and transmit it to doctors. RPM solutions aim to detect symptoms early and provide medical assistance to patients remotely.

2. Strategies for Monetization

Without funding, no project idea will last long. The most common method of monetizing your platform is to charge patients a fee each time they pay for a visit. The cost of a consultation will vary depending on its length and the doctors’ specialties. For example, the Doctor on Demand service deducts 25% from transition fees, and patients pay $75 for a 15-minute consultation with a physician. When it comes to medical establishments, it is common practice to take a certain percentage to hospitals each month for each employee who uses the software. Again, the Doctor on Demand platform charges a monthly fee of $1 per specialist.

Other revenue models for telehealth software development are listed below.

  • Annual subscription – Patients pay a yearly fee and are charged for any medical care they receive.
  • Monthly charge – According to this model, patients and providers pay monthly fees to use the software.
  • Franchising – If your market is saturated, consider shifting your emphasis and franchising your system to other countries.
  • A fee per minute – This approach necessitates charging patients a per-minute fee for doctor consultations.

3. Telemedicine Technology Trends

The majority of current development trends can be beneficial to the development of telehealth software. Artificial intelligence, the Internet of Things, Big Data, and other technologies will help improve healthcare delivery. Let’s take a quick look at the most popular technological solutions.

  • Artificial Intelligence –  AI-powered chatbots are designed to provide patients with immediate care. They can consult with patients about their symptoms and send the record to their doctors for treatment planning if necessary. Chatbots can also answer questions about physician schedules, competency, and other topics. According to research from Accenture, hospitals using AI-based apps can save around $150 billion annually.
  • Internet of Things – Connecting IoT sensors to various mobile devices will improve health condition monitoring, diagnosis, prescription adherence, and more. Patients, for example, can track temperature, blood pressure, heart rate, and other attributes using wearables and other medical devices and send the results to their therapists for further analysis.
  • Augmented Reality (AR) – AR technology will allow for the multidimensional visualization of healthcare data. For example, detecting disease using image recognition can assist doctors in diagnosing patients with real-time screening analysis that is as accurate as expert analysis.

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4. Types Of Telemedicine Software?

The primary goal of telemedicine software development is to provide an appropriate environment for physician-patient relationships. Telehealth software solutions are commonly classified into four types:

  • Urgent care on demand – Digitalization benefits emergency care the most. According to studies from Mckinsey, approximately 20% of emergency care provided in healthcare facilities can be delivered online. To build a custom telemedicine app of this type, you’ll need to include video and audio support, Google calendar integration, schedule-related features, document management, and EHR integration.
  • Care that is pre-planned – This type is used for a patient checkup following an in-person visit. The doctor treats the patient in accordance with their treatment plan. If users have treatment-related questions, they can send text or voice messages to the physician (e.g., drug schedule, result monitoring, etc.).
  • Mental assistance – These days, such software is gaining popularity because many people suffer from physical and psychological exhaustion. They enable you to provide mental health services to users in the comfort of their own homes, making them feel safe and secure.
  • Self-care technology – Numerous self-care applications are available, but only a few offer professional support to patients. This software allows users to monitor their health, such as blood pressure, heart rate, oxygen level, or the number of pills they need to take. Such platforms have demonstrated their effectiveness in treating chronic health conditions such as asthma and cardiac failure. Such solutions, however, are linked to IoT devices.
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5. Telehealth Software Development’s Technical Aspects

So, how do you actually create Telemedicine Software? Whatever healthcare solutions you choose, all telehealth platforms include the patient’s and doctor’s perspectives. The features required for each role are listed below.

5.1. Features of Telemedicine Software for Patient Registration

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First and foremost, there is the sign-in feature. Because telemedicine applications contain sensitive information, the registration process should adhere to EHR integration standards and allow for document uploads. Patients can sign up via email, mobile phone, or third-party services like Facebook. To ensure data security, two-step authentication via SMS or email is essential. Furthermore, it is critical to include data privacy agreements that are visible on the main screen.

Profile administration

Following registration, a user should be able to add personal information such as name, age, gender, personal preferences, location, and the ability to synchronize with existing hospital records. The user’s EHR is required information in the profile. This information allows physicians to evaluate a patient’s medical conditions and examine their therapeutic history. Patients can schedule appointments with doctors.

Video conference

This is an essential feature in the development of telemedicine software. Remember that video and audio should be of high quality so doctors can see the symptoms and correctly diagnose the patient. Furthermore, data transfer speed may vary depending on the user’s connection, so your software must adjust the video quality automatically to provide flawless information delivery. RTMP (Real-Time Messaging Protocol) and WebRTC are two streaming protocols that can be used for this purpose (Web Real-Time Communication).

Messaging via text

Minor issues like a runny nose or cough do not necessitate a video call. Instead, patients may text a doctor for advice. This option allows physicians to respond in their spare time without interfering with other patients. Users can also attach photos and files for visual cues. Twilio is an excellent tool for implementing live chat.

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Scheduling

This feature will allow patients to monitor and manage their doctor’s appointments. Users should be able to see the physician’s available time, schedule meetings, and cancel their appointments. Users receive a confirmation email or text message once the appointment is approved. If you’re creating a telemedicine app, use the Google Calendar API to integrate Google Calendar. As a result, patients can reschedule meetings and see the doctor’s available time slots directly on the calendar.

Notifications

Aside from calendar notifications, users can receive custom notifications for monthly visits, prescription renewals, and physician queries. Furthermore, they will assist you in informing your customers of future updates.

Reviews

Patients should be able to leave feedback about their doctor visits. Include a rating system that allows users to rate the doctor (for example, on a scale of one to five) and leave a comment. Physicians can monitor their performance and, if necessary, improve the quality of their service based on user feedback. Furthermore, reviews from other customers will assist users in making more informed decisions and locating trustworthy specialists.

Payment information

Payment functionality is critical in the development of telemedicine software. Payment methods such as PayPal, Stripe, and Braintree can be integrated, as can custom payment services or third-party services such as MasterCard or Visa. The primary advantage of payment gateways over third-party providers is that they handle fast, secure transactions and are simple to implement. Suppose you want to create a custom system service. In that case, you must adhere to the most recent data regulation and security protocol. In this case, working with a professional software development company is preferable.

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5.2. Features of Telemedicine Software for Doctors

Some telemedicine app features are also available on the doctor’s side. Some are similar to the patient’s side, while others are not. Let us now consider what features should be implemented by the physician. Some functions are identical to those on the user side, while others are distinct.

Profile of a Doctor

Physicians must also create a profile, including their specialization, qualifications, experience, and other information. Client rates and reviews, as well as shifts, should be included in the profile.

Electronic Health Records (EHRs)

Before meeting with patients, doctors must be granted access to the patient’s EHR. As a result, they can accurately diagnose their clients’ health conditions. Make sure that physicians cannot download medical files from your database. Both of you will be fined if your phone contains sensitive information.

Communication

The development of telehealth software necessitates two-way communication between patients and physicians. Doctors should also be able to text or call patients to inquire about test results, treatment progress, or general well-being. If a planned physical examination is required, the doctor should be allowed to schedule an appointment with the client on their own.w

Exchange of internal data

The doctors may have to refer their patients to a different specialist. They should be able to exchange client information between departments in this case. Your job is to ensure that internal data exchange runs smoothly and securely.

Learn More On: Mental Health App Development: Cost, Design, Ideas

6. What Are Telemedicine Software’s Advantages?

Patients, doctors, and healthcare providers all benefit from telemedicine software. The most common reasons for incorporating telehealth software development are accessibility and seamless delivery of healthcare services. Consider the primary benefits that each party can obtain from your software.

