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Category: Offshore Development & IT Outsourcing

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Why Use .Net For Software Development?

Developed by Microsoft, dotNET (also known as .NET) is a framework that makes application development an easier task for developers. The framework supports the development as well as maintenance of modern-day applications and XML web services. With consistent object-oriented programming environment for developers, .Net is used to build applications that can run on multiple platforms.

In this article we will go through why you should use .Net as well as the best Hourly Rate for .Net Developer.

1. What Are The Advantages of .Net?

“The .NET Framework (pronounced as “dot net”) is a software framework developed by Microsoft that runs primarily on Microsoft Windows. It includes a large class library called Framework Class Library (FCL) and provides language interoperability (each language can use code written in other languages) across several programming languages.

Programs written for .NET Framework execute in a software environment (in contrast to a hardware environment) named the Common Language Runtime (CLR). The CLR is an application virtual machine that provides services such as security, memory management, and exception handling.

As such, computer code written using .NET Framework is called “managed code”. FCL and CLR together constitute the .NET Framework.” – Wikipedia

The .NET Framework is a programming model that allows you to create and run apps for Windows, Windows Server, Windows Phone, Microsoft Azure, and XML Web services. Microsoft developed it, and it runs on Microsoft Windows. The Framework Class Library (FCL) is a comprehensive class library that offers language interoperability across many programming languages. The Common Language Runtime (CLR) is another component of the.NET Framework.

Long development times, inability to update applications rapidly, the high total cost of software ownership, and ease of deployment are only a few of the issues this Framework was created to address.

Learn More On: Top 10 Software Development Companies in Vietnam

1.1. Why Companies Prefer .Net?

Microsoft’s .NET framework is one of the most widely used frameworks for developing software applications ranging from web to smartphone to Windows.

.NET framework can be easily used for the programming languages C#, C++, and VB.NET Shop. In addition, framework Class Library (FCL) and Common Language Runtime (CLR) are usually held by .NET (CLR).

1.2. The Advantages of Using .Net For Developing Application

  • Platform Independence

.NET can be used to build any kind of application on any platform. Simply put, it is platform-agnostic (that is, it works on all platforms). For example, a mobile application developed with .NET can run on various operating systems such as Android, iOS, Windows, and so on. .NET provides you with any possible solution when developing apps.

  • Language support and easy deployment 

According to research, .NET currently supports 44 different languages. You have the option of using any language you like in your application. Another significant benefit is the ease with which .NET can be deployed. It offers support for application creation since it contains library class files.

  • Best Architecture with Easy User Interface 

.NET Framework is a free and open-source website. For application development, you’ll need a powerful and dynamic IDE (Integrated Development Environment).

You can provide a practical application using the best-in-class architecture known as MVC (Model-View-Controller) architecture and an easy-to-use interface and better UI controls.

  • Higher Performance

.NET is swift, as it includes just-in-time compilation, and it delivers a sensitive result due to its speed and higher performance. In addition, the response time is short with better dynamic user interface combined with an excellent versatile method that will satisfy any developers.

  • Security, Reliability, Compatibility, and Scalability

.NET is a highly secure platform for developing secure software.

.NET is still a safe and secure platform to work on.

You can reuse code and components with other device tasks because .NET is compatible.

.NET is more scalable and robust in any situation, and it loads faster.

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2. The Applications of .Net

According to Stackoverflow’s survey in 2018 and 2019, .Net usage is only increasing, and businesses need to understand how they can and should be leveraging .NET in their software projects.

2.1. Website & Mobile App Development

The more modern version is ASP.NET Core, which is used to create interactive websites and web applications. The.NET framework is suitable for web applications since it works on almost every platform and supports operating systems such as Android, Windows, and iOS — it’s challenging to find something that the framework doesn’t support.

It’s difficult to compete with such a high degree of usability, particularly when it comes to app growth.

2.2. Desktop App & Game Development

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With .NET, developers can target over 25+ different platforms with a single code base. Game Studios can make games for, but not limited to, Windows, macOS, Linux, Android, iOS, Xbox, PlayStation, Nintendo, and mixed reality devices.

C# is the most popular programming language in game development. The wider .NET community is also significant. There is no lack of expertise and support you can find from individuals and user groups, locally or online.

2.3. Microservices

Microservices are services that are lightweight, scalable, and deployable independently. Docker containers (for Linux and Windows) make deployment and testing more manageable by combining service and its dependencies into a single unit that can be run in isolation.

Learn More On: Why Should You Use PHP For Web Development Services?

2.4. Machine Learning

ML.NET is a free, open-source, cross-platform machine learning framework made specifically for .NET developers. With ML.NET, developers can develop and integrate custom machine learning models into .NET applications without needing prior machine learning experience.

ML.NET is an extensible platform, with tooling in Visual Studio and a cross-platform CLI that powers recognized Microsoft features like Windows Hello, Bing Ads, PowerPoint Design Ideas, and more.

2.5. Cloud App

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.NET enables you to build fast, modern, and scalable cloud applications on all major cloud platforms. Azure is the best cloud for .NET developers because it was built with .NET developers in mind. As a result, hundreds of Azure products run .NET natively and are integrated with Visual Studio developer tools.

Use project templates to get started faster and powerful debugging, publishing, and CI/CD tools to be more productive with cloud app development, deployment, and monitoring.

2.6. Internet of Things App

.NET is highly scalable and efficient, making it ideal for IoT device programming due to its interoperability and high performance. .NET has all of the characteristics needed for IoT software creation. ASP.NET Core, in particular, provides a robust toolkit with best-in-class security and out-of-the-box performance as well as cloud integration.

IoT is now widely used in several industries for various applications, and.NET supports hundreds of sensors, displays, and input devices and operates on a variety of platforms and architectures, including popular IoT boards like the Raspberry Pi and Hummingboard.

3. What Are the Pros of .NET?

3.1. Object-Oriented Software Development Model

.NET is based on object-oriented programming (OOP). OOP is a development model for breaking down software into smaller pieces that are easier to manage and combine. OOP compartmentalizes data into objects, i.e., data fields, and describes objects’ behavior and contents through the declaration of classes.

A modular structure helps define the behavior of objects and their interactions without managing inner object attributes. OOP simplifies programming by making the code manageable, easier to test, and respond to recurring issues. It also eliminates unnecessary programming and generally means less coding for developers. .NET makes it possible to reuse code and components and save time and development costs.

3.2. Reliable and Simple Caching System

Caching means keeping data in a temporary storage place to call it faster when needed. The stored data results from an earlier information request or the duplicate of information stored in other areas that would take longer to retrieve.

The caching system in .NET is robust and straightforward to use, and it’s also designed to be extensible. The Object Cache class allows developers to create a custom cache implementation to improve the performance and scalability of Windows client and server applications.

Learn More On: Why Would You Choose ReactJS For Front End Development In 2022

3.3. Visual Studio IDE

An Integrated Development Environment (IDE) is a single product for programmers that makes application development more accessible by providing all the tools needed to write and test software.

Visual Studio is a Microsoft IDE used for building, debugging, and publishing applications across all platforms, including Android and iOS. Visual Studio is integrated with .NET and provides the features of a language-specific environment.

The key features of the Visual Studio IDE:

  • It’s used as a single IDE for all .NET applications.
  • The IDE has integrated compilation and debugging features.
  • Collaborative features include a Git-first workflow, real-time collaboration on the same codebase, and integrated code reviews.
  • The solution can be used for applications based on code written in different languages.
  • Visual Studio allows for customizing the environment to match user preferences.

Additionally, Visual Studio Marketplace offers a wide range of editor extensions from Microsoft and other providers to enable team collaboration, continuous integration, third-party connections, cloud development management, etc.

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3.4. Cross-Platform Design of .NET Core

.NET Core is a cross-platform .NET implementation that allows the code to run on macOS, Windows, and Linux. Unlike the original .NET framework – which is not entirely open – .NET Core has a fully open-source code that ensures that a vast engineering community can continuously contribute to its development.

If you’re writing in C#, F#, or Visual Basic, your code will run on each compatible operating system. This enables companies to reach the widest variety of platforms while staying within the .NET ecosystem. At the same time, the cross-platform design ensures that the whole .NET community, with a large pool of different engineering skillsets, shares the experience.

3.5. Flexible Deployment and Easy Maintenance

One of the critical .NET Core features is flexible deployment. It can be installed as a part of your application or require a separate installation. The modular design contemplates including all the dependencies you need, and the deployment itself is as easy as copying a folder.

Another benefit is having multiple .NET Core versions running side by side on the same machine to cover different projects and seamlessly perform deployment tasks.

3.6. Universal .NET Standard

Since 2016, the .NET ecosystem has been enhanced with an extensive class library called .NET Standard. It’s based on the number of base class libraries for .NET Framework, .NET Core, and Xamarin. These are used to work with standard functions such as graphics rendering, database interaction, and manipulations with XML documents. The .NET Standard library greatly simplified developers’ work.

Before .NET Standard, a programmer had to redevelop an application or a library for the new platform and then distribute all the updates across various platforms. Currently, the library supports all dependent libraries across applications. However, you should check version compatibility to leverage .NET Standard successfully.

3.7. .NET Popularity and Community

For those of you who are wondering just how popular .NET is, a large community of developers is the answer. Interestingly, it unites engineers from small, midsize, and enterprise-grade companies. This means that almost any issue can be resolved with the help of community members.

Since .NET Core is open source, its libraries, runtime, and compiler are available on GitHub and have many contributions. According to the Stack Overflow 2021 survey, ASP.NET took fifth among the most popular web frameworks.

3.8. Automatic Monitoring in ASP.NET

ASP.NET has built-in automatic monitoring. The Windows Web Server strictly monitors web pages and applications that run on it. In case any issues such as memory leaks or infinite loops occur, it immediately alerts about them. This allows for directly correcting these behaviors and creating new processes. The monitoring ensures higher stability and transparency of .NET applications.

Learn More On: The Essential Guide To Software Development Services

3.9. Powerful Roslyn and RyuJIT Compilers

.NET uses two compilers, Roslyn, to compile C# or VB code into CIL (common intermediate language), and RyuJIT, to run a just-in-time compilation of CIL into native code. The .NET community highly regards both compilers as Microsoft actively improves them.

Roslyn has been available since 2011. In 2014, it became open source and in 2015 was included in Visual Studio. Besides being open source, Roslyn exposes APIs to offer rich code analysis for the developer. Unlike traditional black-box compilation, with Roslyn, developers can read the compilation data at every stage.

RyuJIT is responsible for compiling CIL to byte code. The full transition from the old JIT was completed in 2018 with the idea of improved performance. And generally, engineers agree that RyuJIT is faster. According to .NET 5 Preview 1 and Preview 2 released in spring 2020, numerous improvements to RyuJIT were made to enhance the quality of the machine code generated by JIT (“code quality” as Microsoft specialists call it). “In summary, about half of the following improvements are actual new optimizations, and the other half is due to changing the flow of RyuJIT to enable existing optimizations to apply to more code patterns,” noted .NET Team Program Manager Richard Lander.

3.10. Active Microsoft Support

Since .NET is Microsoft’s platform technology, you expect the company to support and develop it actively. But the point is that Microsoft is good at what they are doing. Perhaps there’s no other technology company with such a complete and coherent ecosystem that checks off all boxes for engineers, from IDEs and frameworks to cloud services.

Microsoft does its best to evolve further. The transition to .NET Core was a significant step in ecosystem development, as it embraced the cloud and focused on performance improvements.

In 2018 Microsoft introduced the ML.NET framework for C# and F# languages. Also, let’s keep in mind the releases of .NET 5 and .NET 6 are already here, with .NET 7 being projected for 2022.

3.11. Easy Migration From .NET 5 to .NET 6

If you keep your applications constantly updated with the newest .NET versions, migrating from .NET 5.0 to .NET 6.0 won’t be a big headache. You first change the target framework from .NET 5.0 to .NET 6.0 on the Properties of your projects in Visual Studio 2022. Then you upgrade the rest of the packages within the project and run QA processes to see how everything performs.

Unlike the above, the migration from .NET Framework to .NET Core or between some .NET Core versions is not a walk in the park. In case your projects are based on earlier versions like .NET Core 3.1, migrating the app to .NET 5 before making a move towards the latest release is recommended.

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4. What Are the Cons of .NET?

