In America, the demand for offshore software development is on the rise due to the expensive cost of hiring developers in the host country.
Not limited in the US, IT outsourcing (ITO) is the current and future trend all over the world to leverage the advantage of specialization.
In fact, roundly 54% of companies regardless of sizes and industries adopt support from third- party services in their projects. In total, the global market spent approximately US$ 62 billions on ITO activities in 2018.
Apart from that, American area tends to be the heaviest spending in software outsourcing, which indicates over 300,000 projects each year in the US only. In which, the largest share of its expenditure went to the Asia Pacific. The major motivation leading to IT outsourcing decision refers to specialization and cost advantage. In number, about 50% of companies’ leaders claimed that they choose outsourcing software development to focus on their core business (i.e. Food and Beverage, Healthcare, Travel & Tourism, and E-commerce). Following this, 46% of firms in the survey reveal that they want to save their budget through outsourcing Software development companies.
In the part, China tends to be the biggest market providing software outsourcing services to the US companies. However, after the on-going trade war between China and America under President Trump’s term, major American firms have transferred their software outsourcing projects to Vietnam, which stay in political neutrality and stability.
Should American companies outsource their software development projects to Vietnam?
The historical data has already proved that the answer is definitely yes. In 2018, Vietnam outsourcing services generated the revenue of roundly US$ 3.5 billion, which was 12% higher than that in 2017. Besides, more and more industry giants choosing to outsource to Vietnam, including IBM, Samsung, and Amdocs.
Advantage of political and economic stability
Vietnam has been unbeaten in keeping sustainable economic growth. The evidence refers to the growth rate successively rises annually. Despite the economic downturn globally, Vietnam introduced the grow of 7.02% in 2019, slightly increasing by 0.5% compared with that number in the previous year. In 2020, while other nations are predicted to sick into recession, the Vietnam government have an optimistic stand of maintaining the economic grow of 6.5%.
On the other hands, the economic achievements in Vietnam partly came from the political stability in our country. In fact, Vietnam follows the one-party system that the countries rarely face internal conflicts. The government’s reform policies successfully lead Vietnam to be a secure country, which is a vital characteristic if the favorable outsourcing destination.
Support from the regulation sector
Vietnam has aware that the only way to break out of underdeveloped status is technology. For several years, Vietnamese regulation sector invests tremendous effort to facilitate the development of IT business. From 2020 to 2025, Vietnam expects to construct a series of “technoparks”, which is believed to help several IT startups flying. Along with the plan of building smart cities, Vietnam’s ambitiousness is to become a tech center of Asia Pacific in 2030.
Top of outsourcing developers in the world
According to Vietnam population reports in 2019, about 68 millions of Vietnam citizens are on the working age. Likewise, as the high demand in IT labour force market, Vietnam can adopt the numbers of developer shortage in the US. In fact, Vietnam expects to excess 1 million software developers in 2020.
On the other hand, US clients claim that Vietnamese engineers get higher English proficiency than developers in Korea, Japan or China. Pursuing offshore software product development in Vietnam, the US companies could eliminate the risk of language barrier during collaboration.
Affordable cost of performing software outsourcing projects
ZipRecruiter report that the US developer currently earns over 86,000 USD on average per year. While in Vietnam, the IT employer pay the salary to their IT engineers ranges from US$ 9,000 to 11,000 annually. The significant price gap between Vietnam and the US tends to be the driving forces that encourage US companies hiring outsourcing software development companies in Vietnam.
Vietnam still owns the cost advantage in favour of other Asian nations. Currently, a major IT company in Vietnam offer their services with the entry-level being 14 USD/ hour, significantly lower than the standard data from Malaysia, India, and the Philippines. Generally, for each software outsourcing project outsource to Vietnam, US clients save roundly 50% budget.
What Adamo Digital do for American clients
Adamo Digital is a software outsourcing company in Vietnam, delivering IT development solutions to English- speaker companies. We have served several American clients in 2019 and realize that the US market has more potential for Vietnam IT companies to work with. To pursue a business plan to the US, we try to offer flexible and quality services to clients.
Flexible working model in software development services
Currently, we run two major models in software development services, which are cost-based model and team-based model.
Cost-based projects tend to have more value to companies, which have already their comprehensive requirement of what their software could deliver, including interfaces, features, as well as expected to launch time. Adamo Digital will guarantee the estimated cost and due date.
The team-based model requires clients to pay for every working hours. In each dedicated outsourcing team, clients have the right to directly add or subtract each specialist provider by outsourcing development services. In which, the software outsourcing team works in the same way as clients’ in-house staffs.
Leading software projects outsourcing agents
As a family of young and dedicated developers, Adamo gains more success from the beginning. Particularly, half of our clients came from the US, encouraging us to improve our communication skills. Our developers have been regularly training English and collaboration skills.
Along with the management strategies, most of the projects got high satisfaction from clients. Our development philosophy refers to focus on Agile software development and Scrum Framework, which speed up the work progression. Additionally, Adamo Digital employed well-trained developers through a comprehensive recruitment process. We guarantee both the quality and attitude of our IT engineer when performing the tasks for customers.
In 2019, we had conducted an investigation and found that Adamo Digital was on the top 1% IT company in Vietnam with a dramatically growing rate. With a double increase in size and revenue, we somewhat confirmed our leading position.
The great value we deliver to American clients
Currently, Adamo Digital provides three core software development services, including Mobile app development, Website development, and Dedicated development model.
With experience in consumer-oriented and enterprise mobile application development, our highly qualified team provides you with an arsenal of mobile tools catered for your business to accomplish key objectives. A custom mobile app, including Android app development and iOS app development, brings you closer to your customers. our app development services leverage the latest technology and tools to deliver a stand-out application which helps to engage your end-users. We commit to being with you from starting the idea to turn it into a real app to make sure we are on the same page together.
Custom web development offers end-client a flexible, consistent experience for users across platforms. As a web design and development company, Adamo leveraging new approaches in progressive web apps, we bring front-end, back-end and architecture ability together. We build web apps tailored to your needs. Code quality and performance are natural cornerstones in everything we build, and we adhere to proven standards, making the applications we build quick and easy to work with. Using agile methods and continuous testing we bring your service from idea to finished web app.
For dedicated development team services, our software development team will help you strategize, ideate with prototypes, design and develop software for your MVP, find a product-market fit, and scale your product after launch. Using a lean startup approach, we apply the Agile process in collaboration, which will take you through the full cycle of product development. Thanks to the lean methodology, our teams can develop a product within 4 weeks so you can enter the market quickly and start testing with real users.