How To Minimize The Offshore Software Development Cost

HO CHI MINH CITY, Vietnam--()--Saigon Technology has been supporting many enterprises and growing startups globally in providing the affordable and high quality offshore software development outsourcing companies in Vietnam. When looking for software offshore development alternatives, businesses frequently consider cost savings. The talent factor and pricing software development are the two key reasons why organizations do not pick software outsourcing service providers in the region.

When the team in charge has the engineering force or experience to satisfy the demands as well as a service cost that is within the client's budget, a project is regarded as initially viable. Of course, most clients prioritize personnel concerns, but the financial issue is just as significant because it will be a deciding element in the two parties' partnership. So, in this day and age of tight budgets, how can you drastically reduce the cost of offshore software development services? Let's have a look at this article.

Factors Affecting Prices in Offshore Software Development

1. Project size

For the first step, you need to outline all of the software scope's objectives. Depending on the kind of software and the amount of time it will take, you may classify your software project as 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 MVP development to arrive at an objective assessment. Often, the client will request the leanest version possible, with no need to add any capabilities.

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

When it comes to multi-party applications that function flawlessly across many platforms, a database may be necessary.

Enterprise: With a macro scale that follows every business movement of an enterprise, an enterprise project will usually last for years.

Therefore, the offshore software outsourcing firm needs to provide stable human resources, ensure security, seamless working, and always commit to output quality to ensure the best possible results.

2. Software Development Type

Keep in mind your intended software project type. Depending on the type of project, the outsourcing service provider will shape the corresponding methodology, and therefore the price will also vary.

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

Upgrade the existing software: Catch the wave of digital transformation by upgrading and improving the software products your business currently has. The software modification may be needed to enhance some functionalities that are now obsolete.

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, the team members will also experience a disturbance. And so, it can be said that the team size factor depends partly on SOW.

Small size: The project would be kickstarted with only three core members, including the Project Manager, Developer, and QA Engineer.

Medium size: In certain cases, especially mid-size projects, a team of six to eight people may be necessary, including a UI/UX designer, a business analyst, and an architect or database developer.

Large size: Some large-scale projects require the participation of more than 10 members, usually in a team. The number of programmers, testers, technological specialists, business analysts, and so on increases dramatically.

Simple ways to minimize the offshore software development costs

1. Determine what you want and need

Make sure you do your research before deciding on an outsourced software provider. Then, specifically, proactively grasp the possible ideas and fundamental concepts surrounding the product you hope to achieve.

Your company's software requirements will be thoroughly analyzed. Make sure to provide as How to Estimate the Cost of Offshore Software Development as much specifics as possible in your proposal so that your prospective offshore suitors may accurately assess their skills.

2. Carefully consider the impractical and unrealistic project spec

Strongly associated with the thought-out factor above, this second section advises businesses to consider getting rid of impractical items. The reason this entry appears is that it is estimated that 52.7 percent of projects would exceed their initial budgets by 189 percent, according to the Standish Group analysis.

Therefore, even if you have carefully listed the things you need and want, you should not ignore the immediate removal of cumbersome factors, which can easily cause additional costs for the project later. Businesses can then wisely choose the most time- and cost-effective way to complete the assignment.

3. Keep Quality Assurance (QA) in the loop from the beginning

Perhaps many people still secretly appreciate the role of designers or developers but forget that there is another equally important title in the project, which is QA/QC. No matter what project it is, an employee who specializes in testing, giving feedback to the developer team, and controlling the output quality always shows the caliber of his work.


Thanh (Bruce) Pham - CEO of Saigon Technology
A Member of Forbes Technology Council
Mobile: (+84) 913 666 227
Skype: tienthanh.pham (Thanh Bruce Pham)

Release Summary

In this day of tight budgets, how can you drastically reduce the cost of offshore software development services? Let's have a look at this article.


Thanh (Bruce) Pham - CEO of Saigon Technology
A Member of Forbes Technology Council
Mobile: (+84) 913 666 227
Skype: tienthanh.pham (Thanh Bruce Pham)