
Outsourcing to Vietnam: Frequently asked questions (FAQ)
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Can you help us with a sound strategy for lowering project price? Advise us with the justification?
Estimation & Cost
We lower the project price based on the following:
1. Developing the core technology platform for your system with minimum viable features, while assuring the long-term objectives of reusability, scalability and maintainability.
2. Be assured that the much-needed features are included with the modern Web design and intuitive User Interface, while the relevant and frequently used functionalities are highly prioritized to maximize the efficient usage. However, this also means that many unnecessary features might not be needed right away, including those which are not effective immediately within 2 years after going live. Such features only will work when there are thousands of active users to interact with the system on a daily basis or when there is already a huge amount of data storage to serve. In addition, features which are "nice-to-have" or "could have" or even "To-be Determined" will be excluded in this version due to over-budgeting. Last but not least, low price doesn't mean low quality. It is the cost-effective strategy for "grade" instead of "best quality". Oftentimes, "less is more" is the wisdom strategy.
Does the technology selection affect the hourly rate?
Estimation & Cost
Yes, it does. It depends only only on how difficult technologies are, but also how difficult it is to hire the sought-after developers in low-cost countries. For example, in Vietnam developers with expertise in .NET, MEAN stack, PHP, Python (Odoo, Django) are easier to find than Java developers. AI and blockchain technologies have just started on its journey. The following technical stacks has the high rate:
VR
Blockchain
AI - Augmented Intelligence
AI - Artificial Intelligence
NodeJS
Java
We charged our previous EU clients with hourly rates ranging from 18 EUR to 32 EUR per hour, and APAC clients ranging 15USD - 20USD. It depends on the complexity of project, timeline and cooperation models (onshore, offshore, hybrid...). We recommend the ideal 3-months timeline at minimum for long-term benefits. The faster you expect to release a project, the higher the hourly rate.
Learn more: <a href="/post/4346/tigo-rate-formula-things-the-partners-should-know" target="_blank">TIGO Rate Formula - Things the partners should know</a>
How much does IT cost to develop a piece of software?
Estimation & Cost
Depending on the project requirements, features, the location of the software development company, and other aspects, software development costs for a small app are from $30,000 to $45,000, for a medium-sized project from $70,000 to $100,000, and for a large-scale complex application, $100,000 and more.
How much does Software Developer Cost in Vietnam?
Estimation & Cost
Currently, India and China are industry leaders for outsourcing software programming and development companies.
Outsourcing in Vietnam is being recognized as a low-cost software manufacturer in Asia. According to CIO, software development outsourcing in Vietnam is about 90% cheaper than hiring the US labor force. Compared to India, software development outsourcing in Vietnam is cheaper from one third to one-seventh.
While the Indian and Chinese markets have entered the maturity cycle, Vietnam market started to emerge as a new outsourcing site. With offshore developments including: Web application services, Artificial Intelligence, Automation, Digital Transformation, etc.
China: $35 - $50 (thanks to large resource pool)
Philippines: $20 - $30 (thanks to the perks in native English skills)
India: $20 - $40
Vietnam: $15 - $25
Outsourcing to Vietnam means a lot to companies looking to develop the most cost-effective way.
How much does it cost to hire a dedicated development team?
Estimation & Cost
The cost of hiring a dedicated development team is quite transparent. It depends on each team member’s salary and the service provider’s commission, which also covers all administrative fees. Depending on the tech stack and project characteristics, the cost will vary from $2,500 to $4,000 per month. This price is cheaper than other countries in same region.
A dedicated team's price strategy is simple. Since you hired a team, each person has a set hourly fee, and you only pay for the hours performed. This is the only item you have to pay for.
There are no additional costs for renting an office for a team, purchasing equipment, paying taxes, paying electrical bills, etc. Furthermore, hiring a dedicated software development team is cheaper and faster than looking for each individual tech specialist independently and engaging recruiters and HR managers.
Why should I hire dedicated developers instead of freelancers?
Outsourcing Business Model
While freelancers cost less on paper, you may end up paying more due to the many drawbacks of this model, such as insecurity, lack of commitment, inadequate development software, insufficient communication, and no legal responsibility. The dedicated team model has all that freelancing lacks.S
How much does custom software development cost?
Estimation & Cost
If we are not talking about something too cheap, too simple, and too low-quality, it will be somewhere between $40k to $300k for high quality and high grade.
Custom software development cost affected by:
1. The size. The more screens or pages you need - the bigger the size. Small applications range from 10 to 25 screens and cost around $40-100k, medium - 25-40 screens and $100-200k, and large are anything over 40 and up to $300k and more.
2. The complexity. It is not the same as the size, though an app that performs a lot of heavy analysis can be viewed as a large one. But size is about screens, and complexity is about nuances and permutations.
3. The design. The budget of about $5-20k will typically be enough for creating a design and even going through a few re-designs (if needed).
4. Integrations with other systems. Sometimes they are effortless, sometimes they are extremely difficult, so they add variables to the equation.
