Clearpath Development's Definition of Offshore Software Development:

A Software Model that emphasizes on global delivery of quality software built by a talented pool of software engineers at an economical cost from a development center that is located in a foreign country.

Top 5 reasons why Offshore Software Development makes sense:

• Control capital costs: Cost-cutting may not be the only reason to outsource, but it's certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business.
• Reduce labor costs: Training a staff for peripheral projects is a very expensive proposition. In addition, temporary employees do not usually live up your expectations. Offshore Development lets you focus your human resources where you need them most.
• Start new projects quickly: One of the best advantages of a good outsourcing firm is that it has a trained bench of resources that will allow you to start a project immediately. Whereas attempting to staff the same project in your own company may involve taking weeks or months to hire right resources, train them and provide the extra support they need.
• Focus on your core business: Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly. Using the offshore model you can hire the top resources in for your internal company to manage the customer and lead the offshore team. This will allow you to focus on quality and good customer relations.
• Reduce risk. Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise.

Vietnam as an Offshore Software Development Locale

• Labor Costs: One of the main benefits of tapping into Vietnam's offshore development capabilities is the relatively low labor cost when compared to similar specialists in other markets like India and China. Vietnam continues to hold a large cost savings advantage over other offshore development locations, such as India and China where the loaded cost per person is double that of a similar person in Vietnam.
• Government Support: By far the most important factor in Vietnam's rise as a viable location for outsourced software development is the dedication of its government to the growth of software exportation as an industry. The government continues to establish incentives and structures to pursue its goal of becoming the second largest provider of outsourced software development in the world.
• Human Resources: In Vietnamese universities, computer science is one of the most sought after degrees because students realize that there is an abundance of jobs in this area. In addition, Vietnam scientists are very strong in the fields of applied sciences such as mathematics and physics, and the Vietnam educational system continues to produce highly qualified graduates. Above all, there is still a wealth of undiscovered talent in Vietnam.
• Culture: Vietnamese culture is rich in traditional values and therefore loyalty and customer service are valued much more there than in other offshore locales. There is also a familiarity with European and Western culture as a result of French rule in the early part of the century and the prevalence of Catholicism as the second largest religion in the country.

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