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How to Hire App Development Company in Vietnam: The Definitive Guide [2019 and Beyond]

Why Vietnam?

Being one of the top destinations in Asia for software offshoring, Vietnam has shown its favourable conditions and lots of potential for IT development. Some of its highlights include:

  • BPO (Business Process Outsourcing) market has grown 20% to 35% annually, much faster than the annual GDP growth of 5.2 to 7.1% from 2012 to 2018, with a revenue of 2 billion USD in 2015 
  • Ranked 1st in pioneering location and cost environment (Cushman & Wakefield business process outsourcing and shaped service location index, 2016-2017) 
  • Ranked 6th in the Top 55 most attractive countries for Global Outsourcing Services in 2017 (GSLI 2017) in the research by AT Kearney Consulting Firm
  • Top 10 countries with the most engineering graduates in 2015 according to Forbes 
  • Has attracted investment from major IT companies such as Intel, IBM, Samsung Display, LG, Nokia and Microsoft.

Vietnam has a young, dynamic IT workforce with talented developers. The size of this IT workforce is increasing each year with a total enrollment of over 68,000 students from 250 universities and colleges with majors of IT, electronics, telecommunications and information security, according to 2017 Vietnam Information and Communication White Book. 
The Vietnamese IT workers are also said to belong to a culture of loyalty with a significantly low attrition rate of between 6 and 8 per cent, as opposed to a 20 per cent rate of India in 2015 
In recent years, government policy has strongly encouraged investment in high-tech zones and IT parks.
Another reason that makes outsourcing to Vietnam an appealing option is its cost-effectiveness. Vietnam is among countries with low-cost labour; the IT industry is not an exception. Also, high technology is a sector that is granted tax incentives by the Vietnamese government, according to PwC – Vietnam Pocket Tax Book 2019 
 Apps segment, an important part of Vietnam’s IT industry, has also shown inviting prospects. According to Statista, revenue in the Apps segment amounts to US$12m in 2019. The market volume of this segment is projected to reach US$17m by 2023 at an annual growth rate (CAGR 2019-2023) of 10.3%.
Considering the advantages that this country offers, it’s safe to say that Vietnam is a promising land for clients hoping to develop trusted applications.
Savvycom app development company in vietnam

How to find top app development companies in Vietnam?

Before digging deeper into the steps to hire a good app development company in Vietnam, let’s take a quick look at the pros and cons of hiring an app development company in general.

1. Pros and cons of hiring a foreign app development company

Pros  

  • Cost-effectiveness: An outsourcing partner comes with up-and-running infrastructure, sparing your company from costs of facility, equipment and supplies, thus being a cheaper option compared with in-house development.
  • Greater access to IT talents: Outsourcing companies can offer a large talent pool where you can find highly proficient IT teams with proven IT competency, skills and experience. Leading companies often put great emphasis on sharpening the skills of their employees, making sure that they are capable of delivering the best solutions to their clients.
  • Reduced time to market: Outsourcing teams are capable of delivering on time as 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.

Cons

  • Communication issues: These can be derived from several factors, such as different time zones or language and cultural barriers which can lead to major conflicts and threaten work efficiency.
  • Lack of control: Normally, companies choose to outsource to contract certain business activities to a specialized, external party so that it can focus on their expertise and core activities. As a result, companies often lose some control over how the tasks are being monitored and performed. To maintain the desired level of control. Companies should look for trusted outsourcing partners and make sure progress is constantly updated.
  • Quality issues: concerns about quality might arise as it’s hard to carry out quality control and monitoring when you can’t directly speak with the software engineers. The solution, once again, is to find a reputable partner with proven quality.

Now that you’ve been reminded of what to expect when hiring an app development company, let’s set out to find your desired Vietnamese app developer.

2. Where to find app development companies in Vietnam?

Reviews and Rating sites

In today’s world where one can just Google everything he needs to know, it seems that simply keying in a straightforward “top app development companies in Vietnam” will suffice. Within one second, millions of results pop up, displaying countless lists and rankings of app development service providers. But beware, as reviews and ratings firms are not at all equally reliable. Try to push a little harder by checking the credibility of those company review sites before putting your trust in a certain review. Clutch and Goodfirms are examples of company reviews, ratings and rankings platforms that are well-recognised and dependable.

