Offshore Software Outsourcing In 2022 - The Pros And Cons
Due to the arrival of the COVID-19 pandemic, organizations had to adjust their business strategies regularly and constantly reinvent themselves in order to keep up and stay ahead of the market. According to a survey that was conducted by Deloitte in 2021, the majority of businesses seemed like they would choose standardization and process efficiency (88%), reducing costs (84%), and driving a digital agenda (61%) as the initial priorities after the pandemic outbreak.
The process of digitization for businesses across the globe has been fueled by the COVID-19 outbreak. And still, many companies found it struggling to keep pace with that process. In fact, in 2020, more than half of the U.S employers experienced the problem of filling vacant positions, while there was high staff turnover which leads to overwhelming difficulties in hiring talents in industries like IT.
In order to achieve success in today's business world, accessing a global talent pool plays an essential part. However, the real pain point that needs solving is how to effectively connect with IT professionals, regardless of where they are staying.
There is an increase in the number of companies utilizing IT offshore outsourcing in order to solve this issue. But how can offshore outsourcing really help your business?
Vietnam's IT market becomes larger than ever with the scale of more than 430,000 qualified IT engineers estimated in the talent pool and its ICT industry export volume is estimated to account for US$84.45 billion in 2021*. With many talented Vietnamese developers who have years of experience in working with a variety of global clients, Vietnam has a strong potential to become a successful IT outsourcing market.
This article will help you solve some of your questions or even concerns that are related to how offshore outsourcing works, and its pros and cons.
Software Development Outsourcing in 2022 - The Benefits
In this current globalized world, highly-skilled workers with different backgrounds can easily stay connected with others by utilizing modern technologies and communicating in the same shared common language like English.
You can leverage the more expansive talent pool that comes from companies with offshore resources to streamline your own business process. Once you are satisfied with the results of the team, you will almost certainly want to promote this working relationship in the future.
Access To Large Pool of IT Specialists
Outsourcing companies can bring an unprecedented chance to high-quality workers and professionals who long to work in big, multinational companies but they got inhibited from doing so because of no big companies in their countries, working visas, and other regulations.
There are more than 200,000 highly-educated and specialized software developers in the Vietnam IT workforce. Besides the wide range of talent pools, the majority of Vietnamese IT developers are able to speak and use English.
Reducing the cost of your project is another pro of utilizing outsourcing services. An outsourcing company can provide you with several qualified professionals to work on your project.
Fully Concentrate On Core Business Tasks
Now that you have formed a team of qualified professionals to take care of developing software/services, you can easily streamline your business and focus more on the core business tasks. With a more efficient workflow, you do not have to worry much about deadlines. Your project now can be closer to reality with each passing day.
It is an undeniable fact that a successful, streamlined workplace can boost your company's growth.
A team full of members with different backgrounds allows you to investigate the behaviors and interests of customers living in different countries. As a result, you are able to attract more clients than before and increase the overall profit of your company.
That success can let you expand the services which your company provides and attract more customers from various arrays of business areas.
Why Outsource to Vietnam?
Get data on the state of the Vietnam IT market and discover why Vietnam is one of the top destinations for outsourcing software development in 2021.
Cons Of Offshore Outsourcing
Every coin has two sides. So is offshore outsourcing. Cultural differences, time zones, commitment, and quality are the four key challenges in offshore outsourcing. Fortunately, we will provide you with some practical solutions that can help you avoid any issues resulting from the drawbacks of using outsourcing services.
Differences in Cultures of Employees
Nowadays, with the help of modern technologies and tools, people can easily keep in touch and connect with others despite different locations. However, it is still important for companies to understand the cultural differences of their employees. Employees with different cultural backgrounds have different ways to approach work, from their viewpoint about business hierarchies to the way they resolve conflicts with their colleagues.
You might find it awkward to work with Vietnamese developers at first because of different cultures, but do not let this take away your chance to work with highly-qualified developers that come from the rising country in Asia. You will appreciate the work ethic and dedication of Vietnamese developers once you engage with them.
It takes around 10 hours or 12 hours to fly from Vietnam to some European countries, which means you can easily reach out to a talent pool of over 200,000 well-skilled developers.
Offshore employees play an integral part in your team. Once you get to know them better by communicating and working together on different tasks, you and your offshore colleagues will develop a long-term working relationship without any problems.
There might be some issues happening due to the differences in time zones of your teammates. With a team full of members who come from different nations or even continents, it is more essential for you to prepare some time management skills than usual.
You are required to have realistic expectations despite having the dream to build a perfect team of developers for your project, especially when you decide to use outsourcing services.
Fortunately, Vietnam is mostly a few hours ahead of most of its Asian neighbors and European clients. This means that the time difference is not much of an issue at all. The offshore team can be assigned specific tasks in advance so they can keep on working efficiently whenever you are not around.
There are still some professionals who only wish to work in a large organization that offers benefits and long-term job stability, rather than working with an offshore outsourcing company that does not provide any benefits.
TPP Software has had a model of IT offshore outsourcing for more than 7 years. We always put quality and reliability first when we offer our services to our clients, making it the right option that can help to meet your business needs. In addition, you can usually save a lot of money by maintaining as much control over your project as you plan in advance. Therefore, this can be both a logical choice and an ideal one that can help you get over one of the most glaring drawbacks of using outsourcing.
Instead of delegating a significant amount of control over to some third-party vendor, you can get involved in every step of the whole process with our company's model.
The IT market is always competitive in which companies are always trying to attract new talent by giving enticing offers. However, our company's business model also results in higher professional retention.
In fact, the rate of voluntary attrition at TPP Software is lower than the market average in Vietnam. This means that you do not need to fear losing the developers you need for your project to your competitors.
Work With TPP Software Today
TPP Software is a software outsourcing Development Company that was established in Vietnam more than 6 years ago. Partnering with TPP Software can bring you numerous opportunities to grow and develop your business.
TPP Software has offices located in Vietnam - one of the fastest-growing IT hubs among other SEA countries. We have years of experience working with clients from across the globe. With the longstanding and successful business model, TPP Software is evidence of how offshoring is helping businesses.
We have highly-skilled technical developers who have years of working in the field and are fluent in using English. They have a strong educational background which can help you access the large IT talent pool in Vietnam.
We are always looking forward to helping you with your project and making your idea come true so don't hesitate and contact us today.
* Based on 2019 report from MOET with estimated growth rate in annual general universities/ colleges enrollment quotas.- Per Vietnam IT Market Reports 2021 by TopDev