Choosing a trusted offshore software development services center is like trying to find a needle in a haystack. Even when you have one, you still have trust issues as to whether this is going to be successful. And also the fear that outsourcing IT process is complicated kinda holds you back.
If you’re landing on this page, I bet that you’re still in the dark about how to outsource offshore software development services to an offshore company. Here’s a detailed guide to jumpstart your journey safe and sound.
Sounds good? Let’s dive in!
1. What is software offshoring?
Software offshoring is when companies hire external software development teams or centers in foreign countries to fulfill their software development needs. In software offshoring, tasks such as coding, testing, and maintenance are outsourced to skilled professionals in another country. And this country must offer favorable economic conditions and a high level of expertise.
An example of software offshoring is when a technology company in the United States decides to offshore a portion of its software development to a team in Vietnam. The U.S. company then chooses to work with a trusted offshore development firm, like InApps Technology. This offshore company has a track record of delivering quality projects, and its tech talents are well-versed in the latest technologies. They work closely with in-house teams in the U.S. to develop a new software product. This opportunity allows the U.S. company to reduce costs while using the diverse skill set and expertise of the offshore team.
To help put things into perspective, we present a specific case in our portfolios – Vleppo (A Blockchain App). After navigating through different challenges, our development team has successfully released a product that satisfied our customers. Effective collaboration and communication are key to this project’s success. You can check out the case here: Vleppo Blockchain Case
2. Offshore Software Development Services Trends To Watch Out for 2023
According to Statista, the Software Outsourcing market is on the rise, and it’s expected to reach a whopping US$460.10 billion in revenue by 2023. The market is projected to grow at an annual rate of 11.07%, reaching an impressive US$777.70 billion by 2028.
In 2023, the average spending per employee in the IT Outsourcing market is estimated to be around US$132.10. When we look at the global picture, the United States is set to lead the way, contributing the most revenue with a substantial US$167.90 billion in 2023.
Besides its expansion, here are 5 key trends of the offshoring software development you need to watch out for in 2023.
2.1 Hybrid models
As companies are seeking more flexible offshore software services, hybrid models are becoming popular. These models allow to blend offshore, onshore, and nearshore software development outsourcing. This way, they can enjoy a tailor-made solution that prepares them to adapt and embrace new challenges.
2.2 Hybrid teams
The post-COVID-19 world has seen Hybrid working on the rise, not only in the offshoring software development market but also in almost every industry. In a recent article from Harvard Business Review, knowledge workers feel they work more productively from the comfort of their own homes during the pandemic. This is because they don’t have to waste hours on meaningless in-house tasks, and instead focus on what truly matters. Also, according to a Work Survey by Wakefield Research for ServiceNow, a striking 87% of employees expressed that the new way of working has been a game changer for them.
Hybrid working requires effective collaborative tools to streamline workflows, here’s Best Communication Tools for Your Offshore Teams
2.3 Artificial Intelligence (AI) and Machine Learning (ML)
Based on Artificial Intelligence Market Report Scope, the global AI market size was valued at $136.55 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. The continuous innovation led by tech giants is propelling advanced technologies in industries, such as car manufacturing, healthcare, finance, and retail.
In November 2020, Intel Corporation bought Cnvrg.io, an Israeli company that develops a platform for data scientists to build and run machine learning models, to boost its artificial intelligence business. Technology has always been essential for these industries, but AI has brought technology to the center. For instance, AI is integrated into a lot of devices and programs, like self-driving vehicles to critical life-saving medical equipment.
2.4 Cost and Right-Sizing Agility
Before 2020, offshoring software development was turning into a driver of innovation. But the pandemic, economic uncertainty, and the recent tech downturn turned things upside down. Now, IT experts are devoted to finding ways to cut costs. What they’re looking for is agility and flexibility in resourcing costs and levels. Outsourcing offers the control they need in the face of significant business uncertainty.
89% of companies in a recent BCG survey said they want to strengthen existing relationships with their software outsourcing providers. Software outsourcing has proven its worth for managing agility through economic uncertainty. Outsourcing allows us to rebalance companies’ priorities in line with the current economic conditions.
The adaptability to quickly adjust headcount, either through staff augmentation or managed project outsourcing, is on top of the agenda.
2.5 Cybersecurity Sourcing Crisis
These trends suggest a significant and ongoing expansion in the IT Outsourcing sector, making it a key player in the business landscape for years to come.
