How to Minimize Offshore Software Development Cost

Ho Chi Minh City, Vietnam–(BUSINESS WIRE)–Saigon Technology has supported many growing companies and startups globally by providing affordable and high quality offshore software development outsourcing companies in Vietnam. When looking for offshore software development alternatives, companies often consider cost savings. Talent factor and software development pricing are the two main reasons why organizations do not choose software outsourcing service providers in the region.

When the team in charge has the engineering strength or experience to meet the demands as well as a service cost that is within the customer’s budget, a project is considered initially viable. Of course, most clients prioritize personnel concerns, but the financial issue is just as important because it will be a determining factor in the partnership of both parties. So, in times of tight budgets, how can you significantly reduce the cost of offshore software development services? Let’s take a look at this article.

Factors Affecting Pricing in Offshore Software Development

1. Project size

For the first step, you need to describe all the goals of the software scope. Depending on the type of software and the time it will take, you can classify your software project according to the following 4 types of scale:

Small: The nature of the project requires little custom coding and does not require a lot of engineers and effort.

Medium: This level of the project tends to require the development of MVPs to arrive at an objective evaluation. Often the customer will ask for the lightest possible version, without the need to add features.

Big: Requires more complexity in programming. A large project will require large teams, insightful UI/UX design, and time investment.

When it comes to multipartite applications that work perfectly on many platforms, a database might be necessary.

Business: With a macro scale that tracks every business move of a business, a business project will typically last for years.

Therefore, the offshore software outsourcing company must provide stable human resources, ensure safety, flawless work and always commit to the quality of the output to ensure the best possible results.

2. Type of software development

Keep in mind the type of software project you are considering. Depending on the type of project, the outsourcing service provider will shape the corresponding methodology, and hence the price will also vary.

Custom software development: Create a software product tailored to your specific needs, such as those of a business or the operation of a business.

Upgrade existing software: Catch the wave of digital transformation by upgrading and enhancing the software products your business currently has. Software modification may be required to improve some now obsolete features.

3. Team size

The size of your development team is another aspect that affects the total cost of your project. Although initially the number of members is fixed, once the scope of the project changes, team members will also experience disruption. And so, it can be said that the team size factor partly depends on the SOW.

Small size: The project would be launched with just three core members, including the project manager, developer, and QA engineer.

Average height: In some cases, especially medium-sized projects, a team of six to eight people may be needed, including a UI/UX designer, business analyst, architect or database developer.

Big size: Some large projects require the participation of more than 10 members, usually as a team. The number of programmers, testers, technology specialists, business analysts, etc. increases considerably.

Simple Ways to Minimize Offshore Software Development Costs

1. Determine what you want and need

Be sure to do your research before choosing an outsourced software provider. Then, specifically, proactively capture possible ideas and fundamental concepts surrounding the product you hope to make.

Your company’s software requirements will be carefully analyzed. Be sure to provide as much detail as possible in your proposal so that your potential offshore candidates can accurately assess their skills.

2. Carefully review impractical and unrealistic project specifications

Strongly associated with the reflection factor above, this second section advises businesses to consider getting rid of impractical items. The reason this entry appears is that an estimated 52.7% of projects would exceed their original budgets by 189%, according to analysis by the Standish Group.

Therefore, even if you have carefully listed the items you need and want, you should not ignore the immediate removal of cumbersome factors, which can easily lead to additional costs for the project later. Businesses can then wisely choose the fastest and most cost-effective way to accomplish the mission.

3. Keep quality assurance (QA) in the loop from the start

Perhaps many people still secretly enjoy the role of designers or developers but forget that there is another equally important title in the project, which is QA/QC. Regardless of the project, an employee who specializes in testing, feedback to the developer team, and quality control of the output always shows the caliber of their work.

Gordon K. Morehouse