  • Some Licensing Requirements. Not the entire ecosystem is open source. Some tools do require licensing, especially those released and distributed by Microsoft. Microsoft retains control over the product through the Microsoft Foundation.
  • Memory Leaks. .NET has been known to experience memory leaks and issues caching. Of course, this is an issue for many languages — it’s not exclusive to .NET. Still, developers trying to produce lean products may be more inclined to use another language.
  • Language. Though .NET supports programming in C#, F#, and Visual Basic, it doesn’t support all major programming languages. Developers who program in Java or Python, for instance, will not be able to program in .NET without learning another language entirely.

Some developers consider .NET an archaic or antiquated technology. While this may be true for earlier versions of the .NET Framework, .NET continues to grow and advance as an open-source product fueled by an active community.

Learn More On: Software Project Estimation: The First & Foremost Step To Success

5. Best Way To Hire .Net Developer

Another factual explanation given by Statista concerning .NET implementation is the framework’s use in 2020. Unlike other frameworks, libraries, and software, the survey discovered that 35.1 percent of respondents use .NET for different purposes, second only to Node.js.

5.1. Global .Net Developer Rate

With its place being high on the most used framework ranking list, most Python developer hourly rates range from $40 to $60 per hour globally.

5.2. Hire .Net Developer in Vietnam, Why?

.Net Developer hourly rates in Vietnam IT Market range from $20 to $40 depended on the experience and position of the developer.
Compared to hiring a developer in the United States or other countries like the UK, Netherlands, Ukraine, etc., the cost of hiring a developer in Vietnam is considerably lower. For example, a Vietnamese developer would cost you around 50 percent less than the global Python Outsourcing cost mentioned above.
According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in 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.

And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

6. Conclusion

.NET is a Microsoft platform for creating apps, web software, and user interfaces. .NET is only one of Microsoft’s frameworks, but it’s the most common option for Windows servers on both local networks and in the cloud.

Savvycom – Your Trusted Tech Partner

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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10 Best Mobile App Development Companies In Vietnam

As a business owner, you must always be ready to make tough decisions that could take your company to a brand new level in the playing field. And in a post Covid-19 world, most reputed companies have chosen the mobile-only route as mobile-first has taken the top priority within many business strategies. Follow us as we explore the possibilities of Mobile App and show you the 10 best Mobile App Development Companies in Vietnam.

1. Mobile App Development in 2022 – Yes or No?

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In 2020, when going digital is the only way businesses can continue to operate seamlessly due to the effect of the global Pandemic (Covid-19), many SMEs, entrepreneurs, and startups are yearning to launch their mobile apps to bridge the gaps between them and the clients while making the most out of digitalization.

The mobile app industry is unquestionably thriving and enticing as mobile user and mobile app usage have increased exponentially for the past year. It is safe to say that the Mobile App Market is a never-ending pie that everyone wants to have a bite at some point on the way. Pointing out some outstanding numbers is also easy as the projected revenue from mobile app downloads, in-app purchases by 2023 will reach a whopping $581.9 billion, stated on Statisa. And if that wasn’t convincing enough, we have a few more numbers that we would like to show you.

  • App stores saw a record 204 billion app downloads back in 2019.
  • And according to Statista, by 2021, there will be roughly 7 billion mobile users worldwide.
  • Mobile App downloads are expected to go up to 258 Billion by 2023.

Learn More On: The Essential Guide To Software Development Services

So no matter what industry it is, the next step for business owners, startups, and enterprises has transitioned to go “Digital”. Sure the process can cost a lot and may take some time to finish, but the business benefits of building a mobile app are more than enough to compensate. The top functional and marketing benefits of business mobile applications are as follows:

  • Direct Communication
  • Geo-Targeting Marketing
  • Increased Recognition
  • Better Customer Loyalty
  • Website Creates Awareness And The App Makes The Sale
  • Improved Customer Engagement
  • Boosts Brand Recognition
  • Improved visibility

However, there are many mobile app development companies worldwide, which makes it tricky to choose the best mobile app development company to help you go mobile. For you to make the right choice, I have curated a list of the 10 Best Mobile App Development Companies in Vietnam that are absolutely worthy of your attention. If you are wondering why you should find a trusted Tech Partner in Vietnam, we have another extensive article for it.

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2. Vietnam – Ideal Destination For Offshoring

01. 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%

02. Cost-Effectiveness

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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.

03. 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.

Learn More On: Software Project Estimation: The First & Foremost Step To Success

04. 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. 

05. 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.

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

3. Top 10 Software Development Companies In Vietnam

01. Savvycom

Savvycom presents “The Art of Coding” – When artists meet coder

If people were to ask, “Which company is the best at App Development in Vietnam,” it would not be an exaggeration to say that it’s Savvycom. Throughout 2021, the Savvycom team remained one of the top app developers on both Clutch & The Manifest and belonged to the top leading Software Development Companies in Vietnam. Founded in 2009 and under the leadership of Ms. Thanh Van Dang – Asia Society Distinguished Fellow, Savvycom has carried out the mission of leveraging engineering resources in Vietnam and empowering businesses worldwide by utilizing the power of technology for over a decade.

The team at Savvycom is fueled by a pay-it-forward mindset and a creative approach to technology. The company provides excellent full-stack solutions to many industries, including insurance, finance, healthcare, education, logistics, blockchain, etc.

The company’s successes are reflected in its 150+ endorsements from clients, including Fortune 500 companies, in its receipt of more than 20 international honors and awards, and its strategic partnerships with technology brands such as Apple, AWS, and Microsoft.

Learn More About Savvycom:
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Clutch:

The Manifest:

Dribbble
Behance
Ms. Van Dang – Linkedin

Most recent :

02. CMC

CMC Global is a subsidiary of CMC Corporation with the goal of bringing Vietnamese ICT products, solutions, and services to the international market. They are proud to be one of the leading companies in Vietnam in providing a wide variety of comprehensive IT Solutions & Services, ranging from traditional services to Digital Transformation and Telecommunication, 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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03. Sotatek

SotaTek is a part of Sota Holdings, a global Software Development as a Service (SDaaS) & IT Consulting group. Their 500+ team offers experts who bring Digital Transformation approaches to achieve sustainable growth for enterprises of all sizes. In 2021, except for the Sao Khue Award, SotaTek has excellently won the hat trick of VINASA awards, including the “Top 10 Vietnam Information Technology Enterprises 2021 Award” and the “Top 10 Blockchain Services Providers Award”.

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04. 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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05. 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 since being founded in 2012, they have successfully established three branches around Vietnam and three affiliated companies. Rikkeisoft takes pride in building better lives through advanced technology for people. Their vision is to have 10,000 employees by 2025 and become one of Southeast Asia’s top Vietnamese software development companies.

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06. Saigon Technology

Saigon Technology Solutions is one of Vietnam prestigious Tech Solution providers 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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07. 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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08. NTQ Solution

A Vietnamese based company, specialized in Software Consulting & Development. Founded in 2011 by a group of IT experts with great passion for technology, our company has been providing cutting edge engineering solutions, helping worldwide customers untangle their issues. NTQ takes pride in the quality of their work and constantly seek new ways to improve their know-how & capabilities.

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09. S3Corp

S3Corp prides itself on putting the client’s needs at the core of its operations. The company has been in the Vietnam tech industry for more than a decade. Through this period, it has worked with various companies and brands from across the globe, including Absolute Software, Change Lab 23, SingTel, Vinasa, Ruckus, HCA, Pepsico and Paradigm, among others.

With the team of talented software engineers, S3Corp provides full custom software development services, including full lifecycle development, new feature development, UX/UI design, web and desktop application development, mobile application development and driver/firmware. Additionally, it also provides automation testing for software products and product verification for assured quality and successful integration of custom software products into your business operations.

The company prides itself in utilizing some of the latest technologies and tools in the market today, thus guaranteeing products that are at par with the current and future industry standards. Further, the company has partnered with other recognized institutions in the tech industry, including Microsoft, ISO and SiteCore.

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10. Agile Tech

Agile Tech was established in 2015 in Hanoi, Vietnam. It specializes in web development, mobile app development, AI- big data services and blockchain services. Through its team of highly skilled software engineers and IT professionals, the company has built multiple software products for leading companies and brands in more than 10 countries.

The company’s portfolio provides sufficient evidence of the company’s proficiency and ability to serve multiple industries. Agile Tech has developed custom software products for enterprise management, e-commerce, social media and entertainment, Fintech solutions, Service industry, Travel and hotel, healthcare, real estate, education, transportation and lifestyle, among others.

Agile’s mission is to provide reliable technical solutions to enterprises to boost their business outputs. Guided by a mission to deliver successful and innovative solutions at reasonable costs and within short timelines, the company has earned the recognition and a spot at the top of the list of trusted custom software development companies in Vietnam.

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Savvycom – Your Trusted Tech Partner

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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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.

Looking For a Dedicated Team?

A Dedicated Team might be the best solution in your case. Get in touch with us and we’ll help you choose the best IT outsourcing model based on your business needs and requirements.

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

Top Software Development Companies In Vietnam | Savvycom -3

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.

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

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.

Learn More About Savvycom On:
Savvycom Website

Clutch:

The Manifest:

Dribbble
Behance

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.

Learn More About KMS Technology On:

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.

Learn More About Rikkeisoft On:

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.

Learn More Positive Thinking Vietnam On:

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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.

Learn More About CMC Global On:

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.

Learn More About Tpp Technology On:

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.

Learn More About Smart OSC On:

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.

Learn More About NashTech Vietnam On:

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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.

Learn More About Orient Software On:

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:

Savvycom – Your Trusted Tech Partner

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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Why Should You Use PHP For Web Development Services?

PHP is a programming language that is widely used in its most basic form and can be embedded into HTML, which is the big draw for anyone interested in website development. HTML can be long, with lots of commands, PHP pages contain HTML with embedded code, making it much easier to manage.

Learn more about why companies choose to ultilize PHP & the rate for hiring PHP Developer.

1. What Is & Why Would You Choose PHP?

“PHP is a general-purpose scripting language especially suited to web development. It was originally created by Danish-Canadian programmer Rasmus Lerdorf in 1994. The PHP reference implementation is now produced by The PHP Group. PHP originally stood for Personal Home Page, but it now stands for the recursive initialism PHP: Hypertext Preprocessor.” – Wikipedia

The PHP programming language is regarded as a general-purpose programming language. It is a server-side scripting language that is primarily used for website creation. PHP frameworks make Web Development simpler as well. PHP is the ideal choice for many Website Developers because because of its ease of use. Unlike other traditional programming languages, PHP is clear and well organized. It doesn’t require much study material or catalog to learn. Even a beginner can easily understand the command functions of PHP. Also, coding in PHP is not a big deal as it is similar to the C language. So, people who know C language can easily code PHP.

This framework allows for the reuse of code, eliminating the need to write lengthy and complex web applications. PHP frameworks are primarily open-source and straightforward to use.

Learn More On: Software Project Estimation: The First Step To Success

1.1. Open Source

PHP is open-source and free, allowing developers to install it and get it up and running quickly. There are numerous PHP frameworks available, and developers can work with any of them. The developer would have easy access to all of the framework’s functionality and resources.

Since it is open-source, it quickly integrates PHP into the framework and speeds up web creation by facilitating access to tools and other features.

1.2. Platform Independent

Both operating systems, including Windows, Unix, and Linux, support PHP. PHP-based web applications can be run on any platform with ease. It is simple to integrate with other programming languages and databases, and no redevelopment is needed. It helps to save a lot of time and money.

Savvycom Web CTA 11.3. Simplify Web Application Maintenance

Unlike other programming languages, PHP does not place a premium on the readability and maintainability of code. Model-view-controller (MVC) architecture is supported by PHP frameworks, making web application creation and maintenance easier.

The MVC architecture allows developers to split a web application into templates, views, and controllers. They can use a PHP MVC system to distinguish the application’s user interface and business logic layers.

1.4. Work With Databases More Efficiently

The majority of PHP frameworks enable programmers to work with a variety of common relational databases. Some frameworks provide Object-relational mapping (ORM) systems to make database operations even more accessible.

ORM systems allow programmers to perform database operations without having to write lengthy SQL code. Programmers can also write object code directly in the PHP programming language using ORMs.

1.5. Speed Up Custom Web Application Development

PHP programmers nowadays are expected to create web applications that are focused on complex business specifications. Similarly, they must look at ways to improve the web application’s user experience. PHP frameworks provide developers with resources, functionality, and code snippets that help them create custom web applications faster.