*This information is partly referenced from the 2023 Accelerance Software Outsourcing Trends Rates Guide. You can check out the full report here.
3. Offshore Software Development Services at InApps Technology
3.1 Offshore Software Development Services Center
InApps is an IT leading company in Vietnam and Southeast Asia, providing high-performing offshoring software development teams for clients from the US, UK, Europe, Singapore, Australia, etc.
Thanks to their access to a 500+ tech talent pool in Vietnam, they only hire professionals who suitably meet clients’ needs, whether they are searching for a popular technology or something unique.
- A Full Project Team: The best structure offshore team based on your needs, including Project Manager, Developer, Tester, and Technical Architect.
- A Fullstack Engineer Team: Reduce your capital and operating costs while modernizing your IT.
- A Quality Assurance Team: We deliver stand-alone and integrated testing services to various customers.
3.2 IT Staff Augmentation
IT Staff Augmentation is a flexible software outsourcing strategy that enables you to hire tech talent globally and manage your augmented team directly. You are provided with full control over the selection process, as well as the cost efficiency and scalability, without the long-term commitment of full-time staff.
InApps Technology has access to a 500+ tech talent pool in Vietnam. They only hire professionals who suitably meet clients’ needs, whether their clients are searching for a popular technology or something unique.
3.3 Custom App Development
As a leader in software development services, InApps focuses on the niche market related to mobility solutions and high-productivity development teams to expand the business model for clients. They are recognized as a Top app development company on many ranking and review platforms such as Clutch, GoodFirms, Techreviewer, etc. And they offer world-beating services in Mobile App Development, and Web App Development.
3.4 MVP App Development
They offer end-to-end software MVP app development solutions, from concept and strategy to design, implementation, and support, helping clients achieve their business goals and reduce the time to launch. View their top case studies!
3.5 DevOps Solutions
With their DevOps Services, you can accelerate your cloud operations and workloads by lowering costs, increasing productivity, and shortening the release management cycle.
4. When hiring Offshore Software Development Services is the right move?
When you see clear benefits of software outsourcing for your project, you should outsource. Here are some of them.
4.1 Cost savings
Offshore development teams typically charge lower rates than in-house developers, especially in developed countries like the US, UK, and Australia. If your project has a limited budget, outsourcing will help you balance between budget and quality.
Here’s a comparison of Offshore Software Development Rates by Country Update latest 2023.
4.2 Access to a wider talent pool
By hiring offshore, businesses can gain access to a wider pool of talented developers with the skills and experience they need. Businesses that need to hire developers with specialized skills or experience in emerging technologies should seize this opportunity.
4.3 Increased scalability
Offshore development teams can help businesses scale their development efforts up or down as needed. This is especially helpful for businesses during seasonal fluctuations in demand or the launching stage.
4.4 Reduced time to market
Offshore development teams can work on projects around the clock, and they often have experience with agile development methodologies. Thus, working with them helps businesses bring their products and services to market faster.
5. How to choose a trusted Offshore Software Development Services Centre
The decision to choose the software outsourcing company lies in the following factors.
5.1 Top Talent
I once heard a great quote that goes “People don’t buy the product itself, but the idea and people who execute it”. As I’ve come to think of it, it rings true. Go with the company that offers the Top Talent pool or should I say, the people who know what they’re dealing with and have tons of experience solving problems in similar cases. It will do you a big favor during the planning and execution stage as input from them is more than valuable to your case.
5.2 Strong Portfolios
A strong portfolio is a good indicator of the company’s experience, skills, and capabilities. It shows that the company has successfully completed projects similar to the one that your business is considering. Lastly, a company with a rich portfolio usually has a team of experienced and skilled professionals who are capable of delivering high-quality results.
Working with them helps reduce risk, and increase confidence during project completion.
5.3 High Integrity
High integrity is an essential quality for not only an outsourcing partner but also every type of business partner. If the partner is honest, trustworthy, and reliable, they will act in the best interests of the business. And the chances of them engaging in unethical or dishonest behavior are lower.
5.4 Standardized Security Programs
In a digitized world, cybersecurity is more important than ever. Choose an IT company with up-to-date security protocols to keep all data and software products safe.