IT jobs sites

There are several websites where you can find trusted app development companies in Vietnam, such as ITviec, TopDev, and 9cv9. These websites are mainly created as an IT job classified portal to hire developers, but you can also find list and reference to top Vietnamese IT companies and their information on these platforms.

Recommendation systems

Chances are that you might know someone who works in the field of IT, have a good understanding of software development, or better yet, have outsourcing experience with a Vietnamese company. If that’s the case, ask for a company recommendation. This system of recommendation makes it possible to find a trusted company that can fulfil your needs.

3. Steps to hire an app development company in Vietnam

Evaluate the project requirements

Understanding the current needs will give you a general idea of the development company you’re looking for and help you avoid searching aimlessly among thousands of potential partners. For example, if you’re seeking end-to-end services which include app strategy, development, design and post-launch support for marketing and maintenance, then pay more attention to companies with dedicated specialists for each service. Or if you already have a capable UI/UX team in charge of the design, you’d want to prioritize companies with development specialists.

Make a list of potential candidates

Based on your project requirements, list down 5 to 10 companies that you’ve managed to find in the form of a spreadsheet. The main columns should cover the company names, the price that they offer, expertise, proposed solutions and your initial evaluation of the companies.

Review the companies’ portfolio

Learn about each company’s past projects. You can download their apps and form your own opinions of the apps including the design and usability. Look for user reviews and ratings for reference, but remember to stay cool-headed and not get too carried away with the overly positive or negative reviews. Flashy reviews might come from the company itself while bad reviews might come from its rivals. Go to neutral blogs, review portals, websites and forums for more objective perspectives.
Past clients’ reviews can also be a trustworthy source. You might want to go as far as to search through the social media of the companies’ past clients as they tend to leave detailed reviews on their social media.
In addition to reviewing the portfolio, ask the companies about their processes and timelines. Usually, companies using Agile development have a more systematic approach as they develop and resolve development problems.

Get an estimate of app development cost

App development costs can vary greatly from company to company and might not sit well with your budget. However, price shouldn’t be the number one priority when choosing an app development company, as the quality is what matters the most. An ideal company is one that offers the right balance between price and expertise. Send request for a quote and learn the pricing models, payment terms and schedules that the companies employ to see which one is the best fit for your project.
Numerous factors determine the costs of developing an app, one of which being the hourly rates of developers. Vietnam is among countries with the most affordable rates, with an average of $30-40 per hour.

Assess the level of communication

Communication is crucial to the success of any project, and even more so when you outsource to a foreign company. A trustworthy partner would demonstrate a high level of involvement. You’d need a company which provides constant and systematic updates on the work progress and any issues arising along the way to know whether each stage of development is going as planned, and if not, whether delays are being handled properly.
Another thing to consider is the candidates’ command of English. In recent years, the English competency of Vietnamese developers has improved greatly. Still, make sure to look for outsourcing partners who have little to no difficulty communicating in your language.

Learn about the maintenance & support policy

Even when you already have your app up-and-running, further support from your development company is still needed as no one can guarantee that the app will always be foolproof. It’s highly recommended to find out whether the development company provides quality maintenance and support services, the extent to which they provide support and how much they charge for each service.
All the factors listed above will guide you through the process of narrowing down your list of potential outsourcing partners. Choosing a company that suits your needs can be a painful process, but once you’ve found your dream team of app developers, you’ll find a whole lot of time and effort you’ve spent worthwhile. In the meantime, be selective and stay strong on your quest for a great app development company.

App development service: Why Savvycom?

Ranked in the Top Mobile App Developers in Vietnam by Clutch, Savvycom Software hopes to use our expertise and experience to deliver high-performance apps to our clients.
Over the past 10 years, we’ve completed more than 300 successful projects across a variety of industries and brought satisfaction to over 100 clients.
Our stringent process of selection ensures that you can get access to a pool of highly-skilled, certified and proficient software developers who aim to help our clients accomplish their goals using unparalleled domain expertise combined with leading-edge technologies.
With Savvycom, you retain full control over the project management. All members of the developer team are selected as per the clients’ requirement. We also adopt a flexible and scalable model that allows effective resources allocation following our clients’ demand.
Contact to get our support in your software development project
Connect us for various frontier technology services and IT excellence:

IT Outsourcing companies – How to find the best match

Working with the IT outsourcing companies may benefit us a lot, but it requires carefully efforts regarding planning and execution. Below are 10 necessary things to keep in mind, if you are thinking about outsourcing IT or IT-related activities.