1.6. Automate Common Web Development Tasks

In addition to writing code, developers must complete a variety of tasks while developing a web application. Any of these basic web development activities necessitate additional time and effort on the part of programmers.

PHP frameworks provide functions and resources that assist developers in automating basic web development tasks such as caching, session management, authentication, and URL mapping.

Learn More On: The Essential Guide To Software Development Services

1.7. No Need To Write Additional Code

Unlike other programming languages, PHP does not allow programmers to express concepts through shorter lines of code. As a result, PHP programmers must write lengthy and complex code when adding features or functionality to a website.

By providing a code generation function, PHP frameworks dramatically reduce coding time. In addition, specific PHP frameworks provide code generation features that enable programmers to keep web application source code clean and maintainable.

1.8. Perform Unit Testing Efficiently

Developers must conduct unit testing on a custom web application regularly to determine the individual units or components. A significant percentage of web developers use PHPUnit to perform unit tests quickly and efficiently.

PHPUnit is an object-oriented unit testing application for PHP that also provides coding assistance to help developers write and run unit tests. Many PHP frameworks come with PHPUnit built-in, allowing programmers to perform unit testing efficiently.

1.9. Protect Websites From Targeted Security Attacks

PHP is widely regarded as one of the most vulnerable programming languages. Frequently, programmers must investigate ways to defend PHP applications from different security threats. However, the PHP framework’s built-in security features and frameworks make it easier for developers to protect their websites from current and emerging security threats.

For example, SQL injections, cross-site request forgery, and data tampering are all common security risks that PHP web developers can easily avoid.

Learn More On: Full Guide Of IT Outsourcing Models

1.10. Less Increase Web Development Cost

PHP is an open-source server-side programming language that allows users to reduce web development costs substantially. Developers can also select from several open-source web frameworks for PHP. They can also use the features and resources offered by these open-source PHP frameworks to accelerate custom web applications without increasing project costs.

2. The Applications of PHP

Even though there are so many languages on the market, PHP is only commonly used in the web development niche. This open-source programming language was developed to create powerful web applications.

2.1. Web Pages and Web-Based Applications

Any web page or web application must be highly customizable in today’s environment, have a highly interactive user interface, conduct online transactions, and integrate with database systems. PHP provides a dependable way to achieve these features thanks to its three-tiered architecture, which operates linearly on the browser, server, and database system.

As a result, PHP is used for server-side programming by over 82 percent of websites; PHP is used to create over 244 million websites. PHP is also used for scripting web-based business applications and a slew of Facebook games.

2.2. Web Content Management Systems

PHP supports various databases, including MySQL, Oracle, and MS Access, as well as protocols like IMAP, LDAP, POP3, NNTP, SNMP, HTTP, and COM for communicating with other services.

As a result, PHP is used to create standard web Content Management Systems (CMS), such as WordPress and its plugins, Facebook’s user-facing part, Joomla, Drupal, Moodle, Silverstripe, MediaWiki, Digg, and others.

2.3. eCommerce Applications

From small businesses to big corporations, marketing to online customers has become a necessity. PHP allows for the quick and easy development of eCommerce applications using frameworks like CodeIgniter and CakePHP. OpenCart, Magento, PrestaShop, Zen Cart, AgoraCart, and Ubercart are just a few popular eCommerce platforms built on PHP.

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3. Best Way To Hire PHP Developer

According to Statista, as of early 2020, JavaScript and HTML/CSS were the most commonly used programming languages among software developers worldwide, with nearly 68 percent of respondents stating that they used JavaScript and 63.5 percent using HTML/CSS. SQL. Python and Java rounded out the top five most widely used programming languages around the world. PHP still find its way into the top 10 of the most-used programming languages.

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

3.1. Global PHP Developer Rate

PHP is a feature-rich scripting language that is still in widespread use today. With the right strategy, business owners can create robust websites that will be well-liked by their target audience. This, in turn, leads to a better customer experience and a higher return on investment.

With its place being high on the most used programming language ranking list, most PHP developer hourly rates range from $61 to $80 per hour globally.

3.2. Hire PHP Programmer in Vietnam, Why?

Savvycom Office 1

Savvycom Development Team in Hanoi

PHP Developer hourly rates in Vietnam IT Market range from $20 to $40 depended on the experience and position of the developer.

Compared to hiring a developer in the United States or other countries like the UK, Netherlands, Ukraine, etc., the cost of hiring a developer in Vietnam is considerably lower. For example, a Vietnamese developer would cost you around 50 percent less than the global Python Outsourcing cost mentioned above.

According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in 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.

And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

4. Conclusion

PHP has a large, active, and supportive PHP community. Furthermore, this scripting language provides a wealth of tools, such as commands, functions, and codes, that can be easily rewritten and reused at no cost. As a result, PHP is one of the most common server-side programming languages due to its ease of use, integration, cost efficiency, and accessibility.

Savvycom – Your Trusted Tech Partner

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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  1. Facebook
  2. Wikipedia
  3. Tumblr
  4. Slack
  5. MailChimp
  6. Etsy
  7. WordPress

  1. JavaScript: It remains the most popular programming language of them all, and has been around for almost as long as PHP. JavaScript is primarily a client-side language and therefore not directly comparable with PHP, though the rise of Node.js and other frameworks enables developers to write server-side scripts with JavaScript. Both languages have huge communities and are highly versatile, though only JavaScript allows for full-stack development. On the other hand, PHP is easier to learn and maintain, so using it could mean lower development costs. 
  2. Python: This is one of the most popular languages today, loved for its simplicity and flexibility. It has emerged as the number one choice for data science and AI, though it still trails far behind PHP in use for web development. Python has a fast-growing community and an increasing number of frameworks and libraries - it is flexible, though does not yet provide the same level of database connectivity and support as PHP.
  3. Ruby: Ruby is another open-source language that has been around since the 90s and is used in the popular web development framework ‘Ruby on Rails.’ It is praised for its elegant syntax and robust performance. However, it is considered more complicated to learn than PHP and doesn’t have the same extensive community support. 

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Why Would You Choose ReactJS For Front End Development In 2022

Building a solid front-end for your website is a top priority in a world where anything from conversion rates to page views to a customer’s shopping cart size can be negatively affected by a single-second delay. React js is a standard JavaScript front-end library for creating high-performance user interfaces (UI).

A React js developer will help you design the front-end for your company, whether you want to use server-side rendering (SSR) to speed up initial page loads or enjoy a solid UI that provides a smooth user experience.

About a React JS Developer Hourly Rate. It all depends on the level of expertise you require and the overall scope of your project.

1. What Is & Why Would You Choose React JS?

React (also known as React.js or ReactJS) is an open-source front-end JavaScript library for building user interfaces or UI components. It is maintained by Facebook and a community of individual developers and companies. React can be used as a base in the development of single-page or mobile applications.

However, React is only concerned with state management and rendering that state to the DOM, so creating React applications usually requires the use of additional libraries for routing, as well as certain client-side functionality.”Wikipedia

React JS is basically a JavaScript library built and maintained by Facebook and according to the creator of React JS, Jordan Walke, React is an efficient, declarative, and flexible open-source JavaScript library for building simple, fast, and scalable frontends of web applications. Ever since its launch, it has taken the front-end development space by storm. In the latest survey by Stack Overflow it is also revealed that React is the most loved web framework, while Angular ranked 9th on the same list.

Nowadays, there are over 220,000 live websites using React. Not only that, industry giants like Apple, Netflix, Paypal, and many others have also already started using React JS in their software productions. With so many companies using React JS, including some of the top brands globally, React must be offering some extraordinary benefits, right?

Learn More On: Software Project Estimation: The First Step To Success

2. Key Benefits Of ReactJS

Reactjs is unquestionably a best-seller. This JavaScript library, which was first released in 2013, has rapidly gained popularity. Facebook currently maintains it in collaboration with the developer community. In addition, it is used by major corporations such as Apple, PayPal, and Netflix, and over 32 thousand websites are developed with the React JS framework.

2.1. Higher Productivity & Further Maintenance

One of the main benefits of using ReactJS is its potential to reuse components. It saves time for developers as they don’t have to write various codes for the same features. Furthermore, suppose any changes are made in any particular part. It will not affect other parts of the application that you have worked on previously. And if you thought React was for web development only, you could not be more wrong! Since Facebook has already upgraded the framework for developing mobile native applications for both Android & iOS platforms.

Since the program has a complex logic and changes in one variable will affect others, updates are often a headache. To address the issue, Facebook has added the ability to reuse system components to React, which developers consider to be one of the best features of ReactJs.

Designers are well-versed in asset reuse since they often use the same digital artifacts. Start with the minor components (checkboxes, buttons, etc. ), then move on to wrapper components made up of these small elements, and so on until you reach the most significant root component.

Both parts have their internal logic, which makes manipulating and defining them simpler. This method guarantees a consistent app appearance and makes codebase maintenance and development more accessible.

2.2. Faster Rendering

React JS Developer Hourly Rate | Savvycom -3

When developing a high-load application, it’s critical to think about how the structure can affect its overall efficiency. Since the DOM (document object model) is tree-structured, even minor adjustments at the upper layer will cause terrible ripples in the interface.

Even the most modern platforms and engines can’t guarantee the absence of irritating bottlenecks. To address the issue, the Facebook development team implemented Virtual DOM, which is one of the advantages of using React for heavily loaded and dynamic software applications.

Since it is a virtual representation of the document object model, all changes are first applied to the virtual DOM. Then the minimum scope of required DOM operations is determined using the diff algorithm. Finally, the actual DOM tree is modified to reflect the changes, ensuring minimal time spent. This approach provides a better user experience and improved app results.

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2.3. Stable Code

ReactJS only uses downward data flow to ensure that even minor child structures do not impact their parents. When developers alter an object’s state, they make adjustments, and only specific components are changed after that. This data binding framework ensures code consistency and consistent app efficiency.

2.4. SEO Friendly

Another advantage of React js is its ability to work around a common problem of search engines failing to read JavaScript-heavy applications. Again, it can be used as a workaround because it can run on the server and render the virtual DOM and return it to the browser as a standard webpage.

2.5. Helpful Developer Toolset

The React Developer Tools extension is available for Chrome and Firefox. It allows developers to inspect the current state and props of reactive component hierarchies and discover child and parent components.

Learn More On: The Essential Guide To Software Development Services

2.6. React Native for Mobile App Development

React can be dubbed a “learn once, write anywhere” library because it follows the same design patterns in both web and mobile app growth, making the transition easier. You can create rich UI for native apps using plain JavaScript and React, which are compatible with iOS and Android platforms.

Our React Native developers cite the portability and ability to reuse components, real-time reload and modular design, open-source, and great ecosystem as some of the benefits of React js in mobile app development.

We can name mobile apps like Skype, Tesla, Airbnb, and Walmart as examples of React Native in action. Not to mention Instagram and Facebook, which are true innovators and early adopters.

2.7. Easy-to-Learn

Let’s start with a definition: what is React js? – It is not a full-featured framework; instead, it is a library that focuses on doing one thing well. We use more tools to create a complete solution since V is in the MVC (model – view – controller) pattern.

React is simple to understand for those with a clear understanding of programming, while Angular and Ember are referred to as “Domain-specific Languages,” meaning that they are difficult to learn. Developers just need a simple understanding of CSS and HTML to respond.

After a few days of mastering the tutorial and docs, any JavaScript developer will understand the fundamentals and begin creating a fantastic web app.

2.8. Strong Community

Initially, the React library was developed for internal use only, but it was later made available to the rest of the world. It is currently funded by the technical departments of Facebook and Instagram, as well as external experts.

For example, the React GitHub repository has over 1100 contributors, and users can ask questions on Stack Overflow, Reactiflux Chart, Freenode IRC, and other social media platforms.

Learn More On: Full Guide Of IT Outsourcing Models

2.9. Used by both Fortune 500 Companies & Innovative Startups

Reactjs has been chosen by thousands of organizations worldwide for their applications, websites, and internal projects. Also not sure what React js is good for? Here are some hot solution examples to get you started:

  • Airbnb, Walmart Labs, Tesla, Tencent QQ (with over 829 million active accounts), Baidu Mobile (with over 600 million users), Bloomberg, li. St, Gyroscope, Delivery.com, JD.com, GoDaddy, and many others have developed mobile applications with React Native.
  • BBC, Netflix, Dropbox, Coursera, IMDb, PayPal, Dailymotion, Chrysler, American Express, Intuit, Khan Academy, Lyft, Atlassian, New York Times, Reddit, and hundreds of others are among the sites that use React.