6.1. Advantages for Patient’s Convenience

Patients receive high-quality care at their preferred location. It means there’s no need to make an appointment ahead of time, waste time on the road, or stand in long lines. It is crucial for people living in remote areas without nearby healthcare facilities.

Accessibility

People worldwide can now access healthcare services anytime, from remote-controlled medical robots used to simplify surgery to more basic healthcare apps used to monitor blood pressure. Going even more profound, some healthcare technological solutions will be able to educate people on best practices.

Service cost savings

Telemedicine solutions are less expensive than traditional methods of care. During the COVID-19 pandemic, healthcare providers were compelled to offer packages that included various telehealth services to provide immediate medical care at a reasonable cost.

Increased Revenue for Healthcare Providers

Video meetings save time and money over in-person meetings. Healthcare facilities can save money on rent, administrative costs, sourcing suppliers, and hiring personnel. Furthermore, the study found that telehealth applications cut maintenance costs by 94% on average. Hospitals, on the other hand, will see increased client flow due to patient reduction, allowing them to earn money in the short term.

Improved cross-team collaboration

As telemedicine software is updated, healthcare practitioners can learn new processes and gain sophisticated skills to manage telehealth systems effectively. Furthermore, this intention may encourage employees to attend specialized courses, resulting in improved team collaboration in the future. In fact, personnel miscommunication is responsible for approximately 80% of errors. A well-educated and strong team will assist healthcare institutions in making the most of telemedicine software, thereby improving patient care.

Fewer visits canceled

It irritates clinic staff when patients fail to attend scheduled meetings or cancel or reschedule them at the last minute. According to research, such appointment cancellations cost healthcare providers more than $150 billion annually. Telemedicine software development allows physical meetings to be replaced with virtual ones. Patients’ cancellations will be communicated to doctors via push notifications or in-app calendar notifications. As a result, they can consult with more people without wasting time.

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6.2. Advantages for Doctors Effective time management

According to research, more than 15% of physicians experience work burnout. With in-app schedules and push notifications, better time management and work-life balance will be possible. With a single click, doctors can change their schedules, browse their patients’ medical histories, schedule meetings, and apply for sick days. It will lead to more thorough patient examinations and prescribed care.

Keeping medical records

Doctors can effectively access and store patients’ EHR with custom telemedicine software. It’s difficult to find clients’ records or hand them to other specialists for accurate medical prescriptions in a traditional hospital. Digital solutions will ensure continuous data access and transmission.

Paperwork administration

Healthcare solutions are helpful not only for medical issues but also for automating administrative processes in businesses. Because most back-office functions will be automated, there will be no need to fill out various forms and internal documentation. Breaking down this inefficiency will result in increased profits and better treatment.

Learn More On: Location-Based App Development

7. Challenges In Telemedicine Software Development

As you may have noticed, telehealth software development provides significant advantages to users. However, there are some details you should be aware of, and let’s take a closer look at each.

7.1. Security

First and foremost, you must implement all security measures to safeguard personal user data. For this purpose, you can use various telemedicine tools, protocols, and algorithms. Here are some key points to think about:

  • Maintain conformity – Ensure that your telemedicine platform meets all regulatory standards, which we’ll review below.
  • Encryption – Encrypt your data to lessen the impact of careless data loss and cyber-attacks. AES 128 Bit and SHA 256 are the most widely used standards for telehealth app development.
  • Self-assessment – To ensure complete data security, perform self-examination and look for vulnerabilities whenever software is upgraded.
  • Patient education is essential – Patients should also be aware of data security standards and include strong passwords, virus protection, and firewalls on medical consultation devices where applicable.

7.2. Compliance with Regulations

Telehealth software solutions must be implemented in accordance with specific regulatory and medical standards because they process personal patient data. These rules are designed to safeguard critical information and prevent cybersecurity breaches in real-time.

Here is a list of country-specific standards with which your telemedicine software must comply.

  • HIPAA (United States)
  • PIPEDA (Canada)
  • IEC 62304 (international)
  • DICOM (international standard to manage medical imaging data)
  • ICD-10 (international classifications of disease)
  • Directive 95/46/EC on Data Protection (Europe)

Your medical application should also meet FHIR and OWASP standards. Furthermore, secure messaging and encrypted data transmission protocols must be used to transfer patients’ EHRs and EMRs within and outside healthcare organizations.

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7.3. Video High Definition

Full HD video is critical in the event of physical harm to patients. Poor video quality can lead to incorrect symptom interpretation and diagnosis. As a result, a good device camera is essential. In some cases, however, invalid code and bandwidth issues may result in poor video quality. Consider an IT vendor who understands how to build a telemedicine system with video chat support and has extensive streaming experience.

8. Process of Developing Telehealth Software

Telemedicine Software Development 3

Because it directly affects people’s health, developing this software requires significant responsibility and careful planning. As a telemedicine software development company with experience in the healthcare industry, we’ll go over the steps you should take to create a user-centric app.

Step 1: Planning

You’ve decided to create your own telehealth platform. However, before you choose the right type, platform, or technologies, define the purpose of your future product. In the case of telemedicine apps, it is a benefit you will provide to your potential users. For example, you may wish to create a healthcare solution that includes powerful video conferencing software to facilitate patient-doctor communication, or you may wish to create pharmacy management software to automate pharmacy-related processes, or you may require an all-in-one solution.

When you’ve identified the problem that needs to be solved, it’s time to look at your main competitors and market leaders. Pay attention to their strengths and, more importantly, weak points to determine what you can do better to attract more leads. The following step is to identify your target audience. Again, careful analysis and research will enable you to segment your audience and develop features that meet their expectations and demonstrate demand. In addition, you must consider high-level integrations (for example, with EHR), collect compliance requirements for relevant regulations such as HIPAA, and determine the software license required.

Step 2: The Discovery Phase

Because clients and software engineers may have different visions of required features, the Discovery phase is critical for telehealth software development. At this point, Business Analysts examine your company’s goals and project concept. They create a project specification that includes information about the product, such as features, design, technology stack, number of third-party integrations, and so on. Finally, after all the data has been analyzed, you will be given a final estimate.

Step 3: User Interface/UX Design

UI/UX designers define the core user scenarios (e.g., video meeting setup, prescription renewal), visualize the main features of telemedicine software, and plan convenient customer journeys for all users involved at this stage. Then, they create an app prototype that shows how the platform will look, and perform and what it can do in the future. Finally, appealing user interface elements are created by designers.

Step 4: Product Development

It is the most critical and challenging aspect of developing a telemedicine platform. It stands for developing the product’s server-side, integrating APIs, and converting an appealing UI design into functional software. It is preferable, to begin with, a minimum viable product (MVP) to test the software concept and launch the app with minimal investment. The core concept of MVP is to create a telemedicine app/software with enough features to attract first users and gather early feedback. Furthermore, once you start making money, you can reinvest in adding advanced features.

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Step 5: Testing

The telemedicine platform cannot be deployed without extensive testing. QA engineers conduct multiple tests at this stage to verify the product’s functional requirements, find and fix potential bugs and malfunctions, and ensure software security and regulatory compliance. The results are then entered into the bug report and transferred to software developers for further correction. Before the final client review, QA engineers ensure that all functionality works as expected and meets project requirements.

