JDI hosted the quarterly webinar of 2022 with Frank Lee and Marc Tonido on “Bridging The Tech Talent Gap with Offshore Developers In Vietnam”, discussing practical tips for getting tech done in Vietnam, insights on how to hire the best local offshore developers and real-life lessons on managing them remotely.
In addition, the audience also asked great questions that provide opportunities for the speakers to explain how Vietnam is the answer for their tech team scale-up.
You can watch the full record here, and see below for our key takeaways:
There Are Different Models Of Getting Tech Done In Vietnam
Frank Lee – Founder and Managing Director of JDI, highlighted 4 basic operation models: in-house hiring, outsourcing, freelancing, and offshoring.
Outsourcing and freelancing are considered to be the cost-effective models for short-term projects as in-house hiring is extremely expensive for startups. On the other hand, building your own tech team overseas (offshoring) offers a great middle ground where businesses can scale up better with more control over their tech operation (100% ownership) than outsourcing and freelancing while also much cheaper compared to in-house hiring.
The Optimal Tech Team Structures In Vietnam
After companies established their go-to operational model to get tech done, the next step is deciding the optimal structure for your tech team. Frank said that if the team size needed is around 1-3 members, freelancing or outsourcing may work better.
In contrast, if the team size is larger, offshoring will be the budget-friendly option, especially in countries such as Vietnam.
Remote Talents: A Startup’s Ally
When it comes to offshoring, some may be doubted the idea of how tasks can be done beyond the borders. However, Marc Tonido, Director of Engineering of EngageRocket, believes the benefits remain tremendous and outweigh its shortcomings.
He also emphasized the importance of having a remote team lead to help firms overcome the communication barrier between them and their Vietnamese team.
Webinar QnA Recap
*Disclaimer: The answers are summarized. Please access our webinar record for our speaker full insights
Should We Split the UIUX & Engineering Teams Into Two Different Countries When Offshoring?
Frank: Companies can split their UI/UX team and tech team into two different countries; however, it is better to have them stick with each other for better synergy. So the UX/UI team can communicate what need to be done to the developer side.
If you still prefer to have them in different countries, then I would recommend for the UX/UI team to be next to the business itself.
Marc: I think it’s all about how your team communicate with each other. After all, your success depends on how they are able to collaborate effectively whether in the same or multiple countries.
Can Product Management Be Splited From Product Engineering With A CPO – Heading Product Management And A CTO – Heading Product Engineer?
Frank: Many businesses often misunderstanding product management and product engineering as the same or overlapping each other, while in fact, they are completely different roles.
Marc: CPO is the one that bridges the gap between businesses with tech while CTO is responsible for forwarding your tech initiatives. So it is extremely rare for someone can do both and actually have the time for that! (laugh)
What Does Vietnamese Workforce Value Most When Looking For A Job In Large Cities Such As Saigon And Hanoi?
Frank: Vietnamese employees will prioritize the pay rate as their most important factors when finding a job. However, opportunities for growth (how much they can learn and what they can gain when working for you) will be the key to retain the Vietnamese offshore developers.
Marc: Aside from the salary, Vietnamese talents value the effort in trying to engage them within the team. No matter how isolated the location is, always letting them know they are a part of the team, treating them as your partners, and giving them chances to grow.
What Will Be The Best Way To Start If Requirements for Multiple Digital Products Are Already Available? Is It Still Makes Sense To Start With Outsourcing And Then Move To Offshoring Or Directly Opting For Offshoring Right Away?
Frank: Both are available. You should make the decision based on the project workload or duration. If your project only lasts for few months or less than 1 year, outsourcing will make more sense. The transition to offshoring in this case is also easier as you can hire more offshore developers to continue working on the projects.
Marc: Actually, I think it depends on the firm’s capabilities. If you don’t have the mean to manage a remote tech team then starting with outsourcing first.
When Offshoring, Is It Necessary To Have Physical Presence/Offices In Vietnam Or Can Be Fully Remote With Occasional Travel To Singapore?
Frank: Working space is never the problem when it comes to offshoring. Businesses totally can working remotely without physical presence. However, as the team grows bigger, it is recommended to have a physical office for all remote members to gather for better collaboration and communication.
Marc: We actually do not have a physical office in Vietnam (laugh). Having a team with mostly experienced talents, in our case, allow us to skip out this step and go full remote.
How Do Vietnamese From Different Regions View Other Forms Of Remuneration Like Company Stock Options?
Frank: Vietnamese workers mostly value the salary and opportunities to grow instead of being offered company stock. Therefore, the stock options should be used as a way to improve the staff retention rate.
Marc: This mostly depends on the seniority of the employees. The stock options is usually mentioned by leaders who already have a certain position in their career path. In contrast, most junior-level employees focus more on developing their technical skills.
Is It Necessary To Have A Legal Entity In Vietnam To be Responsible For HR-Related Problems?
Frank: The answer is yes! Vietnamese government is quite protective of its citizens with well-established laws to help them get loans for housing, cars, etc., and other benefits.
Hence, it is better to have an entity in VN to address all the legal things which will arise during the talent recruitment process. Businesses can also outsource a third party to get things done on their behalf.
Marc: Our partner actually helps with all the hirings and hr related-activities for Vietnamese developers. So it is definitely an available option for those who did not have the capabilities to handle everything on their own.
Conclusion
Hiring offshore developers has already become one of the best business practices for businesses to obtain valuable tech talents and reduce labor costs. Now is the best time for any company with global ambitions to consider expanding the boundary of their tech operation to stay ahead of the game.
If you want to learn more about how building and manage offshore tech teams in Vietnam, please contact us for a free in-depth consultation.
Additionally, in case you are planning to tap into Vietnam’s tech talent pool, do not miss out on our Vietnamese Developer Salary Report that we recently released. This report will equip you with everything you need to know about Vietnam’s IT landscape and salary rates in 2023 with the latest insights and data.