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3. Best Way To Hire React JS Developer

According to Statista, as of early 2020, jQuery was the most common web framework among software developers all over the world. According to the study, 43.3 percent of respondents said they use jQuery and 35.9% said they use React js. Over time, jQuery has been losing ground to React js and Angular.

3.1. Global React JS Developer Rate

Using the React open-source library ecosystem, React. js developers design and implement user interface components for JavaScript-based web and mobile applications. From creation to final testing, these experienced front-end developers are involved in all stages of interface component design.

With its place being high on the most used framework ranking list, most React JS developer hourly rates range from $61 to $80 per hour globally.

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

3.2. Hire React JS Programmer in Vietnam, Why?

Savvycom Office 1

Savvycom Development Team

React JS Developer hourly rates in Vietnam IT Market range from $20 to $40 depended on the experience and position of the developer.

Compared to hiring a developer in the United States or other countries like the UK, Netherlands, Ukraine, etc., the cost of hiring a developer in Vietnam is considerably lower. For example, a Vietnamese developer would cost you around 50 percent less than the global Python Outsourcing cost mentioned above.

According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in 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.

And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

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4. Conclusion

When it comes to the advantages and disadvantages of React js, three terms come to mind: non-risky, sensitive, and advanced. This library’s primary goal is to “create large-scale applications with data that frequently changes over time,” which admirably accomplishes this goal.

It enables developers to work with a virtual browser (DOM) that is significantly faster and more user-friendly than the actual one. Apart from that, it facilitates interactive UIs, supports JSX, and has a component-based structure, among other features.

Therefore, it is a suitable option for both startups and companies due to the combination of the factors mentioned above.

Savvycom – Your Trusted Tech Partner

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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  1. Dropbox
  2. Instagram
  3. Airbnb
  4. Discord
  5. Walmart
  6. Wix
  7. Pinterest
  8. Skype
  9. Gyroscope
  10. Myntra

1. The high pace of development

The high pace of development has both an advantage and disadvantages. Since the environment continually changes so fast, some developers won't feel comfortable relearning the new ways of doing things regularly. It may be hard for them to adopt all these changes with continuous updates as they need to be constantly updated with their skills and learn new ways of doing things.

2. Poor Documentation

It is another con that is common for constantly updating technologies. React technologies modernizing and accelerating so fast that there is no time to make proper documentation. To overcome this, developers write instructions independently with the evolving of new releases and tools in their current projects.

3. View Part

ReactJS Covers only the UI Layers of the app and nothing else. So you still need to choose some other technologies to get a complete tooling set for development in the project.

4. JSX as a barrier

ReactJS uses JSX. It's a syntax extension that allows HTML with JavaScript to be mixed together. This approach has its own benefits, but some members of the development community consider JSX a barrier, especially for new developers. Developers complain about the complexity of the learning curve.

At Savvycom, our professional Developers are always kept up-to-date with the latest Technologies as we determine the best and possible Solutions for all of our Client. Contact us now as we are eager to explore new frontier with you!

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The Essential Guide To Software Development Services

Software Development Services has long been the popular choice of many firms as they not only save time for a specific project or task but also allow companies to access more professionals as well as experts at a reasonable cost than in-house development. And in the world where mostly everyone has to work remotely from home, Software Development Services has never been more appealing.

Software Development Services | Savvycom

Find out more about Savvycom Software Development Services

1. What is Software Development?

Software development is the process of conceiving, specifying, designing, programming, documenting, testing, and bug fixing involved in creating and maintaining applications, frameworks, or other software components. Software development is a process of writing and maintaining the source code, but in a broader sense, it includes all that is involved between the conception of the desired software through to the final manifestation of the software, sometimes in a planned and structured process” Wikipedia

If you like the short explanation, here is what you should first have in mind. Software development services is a complicated process to design an application or software in order to meet a particular business or personal objective, goal or process. This process consists of various stages: Planning, Analysis, Product Design, Development & Implementation, Testing, Maintenance.

2. Software Development Processes

Software Development is an intriguing yet very complex thing which would normally go through a lot of processes. Each step should not be taken lightly since the success of a project depends on them. Here we will take you through the 7 Software Development Processes that Savvycom follows:

2.1 Analysis and Planning

At the first stage, stakeholders, end users and the project team often gather and discuss in order to determine what exactly the requirements are. Then, the project team has to lay out how future software is designed and which programming languages are going to be used. Below are a few key point of this first and also important step:

  • Alignment: How does this project connect to your company’s larger mission and goals?
  • Resource availability and allocation: Do you have the people and tools you need to take this on?
  • Project scheduling: How does this project fit within your company’s goals and other tasks?
  • Cost estimation: How much is it going to cost?

Learn More On: Software Project Estimation: The First Step To Success

2.2 Requirements

The next step is to understand the technical requirements of this project. Every aspect of the  software whether it’s an app, website redesign, or simply new feature, needs to solve customer’s problems. 

As you move on from the planning phase and continue to fill out the statement of work, ask questions around this project, such as:

  • What problem does this solve?
  • Who’s going to use it and why?
  • What sort of data input/output is needed?
  • Will you need to integrate with other tools or APIs?
  • How will you handle security/privacy?

Once your development team gets the answers to these questions or once you have finished discussing with the outsourcing team, They can start to identify technical requirements, testing terms, and decide on a technology stack. This is also when you might start sprint planning (if you’re using an Agile software development process) or break down large tasks into more actionable steps.

2.3 Designing and Prototyping

With the requirements in place, it’s time to start designing what this software will look like and how it will function. Functionality and flow should be at most important from the start.

Depending on the software development process you’re following, this step might mean you create simple wireframes to show how interactions will work in the software, or make more full-fledged prototypes in order to test with users. Alternatively, you might decide you need more user feedback and do a design sprint to quickly get a feature or idea in front of your users.

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2.4 Software Development & Implementation

This stage is also known as “Programming” or “Coding”, at which computer programmers write program code in the suitable programming language. Then programmers conduct trials in order to detect errors and fix them until they’re error-free. This is the part when you would want to keep in touch with the development team as much as possible to ensure the pace of your project.

2.5 Testing

After the software is completely coded, it should be sent to the testing team before deployment, who gives feedback after using it. Although programmers should make sure there are not any errors existing, issues might not be obvious to them. Therefore, the testing team will use various test cases to have the software debug to ensure optimal functioning.

2.6 Deployment

With everything out of the way, it’s finally time to launch your software to all of your users. What we’re talking about here is pushing your code into production. A smart deployment plan plus an error free product will more than likely ensure the success of a project.

2.7 Operation and Maintenance

The Software Development Process isn’t over once your software is launched. It’s a “Software Development Lifecycle”, afterall. The ending of one phase is just the beginning of another, and that goes for post-launch as well.

Requirements and customer needs are always on the run. And as people begin to use your software, they’ll undoubtedly find bugs, request new features to be added, and ask for more or different functionality. Not to mention the basic upkeep and maintenance of your software to ensure uptime and customer satisfaction.

Finally, after the software is installed on the clients’ systems or devices. The programmers will carry out periodic maintenance in order to ensure programs can run smoothly and keep up with other apps of the same use overtime.

3. Types of Software Development Companies

IT companies all come in different shapes and sizes. However, it’s possible to broadly classify them into two distinct types: service-based companies and product-based companies.

3.1 Product-based company

These are businesses that work on their own products and deliver them to end-users, which can be both businesses and individual customers. Such companies invest time and money into developing the out-of-the-box solutions which they can later configure and implement on the client’s side. They create software which can be later used by other companies to solve different business problems.

Google or Microsoft are excellent examples of product-based companies. They both offer a broad range of out-of-the-box solutions that can be customized and configured to match specific business needs. However, out-of-the-box solutions have their limitations, and licensing is often quite expensive, especially if your company doesn’t end up using all of the included components (which is a very common case).

Businesses that want to build a tailor-made solution that addresses their unique requirements usually turn to providers of custom software development services: the service-based companies. Read more at Fixthephoto.com about Top App Development Companies In 2021.

3.2 Service-based company

Such companies work directly for businesses and provide them with a wide range of services – for example, development of custom software projects or delivery of technical expertise in the form of team extension/argumentation, dedicated teams, or project teams.

Here are a few benefits of working with service-based companies:

  • Software agencies hire skilled and experienced software developers, but they also invest a lot in their professional growth.
  • When teaming up with a specialized software development agency, you get access to top talent and can leverage the company’s internal expertise acquired through the delivery of many projects.
  • Such companies have extensive experience in building custom software and can assist you in many different areas – from product development and UX/UI design to software architecture and QA processes. 

The advantage of working with such companies is that you don’t need to worry about any overhead costs such as salaries, workstations, hardware, or software. It’s pretty much the same as setting up an Offshore Development Center.

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

4. What to expect from Software Development Service Company

4.1 Building software solutions

This is the primary area of focus for every software development service company. Such companies usually specialize in a few areas and types of software – for example, web development, mobile development, or fintech. 

Software development service companies often specialize in specific technologies like machine learning or blockchain. They build solutions for various industries and types of organizations, from startups, through small and mid-size businesses (SMBs), to large enterprises.

4.2 Delivering Business Intelligence tools

Many software development vendors offer expertise in building data science solutions. Data is valuable resource organizations have, but make the most of it they need specialized software able to unlock insights from large data sets. This is where software development service companies come in. They built data science solutions such as analytical reports, dashboards, and Business Intelligence tools that help their clients implement data-driven decision-making.

4.3 IT consultancy

Many software development service agencies provide their clients with advice for managing their software systems and architectures, building custom solutions, or driving innovation. The primary aim of consultancy services is taking the business to the next level by optimizing analytics, processes, and workflows with specialized software solutions.

4.4 Developing web applications and corporate systems

Software development service companies also design and develop advanced websites and corporate systems used by enterprises to automate tasks and provide access to resources on the go thanks to the cloud technologies. Such corporate web-based systems help organizations increase productivity, facilitate workflow management, and boost their bottom line.

Learn More On: Top 10 Software Development Companies in Vietnam

5. Software Services provided by a Software Development Service Company

5.1 Custom Application Development Services

We rely on our technological expertise and specialized industry experience to develop any type of web, mobile, desktop, and hybrid app per your business requirements.

5.2 QA and Software Testing Services

Comprehensive quality assurance is built into our custom software service model, but we can also provide on-demand QA and a suite of functional and usability software tests upon request.

5.3 App Maintenance Services

Our application maintenance and modernization services are designed to ensure the scalability, performance, and sustainability of your entire software infrastructure as your business grows.

5.4 API Integration Services

We build and implement custom APIs for all breeds of applications, helping to add functionality to your software systems and facilitate communication between your apps and others.

5.5 IT Security Services

Our thorough threat audits help us identify your software infrastructure’s most pressing vulnerabilities, allowing us to integrate the encryptions, security services and access protocols you require.

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5.6 Data Backup and Recovery Services

Data Backup and Recovery have become some of the top priorities when it come to lockdown and social distancing due to the negative impact of Covid-19. We implement robust data backup and recovery strategies for cloud-based, on-premises and hybrid servers, designed to ensure the integrity of your data and the continuity of your business.

5.7 Software Deployment Services

Our implementation specialists will work with your IT team to establish detailed software deployment objectives and timelines, covering configuration, testing, project governance, troubleshooting and more.

5.8 Infrastructure Support Services

We provide holistic IT Infrastructure support, including help desk management, custom messaging and collaboration, network management and system administration services.

5.9 Software Migration Services

We perform cloud-based migrations, system upgrades and other vital software modernization services prioritizing system uptime and data integrity throughout an often daunting IT transition.

5.10 System Integration Services

Integrating your applications is not just about making sure your various systems work together; it’s about doing so in a way that’s specific to your workflows, your departments and your business.

5.11 PLM Services

Our agile, end-to-end Application Lifecycle Management (ALM) model covers everything from conceptualization, concurrent front- and back-end coding, deployment, QA and more.

5.12 IT Services SLA

As software development service providers with 20 years of experience, you can trust us to put together a service level agreement that lays out expectations for costs, timelines and system functionality.