Step 6: Delivery & Upkeep

After completing all previous telehealth software development stages, it is time to deliver a finished application to customers and stakeholders for testing and feedback. If necessary, you make improvements based on the information gathered. Due to the complexity of telemedicine solutions, it is preferable to continue working with the dedicated development team. They can keep the software running smoothly by adding new features or improving existing ones, fixing bugs, and providing seamless software performance. Furthermore, system security and standard compliance must be checked regularly.

What Is the Price of Telemedicine Software?

The cost of developing telehealth software varies depending on the type of software, the complexity of the features, the design, the integrations, and the rates of software developers. When all of them are considered, the average cost to build a telemedicine platform will range between $150,000 and $250,000+. Unfortunately, no specialists can give you an exact price until they know what functionality you require and what type of Telemedicine app you want to develop.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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There are 6 steps an experienced telemedicine software development company will follow to ensure the delivery of a reliable and useful healthcare app:

  1. Planning: Define the purpose of your desired product & identify your target audience
  2. Discovery phase: Business analysts examine your business's goals & project concept to create a project specification.
  3. UI/UX design: Define user flows, and features and visualize the app's interface.
  4. Product development: Develop the product's server-side, integrate APIs and convert the UI design into functional software.
  5. Testing: Conduct multiple tests to verify the product's functions and fix bugs.
  6. Delivery & upkeep: Deliver the final app and make improvements if required. 

Telemedicine software's main goal is to provide patients assess to healthcare services and reduce the workloads for doctors. Telemedicine software may follow one of the revenue models below:

  • Consultation session charge - The software charges a patient a fee every time they pay for their consultation.
  • Annual subscription - The patient pays a yearly fee and is charged for the medical services they use.
  • Monthly charge - Patients and providers are charged monthly fees to use the software.
  • Franchising - If your market is saturated, consider franchising your system to other countries.
  • A fee per minute - A patient is charged with a per-minute fee for doctor consultations.

Telemedicine software may bring ample benefits, yet there are some serious concerns regarding its development as well.

Security

Because software like this contains a lot of sensitive information about users, it would require top security methods. 

Compliance with regulations

Asides from an app's security methods, a business needs to be aware of the regulations their app would have to compliant. Here are some of the country-specific standards that telemedicine software may need to comply with: IEC 62304 (international), DICOM (international standard to manage medical imaging data), Directive 95/46/EC on Data Protection (Europe), HIPAA (US), etc.

High definition videos

The video's quality is extremely important to assist doctors in diagnosing their patient's physical symptoms. 

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Software Development Outsourcing: Your Guide To Success In 2023

Post-pandemic realities have altered the world, forcing nearly everyone to work remotely. In this light, outsourcing software development is the most natural and appropriate option, gaining popularity today. According to Statista, the outsourcing market should have reached $413.72 billion by the end of 2021. This demonstrates the popularity of outsourcing services.

Also, according to Grand View Research, the compound annual growth rate (CAGR) of the global outsourcing market value is expected to be around 8.5% from 2021 to 2028. (compared to one in 2020). We’ve put together this 2022 guide to show you how to profitably outsource software development using all of its options.

1. What is Software Development Outsourcing?

“Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981.Wikipedia

To begin, let us define the essence of IT outsourcing. This is the process of transferring a software development workflow (or a portion of one) from a client’s company to a vendor’s. The vendor’s staff continues to work on their locations and remotely completes the tasks assigned by the client. Let’s look at some outsourcing models now.

1.1. Onshore vs. Offshore vs. Nearshore

Why Companies Outsource Software Development 3

Savvycom HQ in Hanoi, Vietnam

Software development outsourcing is classified into several types based on location and the client’s relationship with the vendor’s company. The following types of location-based outsourcing exist, depending on the distance between the customer and the IT service provider:

Offshore Outsourcing
Offshore software outsourcing is all about working with companies located in a completely different part of the world. Offshoring usually refers to working with teams in far-away countries with a benefit that cannot be beaten “The cost”. The price for offshoring could sometimes go as low as $20 making it the perfect choice for saving a lot of development budget.
Nearshore Outsourcing
Delegating software development responsibilities to an extended team in a nearby country, usually in similar time zones, is referred to as nearshore outsourcing. Nearshore outsourcing is probably identical to offshore outsourcing expect that it matches your company with workers in similar time zones and geographic proximity.
Onshore Outsourcing
Onshore outsourcing is when you hire services to assist your company from within the same country. Onshore outsourcing is the closest to home because you are working with a company located in your home country. The advantage of onshore outsourcing is that you’re working with a highly skilled software engineer in your own country.
Learn More On: A Guide To Dedicated Development Team

1.2. Relationship-based Outsourcing

Relationship-based outsourcing is classified based on business objectives and the type of management your project requires. According to these criteria, the two most common outsourcing models are:

The project-based
When a client company requires additional technical expertise for a project, they hire an outsourcing development team to build the product and manage the workflow. The scope of work (as well as the payments) is fixed and intended for quick completion and delivery.
The specialist model
The specialist model entails the hired outsourcing company developing the product (filling gaps in the company’s technical knowledge) under the control of the client project manager or an in-house team. The adaptable work scope distinguishes this model (and the flexible rates, paid hourly or monthly). It is done to supplement the client’s company’s staff.

1.3. Outsource vs. Outstaff: What to Choose?

Most businesses prefer to save time, money, and effort by outsourcing and outstaffing development services to meet their business needs. They are not, however, equal, and let’s look at what these terms mean and how they differ.

Outsourcing is a remote software development process transferred to another company with complete control over the project’s execution. Outstaffing entails a remote development workflow; however, the hired specialists from the vendor’s company are transferred to the client’s staff for work, and the client is considered their new employer.

Feature Outsourcing Outstaffing

Costs

Higher than for outstaff

Lower

HR recruiting & management

Controlled by vendor

Controlled by the client, who functions as the PM, while the vendor runs the payroll

Responsibility for the project

The vendor’s one

The client’s one

Software/hardware purchase & other needs

On the vendor’s side

Needed to be bought by the client

Communication processes

Flexible: may be organized on demand

Can be complicated to organize

The models described here depend entirely on your company’s needs and requirements. Outsourcing development can save you time and money when launching a new project, especially if your in-house team is working on another one. If you require IT specialists immediately but lack the time and skills to hire them, you can use outstaffing services.

Learn More On: 08 Best Software Development Methodologies

2. Main Geographic Regions for Outsource

Finding the right specialists for a project is critical to its success. The question is, where do you look for them? See below for the most popular places and regions to outsource software development.

Asia
Vietnam, Singapore, Philippines, Indonesia – Prominent IT specialists pool, low costs for outsourcing projects, all in all an excellent choice for those who are new on the block and are looking for an ideal IT Partner or for those are already familiar with outsourcing services.
Eastern Europe
Ukraine, Poland – Among the best location to obtain a top-notch and cost-effective product thanks to reasonable operating expenses.
Western Europe & North America
United Kingdom, Netherlands, Switzerland; USA, Canada – The long-held traditions, the absence of cultural and language barriers with English-speaking countries. High outsourcing prices.
South America
Brazil, Colombia, Chile, Argentina – Adequate development quality and reasonable costs, the minimal time zone difference with North America. Outsourcing development is a new direction of this continent’s activity.

It should be noted that Vietnam is becoming one of the leading regions for outsourcing IT development due to its favorable quality-price ratio and thriving technical ecosystem, which includes a large pool of tech experts and the growing absence of language barriers.

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3. When to Outsource Software Development

On various occasions of software development, outsourcing can be a reliable helper. So, let us take a closer look at the most common reasons why you should use outsourcing services.