5.5 Fluent Communication
Your software outsourcing provider should have a team that is fluent in English and has good communication skills. This is to reduce the language barrier to ground zero (if possible) and make the work process move as smoothly as possible. You can have a clear picture of the offshore team’s English skills when you join meetings with them. Make sure to ask them a few questions, and let them share their thoughts.
Once you found out that the team has good grasp of English, you’re off to a good start. But another issue to look at is managing them. Here’s how to can manage offshore teams with success.
6. Three companies that provide offshore software development services in Vietnam
Here are the top 3 software outsourcing companies in Vietnam that provide insanely quality IT services.
InApps Technology – offshore software development services centre
InApps Technology, a privately owned software outsourcing company based in Ho Chi Minh City, Vietnam, proudly extends its services to clients globally. With a representative office in the USA and Singapore, they’ve been delivering top-notch software outsourcing and offshore development services since their establishment in 2016.
Their core product lies in Mobile App Development, where we’ve partnered with clients from the USA, Australia, Northern Europe, Korea, Singapore, and Vietnam to create world-class apps. Our Dedicated Software Development Team, composed of experienced engineers, is here to design and develop high-quality technical solutions at any level of complexity. They’re committed to mitigating risks and bringing your fantastic ideas to life.
Throughout our journey, InApps garnered extensive expertise in various industries, including Healthcare, Retail and e-commerce, Hospitality, Travel and Tourism, Education and e-learning, Loyalty, and more. Your success is our priority, and this software company is dedicated to making it happen.
Here are a few impressive numbers from their 7+ humble years of experience:
- 200+ Successful Projects
- 60+ Global Clients
- 70% Customer Retention
- 96% Customer Satisfaction
With more than 17 years of expertise in the IT service industry, Orient Software has consistently delivered high-quality solutions to over 100 clients worldwide. Their strong track record includes successfully completing over 200 projects on time and within budget.
At Orient Software, they offer a diverse range of software development services to cater to your needs. Their services encompass Web Application Development, Mobile App Development, UI/UX Design, Cloud Computing, Data Science, Internet of Things, Database Development, and AI.
Saigon Technology Solutions excels in delivering expert Offshore Software Development and Software Development Outsourcing Services, utilizing various engagement models such as outcome-based and fixed price/project-based. Boasting a robust team of 100 individuals, Saigon Technology has successfully completed 159 web application development projects, 165 mobile app development projects, and 42 custom software solutions. At Saigon Technology, we live by a simple philosophy: “Your Success is Our Mission.”
7. How to Work with Offshore Software Development Services Company
Here are 5 steps you should take before working with an offshoring software development company:
7.1 Have a clear goal
Outsourcing helps reduce 40% to 70% of development costs. Therefore, having a well-defined idea of what you’re trying to reach and the results you’d expect along the way will make it easier to plan a custom-made solution.
7.2 Define what matters and what does not
It’s your responsibility to identify the key priorities for both your company and your clients. In this case, you should craft a list outlining the development priorities for both short-term and long-term goals.
7.3 Have A Clear Vision
You bring the idea and we transform it into a realistic working project that drives sales. The clearer your vision is, the faster your project will complete. Since you’re building an experience, vision is the guiding star.
7.4 Make a List of What You Want
Each project calls for different tech stacks and different engineers with specific expertise. Do research on different service models and technologies to get a feel of how they could fit into your project. This goes for everything from team size to costs. Company portfolios are a good start as they provide useful insights into how past projects were executed. Then you can draw conclusions from there.
7.5 Document everything necessary
Proper documentation leaves no room for unjust argument. Depending on your needs, your offshore team will help you choose the right solution to achieve your goals on time.
Scope definition, contract signing
Project kickoff, team assignments
Roadmap creation, task allocation
Clear project plan, milestone setting
Development, quality assurance
Deliverable creation, progress tracking
Regular check-ins, adjustments
Course correction, risk management
Final delivery, feedback gathering
Project handover, retrospective analysis
There are 5 key stages of software outsourcing. In each stage, you might need to take documentation really seriously when it comes to important contracts, guarantees, road maps, progress check-ins, and feedback. This will solve any conflicts or misunderstandings along the way, ensuring that you’re on the right track to a successful end.
I hope this article clarìies your mind on offshore software development services. If you want to hire an offshore software development company, drop us a line. And we’ll be in touch with you shortly. Let’s connect!
Let’s create the next big thing together!
Coming together is a beginning. Keeping together is progress. Working together is success.