Learn More On: Full Guide Of IT Outsourcing Models

6. Cutting-edge technologies in software development services

6.1 Internet of Things (IoT)

Nowadays, you may be so familiar with the word “smart” such as a smart house, smart car, smart TV, smartphone, etc. These amazing things are all products of IoT technology, which enables everything and everyone to connect with each other. It has been making our life easier and helping us with collecting any data that can be collected.

As for software development, there are more and more projects carried out in order to help people in communication and data analysis or to remotely control not only household devices, but also bulkier systems such as manufacturing lines and so on.

6.2 Augmented Intelligence (AI)

Traditional software development service involves a series of successive stages including manually writing code, preparing requirements, designing software, and testing to establish that the final product meets specifications. 

Artificial intelligence (AI) disrupts this process by creating scalable and efficient workflows to drive productivity and reduce time-to-market. The use of AI in software development services is growing steadily, as according to the market research firm Tractica, the revenue from the application of AI tools worldwide is expected to reach $119B by 2025.

6.3 Augmented Reality (AR)/Virtual Reality (VR)

Augmented and virtual reality are perfect blends of the digital world and the physical elements to create an artificial environment. Apps which are developed using AR technology for mobile or desktop to blend digital components into the real world. 

While both of them have the remarkable ability to alter our perception of the world, VR is more immersive, while AR provides more freedom for the user because it does not need to be a head-mounted display to operate (AR is often used via the phone camera). 

Integrating AR and VR into software development helps make the product more realistic, therefore enhancing customer experience and earning brand love.

6.4 Blockchain

Put simply, Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

Technically speaking, blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).

Due to its high security nature, Blockchain is often used for FinTech and Supply Chain software development services. The space for development of Blockchain is huge, as according to a report, the global blockchain market size is expected to grow from USD 3.0 billion in 2020 to USD 39.7 billion by 2025, at an impressive Compound Annual Growth Rate (CAGR) of 67.3% during 2020–2025.

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7. Selecting the right software development service company

7.1 Define your objectives and goals

A decision without clear, relevant and actionable objectives may create ambiguity and hinder your future success. Therefore, here are some questions that would help you organise your thoughts and produce a SMART goal:

  • What are your business priorities: is it cost-saving, scalability, time-to-market, competencies, vendor diversification, or something else?
  • How will you align an outsourcing model with your current business strategy?
  • What services do you expect a vendor to provide?
  • What will be outsourced and what will be kept in-house?
  • Time-frame: When will you start the first project? What does the overall timeline and delivery plan look like? What are the milestones that need to keep up with?

7.2 Vietnam – The Ideal Outsourcing Destination

In today’s context where outsourcing software development services has become one of the familiar patterns, many countries are upsurging as a destination for good services. In 2020 Vietnam is among if not the best country in preventing Covid-19 from spreading. In the report Spotlight on Vietnam, PwC forecasts that software development service outsourcing will be one of the most attractive sectors for foreign investment. In addition, prominent tech companies such as Intel, IBM, and Microsoft have been actively and continuingly endowing Vietnam. The trend is becoming more and more popular in Vietnam.

Also, the outstanding features of software development services in Vietnam is the cost efficiency in relation to low cost and lucrative preferential corporate income tax. Another aspects being Vietnam’s young population (45% of population are under 35 years of age), low attrition rate (6-8% in comparison with 20% in India), convenient location and the rising competency of engineers – meaning businesses could now outsource with a reasonable cost without having to settle for low quality. 

Salaries: According to Payscale, the average software developer engineer in Vietnam is about $12,000 to $48,000.

Looking For a Dedicated Team?

A Dedicated Team might be the best solution in your case. Get in touch with us and we’ll help you choose the best IT outsourcing model based on your business needs and requirements.

7.3 Collect a list of companies

Creating a list of potential software development service companies gives you the autonomy of selection and a glimpse of how software development service companies are performing, therefore, benchmarking to set suitable criteria for your desired partner. There are 4 main sources you can exploit:

Recommendations from your network

If your friends, your family, your colleagues or your partners have experienced the services on-hand, you had better ask them for reviews or suggestions. People having actual experiences in outsourcing software development services are definitely a good source of reference for genuine insights.

Using search engines

Google has always been a to-go destination for information. Some of the best-rated sources are ClutchCrunchbaseGoodfirmsSavvycom, a software development service provider in Vietnam, has been listed in many of Clutch’s roll of honours.

We were once named as the “Top 30 Global App Developer” and arrived at no.6 in B2B Leading IT Companies in Asia. The company is currently standing at no.1 Top App Developers in Vietnam by Clutch’s Leader Matrix.

Industry awards and ranking

In case you don’t trust any word-of-mouth or subjective reviews, companies that are widely accepted and certified by awards and rankings as voted by critics, tech experts, or independent analysis firms may be the best fit. Many companies in Vietnam have received prestigious awards and honours as evidence for their relentless effort to strive for excellence.

One of them is Savvycom, a Vietnamese software development service company that has stood strong on the IT market for 10 years and have been awarded with Vietnam’s 50 Leading IT Companies Award for 4 consecutive years, Emerging IT Outsourcing Enterprise honour by Vietnam ITO Alliance (VNITO), Sao Khue Award for “Software Outsourcing Service 2017”, etc. Starting from the bottom, til’ today Savvycom has risen to be a tech start-up with a more-than-100-employee scale and leaves our marks on the technology map.

Reports from research and consulting firms

This source is likely to be the most detailed and insightful. Many research and consulting agencies conduct surveys throughout the technology landscape and generate key take-aways that are well-confirmed by industry analysts and experts. 

Every year, these kinds of companies produce reports and surveys in order to help you understand not only the market dynamics but also the capacity and competency of the notable players. Some of the most reliable firms are McKinsey & CompanyBain & CompanyBoston Consulting GroupKPMGDeloittePwCErnst & Young.

Savvycom – Your Trusted Tech Partner

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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Software Development Company like Savvycom considers the project requirements and turns that into a product that the end-user will like and engage in. This often requires a deep understanding and thorough analysis from our business analyst regarding whom will be using the software.

Choosing the right software development services company for your project or idea is like selecting a crew to go sailing before the storm. That is why you should, before making any decisions, triple check the agency with whom you will work with over the next few months, or sometimes even years.

Contact the company's past clients as such corroboration is vital if you want a reliable relationship with the software development services firm. Now that your shortlist becomes shorter proceed to the next step in your verification process.

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Software Project Estimation: The First & Foremost Step To Success

Software project estimation approaches assist project managers in effectively estimating critical project parameters such as cost and scope. PMs can then use these estimation strategies to give clients more accurate projections as well as budget the funds and resources they’ll require for a project’s success.

In this article, we’ll go over which project elements should be estimated, the many available projects estimating approaches, and how to get started with estimation techniques that greatly help with software project estimation in software engineering.

1. What Is Software Project Estimation?

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In short, project estimation is a complex process that revolved around predicting the time, cost, and scope that a project requires to be deemed finished. But in terms of software development or software engineering, it also takes the experience of the software development company, the technique they have to utilize, the process they need to follow in order to finish the project (Software Development Life Cycle). Project Estimation requires the use of complex tools & good mathematical as well as knowledge about planning.

In most cases, the whole estimation process would cost the company rather considerable cost & time at the very first stage of developing a brand new website, app, or software. However, this will act as the stepping stone to make the final result more credible, realistic, and customer-satisfying.

Whether big or small, every project is advised to employ project estimation as a crucial step to avoid unpredictable failure in the future.

Learn More On: The Essential Guide To Software Development Services

2. Which Estimations Take Place During A Project?

Ultimately, there are six critical elements of a project that benefit from the use of project estimating techniques.

2.1. Cost

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In project management, cost is one of the three primary constraints. The project will fail if you do not have sufficient funds to complete it. You can help set client expectations and ensure you have enough money to complete the work if you can accurately estimate project costs early on. Estimating costs entails determining how much money you’ll need and when you’ll need it.

2.2. Time

Another of the project’s three main constraints is the lack of time. It is critical for project planning to be able to estimate both the overall project duration and the timing of individual tasks.

You can plan for people and resources to be available when you need them if you estimate your project schedule ahead of time. It also enables you to manage client expectations for key deliverables.

2.3. Size or Scope

The third major project constraint is scope. The project scope refers to all of the tasks that must be completed in order to complete the project or deliver a product. You can ensure that you have the right materials and expertise on the project by estimating how much work is involved and exactly what tasks must be completed.

Three sides of a triangle are often used to describe the three main constraints. This is because any changes to one constraint will inevitably have an effect on the other two. You need to know the scope and schedule to accurately estimate the budget. If one of the three estimates turns out to be higher or lower than you anticipated, the other two are likely to be off as well.

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2.4. Risk

Any unforeseen event that could positively or negatively impact your project is referred to as project risk. Estimating risk entails predicting what events will occur during the project’s life cycle and how serious they will be.

You can better plan for potential issues and create risk management plans if you estimate what risks could affect your project and how they will affect it.

2.5. Resources

The assets you’ll need to complete the project are known as project resources. Tools, people, materials, subcontractors, software, and other resources are all examples of resources. Resource management ensures that you have all of the resources you require and make the best use of them.

It’s challenging to plan how you’ll manage resources without knowing what you’ll need and when. This can result in people sitting around doing nothing or materials arriving weeks after you need them. 

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Learn More On: Top 10 Software Development Companies in Vietnam

2.6. Quality

Quality is concerned with the completion of project deliverables. Products that must adhere to stringent quality standards, such as environmental regulations, may require more money, time, and other resources than those with lower standards.

Estimating the level of quality required by the customer aids in the planning and estimating the remaining five aspects of your project.  Because all six project factors are interconnected, forecasts for one can have an impact on forecasts for the other five.

As a result, applying the same software project estimation techniques to all six areas can help you improve your accuracy.

3. When To Do Project Estimation In Software Engineering?

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By definition, estimating is a forecast. And according to a McKinsey report, overruns occur in 66% of all software development projects. This means that most of them fail to meet deadlines, go over budget, and deliver fewer features than expected. There could be various reasons for this, but at Savvycom, we often think that determining a transparent software development process prevents late deliveries and budget overruns.

3.1. Waterfall

The planning phase follows the project initiation in a traditional Waterfall project. Estimates for the six project aspects discussed above will be created and documented during this stage.

Estimates may be revised as new information becomes available throughout the project. Your project risk estimates, for example, will need to be updated as unknown risks are discovered.

3.2. Agile

Agile projects use a more iterative planning process. Projects are typically divided into iterations or sprints in most Agile frameworks. Estimates would be made at the start of the project, when the overall project backlog (list of features and requirements) was being created, and then again during each sprint.

Estimation can take place during the sprint retrospective as you update the backlog based on the sprint results. It can also happen during each new sprint’s planning session.

4. Project Estimation Techniques In Software Engineering?

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“Making a workable project estimation that is precise and accurate takes the discipline of a surgeon.” – Savvycom

There is no one-size-fits-all solution, as evidenced by the variety of methods available. Making a perfect forecast that addresses all potential issues is extremely difficult. Software development is a dynamic process in which programmers are constantly learning new technologies and making new discoveries. This has a significant impact on the estimate.

However, throughout a decade of coding, our team at Savvycom has pointed out a few outstanding projects estimation techniques. We also recommend find out about this work breakdown structure guide.

4.1. Top-down Estimate

Top-down estimating assigns an overall time for the project and then breaks it down into individual phases, work, and tasks based on the work breakdown structure of your project (WBS).

If a client specifies that the project must be completed in six months, a top-down approach allows you to take that overall timeline and estimate how much time you can commit to each project activity while still meeting the deadline that has been given by the client.

4.2. Bottom-up Estimate

A bottom-up estimate is the polar opposite of a top-down estimate. You begin by estimating each individual task or aspect of the project using this method. Then you add all of the individual estimates together to create the overall project estimate.

This type of estimate is more accurate than the top-down approach because each activity is assessed individually. However, it takes longer to have a completed software estimation and requires more effort from the project manager as well as business analyst.

4.3. Expert Judgment

Expert judgment is one of the most widely used estimation techniques because it is quick and simple. To estimate projects, this method relies on the expertise and intuition of experts.

It’s most useful when you’re planning a standard project that your team has previously completed or has knowledge about. Top-down and bottom-up estimates can both be made using expert judgment.

