Top 5 Software Outsourcing Challenges and How To Minimize Them

While India and China have historically dominated the outsourcing landscape, the landscape is evolving, and Vietnam is emerging as a prominent destination for offshore software development. The country modernizes and adopts international standards in areas such as communications, infrastructure, and education technologies. In the 2021 Global Innovation Index (GII), Vietnam ranked the 44th position out of 132 economies. It was acknowledged as one of the most innovative nations within the lower middle-income category for that year. Vietnam’s IT industry is certainly on high growth.

Despite its growing reputation, Vietnamese software outsourcing companies face distinct Software Outsourcing Challenges in a rapidly expanding market. In this article, we delve into the key hurdles hindering seamless outsourcing experiences in Vietnam and explore strategies to navigate them effectively.

Software Outsourcing Challenges

Identify Top 5 Software Outsourcing Challenges 

Rapid Growth of software outsourcing companies

The country’s IT companies outsourcing market is still young but has registered rapid growth. Many domestic start-ups and SMEs have jumped into this market and grown their businesses. Doing a great job and providing high quality are obvious. Giving what clients want is a must. Therefore, the competition among the best software development companies is getting tougher. Standing out is the only way to win the game.   

Different Pricing

Different pricing strategy is the second on the list of Software Outsourcing Challenges. Each IT software development outsourcing company comes up with different price strategies according to their business scales. That leads to clients’ confusion about qualities among quantities. Having a wise price strategy to win clients on cost-effectiveness is not adequate. A reasonable price should come with the right quality to raise higher competency.

Offshore Software Development Vietnam – Software outsourcing company

Hidden costs

On a similar note, outsourcing can help you save money on your project, but it’s important to be mindful of potential hidden costs. This is because the contracts involved can be complex and technical, leaving room for loopholes that an outsourced partner might use to add extra charges. It’s advisable to be cautious about this, as it could impact the success of your outsourced development projects.

To make sure everyone sticks to the agreement, take the time to thoroughly review the contract before signing. Make sure you understand all the details and have a discussion with your partners about any additional fees included in the service package. This way, you can avoid any surprises and ensure a smooth collaboration.

Various options 

Clients have a range of vendor choices with various IT services at different levels. High competition has forced every business to develop its products and services. Nobody wants to be kicked out of the game. Improving categories is creating more options for vendors to find their solutions within. However, this tactic has to be carefully considered because expanding has to go with controlling quality.

English skills challenge

There has been an increase in the IT workforce due to the opening of new universities and colleges. It also includes foreign universities as well as a new wave of economic growth due to global integration. Nevertheless, it is still difficult for some software outsourcing companies to take on large ODC projects. The lack of high-level English skills has hampered the growth of outsourcing business processes. And this is one of the major Software Outsourcing Challenges many outsourcing companies face.

How you can navigate through 5 Software Outsourcing Challenges 

Choose your outsourcing partner wisely

Before you commit to a partnership, do some digging on potential outsourcing companies. Check out what clients are saying, look at their past projects, and see if their work aligns with your needs. You can go to top listing companies in the software outsourcing market, like Clutch, G2, Crunchbase, Goodfirms for more information. Some of these are also published on the company’s website. Feel free to check them out before making a decision.

In the end, you should opt for companies that consistently deliver quality results.

Establish Transparent Communication

At the start, make sure you lay out project needs, deadlines, and how you’ll stay in touch. Set up regular check-ins to discuss progress and keep communication open. This way, everyone’s on the same page, building trust and avoiding any hiccups.

Read more: Best Communication Tools for Your Offshore Teams

Address potential hidden costs

I cannot stress this enough since having someone good with legal issues is beneficial. It is wise to team up with legal experts to go through contracts and spot any unclear terms or tricky loopholes. Besides, you should list what needs to be done, set milestones, and be upfront about the costs. This can prevent headaches for both sides down the road.

Address language barriers

Choose a software outsourcing partner that hires people with good English skills, or at least invests in English training for their staff. This shows that they are a professional and thoughtful team who believe in long-term human-centric investment. Improved English language skills can go a long way in enhancing collaboration, reducing misunderstandings, and contributing to the overall success of the project.

Continuous Monitoring and Feedback

Regular performance reviews and feedback sessions keep people on track. Even when they’re sidetracked, continuous feedback sessions keep them focused on the end goal.  You should start by encouraging an environment where both parties can openly discuss challenges and find collaborative solutions. This iterative approach allows for adjustments, ensuring the project stays on track.

By incorporating these tips and examples into your outsourcing strategy, you can proactively address challenges and set the foundation for a successful partnership with your software outsourcing company in Vietnam. Remember, effective collaboration and strategic planning are key to overcoming obstacles and achieving your outsourcing objectives.

Read more: Best Strategies To Master Offshore Team Management

Final Thoughts on Software Outsourcing Challenges

I hope today’s post informed you of the potential software outsourcing challenges, so you’ll make better decisions next time you need to use outsourcing services.  Though there are some common issues with outsourcing, each person’s experience is different. Feel free to share your experiences with us in the comment section. Or if you want to choose Vietnam for software outsourcing, look no further than InApps.

Acknowledging those 5 challenges Vietnam faces above, InApps has done the math to come up with a new competency strategy in 2019 to help us stand out from the crowd. With the great experiences, we’ve been earning through case studies, and with high competency, skillful and dedicated team, we are the best app development companies and the top software outsourcing companies in Vietnam.

Here are our project highlights:

• NEOVIA – Nutrition and animal health app
• Holla – connects people to learn, and exchange languages around the world
• DeepStudy SNS App: A messenger and educational platform which connects teachers, parents, and students to quickly communicate and keep track of all student’s reports
• ALOGURU – First expert video call app in Vietnam
• All Case studies