3.1. Budget concerns

Starting new projects and hiring skilled employees is always expensive, so the budget issue is critical when deciding whether to outsource. You can also apply for outsourcing services if you are a startup owner with limited funding, if your company wants to increase expenses for digital optimization, or if onshore services are too expensive for you. Furthermore, outsourcing is transparent; you can always understand what you’re paying for.

3.2. Time constraint

To achieve satisfactory results, every project must be managed appropriately. But what if you’ve already been working on a complex project and need to start another but don’t have the time? In this case, you can concentrate on your business while seeking assistance from an outsourcing software development team. An experienced vendor will carefully manage the construction process and report all results.

Learn More On: All You Need To Know About Software Development Process

3.3. Talents are required

Assume you’ve planned a large project based on complex technologies that will necessitate machine learning (ML). Because ML engineers are difficult to find for your in-house team, you would waste a lot of time looking for them. However, you can avoid these issues by working with an outsourcing company specializing in machine learning.

3.4. Security threats

Without relevant experience, it is difficult to provide data safety and security. This is a significant challenge: according to IBM statistics, a single data leak costs your company $4 million. However, you can deal with it without incurring costs: contact an IT outsourcing company; they are skilled at resolving such issues.

4. Advantages of Using Outsourced Services

Now we’ll go over the main reasons for outsourcing development:

4.1. Cost-cutting measures

One of the primary advantages of outsourcing IT services is cost-effectiveness. By selecting one of the outsourcing destinations with the best hourly wages, you can hire a team to help you build a successful product while reducing the costs associated with development workflow.

4.2. Scalability

Outsourcing represents a large pool of technical talent from around the world. You can outsource software development if you need to deal with new domains and build cutting-edge products (or if you need more flexible and quick solutions while your in-house staff grows in quantity and quality). According to Clutch, 8 out of 10 small businesses want to outsource business functions, and one of the reasons is scalability.

4.3. Increased adaptability

According to Capital Counselor data, 16% of startup businesses outsource software development to achieve flexibility. You have control over the scope of work you obtain and can allocate financial and human resources based on workloads. However, this does not imply that you should have a large team and pay all specialists; outsourcing allows you to use only the funds necessary to complete one or more tasks.

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4.4 Increasing customer loyalty

Top-notch services and well-trained employees keep customers returning to your company. You can leave your customers feeling cared for and satisfied with a bug-free product that meets their needs with the help of an outsourcing team. Remember that the more satisfied your customers are, the more profitable your company will be

Basecamp, a successful company that provides teamwork services, can back up the statements above. They discovered that their instruments became less supportive and faster as the number of clients increased. So they outsourced the work on the improvements to an outsourcing company, and the results were quick. According to statistics, there are currently approximately 3.3 million Basecamp clients.

5. The Most Common Obstacles to Outsourcing

Despite its apparent efficiency, outsourcing is not a perfect process. So, what are the difficulties you may face when working with an outsourcing vendor?

5.1. Communication difficulty

This is one of the most common outsourcing issues for various reasons. For example, your communication may suffer due to your vendor’s poor command of the English language. Choose an IT partner, check their English level beforehand, and discuss it with the company’s representative or separately with team members to deal with it.

Another common issue is the significant time difference. It can also be regulated by creating a meeting schedule (appropriate for you and the vendor) that allows you to properly set up communication. Cleveroad specialists, for example, select the following tools for external communication:

  • Google Meet, Slack, and Zoom. Services for communicating with customers via text messages and video calls
  • Figma, InVision Web design tools for client collaboration and visual component creation

5.2. Selecting an Outsourcing Team

Outsourcing teams work from home. It means you’ll rarely see any of them (especially if you don’t go to the vendor’s place of business). So, how do you select, vet, and hire a team that is physically distant from you?

You should first consider your project objectives and conduct a small business analysis. Define your market niche, conduct competitor analysis, and plan the outsourcing software functionality to save money and understand what you want from the upcoming solution.

Next, choose a company by reading reviews on rating and hiring platforms, Dribbble/Behance sites, and so on. When deciding on a vendor, look into their portfolio, business ratings, and expertise domains. The most important stage you should go through is a discussion with the company representative about data security, the project budget, and any other issues that need to be resolved.

Learn More On: Why Do Companies Outsource Software Development?

5.3. Enhancing Product Security

Data leakage is one of today’s most pressing issues, and working with a vendor always entails sharing some information. You can solve it by approaching a partner company and signing an NDA.

Furthermore, you should ask the vendor if they use security tools like user privacy policies, private data storage, and encryption or if their solutions comply with the General Data Protection Regulation (GDPR), and so on.

5.4. Quality of Development

If you value quality over quantity, you should start caring about it now. Examine your upcoming team’s skill set (both hard and soft skills). Remember that both types of skills are necessary for a successful development process. Furthermore, you should be involved in the software outsourcing workflow, attending every meeting to keep track of the business situation and understand the team’s daily issues.

6. What Should You Do Before You Sign a Contract?

Software Development Outsourcing 2

You should be concerned about the quality of future collaboration. This is why you should take some precautions before signing a contract with your new IT partner. But remember that you should not hire the first team offering quick results at rock-bottom prices. The trustworthy vendor will question you extensively to understand your needs and build a solution that meets your business requirements.

6.1. Examine the Comments

Nobody knows the quality of the company’s work better than its previous clients. Open the profile of your future IT partner on sites like Clutch, GoodFirms, or Upwork to get their feedback. If that isn’t enough, don’t be afraid to contact the review authors via social media (or any other convenient method) and discuss everything about working with the specific company.

6.2. Talk and Listen

When speaking with the vendor, begin by defining your objectives. Determine how much time they will need to implement that. Tell us about the improvements you’d like to see and how you plan to achieve them. During the conversation, take note of their level of creativity and openness to collaboration.

Do not be afraid to ask questions (even awkward ones). You can, for example, discuss with the vendor:

  • What is included in the budget? What features and services are included in the price? Are there any other options?
  • What services do outsourcing software developers provide for product maintenance?
  • Is it possible to change the feature set while it is being developed?
  • Is it okay if I bring my own design?

This is not a comprehensive questionnaire to be discussed with your partner company representative; however, you can expand it based on your project requirements and questions of interest.

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6.3. Request Their Portfolio

If you want to learn more about your vendor’s technical expertise, request a portfolio. Using examples of their projects will give you a complete picture of the company’s expertise. Check their experience in the domain to find a partner with the necessary IT background. For example, if you need to create an educational product, look for a company specializing in e-learning. View Savvycom Portfolio on Behance!

6.4. Study the Documents

You’ve discussed the app concept and other essential details, but you need to know how things are documented. During the development process, the following documents are frequently used:

  • The Service Level Agreement (SLA) is a mini-contract that describes what you should expect from the vendor and the quality of their services.
  • A schedule of Values (SoV) can gradually show the project development from beginning to end and assist you in getting acknowledged with every item required.
  • The Software Requirement Specification (SRS) is a set of requirements for software products that will assist you in understanding how they work.

6.5. Track and communicate

At this point, you should think about how to contact the team and how to monitor the development workflow. Well, you can communicate with the team via Google Meet, Zoom, etc. But still, it is recommended that you understand the company’s project management approach to achieve results. You may be familiar with it to determine the time of obtaining the final product, whether it is Agile methodology designed for flexible teamwork coordination or Scrum with its sprints.