5. Migration of existing data. Done through custom scripts that take data out of your old system, dust it off and reshape it so it can fit into your new system.
Yet, the software may be built to fit a certain budget. This is usually done by lowering priority items or not including some items in the project at all.
What counts as non-billable hours?
Estimation & Cost
Non-billable time includes administrative work, invoicing, office management, business marketing activities, sick time, training time, and other time-consuming things that are not related to projects.
Depending on the industry, project, and collaboration details, you might have to either include only billable hours in your tracking sheets or both, billable and non-billable ones (which is quite rare, but some companies do request that).
Here are a few examples of non-billable hours you might recognize:
1. Starting the day by spending 20 minutes responding to recent emails or having a chat with the team.
2. Getting on a 30-minute call about a potential project or doing a pitch to a potential client.
4. Meeting stakeholders or consulting teams.
4. Going extra miles for doing unfinished tasks, solving tough problems.
5. Doing POC analysis and writing estimation/quotation for RFP.
What are the average hourly rates for your developers and specialists?
Estimation & Cost
We offer rates that are competitive with the industry average of $12-25, depending on the specialist and non-technical factors. You can also send us an inquiry with a description of your project and we will guide you on the rates and opportunities more precisely.
In addition, we are also offering a so-called bundled rate. A bundled rate is set for each TIGOSOFT developer. You are only charged for a developer’s time which includes ¼ time of a QA engineer, a Project Manager (or SPoC) or a DevOps specialist (can be replaced by a sustaining engineer as well). In other words, a bundled rate is the rate that is preferable if you are opting for our all-inclusive services.
How are you handling website / custom software support, product go-live, and post-go-live support?
Project Implementation
TIGOSOFT offers technical support and consulting as a service alongside all software solutions we deliver.
We conclude a separate support and maintenance contract for our assistance in bug-tracking and bug-fixing. We help enhance or develop additional features for your solution based on a separate contract as well, no matter whether it was developed by our specialists or another custom software vendor. Our team tracks and handles all go-live and post-go-live support issues and maintenance requests.
We’ve made up a brief list of such factors that will help create a positive effect for your project. The list accumulates a decade of our experience in the custom software development space.
The factors we’d highlight are:
1. Availability of an experienced PMI-certified project manager authorized to make strategic decisions on your project;
2. Opportunity to make long term cooperation and alignment with us, hire additional qualified specialists to expand functionality and shorten the time frames;
3. Open communication, well-defined expectations, high accountability of the team members;
4. Possibility to make changes during the post-launch of the project (through DevOps services).
What are the software outsourcing services you provide?
Outsourcing Business Model
TIGO’s top 10 software outsourcing services are:
1. Backend: PHP (CodeIgniter, Laravel), NodeJS, .NET Core, Python;
2. Frontend: TypeScript, React, Vue.js, Angular;
3. CMS: Drupal, Odoo
4. ERP: Odoo, Sharepoint and SAPUI5 for SAP HANA
5. Mobile: Native app development (iOS Swift, Android), Hybrid app development (PWA)
6. QA (Manual and automated testing)
Our team of inventive professionals never stops expanding its knowledge and skills in modern technologies and practices, so that our company can provide you with top-quality solutions.
What is the budget generally needed? How do you estimate the cost of a software project?
Estimation & Cost
The minimum project budget for our custom software development services makes $4,000. We are fair and transparent with pricing and are always open to negotiate the project cost with you.
We estimate each new bespoke software development project against the following:
1. Functional and non-functional requirements;
2. Сomplexity of the project, i.e. New system (MVP) vs Upgradation;
3. Technology aging (new, mature, decline)
4. Project duration
5. Hourly rates of our specialists.
Are bleeding edge technologies cheaper?
Project Implementation
1. What does bleeding edge mean in business?
Bleeding edge refers to a product or service that is new, experimental, generally untested, and carries a high degree of uncertainty. Bleeding edge is mainly defined as newer, more extreme, and riskier than technologies on the cutting or leading edge.
2. Bleeding Edge Technology Examples
For example, open-source software has code that is easily accessible and can be modified by anyone. Open-source practices can help consumers by providing them with free offerings, but some of the offerings come with great risk.
3. Advantages of Bleeding Edge Technology
Businesses that purchase bleeding edge technologies get a first-mover advantage if the technology later becomes mainstream.
4. Disadvantages of Bleeding Edge Technology
Businesses run the risk of sinking money into something that might not function properly.
Moreover, there’s a risk that other customers may never buy the same technology, causing the supplier to go out of business. Another potential pitfall is that new and better technology comes along that becomes a far-bigger hit.
What are the software outsourcing services you provide?
Outsourcing Business Model
We propose the next set of software and design development services separately or within the full project development life cycle:
We provide the following core services:
1. Web Development
2. Mobile App Development
3. UI/UX Design
4. QA Services (manual and automated testing)
5. POC Analysis and MVP Strategy Consulting
6. Augmented Intelligence and deep learning
7. DevOps
8. Project Management
9. System Maintenance, Software Maintenance and Sustaining Software Engineering
Besides, for cutting-edge technologies (i.e. Blockchain), we build the team as requested. It is a long term deal that we would like a partner/client to align with us for a longer journey.
