5 experiences to keep in mind before hiring a Vietnamese software outsourcing company
Hiring a Vietnam software outsourcing company can be a game-changer, but choosing the right partner is crucial. This guide shares five key experiences to help you avoid mistakes and build a long-term collaboration.
1. Assess the company’s technical expertise & industry experience
1.1. Why industry experience matters
Not all software development teams are created equal. Some companies specialize in fintech, others in healthcare, and some excel in e-commerce solutions. If you choose a Vietnam software outsourcing company that lacks industry experience, you may spend months explaining industry-specific requirements.
Tip: Do your research to find a list of companies that have experienced with your industry. They will understand common challenges and compliance requirements, saving time and effort.
1.2. Review their case studies & portfolio
A strong Vietnam software outsourcing company should have a portfolio showcasing its previous projects. Then, its case studies give you insights into their problem-solving approach, technologies used, and the impact of their solutions.
How to analyze case studies effectively?
Check if they have worked on projects similar to your business problem.
Look for details about the challenges they faced and how they solved them.
See if they mention measurable results, such as increased efficiency or cost savings.
In case a company doesn’t have public case studies, ask them for specific examples during your discussions. A trustworthy company will be transparent about its past work.
1.3. Assess their tech stack & certifications
You should also check whether their tech stack aligns with your project needs. If you are building a web application, do they have expertise in React, Angular, or Vue? If you need a mobile app, do they specialize in Flutter, React Native, or native development?
Here is a checklist you need to follow:
Their expertise in modern technologies and frameworks.
Certifications in relevant fields (AWS, Google Cloud, Microsoft Azure, etc.).
Whether they stay updated with industry trends.
Tip: If you’re unsure about the tech stack, ask them about their best practices and why they choose specific technologies for projects similar to yours.
1.4. Test their skills before committing
A portfolio and certifications are great, but how do you really know if a company can deliver? The best way is to test their skills before signing a long-term contract.
Here are some ways to do this:
Start with a small test project before committing to a larger one.
Ask technical questions related to your project.
Conduct a trial period to assess their workflow and communication.
2. Communication & language proficiency: the key to success
Even if you hire the most technically skilled Vietnam software outsourcing company, poor communication can still ruin your project. Let’s continue reading for more valuable advice!
2.1. English proficiency in Vietnamese IT teams
Vietnam is one of the top destinations for IT outsourcing, but not all developers have the same level of English proficiency. While most software engineers can read and write English fluently, speaking and listening skills can vary.
How to assess their English skills?
Check their website and documentation: Is their written content clear and professional?
Talk directly to the team: During discovery calls, pay attention to how well they understand your requirements.
Ask about their experience working with international clients: Companies that frequently work with the US, UK, or Australia tend to have stronger communication skills.
Moreover, Vietnam software outsourcing company often assign a project manager or business analyst as a bridge between you and the development team. If the developers’ English is not strong, make sure the project manager can communicate fluently and translate requirements effectively.
>>>Read more: Difficulties and challenges software outsourcing businesses in Vietnam are facing
2.2. Time zone differences & how they impact collaboration
Vietnam operates in GMT+7, which may differ significantly from your time zone. The pros of time zone differences is that work continues overnight. If your team sends feedback during the day, the Vietnam software outsourcing company can work on it while you sleep. And if properly scheduled, you get almost 24-hour development cycles.
However, there are still challenges to watch out for. Let’s mention delays in response time if working hours don’t overlap. Plus, scheduling meetings can be tricky if there’s little overlap in working hours.
2.3. Best practices for ensuring smooth communication
As we mentioned, hiring a Vietnam software outsourcing company requires structured, transparent, and proactive communication. Here is how you can make sure everyone stays aligned:
Step 1: Use the right collaboration tools:
Slack/Skype – For quick messaging and team discussions.
Google Meet/Zoom – For scheduled video calls and check-ins.
Jira/Trello/Asana – For tracking project progress.
Notion/Confluence – For documentation and shared resources.
Step 2: Everyone should know who to contact for what. This avoids confusion and speeds up issue resolution.
Step 3: Set expectations from the start:
Preferred communication channels.
Frequency of updates (daily standups, weekly reports, …).
Escalation process if issues arise.
Step 4: A good outsourcing partner will not just wait for your instructions - they will proactively update you on progress, challenges, and potential risks. If your team only responds when you reach out, that is a red flag.
3. Cost vs. value: don't just choose the cheapest option
3.1. Why low-cost outsourcing can lead to hidden expenses
It is tempting to go for the lowest bidder, but in software development, you get what you pay for. Companies that offer rock-bottom prices often cut corners in ways that might not be obvious at first.
Here are some potential risks of cheap outsourcing:
Lower-quality code: Poorly written code can lead to bugs, security vulnerabilities, and performance issues.
Hidden costs in maintenance: A cheap initial price might mean higher costs for debugging, updates, and future improvements.
Inexperienced developers: Some low-cost firms assign junior developers with minimal experience to cut costs.
Lack of proper testing: Rushing development can result in skipped testing phases, leading to post-launch issues.
