Top Outsourcing Destinations and Models in 2020

Finding the Right Outsourcing Models

As a business owner or project manager you might be interested in outsourcing software development to another country and getting work done for a lower cost. Cost is one big factor, but also there are different types of outsourcing models, varying management styles, and how the end product may turn out depending on where you decide to outsource to.

To make a better-informed decision, it is important to take into account the average experience of customers hiring companies in different locations worldwide.
In this article, I will share some insights into some of the best outsourcing firms here in Vietnam, as well as the different project types you can consider.

Popular Offshore Software Development Models

The level of coordination between the business and the outsourcing team and the access you give to outsourcing partners defines how both sides are involved in the realization of the business project. The forms of cooperation are mainly classified into the following:

1. Low-Level Outsourcing (Operational Outsourcing)

This is where the product management is still left within the customer company, and only development and software quality testing processes are handed to the outsourcing partners. In terms of development processes, low-level solution coding and software delivery are outsourced in this model, as well as manual testing and test development in terms of QA.

2. High-Level Outsourcing (Often Nearshore or Strategic Partnership)

In High-level outsourcing, same as the previous offshore software development model, the customer company owns the product management. Meaning, the outsourcing team designs and performs tests under in-house supervision.
But the difference is, project management, solution, and test design are passed to the offshore development center, while the rest is left under in-house supervision. Outsourced processes and solutions are controlled by in-house architect-level software engineers, which requires close collaboration between developers on both sides.

3. Complete Technical Outsourcing (Often Consulting One Stop Solution)

In this offshore software development model, the customer company develops the initial product requirement in-house. And all the technical aspects are outsourced: detailed requirements, documentation, interpretation, solution design, solution development, Quality Assurance scheme, and implementation.
On top of these levels of coordination, you can choose to do onshore, nearshore, offshore, onsite, etc. So, identifying both the right outsourcing partner and the right type of outsourcing engagement is not an easy task while the stakes are high, and you may need to talk to multiple partners and try them out to find out what works for you.

Next Offshore Destination - Vietnam

Vietnam is getting recognized by many enterprises around the world, as a top-performing offshore destination. Before and after COVID, Vietnam is consistent with its foreign investment policy and creates a warm business environment, and welcomes business. No need to hide that Vietnam’s economic growth topped 8% last year, foreign direct investment rose steeply to over $6 billion, and exports surged by over 20%. On top of that, the government’s plan on investing in young talents including work ethics and language capabilities is starting to pay off. And we see companies shifting their offshore center from India to Vietnam for the example given the cost savings and quality of end-product.

So, who are the top software development and QA firms in Vietnam?

・Saigon Technology
・FPT
・S3
・Terralogic
・Shift Asia
・InApp
・Cowell
・Fram
・TP&P
・Agiletech

Shift Asia

“SHIFT ASIA is a software company with software quality assurance service located in HCMC, Vietnam founded in 2016. As part of the SHIFT group, it has served clients in the greater APAC region, enabling digital transformation and automation for their products with a technological edge and tailored customer services. In addition to having a strong backbone and excellent customer service experience, it has over 150 skilled engineers, app developers, and testers. The company portfolio includes clients mainly in ERP, finance, banking, healthcare, travel, e-commerce, and gaming verticals offering proven methods for each industry.”

Indeed, different companies have slightly varying service coverage and pricing, and some of them are completely local while others are American or Japanese-backed.