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4.4. Comparative or Analogous Estimation

To estimate project duration, comparative estimation employs past project data and a top-down approach. If similar projects took an average of eight months to complete, you’d expect the current one to take the same amount of time. Then, to get your lower-level work estimates, divide those eight months into tasks and activities.

4.5. Parametric Model Estimating

Parametric modeling makes use of previous project data as well, but it tries to adjust the data each time to reflect the differences between each project. This method estimates the current project by pro-rating the details of previous projects that you have completed.

Assume your firm is in the business of building homes. To calculate the average project cost per square foot of the house, use metric modeling to divide the total cost of all previous construction projects by the square footage of each project. Then you’d multiply that number by the current home’s planned square footage to get your overall project budget.

4.6. Three-point Estimating

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Three-point estimating is a technique for generating bottom-up estimates that are sometimes used. You could assign three durations to a task instead of one; it may look like these: optimistic, pessimistic, and most likely. Your actual estimate is calculated by averaging these three numbers.

The PERT (Program Evaluation and Review Technique) method employs three-point estimating, but it uses a weighted average of the three, with the “most likely” guess receiving the most weight.

PERT Distribution

Estimation = (p + 4m + o) / 6

  • P – pessimistic
  • O – optimistic
  • M – most likely
Triangular Distribution

Estimation = (p + m + o) / 3

  • P – pessimistic
  • O – optimistic
  • M – most likely

5. Step by Step to a Successful Software Project Estimation

Like what we’ve mentioned above: estimation’s goal is to predict the amount of money, resources, and time required to complete a project. But there is a lot to consider depending on the estimation case, be it a new project, changing teams for an ongoing project, or just contemplating a new idea for investment.

We have listed below a few tips to help you better visualize your future development plan:

5.1. Define Project Type and Environment

It’s critical to think about the framework in which the project will be executed before you start working on project estimation. In the world of project management, the two most common types of projects are waterfall (also known as cascade) and agile. Frameworks and methodologies for each type exist, including Prince2 (waterfall), Scrum (agile), Extreme Programming (agile), and others.

5.2. Understanding The Scope Of Work

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When it comes to determining the size of your project, it’s crucial to decide what you want to accomplish and how far you want to go. According to reference material, there could be breakdowns in some functions. A detailed description of the probable scope and elements of the system will be provided.

Without considering these factors, the estimating work can become more unpredictable and challenging in some circumstances:

  • Encourage conversation to improve understanding.
  • You can learn a lot from the existing products similar to the ones you will develop.
  • Spend more time researching the industry.

Learn More On: 08 Best Software Development Models For A Successful Project

5.3. Prioritizing Tasks In The Project

Money, time, and manpower estimates and constraints on the project make achieving the stated goals considerably more difficult. The value of each functional priority must be clarified in these scenarios in order to concentrate on the most critical ones.

A precise estimate of the project’s priorities from the start would also help keep it on schedule. A lot of time and effort could be saved if fewer revisions and additional needs are required during the development process.

5.4. Choosing Estimation Techniques

Software development project estimation is often laborious and time-consuming. If done poorly, it may result in a client’s disappointment. You can choose from several methods and techniques that we have listed above.

5.5. Write Down Every Possibilities

During the estimation process, it is impossible to specify all conceivable assumptions. However, it is preferable to address as many of them as possible in order to prevent any potential for uncertainty. This will help the parties involved in the estimation process to have a better knowledge of each other.

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5.6. Revising Your Estimation

As the saying goes, “Two heads are better than one.” While working on a software estimation project, revising with other estimators can help you anticipate projects much faster and more precisely. The only possible drawback is the time constraint involved. More people equals more ideas, as the saying goes. In this case, you – the project manager must be able to make an informed decision as to what suggestions and what changes to implement.

5.7. Use Software Estimation Tools

 

There are several software solutions used for estimation. While they won’t do the entire work for you, they will make it easier:

  • For this, GitLab, Jira, and other Agile task management services can be used. The man-hours spent on each task can be tracked using time tracking software. This will serve as a reminder in the future.
  • Redmine‘s cost estimation add-on makes calculations simple. It lets you set an hourly rate for each task and calculates the total.
  • EcoSys can keep track of changes and link man-hours to costs. In a comprehensive table, it provides a complete estimate.
  • Google Sheets and Microsoft Excel are also popular. They have calculation capabilities and are more user-friendly.

5.8. Special Request From Client

“The customer is always right” has to be one of the oldest sayings in the book when it comes to basically every buying or selling activity. Some clients may have special requests for their products. However, when the demand is too far-fetch, and over the horizon, you need to explain it to them. If it is done right, it becomes a framework for the evaluation of all future products that may lead to success.

Savvycom – Your Trusted Tech Partner

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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Until around 2011 or so, most development teams used the Waterfall methodology to plan projects. Waterfall requires all the specifications of a software project to be defined upfront, which is very helpful to the estimation process.

But now, everyone is shifting their attention to Agile (Kanban, Scrum, etc.). Products are shaped through ongoing stakeholder conversations, and what is delivered may not precisely resemble the initial concept. MVPs (Minimum Viable Products) are released quickly, feedback is obtained, and improvements are made iteratively. While Agile has proved its value as a development framework, it has complicated things from a planning perspective.

So the question we need to answer now is: “How can we accurately estimate within a framework that thrives on continuous unplanned change?”

Front-end Developers:

  • They only receive wireframes for the design.
  • The designs look easy, but there are no descriptions of animations.
  • They get no specifications for different devices and screen sizes.
  • The client doesn't actually know what they want until they see it.
  • The client assumes that something is easy to achieve if they’ve seen it on another site.

Back-end Developers:

  • The task description isn’t detailed enough.
  • You’re new to the project, so you’re either missing the big picture or not understanding the overall business logic.
  • The project uses 3rd-party services you aren’t familiar with.
  • The project uses a technology you aren’t that comfortable with.
  • The project’s requirements change as it progresses (holds true for front-end developers as well).

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IT Outsourcing Vietnam – Ideal Destination For Growth Hacking

We live in the globalization age when nothing is constrained to a single nation. Many businesses have people working on the same product and project in multiple places worldwide. Top companies have widely adopted this tactic, especially during the lockdowns caused by Covid-19. And it didn’t take long for everyone to realize how effective remote working can be as some companies have already let their staff work from home permanently.

  • Dropbox will let all employees work from home permanently. Existing office space will become Dropbox Studios, where people can work in person.
  • Atlassian employees can work from home permanently.
  • Quora has adopted a remote-first policy, allowing nearly all employees to work remotely and relocate anywhere the company can legally employ them.

IT Outsourcing and Software Development Companies can easily accomplish this since it is unnecessary for all programmers working on the same project to be located in the same area. They can easily update the code and share their progress with the rest of the development team. In 2022, IT Outsourcing to Vietnam is gaining recognition as a cost-effective, high-quality software development solution in Asia.

1. Why Would Business Choose To Outsource?

Provide access to skill not available in-house 46%
Saves money 36%
Free up resources to focus on core business 35%
Adds scale to my IT organization 33%
Improve flexibility in use of resources 29%
Improve ability to innovate 10%

Top reasons why companies outsource information technology (IT) services worldwide in 2018. Provided by Statista

Compared to onsite jobs, those new to outsourcing will be worried that overseas companies cannot deliver high-quality work, collaborate with onsite teams, or reach defined milestones and objectives with the same aptitude and excellence. In addition, language barriers, difficulty establishing and maintaining communication, and other issues can make outsourcing seem too risky.

However, many outsourcing firms concentrate not only on providing low-cost solutions to their customers but also on ensuring that these solutions are of the highest standard, adhere to strict specifications, deliver utmost commitment, and meet all deadlines.

Savvycom Web CTA 12. Why Would Business Choose Vietnam for IT Outsourcing?

Asia, Eastern Europe, Latin America, and North America are common destinations for offshore software production. In terms of Asia outsourcing, India and China, to many, still hold the top two spots as the world’s most dominant outsourcing destinations. However, among Asian-Pacific countries, Vietnam, an emerging powerful IT outsourcing and offshore development center, is getting noticed day by day.

Despite Vietnam’s relatively short history of IT outsourcing (roughly 20 years), the country has risen to prominence in the sector, becoming the natural extension of global clients due to many inherent capabilities and transformations. According to the 2019 Tholons Services Globalization Index, Vietnam is ranked 13th among the world’s top 50 digital nations.

2.1. Young Population & Education Level

Junior 42%
Middle 33%
Senior 17%
Lead 8%

Vietnam Level of Qualification

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 Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in 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.

Learn More On: Full Guide Of IT Outsourcing Models

2.2. IT Specialized Schools

MoU Signing Ceremony between Savvycom & RMIT University Vietnam

Savvycom Phenikaa University 1

MoU Signing Ceremony between Savvycom & Phenikaa University – On providing training & higher education for IT Graduated Students

Passion for technology, programming & computer 78%
Attractive salary 63%
Good logic & computer background 54%
Prospective career development 42%

Why Would Vietnamese Students Choose To Follow IT Career

Companies looking to outsource software development want graduates with a specialization in information and communication technology. In the field of information and technology, there are over 250 colleges and universities that offer courses. In addition, 187 technical schools deliver courses in Information and Technology.

Thus, students can learn about subjects that will aid them in pursuing a career in software development. As a result, as more businesses outsource to Vietnam, more students will choose to pursue a career as a software developer.

Most candidates choose to follow the programming industry because of their interest and passion for it. What makes them feel most satisfied is that they can be trained and have the opportunity to develop their skills. Career path and salary are also two key factors fulfilling candidates’ satisfaction.

2.3. Low Development Cost

According to MarketsInsider, Vietnam is ranked 5th in the “Best countries to outsource to in the World in 2019” list. Depending on the developer’s skillset, hourly rates for Vietnam developers range from $20 to $40. Compared to the $100 hourly rate in developed countries, this represents significant cost savings for US and Western European businesses.

Furthermore, many Vietnamese IT & Solution Providers are now open to potential innovations such as AI, machine learning, and blockchain… As a result, Vietnam is the ideal location for companies seeking cost-effective solutions that are also technologically advanced.

2.4. Vietnam’s Stability During Covid-19

Vietnam is by far one of the best countries in the world to handle the Covid-19 situations thanks to the swift actions taken by the Vietnamese Government. As a result, heading into 2021, most Vietnamese Tech Companies don’t have to resort to work from home anymore, which significantly boosts work enthusiasm and communication.

Additionally, Vietnam does not have any instability politically for more than 30 years with the same party in power. The country still retains steady economic growth even during Covid-19 (2.9%).

Learn More On: IT Outsourcing Costs

2.5. Big Investors

According to the World Bank, Vietnam is now one of the most thriving emerging economies in East Asia. Vietnam has achieved sustainable and inclusive economic growth thanks to comprehensive market-oriented and outward-looking economic policies. On the human capital index (HCI), this country ranks 48th out of 157 countries, second only to Singapore in ASEAN.

Many foreigners fear the communist political system’s rigidity, but it is the firm foundation for this fast-growing economy, as well as a stable and safe nation. The Vietnamese government is working to make the economy more modern and business-friendly. Foreign investment is welcomed, making it simple for foreign businesses to set up shops in the country.

2.6. Cutting-Edge Technology

Vietnam – one of Asia’s fastest-growing economies – is making its mark on a global stage in terms of technology. The country is leading with several cutting-edge technologies, such as Blockchain, IoT, AI & Machine Learning, Cloud Computing, etc. Vietnamese IT Outsourcing Companies can adopt whatever technology your businesses want to apply. This can be achieved thanks to the technical expertise through studying and the hands-on experience working on complex, large-scale projects accessed by millions of users worldwide.

2.7. Highly Proficient in English

Unlike other countries in Asia, such as Thailand, India, China, Korea, Japan,etc. Vietnamese uses the Latin alphabet, just as English does, making it relatively easy for Vietnamese speakers to learn English. As such, English is the second most popular language in the country, and most of Vietnam’s college graduates have high proficiency in English. Consequently, most IT workers in Vietnam can communicate easily in English when working on outsourcing projects.

