Top 3 Factors For Recruiting Offshore Software Developers In Vietnam

Hiring offshore software developers in Vietnam is a common strategy for businesses to scale up their tech operations without getting hindered by the limitation of local tech talent. It enables companies to save costs and time while also diversifying their manpower.  

However, recruiting and securing tech talent overseas is anything but simple. It also requires a significant up-front investment to successfully build and grow a tech team in Vietnam. So we always recommend our clients consider these crucial aspects before deciding on hiring offshore software developers.

 

Vietnam – The Ideal Place To Hire Offshore Software Developers In ASEAN

The primary reason why many organizations prefer offshore tech teams over local hires is its cost-effectiveness. For a developed country like Singapore, hiring a full-time local software developer with 5 years of experience can be extremely expensive with an average cost of $3,220. 

On the other hand, a Vietnamese developer with the same experience and skill set only costs $2,300 monthly or 40% lower. Meaning firms can easily double the headcount with the same budget by building their own offshore tech team. 

Apart from the cost factor, it is unquestionable that Vietnam possesses a fast-growth tech talent pool. A total of 400,000 local developers currently working coupled with 50.000 new tech talents joining the workforce each year. 

This is dues to the Vietnamese government’s prioritized investment in the IT industry and education, ensuring the country becomes the regional tech hub for tech firms and startups across the globe.

 

What Businesses Need To Know Before Recruiting Tech Talents In Vietnam

The Structure Of Offshore Tech Teams

Before starting to search for candidates, it is imperative that firms identify the optimal tech team structure. The answer often depends on the complexity and specifics of the projects which vary case by case. However, the common ground is it should satisfy the company’s particular needs within the given timeframe budget.

For JDI’s clients, the ideal member composition is often divided based on the expected headcount and their role responsibilities:

 

Very Small Tech Team (1~3 Developers)

Small Tech Team (3~5 Developers)

Mid-size Tech Team (5~10 Developers)

Large Tech Team (10~50 Developers)

 

Recruiting Costs

Budget is the blood vessel that fuels your remote tech team expansion, thus, it is important to keep your budgeting right, clear out any hidden costs, and always expect future expenses when the team grows. Let’s take a car as an example, it requires fuel to run. Similarly, hiring a developer and building your offshore tech team requires a clear budget to ensure it can scale and grow efficiently. 

In other words, taking into account the developer’s salary is only one part of the picture. Firms will have to consider other recruiting expenses and hidden costs such as office space, benefits, compensations, and more. 

Based on our experience, the average hiring cost for an offshore Vietnamese developer with 5 years of experience will include:

 

 

 

 

Having a proper budgeting strategy allows you to choose appropriate offshore developers and the correct team size for growth and scalability. It is true that companies get to save hundreds and thousands of dollars when building their own offshore tech team in Vietnam. 

However, the misallocation of funds can also result in unproductivity. Set a budget and be determined in complying with the budget you set for your company.

 

Hiring Season In Vietnam

Hiring season can significantly affect your recruitment results. By understanding the nature of this recruitment season, firms can prepare for it in terms of budget planning, project planning, and resource planning. Thus, maximizing their recruitment success and securing suitable candidates much faster.

Starting from March and lasting until the end of May is the so-called “golden period” when developers are more likely to switch jobs and look for new career opportunities. In contrast, recruiting offshore software developers from October to January will become increasingly more difficult as this is the low hiring season. 

During this period, developers are patiently waiting for the salary review, 13th-month, and Tet bonuses before they decide whether to stay or jump to a new place. Companies are advised to up their offers and benefits packages for a better chance to attract developers while competing against other competitors.

 

Conclusion

When hiring Vietnamese developers for your remote tech team, there are many different factors that need to be considered, including the team structure, recruitment budget, and the current stage of the hiring season. Only those that can plan and execute accordingly will have a better chance of securing the best candidate.

If you are interested in building your very first offshore tech team, do contact us for an in-depth discussion on how we can turn your vision into a reality.