7. Outsourcing Software Development Process

Software Development Outsourcing 1

All the details have been worked out, and all the contracts have been signed. It is now time to begin outsourcing software development. Let’s take a look at the steps it takes using Savvycom as an example:

7.1. Discovery (Planning)

The primary goal of this step is to organize and prepare the project for development by identifying all requirements in greater detail. It’s also time to discuss UI/UX design and other vital issues. At the same time, the project team creates a detailed estimate for two sprints of development based on agreed-upon user stories/designs.

The discovery stage allows you to collect data that will be useful to designers, developers, and other specialists who will be creating the required product. For outsourced software development, it includes rough estimates, sprint specifications, wireframes, and the project team composition.

7.2. Prototyping and Design

The design phase begins once the specifications and wireframes have been approved. The UI/UX designers are concerned with developing a high-quality visual concept and start developing prototypes. Prototypes are final-design model sets that serve as the foundation for UI development. Each screen of the application has its own prototype.

Learn More On: Top 10 Software Development Companies in Vietnam

7.3. Development of Software

The development phase (the longest in development) is designed to build the app architecture and create a solution that meets all of your requirements.

Due to the project’s complexity, you can work with a variety of specialists (such as iOS/Android or web developers) to provide the proper embodiment for all the required features. This process structure is divided into sprints (1 sprint equals 10 working days as usual), and each one begins with planning, during which the team discusses the workload they will do.

7.4. Testing

QA specialists must verify that the project meets the requirements when the codes are written. They test the product’s frontend and backend to find bugs and create bug reports for developers. After everything has been fixed, the QA engineers double-check the solution to ensure it works properly.

7.5. Maintenance and Release

This stage is for the product to be published on marketplaces. The specialists also maintain the developed app to make it easier for customers. As a result, collaboration with the development team should be maintained. This stage’s workload frequently includes bug fixes, additional functionality supplementation, and modernization.

8. How Much Will It Cost You to Outsource Software Development?

We’ve arrived at one of the most important points: how much will software outsourcing development cost? You should take note of the service set and team composition to get an answer to this question. The following specialists should be included on the list of outsourcing software development teams:

  • A project supervisor (PM). A project manager is responsible for project planning, organization, and reporting to the client on tasks completed. They also ensure that the created product meets the needs of the client.
  • A frontend designer. This team member is in charge of developing the product’s client-side.
  • A backend programmer. It is a specialist who constructs the “brain” of the solution, which includes all of the product parts that are not visible to the client but are critical (such as data processing mechanisms, integrations, etc.)
Learn More On: Software Project Estimation: The First Step To Success
  • A user interface/user experience designer. This specialist is in charge of developing a seamless user experience (UX), intuitive navigation, and appealing interface that will satisfy the client.
  • Engineers in quality assurance. These team members monitor each stage of software development to ensure that the product components meet international development standards and are free of flaws.
  • Specialists from other fields. Depending on the needs of your development outsourcing project, solution architects, DevOps, and so on may be required.
Outsourcing destinations Wages for an hour of work (in US$/h)

Asia

25 – 35

Eastern Europe

30 – 55

Western Europe

60 – 75

North America

100 – 150

South America

40 – 50

Average hourly outsourcing wages for developers’ services (according to Clutch & GoodFirms)

9. Software Outsourcing Vietnam

The primary benefit of outsourcing to Vietnam is the country’s youthful population. In Vietnam, approximately 70% of the population is under 35, and roughly 45 percent is between 15 and 35. This advantage in terms of age suggests that about half of the population is ready to work. According to TopDev’s report, Vietnam has about 400.000 IT Engineers and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in the Developer Skills Chart Of Skill Value Report in 2018.
  • Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
  • Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016.

Soon, Vietnam will be the destination for many significant technology corporations in the world. For example, apple’s supply chain Vice President Rory Sexton said Apple is ready to meet up and find opportunities for future cooperation with Vietnam ICT enterprises wishing to join Apple’s supply chain.
Besides Samsung – one of the foreign capital corporations that help accelerate Vietnam’s economy, the participation of Apple in the future probably will continue to strengthen Vietnam’s wave of foreign investment in 2020. Notably, in 2020, Samsung said they would invest an additional $300 million in R&D in Hanoi and needs 4,000 more IT employees in the near future.

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10. Successful Software Outsourcing Case Studies

Companies and employees are shifting to remote work. As of March 2020, 16 million U.S. workers started working remotely. According to Gartner, nearly 74% CFOs plan to shift at least 5% of previously on-site employees to permanently remote positions after the quarantine.

Additionally, nearly 75% of companies currently outsource IT services, while 87% are planning to outsource at the same or an increased pace. Considering the tech talent shortage, outsourcing is becoming even more desirable, as it solves a number of problems ranging from cutting software development costs to the challenge of finding the needed specialists.

To learn how companies grow their businesses and outrun competitors on the global market via cooperating with remote teams, we examined 04 IT outsourcing case studies

GitHub

Although GitHub has become an essential platform for developers to document, share, and edit private code, much of its backend was built by an outsourcer.

At a Ruby on Rails meetup in San Francisco, GitHub’s current CIO, Scott Chacon, met GitHub CEO and co-founder Chris Wanstrath, who was impressed by Scott’s impressive knowledge of Gits.

Because the GitHub team couldn’t afford to hire Scott on a full-time basis, they hired him to write Gist, the platform’s sharing feature, which is still in use today.

Slack

Slack is one of the tools that owe its success to software outsourcing, as the company hired a Canadian design team MetaLab to help them develop the beta version into a successful product.

By outsourcing website or logo design, web, and mobile applications, the company roughly raised a $250 million investment for a total valuation of $5 billion in July 2017. Their valuation in August 2018 showed that Slack at that time stands at $7.1 billion.

Skype

While video conferencing is now commonplace, Skype was a forerunner in the early 2000s when it came to video calling.

Without three Estonian developers, Jaan Tallinn, Ahti Heinla, and Priit Kasesalu, who developed the app’s entire backend, none of their success would have been possible.

While the programmers eventually became partners, their work as an outsourced team helped the product become a widely used tool for businesses all over the world.

WhatsApp

With barely any starting capital roughly around $250,000. WhatsApp needed to keep operation costs down.

To build and launch the product, the company turned to Eastern Europe in an attempt to source the required tech talent.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

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When outsourcing, the location of your vendor is one of the key factors which will affect your decision. Below are the best regions for outsourcing - regarding the costs, experience, product quality, technology, and communication efficiency:

  • Asia - Vietnam, Singapore, Philippines, Indonesia: low costs, enormous pools of IT specialists, and quality services.
  • Eastern Europe - Ukraine, Poland: top-notch services and cost-effective products.
  • Western Europe & North America - UK, Netherlands, Switzerland, USA, Canada: recognized expertise with no language barriers with English-speaking countries, but expensive charges.
  • South America - Brazil, Colombia, Chile, Argentina: Good development quality and affordable products.

Let's go through the main advantages a business receives when they outsource:

  • Cost-cutting measures: As a business selects an affordable outsourcing service partner, they can receive a great product for a lower cost.
  • Scalability: Outsourcing offers businesses the ability to scale up or down quickly regarding their demands.
  • Increased adaptability: With an outsourced team, a business can allocate the effort to focus on its core aspects, and get its product developed by an experienced team under their supervision. 
  • Improve customer loyalty: Quality products equal higher customer loyalty. Thus, if you have your product outsourced and it delivers customers a good experience, they will stay with you longer.

Surely outsourcing is beneficial, but you may also encounter some serious challenges with this model.