1 – Destination, Partner and Model – first criteria for IT outsourcing

We have lots of things to consider just in this division, but Savvycom would like to show out 3 main points that you can’t ignore.

  • First, consider carefully about the destination. You had better attention to political stability, English proficiency, and access to competent resources. Vietnam is a potential destination for you to think about along with India or China. Please check out why you should outsource software development to Vietnam here.
  • Second, who can be your partner? You can make a long list of potential IT outsourcing companies, but measurement to choose the most appropriate one is not easy. Again, it’s important to list out criteria to judge which is the compatible IT outsourcing company for your business. Savvycom has been done that task for you just in case you need more references. Please contact us for FREE CONSULTATION and access to the vendor list in Vietnam.
  • Third, which IT outsourcing model?

If you select IT pure service sourcing, you may consider whether your organisation is able to handle this type of cooperation with complex processes and governance.

You want an IT outsourcing company to provide a full packet of service and you control through your existing organisational setup? So, are your project managers capable of leading a culturally heterogeneous and geographically diverse group of employees? Utilise an outsourcing model which incorporates elements from both, is it possible?

You may have heard about team-based and fixed cost model. Interesting in learning more about them and what is suitable for your requirements? Please keep subscribing us to update in the following post, or contact us directly to find out now.

2 – Deconstruction as demand to Outsource or Not

Which tasks should we outsource? Whether a task is good for IT outsourcing based on a variety of factors but mostly about business demand for business management and development such as exclusivity, complexity, maturity and risk tolerance.

For example, if your business is working in the logistics industry running a few warehouses and trucks for delivery as well as supply chain, you may be excellent in operating the whole system, knowing how to process and keep it working well. However, to manage it better and reduce human resource costs, you’d better have a computing system or software tools. Will you be willing to build a software engineer team or even an IT department just to create and maintain that system? Do you ever think about managing a technical team that you do not even understand exactly what they are doing? That also means you will be distracted and share your time for extra tasks. Besides, there are lots of risks that you could never be able to handle them unless you have a deep knowledge of technology.

So, that’s time for you to think about outsourcing! Looking for a trustworthy technology agency is a way out for you to reduce costs, increase effectiveness, as well as save your time and your budget.

3 – Encouragement for IT Outsourcing companies

IT outsourcing is like a long-term investment. This partnership will not be successful if you ignore to maintain the enjoyment of the cooperation with IT outsourcing company. Keep a win-win situation is the way for both of you to succeed in that partnership.

Therefore, it’s essential to keep a balance between your own business case and the IT outsourcing company’s counterpart. Consideration is concluded in one single question: how to assure that the IT outsourcing company is encouraged to help us reach the goals in our business case?

Following as contract terms is a good thing, in case both of you are able to do it. The negotiation should be processed under the respect of each other. Pushing down the price, putting more strict terms or mentioning that many suppliers are willing to lower their prices significantly to win the contract will just lead to short-term fulfilment or negative results.

4 – Transfer of Knowledge in IT Outsourcing Projects

Normally, IT outsourcing projects is a contractual 6-month transitional period. During the period, the client’s employees are supposed to communicate knowledge to the supplier’s consultants. “When I talk to IT managers about the amount of time it takes for a new employee to get up to speed, most state that it takes up to 2 years”. With that perspective, it is not so surprising that most companies who outsource IT complain because the supplier lacks knowledge about their business!

Setting up a structured process based on an analysis of the concrete needs of the supplier’s consultants is the ideal solution for effective communication for knowledge transfer. Subsequently, a plan should be devised which:

  • Specifies the knowledge to be transferred.
  • Identifies people responsible for the transfer.
  • Looks for methods that are the most suitable for the type of knowledge at hand.
  • States how long the partner must set aside for the transfer.
  • Sets up the environment and means to evaluate whether the goal has been met.

5 – Governance in Organizations Working with IT Outsourcing Companies

Working across organisational and geographical borders is substantially different from working with your colleagues who you talk with every day. Many businesses transfer tasks to an IT outsourcing company but forget one important thing. Can you guess?

