Having a dedicated remote tech team can be a great solution to empower businesses’ IT capabilities to the next level. However, given the highly required investment that goes into your offshore tech team, it is crucial to ensure that your expansion happens at an appropriate time when the company truly needs a remote tech team.
During our previous webinar, Phuong Nguyen, VP of Hydra X, highlighted the top 3 signs for companies in dire need of a remote tech team.
Building a remote tech team
Tech startups and IT companies turn to offshore insourcing to take advantage of a more diverse talent pool and lower operating costs. The offshore team is internal. Thus, the level of control and commitment is higher than outsourcing.
Vietnam has been gaining recognition as a popular offshore destination for its low operation cost and high-quality tech talents in recent years.
As a result, their tech talents possess quality skills and great mindsets. Along with the low hiring cost, there is no doubt that tech startups and IT companies want to set up their offshore operations in Vietnam.
However, this strategy requires firms to overcome the challenges of cultural and language barriers as employees have to actively communicate and work with other teams in another country.
It is advisable for employees on both sides to have frequent work trips between the two countries to discover the cultural difference to ensure efficiency within the company.
Local tech talent shortage
The tech talent shortage is a big problem shared by many developed countries, with Singapore among the most served cases. Singapore is currently facing a talent crunch where more tech giants are expanding to Singapore, which means more job opportunities will be opened for hire.
Singapore is a small island, and in the years to come, there will be a point where we will run out of talent. The demand may be strong, but the supply is relatively weak.
To keep up with the customer’s growing demands and survive in a harsh landscape, businesses are trying to tap into the less contested tech talent pool from neighbouring countries.
This is where Vietnam comes in. The country has a pool of highly skilled tech talents with excellent English proficiency.
The government is investing US$150 million to improve further English Language education, digital skills and technical knowledge for the working population. This has led to a pool of well-trained candidates in the programming languages and protocols to tackle any of your company’s projects.
Limited budget for scaling up the team
Are you looking for a more workforce in the IT department but do not have a high budget to hire local talent? Is your company allocating too many funds in sales and marketing and affecting your fund’s allocation for the IT department?
Technology is an evolving sector embedded in almost every industry in the world. It seems disruptive to all sectors and improves the operational model of a company efficiently and productively. It is constantly improving, and allocating more funds to the IT department is essential to its success.
Companies that are currently fundraising or have limited capital to deploy funds to more crucial areas are starting to consider outsourcing in Vietnam to overcome these challenges. Outsourcing in Vietnam is regarded as one of the most affordable outsourcing destinations.
For instance, in 2021, the maximum salary for data scientists in Singapore can fetch as high as US$12,000, while the maximum salary for the same role is only US$4,500 in Vietnam. This is almost 3x lesser than Singapore’s salary.
The wide difference has impacted more companies outsourcing in Vietnam to reduce their costs. They can hire more than one headcount with the same budget or allocate the remaining funds to essential areas for its success.
They can also leverage highly skilled tech talents to further improve their company’s IT capabilities.
Diversify your tech team
Having just one dedicated tech team to handle all of your essential projects presents a dangerous risk of being disrupted when your only team is down. Moreover, as the company grows and expands, one big-size tech team becomes more difficult to control and sluggish.
In this context, hiring a remote tech team makes the most sense as they do not burn all of your budgets while the rest remains in-house.
Vietnam’s tech talent salaries can be 3x lower than Singapore, which allows your company to hire more headcount and scale up the number of teams for support or backup.
With these remaining funds, your company can employ different IT roles with a fraction of the cost of traditional systems to boost the IT capabilities within your company.
With the pressure of the COVID-19 pandemic, businesses are trying to maximise their operational efficiency while still leaving some room for growth and expansion. As a result, building offshore tech teams has become a popular strategy for many companies.
If your organisation faces any of the signs mentioned above, we recommend contacting us for a quick detailed consultancy. At TechJDI, we specialise in offshore outsourcing software development and in-house tech team setup for growing firms.
Most importantly, we have a network of affordable and highly skilled tech talents to ease your tight budget.
Whether you are looking for support to set up your own IT foundation in Vietnam or external help on tech projects, our network of consultants, software architects, technical project managers, and UI/UX designers can seamlessly help you reach your goals.