3.2. Ensuring transparency in contracts & billing
One of the biggest concerns with outsourcing is unexpected fees. Some companies may offer an attractive quote upfront to surprise you with additional charges for extra features, bug fixes, or post-launch support.
How to ensure cost transparency?
Request a detailed breakdown of costs before signing the contract.
Ask about post-launch support fees - is maintenance included, or will it cost extra?
Clarify what’s considered “out of scope” - some companies charge extra for changes after the project starts.
Check for hidden costs - does the company charge separately for project management, meetings, or documentation?
Tip: A reliable Vietnam software outsourcing company will clearly outline costs, deliverables, and payment terms in the contract. If a company is vague about pricing, that is a red flag.
4. Security & IP protection: safeguarding your data
Outsourcing software development means sharing sensitive business information, proprietary code, and sometimes customer data. While Vietnam has a growing IT industry, legal frameworks around intellectual property (IP) protection are still evolving.
4.1. Common legal concerns when outsourcing to Vietnam
When outsourcing offshore, many businesses worry about intellectual property theft, contract enforcement, and data misuse. While Vietnam has improved its IP laws, enforcement is not always as strict as in the US or EU.
Here are some key legal concerns to watch for:
Who owns the source code? Ensure the contract explicitly states that your company retains full ownership.
Can the vendor reuse your code? Some outsourcing firms recycle code across projects - make sure your agreement prevents this.
What happens if the contract is breached? Legal disputes across borders can be complex and costly. Choosing a vendor with a strong reputation minimizes risks.
We recommend working with a Vietnamese legal expert or an international law firm to ensure your contracts are legally enforceable.
4.2. Understanding NDAs, IP Agreements, and Data Security Compliance
A Non-Disclosure Agreement (NDA) is a must when working with an outsourcing partner. It legally binds the company and its employees from sharing or misusing your sensitive information.
What to include in your NDA & IP agreement?
Clear ownership clauses: The code, designs, and all deliverables belong to you.
Restrictions on subcontracting: Some firms outsource work to third parties without informing clients.
Post-project confidentiality: The outsourcing team should not use or disclose project details even after completion.
Beyond NDAs, you should also check compliance with data protection laws, especially if you handle customer data. If you operate in the EU (GDPR) or US (CCPA, HIPAA for healthcare), ensure your vendor follows these regulations.
5. Work culture & agile mindset: ensuring compatibility
First, Vietnamese programmers are technically capable and diligent but are often in a hierarchical setup where junior personnel may be slow to challenge the bosses. If you're used to free debate and initiative-based problem-solving, you must create a culture encouraging input and initiative. Moreover, while teams function excellently in the execution phase, they may require more direction led by the business to align with your strategic goals.
Second, agile development is used extensively in Vietnam, but with different implementations. Teams use a combination of waterfall-Agile, and some use sprints but without real-time flexibility. To achieve a smooth operation, you want to verify their Agile exposure, have strict sprint planning, and enable real-time collaboration through regular video meetings and feedback channels.
Expectation management is at the heart of long-term success. Vietnamese teams will do what you tell them to do, and sometimes that means focusing on delivery rather than innovation. To establish a healthy partnership, you should encourage open dialogue, provide structured feedback, and exercise shared ownership.
6. FAQs
6.1. How much does it cost to outsource software development to Vietnam?
The cost of outsourcing software development to Vietnam varies based on factors like project complexity, technology stack, and team structure. On average, hourly rates range from $35 to $40, lower than in the US or Western Europe, while maintaining high-quality output.
6.2. How do I evaluate the reliability of a Vietnamese outsourcing company?
To assess reliability, you can review the company’s portfolio, client testimonials, and case studies to see their track record in delivering similar projects. Checking their technical expertise, certifications (ISO 27001, CMMI), and industry experience helps ensure they meet quality standards.
6.3. What industries benefit the most from outsourcing to Vietnam?
Vietnam is a strong outsourcing destination for industries that require cost-efficient but quality technology skills like fintech, healthcare, e-commerce, and AI-driven applications. Additionally, Vietnam's embedded systems and IoT expertise make it a strong contender for manufacturing and automation industries.
6.4. What are the common challenges when working with Vietnamese developers?
While Vietnamese developers are very skilled, problems do arise in communication, time zone adaptation, and cultural work habits. English proficiency is usually very good but non-homogeneous, so well-documented documentation and established communication tools are used to prevent misunderstandings. Furthermore, most teams practice hierarchical decision-making, so they would not want to challenge unrealistic requirements.
7. Wrapping Up
Choosing the right Vietnam software outsourcing company requires careful evaluation of expertise, communication, cost transparency, security measures, and cultural alignment. By thoroughly assessing these factors, you can build a strong, long-term partnership that maximizes value and minimizes risks. Instead of focusing solely on cost, prioritize a team that aligns with your business goals and collaboration style. What has been your experience with outsourcing software development to Vietnam? Share your thoughts in the comments, and don’t forget to follow BeetechSoft for more insights on IT outsourcing and tech trends!