By acknowledging these problems, one can be more prepared for successful outsourcing development:

  • Communication obstacles: When outsourcing, a client and its vendor probably need to use a popular language like English. Yet if a side does not have a decent language level, their communication will suffer. 
  • Selecting an outsourcing team: To pick the right outsourcing team, you need to go through quite some steps - from studying your product objectives, analyzing your business, finding vendors, shortlisting, and reviewing to come to the decision. 
  • Improving product security: A data leakage may happen when outsourcing if you don't implement secure solutions to product your company's and product's information. 
  • Ensuring development quality:

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Top IT Outsourcing Companies In Vietnam

Software outsourcing services are in high demand due to their benefits over in-house development. The trend of software development outsourcing is growing as businesses increasingly prefer to outsource their work to other outsourcing service providers or individuals outside their organization. This would allow them to concentrate on their primary job roles and responsibilities.

In recent years, mainly as digital transformation has grown in popularity, Vietnam has emerged as one of Asia’s most popular outsourcing destinations, with many IT service providers like Savvycom. It provides an excellent balance of quality, affordability, and delivery speed, which has made it a new and promising destination for software outsourcing and technology services.

Top 10 IT Outsourcing Companies In Vietnam

Many organizations would be unable to increase their efficiency and achieve the desired level of satisfaction without software development companies’ assistance and technological expertise. With the ever-increasing technical demands, it’s critical to choose the right company to guide you through the process and help you find the best solutions. Here are some of the top software development companies in Vietnam in 2021 that will find the most cost-effective ways to achieve their objectives:

1. Savvycom

By 2025 Savvycom is looking to be Vietnam’s powerhouse in providing IT Outsourcing Services with over 1500+ fully trained, English-proficient Developers

Savvycom is among the top IT Outsourcing Companies in Vietnam, specializing in providing Digital Transformation consulting services and software solutions in finance, healthcare, and retail for domestic and international businesses. Headquartered in Hanoi and with three representative offices located in Ho Chi Minh City, USA, and Australia, the company’s mission is to leverage engineering resources in Vietnam and empower businesses worldwide by utilizing the power of technology, becoming a leading IT company in the ASEAN region and beyond.

The company’s successes are reflected in its 100+ endorsements from clients, including Fortune 500 companies, in its receipt of more than 20 international honors and awards, and in its strategic partnerships with technology brands such as Apple, AWS, and Microsoft. Savvycom is proud to be accredited as Apple Consultants Network Partner in Vietnam!

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2. KMS Technology

KMS Technology is a technology service company based in the United States and Vietnam that specializes in software development, testing, and IT consulting. With its headquarters and branch offices in the leading and emerging IT market destinations, KMS Technology is able to reach out to clients and deliver the most effective solutions for specific scenarios.

This company approaches the market with a customer-centric approach, which means that their process, work, and operations are aligned with those of their customers. KMS Technology assists their clients in the digital transformation that will later help them grow their core business through a collaborative partnership and industry-leading solutions.

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3. Rikkeisoft

Rikkeisoft provides software services and solutions for clients worldwide, ranging from Web/Cloud Systems, Mobile Applications, Games, and Blockchain to AI, IoT, Business Processing, and Embedded Systems. Eight years after being founded in 2012, they have successfully established three branches around Vietnam and three affiliated companies. They take pride in the mission of building better lives through advanced technology for people. Their vision is to have 10,000 employees by 2025 and become one of the top Vietnamese software development companies in Southeast Asia.

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4. Positive Thinking Vietnam

Positive Thinking Company is a global independent tech consultancy group with a team of more than 3,500 talented tech specialists on the ground in over 35 cities across Europe, the USA, Asia, Australia, and Africa, they serve clients of all sizes. They believe collaboration betters the world. Their unique open ecosystem model allows them to deliver end-to-end tech solutions. Their services draw on a wide array of expertise, including apps & platforms, security, cloud, data & analytics, hyper-automation, and digital workplace.

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5. CMC Global

CMC Global is a top IT outsourcing company in Vietnam that offers highly customized and high-quality services such as Cloud Migration, Custom Software Development, RPA Service Implementation, and Cloud Service Management. CMC has completed more than 200 successful projects of varying sizes. CMC Global, with a current workforce of over 3500 IT professionals, can be an ideal partner for large-scale software development projects.

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6. Tpp Technology

In Viet Nam, TP&P is one of the leading, highly diversified, and pioneering IT service providers and investment management firms. TP&P applies its extensive experience and specialized knowledge to various technology startup investment and service provision strategies, including software development, development and cloud management, and business consulting.

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7. Smart OSC

SmartOSC is a full-service e-commerce agency that was founded in 2006. Lotte, Courts, PayPal, Boozt, SpaceX, Smartbox, eWAY, Priceline Pharmacy, Club 21, and Delta Apparel are among the company’s more than 500 global clients. SmartOSC has a global presence with 500+ employees and offices in Vietnam, Australia, Singapore, the United States, and the United Kingdom as of January 2017.

SmartOSC provides consulting, UI/UX design, development, and managed services, among other things. The technical and business expertise of the company is based on a few platforms: Magento, Sitecore, Adobe, Hybris, and Kentico.

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8. NashTech Vietnam

Harvey Nash Group operates an IT outsourcing company in Vietnam. The company offers first-rate services and customer-centric solutions tailored to specific client needs worldwide. NashTech’s key outsourcing services include digital transformation, software development, and technology consulting. NashTech’s target markets include Australia, the United Kingdom, Singapore, the United States, Japan, and Vietnam.

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9. Orient Software

Orient Software began operations in 2005. Orient is currently one of the leading software development companies in Vietnam. Orient’s strong team of 315 skilled and experienced IT experts collaborate to provide software development solutions to clients with small to corporate-sized businesses worldwide after more than 15 years of providing professional IT solutions.

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10. Saigon Technology

Saigon Technology Solutions is a Vietnam software development outsourcing company focused on delivering cost-effective solutions to its clients. Its customers are located in the US, the UK, Australia, Germany, and the Netherlands. Their services include custom application development, web application development, and mobile application development. It is listed among the top software development companies around the world. Additionally, Saigon Technology Team also provides .NET Core, Java, PHP, ReactJS, Angular, Azure, AWS, microservices, and machine learning. Some of its impressive clientele includes Kaercher, Abbott, Panasonic, Topicus, and DMI Inc.

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Why Would Businesses Work with a Software Outsourcing Company in Vietnam?

Offshore software development services from Vietnam, like other offshore software development services, offer a variety of software development outsourcing solutions, such as custom software development, mobile app development, web application development, software testing services, and more. Working with a Vietnam software outsourcing company can provide several advantages. Consider some of the benefits of outsourcing software development to Vietnam:

Cost-Effective

The first and most important advantage of working with a Vietnam software outsourcing company is that it is inexpensive. When businesses outsource their work to Vietnam, they get it done at a much lower cost than they would have paid to do it in-house or in other outsourcing locations. This is because Vietnam’s cost of living and doing business is relatively low compared to other countries.

Expertise is Available

Another reason businesses should use software outsourcing services is that they gain access to a pool of experts with extensive domain knowledge and experience. Companies can be assured of receiving high-quality work within the time frame specified.

Enhanced Efficiency

Outsourcing also helps businesses increase their efficiency because they can now focus on their core competencies while the outsourcing company handles the non-core functions. Businesses can use their resources more efficiently in this way.

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Better Quality

When you hire a software development outsourcing company in Vietnam, you can be confident that you will receive high-quality work because these companies provide software development teams with solid expertise and a strong commitment to deadlines and results.

Flexibility

Another advantage of working with a Vietnamese outsourcing company is that it allows businesses to be more flexible. Businesses can complete the work on their timetable and scale up or down the project as needed.

