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3 Common Misunderstandings About IT Outsourcing in Vietnam

3 Common Misunderstandings About IT Outsourcing in Vietnam

In recent years, software development outsourcing companies in Vietnam have been gaining popularity. Many businesses are indeed outsourcing IT work to Vietnam because it can be done more cost-effectively,especially in the Covid-19 period. But there are still some common misunderstandings about the process you should know before  outsourcing your software in Vietnam. These factors have led to a global trend that sees more IT work being outsourced to this country. In this blog post, we will discuss these 3 misunderstandings about IT outsourcing companies in Vietnam.

1. That the quality of IT outsourcing will be lower than that achieved onshore

Quality assurance is an important part of any development process, especially when working with an offshore team of developers. Offshore teams are able to adapt quickly and easily – they were specially trained for it. We carefully monitor the quality of work carried out by our Vietnamese colleagues via a combination of thorough code review processes and automated tests.

The process is also streamlined further, with daily stand-up meetings held between all members involved in order to ensure that everything runs smoothly. Even if you or one of your employees are located in a country other than Vietnam, you will be able to view the progress of your project online at any time, thanks to our customizable web-based work management system.

2. Outsourcing Compromises Intellectual Property Rights

The software outsourcing process has led to sharing information, which could lead businesses in sensitive industries to worry that their Intellectual Property will be lost or misappropriated. It’s not unwarranted since it is known from software industry history that some malicious IT outsourcing companies have been accused of stealing data and using them on their own operations. This was an example by Microsoft against IBM where they stole proprietary business ideas like the Smarter Cities initiative developed with UBS AG. Ownership lasts forever, so once something invented becomes available to the public domain, anyone can use these creations without permission.

If you want to protect your Intellectual Property (IP), we recommend getting into an agreement with the contractor. Make them undertake not to share any of your trade secrets or designs and include a penalty clause for breach in the contract if they do try this. It’s important that when hiring someone new, due diligence is carried out on their qualifications and whether they own all rights related to whatever IP may be at stake. Besides, check what jurisdiction has patents applicable so as not to break any laws while looking into larger projects downsized by competition from abroad–or even just individuals trying to take advantage without knowing better than most people about protecting themselves against such potential theft.

3. Outsourcing Leads to Communication Barriers Due to Distance

When you need to outsource software services, it may be necessary for your business to go international. This can pose challenges in terms of communication barriers because the contractor might not have access or understanding about what needs are being addressed at their location and how they affect other parts of your company’s operations back home.

Sometimes long distances between businesses indeed mean slow response times and limited accessibility. However, there are also plenty entrepreneurs do with IT outsourcing companies in Vietnam, so this shouldn’t necessarily rule anyone off. It is possible to communicate with people thousands of miles away in real-time. You can do so through email, live chat, or even conference calls if your infrastructure allows it.

Consequently, you should meet the offshore contractor before you sign a contract. Face-to-face meetings will help clear up any misunderstandings and establish rapport with them, as well as create an environment where there are no barriers to communication between your staff members on both sides of this relationship.

Why Is Vietnam a Reliable IT Outsourcing Destination?

Vietnam is a country that has been luring in talent from all around the world due to its fast-paced lifestyle and low cost of living. The reasons for this will be discussed below:

  • The Vietnam IT industry has seen rapid growth in recent years. After learning to code at a young age, developers now have many years of experience under their belt and can get on with any project they’re assigned to without much trouble since it will be like second nature for them.
  • Vietnam is a developing country in Southeast Asia. Vietnam has the three biggest cities, Hanoi home to 95% IT developers; Ho Chi Minh City with 97%. Lastly, Da Nang city houses its people along the coastlines where it borders China’s Specialized Economic Zone Of Guangzhou Co., Ltd (SEZ). Living in these big bustling metropolises means that ambitious individuals can take chances and study or work at their leisure while expressing themselves creatively through what they like best- creating fantastic things such as apps.
  • Vietnam has one of the youngest groups of IT developers. In a world where technology is changing quickly, it’s important to have young and dynamic developers. Generation Z, in particular, has been called “the next millennials.” They’re eager learners interested in new changes or technologies- perfect qualifications when you need someone skilled enough to catch up on all these fast-moving trends.
  • In Vietnam, Senior IT developers (> 5 years of exp) and Junior Developers (< 3 years) make up 33% each. They have a big passion for technology, which motivates them to learn development work to get ahead or stay satisfied with their career path and develop themselves further from the comfort zone they’ll most likely need to apply themselves in over there.
  • In the past, working with a foreign customer was difficult for Vietnamese developers because of their lack of English language skills. Now, this case doesn’t happen anymore thanks to both government action and developer efforts; where students are required by law (and actually encouraged) at an early age to be able-bodied enough to speak some English so they can find work outside their home country while those who want it have been putting effort into improving themselves even more through learning about other cultures via international travel or online interactions like forums.
  • Vietnamese IT developers are intelligent, hard-working people with an excellent attitude to their work.
  • The Vietnamese government has now launched a new program that will help the country’s youth gain access to training programs in order for them to be able to provide workforce services. The collaboration with private companies was made possible because there is high demand and new technologies that require expertise not available locally or regionally.

Final Thoughts

In conclusion, before you decide whether or not to consider Vietnam software development outsourcing for your company’s next project,  you should determine what sort of software development tasks need to be done. Then assess all available options based on specific details such as budget constraints, timelines, etc. This will give you a better chance of finding a company that will work to your advantage

Thanks & Kind Regards,

Thanh (Bruce) Pham


Saigon Technology Solutions


A Member of Forbes Technology Council

Mobile: (+84) 913 666 227

Skype: tienthanh.pham (Thanh Bruce Pham).

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