The Key Factors to Build a Tech Team in Vietnam

Less Competition for Tech Talent

The IT industry has got to an age of acceleration, which triggers the currently booming demand for tech talent. Unfortunately, the supply and demand gap has raised a new challenge for both any new software-based business and one that strives to scale up its internal team.

This makes IT recruitment an exorbitant and tiresome journey, but not in the case of Vietnam - this is a promising source of tech talent. As TopDev reported, in 2020, there are more than 400,000 IT workers and over 50,000 graduates per year, and the number keeps on rising.

With such a plentiful IT workforce, 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 tech talent pool is mainly located in major cities, such as Ho Chi Minh City, Hanoi Capital City, and Da Nang City.

Solid Technical Expertise & Experience

Vietnamese software development engineers are renowned for their exceptional technical abilities and broad range of experience. It is estimated that 33% of senior developers (with over five years of experience) and 55% of tech talent at the junior level (less than three years of experience) are available in Vietnam.

Also, they are proficient in the most popular programming languages, frameworks, and tools, such as Java, .NET, Python, PHP, ReactJS, AngularJS, and more. They also have a strong understanding of Agile methodologies and are accustomed to working with international clients. In addition, many of them have had the opportunity to work and receive training from leading tech companies and organizations in Asia, Europe, and the U.S., such as Google, Microsoft, and Amazon.

As a result, they are well-equipped with the latest skills and knowledge in the tech sector. 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 emerging technologies. Overall, when outsourcing to Vietnam, tech startups can build dedicated development teams of talented developers who are able to meet the specific business needs and requirements of any complex project.

Cost-efficiency

One of the primary reasons why foreign software companies decide to outsource or build an offshore development center 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. They can absolutely attract talented employees and build the same tech team at a much lower price.

Last but not least, a majority of software outsourcing companies in Vietnam today 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 or nearshore development team, cultural and linguistic differences can be a big concern for business owners. If not handled properly, this concern may escalate and turn into miscommunication or even conflicts between teams or members.

Fortunately, this is no big deal when it comes to 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, working process, or culture of foreign businesses.

Regarding English abilities, most professional developers in Vietnam can communicate well in English at intermediate levels or higher, not to mention other global languages like French or Spanish. Therefore, businesses can have confidence in overcoming any obstacle that comes from cultural or language differences if Vietnam is their final destination for software development outsourcing.

Your Business Needs & Requirements

First and foremost, you will always need to have a clear understanding of your project and define what to expect in the future outcomes. The self-awareness of your business, the expertise you are seeking, and the scope of the project will become the valuable insights needed for you to determine the size and structure of the team as well as the specific skills and knowledge that they need to possess.

Additionally, the project’s budget and timeframe are critical factors to consider. These will play a crucial part in deciding whether it is feasible for you to set up a tech team in Vietnam all by yourself or whether you should delegate the team assembly to a service provider.

Team Size

The size of the development team is essentially important as well. It will depend on your specific project requirements, as mentioned earlier. A small team of 2 or 3 dedicated team members is usually enough for a simple project within a condensed timeline. Nevertheless, if you are working on large and intricate projects, you may need a bigger team and more developers to get the job done on schedule.

Therefore, the project managers should consider the workload of experts in each specific area and the deadlines to determine the optimal team size that can help them achieve the project goals and objectives.

Furthermore, you should keep in mind that a large team does not necessarily mean better quality or faster delivery. In fact, large-scale offshore teams often face more challenges, such as communication difficulties, conflict management issues, and so on. Thus, businesses, especially new startups, should only recruit as many IT talent as they need to get the jobs done efficiently while saving on costs and preventing unwanted problems. In case you insist on requiring a bigger team formation, it is advisable to partner with outsourcing companies that can provide a development team of a specific size and with experience in large-scale projects.

Expertise & Experience

Based on the defined requirements of your project and the number of headcounts allowed on your team, you conclude the level of technical know-how and experience required for each team member. If you are conducting a small project with a “humble” budget, it is advisable to recruit freshers or junior software engineers who have less experience but still can manage to get jobs done.

Nonetheless, business owners should consider hiring mid-level, senior developers or even experts. Accordingly, the key to success is to balance between factors to make sure that you have the best fits with the right skills for the project development cycle.

Your Culture and Business Model

Each organization nurtures its own culture, and it is vital to ensure that your dedicated team members from Vietnam can fully integrate into your company culture and work style. Secure this, and you can reduce friction within the team, increase efficiency, and maintain a healthy working environment for all. For that, there is no need to worry because Vietnamese developers are highly adaptive.

So, all you need to do is set and apply a working culture to your newly founded team. Afterward, it is just a matter of time until your members get used to the new culture and work well in harmony. Also, regarding the business model, you must make up your mind to decide whether to outsource the project to one leading software development company based in Vietnam or set up your own 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 Dedicated Team

This is the circumstance in which you decide to build up a dedicated team in Vietnam by yourself. It is crucial to start with the management roles first. They are the key people of the team, who will be in charge of different aspects of the team assembly and operation, such as hiring, training, leading, and so on.

When the management roles, such as project managers, take the lead in team building, they will not only be able to find the best fit 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 and help you avoid any potential risks in the future.

Communication and Cohesion Among Team Members

Since you are about to collaborate with talent from Vietnam, not the ones in your region or within your in-house team, communication is of utmost importance. Effective communication will drive success and productivity from your offshore team, and vice versa.

Hence, it is necessary to set up clear and efficient communication channels between all members and project managers or between teams (in case of having different teams working on different projects) from the outset. Consider taking advantage of new technologies and tools, such as video conferences, messaging apps, or project management systems. 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.

Moreover, fostering a sense of cohesion is also a must for working as a team. What can you do? Encourage teamwork among team members so that they can support and help each other proactively when necessary. How? Through team-building activities or regular team meetings, for example. In the long run, you can create a strong bond between your personnel, making each of them a productive individual and an effective team as a whole.

Budgets & Costs

Last but not least, businesses need to pay heed to the costs and budgets when building an offshore software development team in Vietnam or anywhere else. In fact, all the considerations mentioned above will have some sort of effect on these two elements, especially in the case of complex projects, so do not underestimate them.

Even though the expenses of hiring developers in Vietnam are so much more “friendly” than in most other IT outsourcing destinations, you may still get overbudgeted due to additional costs. For instance, taxes, extra employee benefits, or office rental fees.

Therefore, foreign businesses that are about to outsource tech teams to Vietnam must research and anticipate all the courses of expenditures possibly incurred during the process of setting up a completed technical team formation from the very beginning.

Neglecting the cost factors by any chance may result in budget constraints down the route. On the contrary, paying attention to the budgetary potential and risks in the early steps helps lower the chances of stretching your budget to the limit.

For your own sake, consult with professional IT staff augmentation or outsourcing services. Thereby, the experts will handle everything for you with a negotiated and fixed budget. At this point, the key to unlocking full potential of an outsourced team in Vietnam lies in the right partner.