Rapid turnaround time

Outsourcing firms are well-known for their quick turnaround times, and this is because they have a dedicated team of experts who work tirelessly on the project and ensure that it is completed within the specified time frame.

Increased Scalability

Businesses that outsource their work have the flexibility to scale up or down the project as needed. This is because the outsourcing company has the necessary infrastructure and human resources to meet the businesses’ increased or decreased demands.

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Access to Cutting-Edge Tools and Technologies

When businesses outsource their work, it is completed by experts who have access to the most up-to-date tools and technologies. Compared to what would have been done in-house, this helps improve the work’s quality.

Cost Savings on Overhead

Outsourcing also helps businesses reduce overhead costs because they do not need to invest in the infrastructure and staffing required to complete the work. Companies can save a significant amount of money, which can then be used for other purposes.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

Collaborating with a software outsourcing company in Vietnam can offer significant benefits:

- Cost-effective: Businesses can get the work done for a lower price with a Vietnam company compared to if they have to pay for in-house teams or outsource from other countries. 

- Available expertise: Companies can gain access to a pool of experts with extensive knowledge and experience. 

- Enhanced efficiency: Outsourcing allows businesses to focus on their core functions and raise overall productivity. 

- High quality: The Vietnamese companies with expertise and great commitment promise you only top-quality products. 

- Flexibility: Businesses can complete the work on their timetable and scale up or down the project as needed.

- Quick turnaround time: A team of experts will ensure a product is completed within a limited time.

- Increased scalability: Depending on the demand, businesses that outsource have the flexibility to scale up or down the project.

- Access to cutting-edge tools and technologies: The outsourced work will be built with the most suitable and cutting-edge solutions.

- Cost-saving on overhead: Investments for infrastructure and staffing are no longer a business's concern thanks to outsourcing.

React, Java, MySQL, Spring Boot, Laravel, .NET Core, Django, and AWS are the most popular technologies in their respective tech stacks.

JavaScript is the most used language together with other IT skills. Particularly, React, Nodejs & Angular are the top 3 choices of Javascript frameworks. 

Nearly 90% of developers are located in the 2 biggest cities of Vietnam: Ho Chi Minh 55.3% & Ha Noi 34.1%. Only 5,9% of the developers are in Da Nang, and the rest is other cities. 

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Step-by-Step On Legacy System Modernization

Here at Savvycom, we notice there are numerous disadvantages to legacy systems. They are challenging to support, upgrade, or integrate with new systems. If we’re talking about making and mataining large-scale app, their maintenance costs can run into millions of dollars annually. However, replacing an old system is complex, particularly regarding critical business processes within an organization. Legacy system modernization addresses this issue by providing several options that will not disrupt your internal operations.

Before delving deeper, consider when you might require legacy software modernization:

  • Your current systems do not accept and process data from internal software and partner systems in various formats.
  • To connect to new applications, you must customize integrations.
  • Your software cannot handle increased data volumes from new applications promptly.
  • Your current IT systems are incapable of detecting and correcting data processing errors.
  • The cost of maintaining legacy IT infrastructure exceeds the cost of modernizing it.

This guide examines six common legacy system modernization strategies and outlines the steps to take before beginning the modernization.

1. What Is Legacy System Modernization?

When we think of legacy systems, we usually think of corporate IT apps from the 1990s or early 2000s. Most likely written in COBOL or Fortran, with an out-of-date user interface. However, neither age nor programming language determines whether a system is outdated. The term ‘legacy’ refers to any software, technology, or system that slows or blocks organizational processes, making it more challenging to adapt to changing market dynamics.

According to this definition, legacy system modernization entails partially or completely updating and replacing an outdated or inefficient system, processes, and applications.

For example:

  • Assume you work for an insurance company and are running an old ASP.NET application. 
  • The app’s purpose is to manage car insurance claims. 
  • Adjusters must take pictures with their digital cameras and load them onto their PCs from SD cards. The images should then be manually uploaded to the site.

The term “legacy system modernization” refers to the process by which an organization’s aging systems are brought up to date and optimized to improve operational efficiencies, address technological limitations, provide a better user experience, and allow for the adoption and integration of other systems built on more recent platforms.

It works if you only have a few cases per day. What if there are hundreds of them? You could start by providing employees with a mobile app, so they don’t have to lug their laptops around. They begin taking photographs, which the system automatically uploads to Google Photos or the cloud. You can also use web app development services to get a flexible, scalable, and mobile-friendly solution.

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2. Why Do You Need System Modernization?

Every organization will undoubtedly require software modernization at some point. It does not mean that you must modernize the entire system, but you will almost certainly need some update to remain efficient, respond to market changes, and increase ROI. Let us now look at the reasons for considering legacy software modernization.

2.1. Maintenance and Support

In most cases, the costs of maintaining aging infrastructure outweigh modernization costs. The following are the costs of legacy system maintenance operations:

a/ Updates and changes

A large codebase typically supports legacy systems with numerous intricate functionalities. Because they are monolithic, changing or updating one system module is impossible without affecting other app components. As a result, any required modifications take a significant amount of time and effort, and none of them are inexpensive.

b/ Infrastructure

In comparison to software modernization, legacy system infrastructure maintenance costs remain high. Old data is related to another significant infrastructure issue. It isn’t easy to restructure for increased storage space optimization because it is dispersed across several databases and storage resources. Collecting and organizing historical data to migrate to a new database is time-consuming and resource-intensive.

c/ Staff training

Legacy system maintenance necessitates specific knowledge and expertise due to obsolete technology. While the programmers who created the application may switch to other technologies, finding the required expertise is becoming increasingly difficult. As a result, you should consider employee training, which may require a small portion of your budget.

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2.2. Security

Legacy systems are vulnerable to cyber attacks, malware, and harmful programs. If you’d relied on a software solution for years, hackers would have had plenty of time to learn your code and identify flaws. According to a study, 60% of small businesses fail within six months due to cyberattacks. The average cost of a cyber attack on a small business is $25,612, including monetary loss and brand reputation.

Even if your solution is custom-made and you have the resources to support it, adding new fixes necessitates additional security funding. While IT security will always be a concern, many vulnerabilities can be addressed by upgrading outdated software and enterprise security protocols.

2.3. Integration and Compliance

Third-party APIs are used by modern enterprise software to add business value. Third-party services (and their APIs) can be used to track transactions, plan routes, share data, confirm users, and so on. Legacy systems, unlike modern software solutions, lack integration capabilities and necessitate a significant amount of customization and coding time to connect to third-party software.

Compliance is another reason to consider legacy software modernization, which is especially important in heavily regulated industries like healthcare, politics, and finance. For example, the General Data Protection Regulation (GDPR) has been in effect for several years, but many businesses still struggle to comply with it.

2.4. Lost Business Opportunities

Scaling or improving your IT infrastructure will always incur costs whether you invest in a new cloud-based solution to drive business growth or in the upkeep of your current legacy system to keep it running. On the other hand, investing in obsolete technologies leaves less room for innovation. You cling to outdated software, ignoring new opportunities in favor of capitalizing on new technologies and business models.

This places you in the background, giving your competitors more opportunities to outwit you. Investing in software modernization will enable you to move forward with novel digital products designed for improved client experience, improved backend maintenance, and shorter deployment times.

Learn More On: Native Vs Cross-Platform Development: Which one is better?