They must also adapt their own organisation to a new way of working, including “recipient organisation”. It is accountable for making sure that the outsourced activities are completed properly, also maintaining the contract and the relations to this IT outsourcing companies. A transparent and efficient governance structure, which 2 sides agree on, as well as detailed service level agreements (SLA) and key performance indicators (KPI). Those deals allow proactive problem solving and improve cooperation.

6 – Maturity of Processes – Listen to IT Outsourcing Supplier

The processes of big international IT-suppliers are often at a high level of maturity. They also many experiences before establishing a partnership with IT Outsourcing Companies, so: Listen to them!

Standardisation is an essential part of the added value one may get from an outsourcing agreement with one of the large suppliers.

If you determinedly insist on doing “your way”, they are likely to accept it. However, it is also likely to end up with poor communication and coordination. Their standards are better and you can see it as a chance to improve the maturity of your own processes.

7 – Sociocultural factors and Language – Have you considered this challenge?

You should carefully consider English fluency as a vital factor. Communication about IT-field language without English fluency seems to be not easy at all.

Likewise, it is challenging to work with people from vastly different cultures, if you are not used to doing so. It’s a good idea to open culture training too.

With the right facilitator, software engineers in the IT outsourcing Companies will learn about the new and different culture they have to work with, and probably they could find a number of new perspectives on the current cultural background to find out the tools to help them handle the cultural gap.

8 – Virtual Communication with IT Outsourcing Companies

Regarding far-away cooperation, some still have difficulties with virtual communication, although we do it every single day. Reason? In most cases, we know the people we interact with and we tend to do alright.

In contrast, with remote cooperation, we basically don’t know people very well. And we need to improve at virtual communication, to exchange information in remote partnership successfully.

Good virtual communication is not just about having the best available one. In fact, technology alone will not work out the challenges we are facing in right now. But technology is the main factor can help.

Additionally, we had better learn how to communicate in a new and different way with people in remote cooperation. To do that, you should take knowledge about the quirks of virtual communication as well as practice.

9 – Keep up the Motivation of your employees despite IT Outsourcing Initiatives

Many managers experience that their own employees’ incentive declines in relation to the time initiatives of working IT Outsourcing Companies come in. Their confidence and self-esteem are down because they are not handed in the job in the company they are working for. “How can some foreign guys who just graduated university do the job I spent 15 years learning how to do?” they might wonder.

If your employees think in that way, your attempts working with IT Outsourcing Companies will eventually flop. Offshore IT consultants may make some simple mistakes, employees will consider it as incompetence. They may even avoid interaction with new consultants. Therefore, perceiving necessary understanding and domain knowledge for your company is hard for the new people.

So, how can we fix the problems between employees’ motivation and IT outsourcing consultants?

Perhaps there are 2 helpful solutions for these:

  • Open honestly about the reasons behind ‘moving jobs’ to IT outsourcing companies
    Support the employees in the adaptation to the new organisational setup
  • To simply conclude: The main groundwork of successful IT outsourcing projects is solely the employees. So, preparation for the organisational changes should be one of the first priorities.

10 – Get Professional Guidance for the whole IT Outsourcing Process

It’s best if you can reference and receive professional guidance from experienced IT outsourcing consultants. They can show you both the positive and negative sides of this process, and guide you through some lessons they have learned during cooperation with IT outsourcing companies.

It’s difficult and expensive to improve cooperation if there’s not a good thing happen. So, you may want to be precautious and avoid it right for the first time.

So, to find out external guidance is the optimal option, especially with the field you are not familiar with. Make it right the first time is much better and cheaper than solve the gone wrong situation at a later stage.

Do you know now how to find the best match IT Outsourcing company?

Those 10 ideas are just for you to consider if you’re still wondering IT Outsourcing is the right answer for you or what kind of company is suitable for your requirements. We must say that direct consultation is better for you to understand or to make a decision. Or, listening to what other companies have done and achieved is also a reference.
Let’s check out what Savvycom’s clients talk about us and about Outsourcing their software development projects to Vietnam.

If you have any question or not sure about outsourcing IT services, please do not hesitate to contact us for a free consultation and get the vendor assessment.

 

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