Key Factors to Build a Tech Team in Vietnam
The software industry in Vietnam is on the rise, with $5.44 billion in revenue by 2020, and the country has been emerging as an alternative powerhouse for IT outsourcing when being ranked 5th among the world’s top destinations for software outsourcing services in 2019, according to MarketsInsider. These stats partially explain the wave of building offshore tech teams in Vietnam. This blog will help further understand why more software development companies are turning to Vietnam for hiring developers and building a tech team, as well as outline some key factors to do it right.
Why Should You Build an Offshore Tech Team in Vietnam?
Less Competition for IT Talent
The currently growing demand for tech talents and the shortage of qualified software engineers make Vietnam an even more promising source of IT talent for those companies that would like to build a tech team. As TopDev reported, in 2020, there are more than 400,000 IT workers and over 50,000 graduates per year, and the number keeps rising. With such a plentiful source of tech talents, businesses find it less competitive to acquire offshore software developers when it comes to building a software development team in Vietnam than in other destinations. The large pool of tech talents is mainly located in major cities, such as Ho Chi Minh City, Hanoi, and Da Nang City.
Solid Technical Expertise & Experience
Vietnamese software development engineers are known for their good technical skills and experience. It is estimated that there are 33% of senior developers (with over five years of experience) and 55% of IT talents at the junior level (less than three years of experience) in Vietnam. Also, they are proficient in a variety of programming languages and tools that are popular among businesses, such as Java, .NET, PHP, Python, and C/C++. In addition, many of them have received training from leading tech companies and organizations such as Google, Microsoft, and Amazon. As a result, they are well-equipped with the latest skills and knowledge in the industry. Moreover, the average age of developers in Vietnam is young (70% of them are around 20 and 34 years old), so they are willing to learn and adapt to new technologies. Overall, when outsourcing to Vietnam, tech startups can build a dedicated team of talented developers who are able to meet the specific business needs and requirements of complex projects.
One of the main reasons why foreign software companies decide to build a tech team in Vietnam is the effective development cost. The total pay you have to spend on hiring professional developers in Vietnam is considerably cheaper than in the U.S or other Western destinations. According to SalaryExplorer’s report on software engineer salary, a Vietnam developer earns approximately 17,400,000 VND per month on average (approximately $9093.48 per year), excluding the year-end bonus and additional compensation. Not only the software engineer’s salary but also the cost of building and operating offshore development teams is more affordable, so a tech startup can save a significant amount of money in the long run. In addition, many software outsourcing companies in Vietnam provide flexible pricing models that help businesses control their budgets and get the best value for their money.
Low Culture & Language Barrier
When it comes to collaborating with an offshore development team, culture and language barriers can be a big challenge for businesses. However, this is not a concern when working with a tech team in Vietnam. Since young Vietnamese generations are open-minded and willing to embrace the Western-oriented culture, they can quickly adapt to the new environment and working culture of foreign businesses. Regarding the English abilities, most professional developers in Vietnam can communicate well in English at intermediate levels or higher. Therefore, businesses can easily overcome the culture and language barriers when building and working with an offshore software development team in Vietnam.
What to Consider When Building a Tech Team in Vietnam
In brief, a technical team is a group of experts that is responsible for the technical development of your project, including designing, building, and testing the product or service. The common structure of a tech team comprises design, product, and engineering, and they work closely together. The size of a team can vary depending on the scope of the project.
There are several factors that you should pay attention to when it comes to hiring developers in Vietnam to succeed in setting up a dedicated tech team of your own. These factors are connected and affect each other.
Your Business Needs & Requirements
First and foremost, you will always need to have a clear understanding of what you expect from your software development team. This helps you determine the size and structure of the team as well as the specific skills and knowledge that they need to possess. In addition, you also need to consider your budget and time frame for the project. These factors will play a crucial part in determining whether it is feasible for you to set up a tech team in Vietnam all by yourself or you should outsource to a software development company.