2.5. Organizational Agility and Efficiency

Most businesses that rely on legacy systems lack the organizational agility to meet market demands. Meanwhile, agility is at the heart of software modernization. Agile methodologies, such as Scrum, Kanban, and Lean Development, accelerate IT service delivery due to their iterative nature and lack of paperwork and control. Even though legacy system modernization is a complex process, aligning with modern IT demands is critical. Furthermore, outdated software is inefficient, resulting in lower employee productivity.

3. So, When Will You Need Legacy System Modernization?

When is it appropriate to modernize legacy systems? Unfortunately, there is no standard answer because it depends on various factors. First, you must gain a complete and fundamental understanding of your current systems, assess your business performance, and determine whether your existing technologies are sufficient to address your long-term goals.

To help you, we’ve compiled a list of five questions to ask before modernizing legacy systems:

  • Can your existing systems accept and process data from internal software and partner systems in various formats?
  • Do you need to modify integrations to connect to new applications?
  • Are you able to deal with increased data volumes from new applications quickly?
  • Can your current IT systems detect and correct data processing errors?
  • Is it more expensive to maintain outdated infrastructure than to modernize it?

If none of the answers above satisfy you, it’s time to consider legacy software modernization.

Learn More On: Top 10 Software Development Companies in Vietnam

4. Modernization of Legacy Systems: Step-by-Step

Modernization does not always necessitate a comprehensive overhaul of your IT infrastructure. However, it does necessitate an honest evaluation of where digital change is required.

Before we get into legacy software modernization options, let’s examine what research and preparation you’ll need to conduct to prepare.

4.1. Establish Your Software Modernization Objectives

Simply switching your COBOL/CICS environment to Java will not solve all of your problems. It is preferable to link modernization initiatives to your business and technology goals, such as scalability, additional features, and faster time-to-market.

Modernizing billing software and connecting it with a new e-commerce system, for example, could increase customer happiness while decreasing service costs. This is because fewer customers need to contact the company regarding billing issues.

Depending on your business, market, and goals, you can determine how legacy system modernization could affect revenue, market share, customer experience, and other factors.

4.2. Recognize the System’s Current State

The next step is to assess how well your present system is doing. This will assist you in developing an initial roadmap for modernization and prioritizing the apps that need to be updated.

Begin by inquiring about the infrastructure of your system:

  • How are resources allocated?
  • What are the chronic resource issues?

Performance:

  • How is the software now functioning?
  • How does it usually perform?
  • Is the system generating any errors?
  • Which ones are they?
  • What is the end-user experience like?

And how it will affect your business:

  • What effect does the system’s performance have on your revenue?
  • How much time do employees spend using the app?
  • What effect does the app have on conversion rates or order value?
  • Do errors or downtime affect customer service costs?

You and your team can decide on a system modernization approach once you have a complete picture of your system’s performance, UI, infrastructure issues, and codebase.

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4.3. Decide on a Modernization Strategy

It’s time to put all of your data to use and decide on a modernization strategy. Of course, if you’re working with a software development firm, they’ll evaluate your system and recommend the optimal strategy. Still, it’s a good idea to familiarize yourself with all your possibilities. These are six methods for modernizing outdated systems. However, only three rehosting, re-platforming, and refactoring involve modernization.

5. Software Modernization Strategies

Although rewriting or replacing may be the first thoughts that come to mind, legacy software modernization should be done on a case-by-case basis. As a result, when planning modernization, it is critical to examine all system nuances upfront.

The analysis must include:

  • Existing IT architecture
  • Technology
  • Functionality
  • Risks
  • Complexity
  • Cost

The final strategy for software modernization will be determined by the challenges you wish to address and business/performance objectives.

5.1. Encapsulating

Encapsulating software entails using and growing application features by enclosing their data and functions and making them available as a service through an API and encapsulating a system with third-party APIs limits system access to match the data and workflow of current systems engaging with it. You could, for example, integrate the system via an API into a general UX platform so that its information is shown in a format that consumers can easily interpret to deliver optimal UX.

Encapsulation can alleviate the short-term pain of bad UX and make a legacy system behave like a new one. The issue is that it does not solve the major problem with a legacy system: maintenance overhead.

Learn More On: The Essential Guide To Software Development Services

5.2. Rehosting

Replacing entails switching to another package solution that meets your company’s needs. It is sometimes more advantageous to switch to a different system than to upgrade the current one. You cannot utilize the present business logic when replacing, but some level of re-engineering, customization, and rewriting business logic may be required.

Still, modifying a product can be tricky and dangerous. It, like rewriting, should be considered only when sustaining an existing legacy system becomes problematic owing to staff or hardware constraints.

5.3. Replacing

This abbreviation means migrating the system to a new physical, virtual, or cloud infrastructure with no changes to the code, features, or functions. It may make sense, for example, to migrate an outdated system to a cloud or SQL-based environment.

Moving to the cloud makes the system more adaptable than on-premise hardware and increases data security, reliability, and continual updates. Moving to SQL-based x86 architecture systems results in cheaper purchase costs and less stringent cooling and space requirements.

The rehosting technique is less expensive and risky than re-engineering (which might take years to complete). However, the business logic is preserved; thus the system continues to function as before.

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5.4. Replatforming

Developers leave the software virtually unchanged, retaining functionality while adapting to a new platform. The purpose here is not to rewrite apps; we have the rebuilding technique. Instead, systems are modified so that they may run in target contexts such as cloud-based ones.

Developers convert an existing system component to a managed service (such as a database service) with no changes to the business logic. It could, for example, mean a shift away from commercial databases and toward horizontally scaled open-source data repositories and services.

5.5. Refactoring

Optimize existing backend code without affecting front-end behavior or functionality. Refactoring is used to solve technical issues and improve the features and structure of a component. Companies can maximize cloud cost efficiency by re-coding specific sections of their current system to use cloud-native features fully.

5.6. Re-Architecting

Re-architecting means completely rewriting the app’s code to migrate it to a different architecture. You can completely use the new and improved features of the existing platform by modifying the code. For example, you can transition from old monolithic architecture to new microservices architecture.

This could be a decent idea, given IDC IT predicts that by 2022, 90% of all new apps would use microservices designs. Microservices, they argue, will improve the capacity to develop, debug, update, and leverage third-party code.

Learn More On: 10 Best Mobile App Development Companies In Vietnam

5.7. Rewriting (Rebuilding, Redesign)

Rewriting entails creating a new system from scratch that performs similar duties. It could be an excellent alternative if your clients require more than what your present system can give. When the expenses of maintaining an old system exceed the price of rebuilding it, this system modernization option makes the most sense.

For example, your team may recreate the functionality of a monolithic app as a cloud-native microservice operating in a cloud-native environment. While these methodologies differ, they all have one thing in common: they all necessitate a detailed examination of your interconnected components, systems, and applications. This is because you cannot update one legacy system component while disregarding the others.

6. The Challenges Of Legacy System Modernization

Modernizing legacy systems is a complicated process in which new complexity emerges regularly. As a result, when you decide to upgrade your software, you should consider these factors.

  • Risk Management: Before modernizing your old system, assessing all financial, security, and operational concerns is critical. However, in other circumstances, defining the criteria for making choices and reaching an agreement among stakeholders may be difficult.
  • Restrictions on Data Management: Access to existing data is essential for successful legacy system transformation. To avoid inefficient and worthless information entering a modernized system, you must clean up the data and enhance the administration rules.
  • Resistance to Business Transformation: Modernization of legacy software extends beyond IT, improving business processes and efficiency. However, if the organization rejects the changes, rebuilding operations, and retraining staff may impact overall productivity and team morale.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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