What advantages of outsourcing your project to our team you get?
Outsourcing Business Model
5 advantages of outsourcing project:
1. More time to stay focused on the development of your business
Outsourcing your projects to us will grant you enough time to focus on growing your company as we carry out our services in the most efficient way for your business and without the need to involve you too much in this process.
2. High Professional Development Team
With our developers' team, you are guaranteed of highly experienced IT professionals at your disposal. For your project, we will hire only those engineers who meet your project requirements.
3. The product-oriented approach in software development
While providing our software development services, we focus our efforts on your business goals and how our digital solutions will meet them.
4. Cost Savvy Solution
In the case that you outsource your project to Softermii, you pay only for software development services we provide, you are not obligated to pay any recruiting or additional costs for team support.
5. Control Over Your IT Costs
Outsourcing your IT projects will also reduce your running cost as you have full control over your IT costs. We will set a fixed price for our service so as to help you adequately allocate your budget.
How do we assure privacy and confidentiality?
Partnership
We sign NDAs and Confidentiality Agreements as required by you. All our employees are full-time employees and are bound by company Confidentiality and Non-Disclosure clauses.
Additionally, for sensitive projects, we can sign custom NDAs.
What software development methodologies do you use?
Development Process
All our development and software testing processes are running while adhering to highly effective methodologies including Agile, Scrum, DevOps, and other methodologies to meet the highest KPIs for your project. We document all the operations required to handle the development of your product and measure them.
What percentage of hours should be billable?
Estimation & Cost
The commonly-held estimate of billable time lies somewhere between 60-80 percent, which is known as the utilization rate. While that range may seem large (it is) and anything under 80 percent may sound low (it does), non-billables vary by industry, and many tasks deemed non-billables actually help companies grow.
What are the first steps of cooperation?
Partnership
Depending on the client's need, we analyze in detail the requirements, materials, and documentation. Consequently, we offer qualified experts (developers/project managers/quality assurance engineers/business analysts, etc.). Additionally, we prepare the action plan and confirm it with the client.
How easy will it be to scale a team by 1/3/5 developers? How much time do you need?
Development Process
It takes about up to 2-4 weeks to scale a team by 1/3/5 developers, depends on the needed number. If the client felt the need for this, we recommend to communicate as soon as possible
What do you look for when hiring new developers/candidates?
Development Process
Our primary focus during candidates’ selection is skills and ability to solve problems, here we refer to the solution-oriented value. Likewise, for us, it’s important how they act in different situations, for which we follow multiple approaches. We are delighted to say that a big part of our experts is qualified, certified, and highly experienced.
Can pilots be included into the RFP process?
Outsourcing Business Model
A pilot can be included into the RFP process once the supplier has been selected.
Do you provide a service-level agreement (SLA)?
Project Implementation
Of course. To ensure a 100% beneficial collaboration for both parties, both customer and provider, we certainly use the service-level agreement (SLA) which includes the list of assistance actions, end-to-end program management, and deliverables.
What will be the cost of my product/project?
Estimation & Cost
There is no straightforward answer to this question because the final price is affected by
many factors, including both your specific requirements and external market factors:
• Project type and app complexity;
• Team;
• Design and UX;
• Technologies;
• Testing;
• Target group size;
• Maintenance and others.
Get in touch with us for an appropriate estimate
How do we communicate during a project to surface the progress, plans, and problems?
Development Process
A regular schedule of online meetings, 2-3 / week, will provide a clear vision of the current situation of the project and problems. During these meetings, both sides will come up with solutions, ideas, and with the next steps of the activities
How will I get to know that your team is working or not?
Project Implementation
To ensure the implementation of tasks at the most effective level, we organize daily meetings and monitor the evaluation of tasks. Likewise, the time that is worked by each person is monitored by a special tool predestined for such processes. We also offer a weekly / monthly report of the tasks performed and the worked time by each developer.
How do you deal with the rotation of people in projects?
Development Process
To ensure maximum effective work of developers, we have a backup professional/s who is/are up to date with the project and other useful information, otherwise, we do agree with clients on the recruitment process to ensure that all positions are covered.
What is the size of the team that will be involved with my project?
Development Process
Following the audit and the advanced analysis, we come up with recommendations on the number of talents for each position needful to successfully develop the product. It depends on the project-specific requirements, expected delivery time, and the team configuration that would assure the best result possible.
We have designed a Pilot project plan for such clients who want to try our services. You can use our service for up to 30 hours to develop a small task or solve a challenge you face.
The program normally addresses many queries of the customers. This provides an opportunity to ascertain our competency, credibility and capability. The Project Program can also be the initial step towards the actual project.
This Project can cover:
1. Web Applications or Mobile Apps with more than 70% typical.
2. Estimated cost and time
3. Bug fixing
4. Performance tuning etc