Learn More On: Software Project Estimation: The First Step To Success

3. How To Choose The Right Vietnam IT Outsourcing Provider?

Savvycom presents – The Art of Coding – Meet The Artist Behind The Code

With the growing number of software outsourcing companies in Vietnam, finding the right one for your company could be difficult. Therefore, it’s essential to have a clear picture of your software development priorities, performance indicators, and growth expectations before deciding on potential outsourcing vendors in Vietnam. Some of the most important factors to remember are:

  • Sufficient/Fluent English and communication skills
  • Knowledge and industry experience
  • Developers’ expertise in the required technologies
  • Quality standards
  • QA and testing
  • Pricing model and software development methodology (e.g. Agile)

Overall, it’s preferable to work with a firm that already has an established software development framework in place and clarity and flexibility in terms of project changes.

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4. Final Thought

IT Outsourcing is the best option for those who want to balance high-quality service and a reasonable price. If you’re a startup or a well-established business, the global outsourcing industry will help you transform your ideas into reality. You could find Vietnam as an emerging and trusted hotspot for offshore software growth, taking advantage of the geography, the nature of the talent pool, and the cost-effective rate.

Savvycom – Your Trusted Tech Partner

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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  • Google: Google started as a simple search engine but has since become a massive organization offering hardware and software services in addition to its advertising services with employees distributed around the world. Today Google is almost a proverb for the internet itself. Its name has become a verb used by everyone when talking about searching online.
  • Alibaba: When talking about online eCommerce firms, several names come to mind. You have Amazon and eBay, of course, but a company that has quickly come to the fore is Alibaba. Alibaba is another example of companies that outsources. Still, unlike Amazon and eBay, Alibaba is based in China, which makes the challenges of outsourcing somewhat different.
  • WhatsApp: When thinking about companies that outsource, WhatsApp is an excellent example of outsourcing as it has been doing it from the very beginning. As early as 2012, WhatsApp was a small organization with only 30 full-time employees and five part-timers. Based out of Mountain View, California, they understood that they needed to keep costs down if they wanted to grow.
  • Apple: However, while Apple designs excellent products, it does not make or manufacture them all by itself. Apple is another example of a company that outsources. It depends on multiple partners in the US, Asia, and the Far East to produce hardware and services. In some cases, these relationships go back decades. By outsourcing its supply chain and manufacturing facilities, Apple can focus on its core strength – designing great products that people like to use.

At Savvycom, we recommend mapping out your Outsourcing strategy before reaching out to vendors. Currently, these are the 03 most popular IT Outsourcing Models: Full Process Outsourcing, Dedicated Teams, and Staff Augmentation.

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Full Guide Of IT Outsourcing Models

Gathering an in-house development team makes sense when you have money or can attract good specialists. For almost everything else, outsourcing works just fine. Many IT Outsourcing Models offer a lot of options these days that it’s easy to get confused. Some companies work on a “turn-key” basis; some offer to expand your internal team with their programmers. Some will provide you with a Project Manager, and some won’t.

In this guide, we’re explaining the types of IT Outsourcing Models, their pros and cons, and how to choose the right model for your project.

IT Outsourcing Models | Savvycom

1. What Is IT Outsourcing?

IT outsourcing can be defined as using external vendors to provide IT-based services. Custom software development is a good example. Let’s say you want to create a mobile app for your brand to improve customer experience for people on the go. Or that you want to build a digital ecosystem to streamline your company’s internal operations. When you don’t have in-house teams that are capable of delivering these results, you might want to look into outsourcing.

2. The Benefits Of It Outsourcing

Deloitte stated that the top 3 benefits of outsourcing realised by businesses are enabling focus on core functions, providing cost-cutting tools and solving capability issues.

2.1. Enabling focus on core functions

Benefits of IT Outsourcing? | Savvycom
In periods of rapid growth, the back-end operations of business expand and require a high expenditure of resources. When you allocate more resources to performing secondary activities, you have less time, money, human resources, etc. to provide quality front-end services. Therefore, outsourcing is an optimal choice to:

  • Be more flexible in resources allocation and frees up more of your resources for more practical uses.
  • Multiply the company’s performance with less time through external assistance
  • Reduce the pressure on your employees and yourself – as a manager or a chief. Therefore, increasing the “happiness rate” within the company and improving the overall productivity of employees.

2.2. Cost cutting

In a foreseeable vision, the cost of “borrowing” is often lower than actually “buying” something. Therefore, hiring talents from outsourcing companies is, in most cases, cheaper than having your own in-house team. This also creates a competitive edge for the companies as they could bring down the cost of goods sold and offer a lower price compared to other businesses that are loyal to in-house software development. Some costs that could be cut down thanks to outsourcing are:

  • Labour cost.
  • Rental cost (capsuling your engineering team also allows you to trim down the office size and possibly the cost of renting a big headquarter).
  • Recruitment cost (head-hunting, promotion, commission for intermediaries, interview-related expense, etc).
  • Equipment and other supplies.

Although cost efficiency is a key benefit of outsourcing, keep in mind that hiring the cheapest software developer doesn’t always translate to quality services. For this reason, one has to find a balance between quality and affordability.

2.3. Capability enhancement

When hiring an employee, you may only have access to a small, local talent pool. This often means you have to compromise. Many companies have found that outsourcing gives them access to talent in other parts of the world. If you need specialised help, it often makes sense to expand your search to find software developers with the best know-how and skills.

3. IT Outsourcing Types: Onshore, Nearshore and Offshore

IT Outsourcing Types: Onshore, Nearshore and Offshore | Savvycom
There are three main types of IT outsourcing: onshoring, nearshoring, offshoring. The difference among those approaches are explained by the physical location of your service provider.

  • Onshoring means that you outsource IT services to a development team that’s operating in your own country. The downside of this approach is that development services offered in your country may be rather pricey. This is why many companies look into outsourcing IT services abroad.
  • Nearshoring happens when you outsource development services to a neighboring country – for example, Singaporean companies selecting technology partners in Vietnam. Nearshoring is often viewed as a good compromise between cost-effectiveness, quality, and the physical proximity of your outsourcing partner.
  • Offshoring is the process of outsourcing IT services to a company based overseas. This is usually the most budget-friendly option, although you have to account for the time difference and thus some potential communication issues.

The way you go about outsourcing your company’s IT projects depends on several factors: you have to consider the costs, decide whether the geographical proximity (or lack thereof) is crucial for you, and finally, find an outsourcing partner that meets your criteria. Not sure how to select an ideal IT outsourcing partner for you? Here’s our guide to finding the right software vendor.

While budget concerns are no longer the only motivation for IT outsourcing, they’re still important. The differences between countries in terms of software development costs can be so huge that it makes a break in the evaluation process. For example, CIO magazine suggests that outsourcing to Vietnam is about 90% cheaper than developing software in the United States of America. Compared to India, developing software in Vietnam costs between one third and one-seventh times cheaper. 

Given the high level of programming expertise displayed by Vietnam IT specialists, the cost for these labors is incredibly cost-effective, which motivated many companies to outsource software development to Vietnam nowadays.

Now let’s take a closer look at the most popular IT outsourcing models.

4. IT Outsourcing Pricing Models

We’ll consider three different models for software development outsourcing: calculating the price based on time & materials, hiring a dedicated team, and agreeing on a fixed price (project fee).

4.1. Time & Materials

IT Outsourcing Pricing Models | Savvycom
Time & Materials (known as T&M) means that you pay for the number of labor hours and the cost of materials. This outsourcing model prioritizes the quality of your end product. See, as the product is being developed and feedback starts pouring in from the users, it usually turns out that the final version looks slightly-to-totally different from your initial sketches. It’s not a bad thing, quite the contrary: at the end of the day, consumers should be 100% satisfied with the product.

One additional type of the T&M pricing model is T&M with a cap. It means that there’s a monthly/weekly cap of hours that shouldn’t be exceeded. The cap gives you some sense of your project’s scale, plus it can be a good model for your first project together with a given software house.

4.2. Fixed Price

Fixed Price Outsourcing Models | Savvycom
A fixed price is an IT outsourcing model within which you agree to pay a fixed amount of money for a specific project. At first glance, this may sound like the most favorable option to follow: after all, you’re guaranteed to meet your budget. Here comes the catch, though. A fixed price option will only work for projects with fixed and precise requirements. That means it won’t be a good fit for developing a product according to agile principles, where flexibility is prioritized.

5. 03 Types Of IT Outsourcing Models That You Should Know

5.1. Dedicated Team Outsourcing Model

Dedicated Team Outsourcing Model | Savvycom
This IT outsourcing model (also known as fee per team) means that the vendor provides you with a dedicated team of employees to work on your project.  This model could be an answer to the uncertainty that comes with T&M-based collaborations. Having a dedicated development team at your disposal is as close to having an in-house expert team as possible.
It’s in the best interest of the outsourcing company to handpick a group of individuals that work well together and can successfully deliver your project. The team may include not only software development specialists but also testers, analysts, or project managers. The project budget is calculated based on the roles and expertise of people that are a part of your team.

Pros of the dedicated team model:

  • You’re working with people who understand your project well (together with business goals and customer needs), as this is their primary focus.
  • The outsourced team may feel like an in-house team.
  • High transparency of all project-related activities.
  • You can rely on the team to provide value for your project.

Cons of the dedicated team model:

  • It’s not sustainable for very short projects.
  • Your dedicated team needs to have something to do, so a backlog of tasks should be in place.
  • You might need to wait for your outsourcing vendor to allocate (and potentially even hire) the right people. It is not an issue for teams with a broader roster of talents.

Suitable for:

  • Longer projects.
  • Projects with initial requirements and assumptions (they’re needed in order to allocate appropriate people to your team).
  • Agile development process.

Out of all IT outsourcing models, this one is probably the best for close cooperation between the client (you) and the outsourcing company. With time, your dedicated team may notice improvement areas not only in the project itself but also in the broader context of your company. This is why this outsourcing model may turn out to be extremely beneficial for larger organizations that are undergoing the process of digital transformation.

5.2. Full Process Outsourcing Model

Full Process Outsourcing Model | Savvycom
An IT provider will take over the whole development process, with full responsibility for team organization and management, quality of the products, and accompanying risks. The team should cover all development stages, from business analysis to solutions as well as support.

When to choose Full Process Outsourcing: 

If you don’t have an active development team or for particular software to be developed, or if your team is already overloaded with other projects in the pipeline.

Pros of Full Process Outsourcing:

  • Minimum to no management efforts on your side and freed time to focus on other business activities.
  • High quality of deliverables and timeline alignment guaranteed by the IT Provider & Services Provider (with penalties for not achieving it on time).
  • Access to a vendor’s development process expertise and best practices.
  • Tackling project-related risks is on a vendor’s side.

Cons of Full Process Outsourcing:

  • Slower setup than in other models.
  • Less control over the development process than in other IT Outsourcing Models.

How to set the cooperation right:

You should ask for transparent reporting and dedicate a representative who will keep active communication with the IT provider. As a vendor, Savvycom offers day-to-day communication on demand and weekly status calls within this outsourcing model.

5.3. Staff Augmentation Outsourcing Model

Staff Augmentation Outsourcing Model | Savvycom
A vendor, aka IT Outsourcing Partner, provides you with remote professionals that you manage directly. Staff augmentation is perfect, if your development process is too slow or you have a shortage of rare or advanced expertise, or when you need just 1-3 experts to accompany you with the project, not a complete team.

Pros of Staff Augmentation:

  • Flexibility: getting the exact number of experts you need, from 0.5 full-time equivalents (FTE) to 100 FTE and above. Note that the dedicated team option becomes more effective starting from 10 FTE.
  • Easy to scale up and down for adapting to the changing business needs.
  • Suitability for both long-term and short-term engagement, for example, when you run into a problem that requires specific skills to solve, and you don’t have the expertise to handle it.

Cons of Staff Augmentation:

  • Full responsibility for project-related risks on your side.
  • Onboarding and managing outsourced professionals are on your side.
  • Possibility of communication gaps and collaboration difficulties.

How to set it right:

Although management is on your side, I advise choosing a vendor who also tracks the performance of their employees and helps them resolve issues, if any, as it significantly raises the quality of services you get.

6. How to select an outsourcing model that fits your needs

You don’t have to rely on a single outsourcing model, even if you’re working with one service provider. Most IT companies offer some flexibility when it comes to choosing the collaboration model. You may also end up with a hybrid pricing model. For example, you can develop a T&M contract, but with a monthly cap of hours.
Your choice of which outsourcing model to go with will likely be influenced by the budget of your project. Apart from that, try to base your decision on the following factors:

  • The scope of your project.
  • The estimated duration of the project.
  • Your preferred project management methodology.
  • Whether the team might need to be scaled during the development process.
  • The level of technical innovation in the project.