The Team Size
The size of the team is important as well, and it will depend on your specific project requirements. A small team of 2-3 dedicated developers is usually enough for a simple project with a short time frame. However, if you are working on large and complex projects, you will need to hire more developers to get the job done within the specified time frame. Therefore, the project managers should consider the workload of experts in each specific area and the time frame to determine the optimal team size that can help them achieve the project goals and objectives.
In addition, you should keep in mind that a big team does not necessarily mean better quality or faster delivery. In fact, large offshore teams often face more challenges such as communication difficulties, conflict management issues, and so on. Therefore, businesses, especially new startups, should only hire as many IT talents as they need to get the job done efficiently while saving costs and preventing unwanted problems. In case you insist on requiring a larger team, it is advisable to consider hiring outsourcing companies that offer a development team of a specific size and with experience in large-scale projects.
Expertise & Experience
Based on the specific requirements of your project and the number of software engineers allowed on your team, you can decide the level of expertise and experience you need from each developer. In case when you are working on a small project with a limited budget, it is advisable to hire junior developers who have less experience but can still get the job done. However, for large and complex projects that require deep technical expertise, businesses should consider hiring senior developers or even experts. Accordingly, the key to success is to balance each factor to make sure that you have the proper offshore team with the right skills for the software development process.
Culture & Business Model
Each organization has its own culture, and it is important to make sure that your team members in Vietnam can integrate into your company culture and work style. This will help reduce friction, increase efficiency, and maintain a healthy working environment for all. For this, you do not need to worry much because Vietnamese developers are highly adaptive, so all you need to do is to set a working culture at the same time when you build up your team. Afterward, it is just a matter of time before your team gets used to the new culture and works harmoniously together. Also, when it comes to the business model, you should consider whether you want to outsource the project to a leading software development company in Vietnam or set up an offshore development center in Vietnam. Remember that you can always consult with an expert to get more insights if you are not sure about which model is best for your business.
Management Roles of the Team
When you decide to build up a dedicated team by yourself, it is crucial to start with the management roles first. They are key people of the team, who will be in charge of different aspects of the team’s operation, such as hiring, training, leading, and so on. When the management roles, such as project managers, take the lead in the team building, they will not only be able to find the best fits for the projects but also select the members who can work well with them, creating a good working environment for all in the long run. This will guarantee a good foundation for your offshore development team in Vietnam as well as help you avoid any potential risks and challenges in the future.
Communication & Cohesion Among Team Members
Since you are working with developers in Vietnam, not the ones in your in-house team, communication is always one of the most critical factors that determine the success and productivity of an offshore development team. Therefore, it is crucial to set up a clear and efficient communication channel between the team members and the project managers from the very beginning. This will help avoid misunderstandings and miscommunications, which are often the main causes of conflict and problems within the team and also the software development process. Also, it is important to encourage teamwork among the team members so that they can support and help each other when necessary. This will create a strong bond between them, making them more effective and productive in the long run.
Budgets & Costs
Last but not least, businesses should also consider the budgets and costs when building up an offshore software development team in Vietnam since all the factors mentioned above will have some sources of effect on these two elements. Although the costs of hiring developers in Vietnam are more “friendly” than in other IT outsourcing destinations, you may be overbudgeted due to additional costs. Therefore, it is essential for foreign businesses to understand all the costs incurred during the process of setting up an offshore software development team, then have a clear plan and strategy for team building from the very beginning. Paying attention to these factors will lower the chance of stretching your budget. Or, you can consider hiring software development services to take care of everything for you with a negotiated and fixed budget.
Get Started with Your Dedicated Tech Team in Vietnam
Building an offshore software development team in Vietnam may seem like a big and challenging task for many businesses, especially those who are new to the IT outsourcing industry. By understanding all the necessary factors and preparing everything from the start, you will find it less challenging and time-consuming to set up your dedicated team on your own. In case you are still confused, or you have no time and resources to build a tech team by yourself, then one good option for you is to collaborate with an offshore development company in Vietnam that will help you with the team-building process and take care of all the management roles for you. Since there are currently a lot of good IT outsourcing companies in Vietnam, all you have to do is to research and find the one that is the best fit for your business needs. Good luck with your dream team!
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