Enterprises and startups are keen to enter Vietnam due to its low-cost offshore software development team, strong economic fundamentals, steady political landscape, abundancy of tech talents and a thriving startup ecosystem. Furthermore, its favorable demographics, cost competitiveness, and pro-foreign investment environment. In fact, Vietnam is one of the most dynamic emerging economies in Southeast Asia, with a population of 100 million and an impressive GDP growth rate of 7% year-by-year since 2009.

Freelance

This model is ideal for Angel or Seed stage companies seeking new tech talent to work on their projects remotely without a large budget. It’s the most cost-effective option to reach the finish line when necessary.

However, employing freelancers might impact your outcomes due to their limited skill sets and absence of in-house knowledge. Additionally, we recommend against opting for freelancers for long-term projects as the expenses can escalate rapidly.

Offshore (B.O.T. model)

The company plans to engage local vendors for the construction of the tech team, management of recruitment, HR administration/payroll, and office space. Due to its higher cost compared to outsourcing, this model is recommended only for those who are venture-backed at the Series A/B+ stage.

Offshoring is recognized for its cost-effectiveness over the long term, offering complete ownership of the team, albeit with a significant initial investment and extended ramp-up period. It is essential to select a service provider with proven experience in the Vietnamese market.

Offshore Development Team Structure

Having determined the type of operational model you wish to develop, the next step is to consider the team size. There is no one-size-fits-all number; smaller teams may be more manageable, while larger teams often excel in large-scale projects.

It goes without saying that iDeaLogic will provide guidance in assembling your team, aid in establishing your company culture, and offer long-term support. With a decade of experience in forming successful teams in Vietnam, proficient in all modern programming languages, we understand the essentials for accomplishing the task at hand.

1~3 Pax

Works best when hiring freelance or outsource. There is little too insignificant value in trying offshore due to admin/communication overheads.

3~5 Pax

A small offshore software development team is more productive because it is easier to coordinate their efforts and recognize individual contributions of their members. Based on our experience in software development, 4-8 people is an ideal size for a team. And if it is a large software development project, you can divide one group into sub-teams, each with its team lead.

You need to hire a team lead with 6~8 years of experience as the first member. He/she will be the backbone of your new technical team. Depending on the complexity of the project, a group of this size is typically made up of a team leader, backend, and frontend developers and if desired QA QC engineer.

5~10 Pax

The first hire should be a Technical Project Manager with eight years of experience or more. Due to the size of this team, you will have to hire even more talent to fill up different roles, depending on your needs or specifications.

10~50 Pax

When a team grows to become bigger, the good old Ringelmann effect comes into full force where the individual productivity of team members decreases as group size increases. Such failures result from communication issues, holdbacks, and less engagement.

You will need a person to coordinate between these groups. Otherwise, you may face a situation where some of your teams are working on the same task without knowing it, or much worse, on assignments that conflict with each other.

Thus, hiring a VP of Engineering (8+ years) or Delivery Manager should be your highest priority. Additionally, the team structure will depend on the CTO’s requirements.