When drawing up a contract with an outsourcing company, take all of these aspects into account. Ideally, you should get some support from your potential tech partner when making that decision.

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Offshore Development Center (ODC): The Ultimate Guide

As the offshore software development trend continues to rise, the need for an offshore development center (ODC) naturally follows. To many IT companies, ODC (Offshore Development Center) is long no longer an unfamiliar term. It is slowly becoming a favorite option for software development solutions due to its cost-effectiveness and excellent access to the vast availability of tech experts. 

In 2017, software application development was outsourced by 64 percent, according to Statista. Suppose you wish to reduce software development costs and improve software quality by using an ODC yet don’t know where to start. In that case, this article might be just for you.

1. What Is ODC In Software Development?

Offshore Development Center | Savvycom -14

“In software engineering, offshore custom software development consists in offshoring the software development process in a country where production costs are lower, thus decreasing budget spending.” – Wikipedia

An Offshore Development Center (ODC) is an offshore team of integrated talents which offers software development services for the company but is located in a foreign country. Simply put, it is a subsidiary of a company that operates in another country. The land where the ODC is located usually has a much lower cost of living than where the mother company is located.

However, setting up an ODC must have resources available for the integration of the company. To reduce the primary office workload, offshore development companies usually have specialists in all kinds of management and technical aspects apart from programmers and testers. These people range from project managers, designers, testers, and UI/UX specialists to account manager HR teams and so forth.

Moreover, ODC tends to have advanced equipment and infrastructure, which minimizes additional expenses on offices and equipment.

1.1. Is It Different From Outsourcing?

Offshore Development Center | Savvycom -15

Many people think of “outsourcing” and “offshoring” as interchangeable, but they are two distinct concepts. So what are the differences here?

  • By definition, outsourcing refers to “obtaining certain services or products from a third party company. Outsourcing can be done to a company that is located anywhere. The location is then differentiated by offshore, nearshore, and onshore.”
  • On the other hand, offshoring refers to “obtaining services or products from another country. For example, when a car manufacturer in the U.S. opens a factory in Thailand to make certain parts, they are offshoring.”

Offshore Development Center | Savvycom -2

Work Location

From these definitions, it appears that, in essence, offshoring only takes place internationally. At the same time, outsourcing can be carried out both locally and globally.  Offshoring is international outsourcing most of the time, but there are cases where a company is offshoring without outsourcing.
For example, IBM can offshore work to its Indian offices. Still, since both the people sending the work and doing the work belong to the same company, they’re offshoring and not outsourcing.

Offshore Development Center | Savvycom -3

The Objective Of Each Activity

Outsourcing is all about specialization: a company contracts certain business activities to a specialized, external party to focus on its expertise and core activities.
On the other hand, offshoring aims at minimizing the cost, taking advantage of the cost difference between the two countries.

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Level of Control

A company will have greater control when hiring an offshore team than outsourcing to a third party. Though being their own established entities, ODCs follow the company’s guidance.
Meanwhile, an outsourcing vendor works independently to complete necessary tasks, which might cause a loss of control on the company’s part.
Offshore Development Center | Savvycom -1
However, both ODC and outsourcing (especially offshore) share the same interest: get access to a large, talented developers pool with lower costs for development services, allows enterprises to save funds and other resources while speeding up the productivity in recruiting, optimizing accounting, human resources, etc

1.2. Key Members in an ODC

As you establish an offshore development centre, it’s important to carefully discuss and identify the key members in the OCD with an offshore vendor. An offshore team should include these major roles:

  • Account Manager – Responsible for the management of relationships with particular clients, ensuring that all your needs are fulfilled.
  • Project Manager – Responsible for the entire project from planning to executing, making sure that all the required resources in the project are covered.
  • Designers and Developers – Responsible for the design, installation, testing, and maintenance of your software.
  • Test Engineers – Check the integrity, quality, and even non-functional requirements of your product.
  • Usability Engineers – Perform tests to evaluate the usability or user-friendliness of your product.
  • Graphic Designers – Creates visual and graphical concepts or language to promote a product’s unique persona or brand.
  • Content and Technical Writers – Create instructions and content integrated into the software or website.

2. How Does Offshore Development Center Model Work?

Discover and learn more about the most popular ODC models and how they function:

Contractor ODC Model

In this model, the central office sends specific requirements to the contractor or the offshore development center. Then a team will be selected based on those requirements.
This team will then be responsible for a wide range of managerial and technical tasks, including analytic and system design, updating software, writing new code, and so on.
This model is suitable for small companies.

Customer ODC Model

A custom team is also selected in this model based on the customer’s specifications or the main office. Still, the main office will cover many more tasks than in the Contractor OCD Model, ranging from product research and analysis to team management. The OCD team will focus mainly on coding.
This model is recommended for big companies which can handle a large number of tasks.

3. Offshore Development Center Benefits

3.1. The Pros of Offshore Development Center

Businesses that save money from offshoring can easily be more competitive. Alternatively, they may choose to reinvest those savings into the company to expand and generate more local employment, typically in more highly skilled jobs. Here are the top advantages of setting up an offshore development center.

Cost Reduction

The Offshore Development Center has its own equipment and infrastructure and a team of experienced specialists. Your company won’t have to worry about expenses for setting up the necessary infrastructure.
As a result, the ODC project can begin much faster and cost you less than building everything from scratch.

Access To A Large Pool Of IT Talents

An ODC is where you can find highly proficient IT teams with proven IT competency, skills, and experience. Leading ODCs often emphasize sharpening their employees’ skills, making sure that they are capable of delivering the best solutions to your target customers.
At Savvycom, our staffs have weekly training in both English and technical skills to not only improve the quality of our products but also the communication between the team and the clients.

Great Control Over Operations

As mentioned previously, the ODC strictly follows guidance from the main office. You’ll be able to evaluate and keep track of the current work progress. You might want to negotiate contract terms with the ODC company.
If the results don’t meet your expectations, you can demand the ODC to fix the project with extra costs.

Continuous Technical Support

ODC offers continuous technical assistance during the entire cycle of the project. During the project, offshore companies use their expertise to complete their tasks. They also gain more knowledge which will be further developed later on and then applied to other projects if possible.

Projects Delivered On Time

ODC teams can deliver on time because they operate under optimal conditions and closely stick to the project timelines and guidance set by the main office from the beginning to the end of the project.
In addition, they effectively cooperate with the in-house team, which makes it possible to reduce the total amount of time to complete the project.

Efficient Allocation Of Resources

The amount of resources required varies from project to project. When resources at the main office have to be reallocated to accommodate the project requirement, you will have to either reduce or increase staff in your in-house team.
An Offshore Development Center is like an extended arm that can perform the tasks of the in-house team, effectively assisting you in scaling your IT department. Without an ODC, resources allocation would be a very challenging feat.

3.2. The Cons of Offshore Development Centre:

Offshore Development Center is has become the way to go in a world troubled by Covid-19, and standing on top among all countries is Vietnam. According to Statista, Vietnam currently holds the 6th position in the offshoring chart. But still, there are some factors that business leaders need to take into account when choosing an offshoring partner.

At Savvycom, we have identified these problems and always put them on top of our avoid list. So that we can create a professional and transparent working environment for our beloved clients and staff.

Remote Management Challenges

Although technology has developed enough to assist remote work, that doesn’t mean communication issues never arise. Fostering open communication with remote employees can be difficult.
So, managers of the main office should be able to get their ideas across and make sure that the small team gets hold of the current strategy.

Cultural Barriers

Cultural differences can negatively affect the work process. For example, an Indian or Chinese programmer used to the hierarchical workplace culture might not feel pleased with the casualness and informality typical to the US workplace.
Differences in cultural and business values are where conflicts often come in, lowering morale and reducing work efficiency.

Legal Barriers

Some countries prevent foreign companies from setting up a business within their territories, which poses a significant challenge to registering new legal entities.
Therefore it is essential for the company’s leaders to thoroughly research the offshore countries beforehand to know if those countries have open policies regarding foreign companies.

Security Risks

It’s not exactly easy to keep your confidential information safe at a distance. Data leakage can happen, and the government where the offshore company is located can require you to provide access to your company’s restricted information.

4. Offshore Development Centre (ODC) Checklist

Before venturing into establishing an Offshoring Development Centre, here is a list of essential requirements to help you determine the best ODC vendor and acquire the most for your businesses.

4.1. Skills and Quality

From the very beginning, it is vital to have a thorough understanding of which country offers the best service without wasting your company’s budget. Alongside the top two IT outsourcing destinations (India and China), Vietnam is a rising destination that is drawing the attention of many foreign businesses. Vietnam has a great pool of skillful software developers with a solid IT background and always stays up-to-date with all the latest technologies.

4.2. Working Profile

How to know which company is suitable for entering a partnership with? Look into their history. Ask their clients. Reviews and interviews from clients are priceless. Through this, you will gain more knowledge of the company and its business activities.

It is recommended to partner up with ODC companies with years of experience. These firms are more familiar with utilizing suitable technologies for ODC projects. They keep up with the trends in the world of technology. More importantly, companies with a long history are likely to be more reliable when keeping projects and information safe and confidential.

4.3. Communication

There will be less burden when working with an ODC company in a country with no trouble communicating. Companies that want to reduce labor costs can look for employees from countries like Vietnam who have no problem communicating in English. Such an advantage makes misunderstandings less likely to happen between the client and the Offshore Development Center company.

5. Guide to Set Up Offshore Development Center

Now, after all the research and selection on the country and ODC company, let’s move on to the actual work required to launch an ODC project. We’ll be covering this step-by-step:

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Company Transparency
It is substantial that each member within the team understands their role and responsibilities well right at the start.
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Suitability For Vacancies
Pay attention to every aspect of the applicants, from qualifications and education to soft skills.
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Setup ODC Security Measurements
What parts of the project will be accessed and authorized by which members.
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Detailed Development Process
Select your approach and outline the timeline for each project, whether it is software updates or just reports.
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Giving Clear Instructions
Every member should learn how to write any problems to manage them as quickly as possible.
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Team Management
The offshore development team and the in-house team should be able cooperate with each other if needed

6. ODC Payment / Billing Models

6.1. Time & Material

This model is recommended when the scope and the specifications of the projects are subject to change. Clients can add or remove resources as their project requirements are modified. They will be charged based on the actual amount of time and effort the software developers spend working on the project.

6.2. Fixed Cost

This model is suitable for short-term, small, and medium-sized projects with well-defined scope and specifications. The timeframe and cost are fixed before the project begins, and clients will be charged accordingly.

6.3. Dedicated Resources Hiring

This model is used for long-term projects with unclear scope and requirements. Within this model, clients will have a whole team at their disposal and follow a simple pricing system. Clients will pay a monthly sum of money that covers the salary of each team member plus overheads, including the outsourcing provider’s administrative and infrastructure expenses.

7. How Maintain Offshore Development Center

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7.1. Treat Your In-House & Offshore Teams Equally

Both are equally important to the company’s overall success, so the offshore team must receive the same treatment instead of being treated as a separate, supporting team. Include them in your decision-making process and maintain a harmonious relationship between your in-house and offshore teams, which will, in turn, translate into workplace camaraderie and productivity.

7.2. Get The Big Picture Across

An ODC is also a part of your team, albeit remote. Every member in an ODC team needs to be aware of the big picture and act accordingly, ensuring that both in-house and offshore teams work toward a common goal.

7.3. Ensure Clear Communication

Keep your directions short and sharp. Chances are that your offshore team might have a completely different cultural background from yours. They might even have difficulties communicating in English. In these cases, get straight to the point and make sure they understand it.

Use practical communication tools to better demonstrate your ideas. A screenshot or quick video sent to your offshore team can be more helpful than hours of poring over instruction documents. Do meetings and video conferencing via Skype or Zoom to better keep track of the work progress.

8. Offshore Development Center In Vietnam, Why Not?

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According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in 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.

Another reason that makes offshoring to Vietnam an appealing option is its cost-effectiveness. Vietnam is among countries with low-cost labour; the IT industry is not an exception. In addition, high technology is a sector that is granted tax incentives by the Vietnamese government, according to PwC – Vietnam Pocket Tax Book 2019

And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

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