For companies considering offshore development for the first time, there are various challenges along the way. In particular, concerns about communication due to language and cultural differences are significant issues. Additionally, worries about whether the development quality will meet domestic standards persist. Furthermore, many companies struggle with progress management in a remote environment and the challenges posed by time zone differences.

Finding a reliable development company and ensuring cost transparency are also major concerns. Legal contracts and the protection of intellectual property rights represent significant obstacles to advancing offshore development. It’s essential to consider the impact that different cultural backgrounds may have on the project.

Thus, as many anxieties and questions accompany the initial steps into offshore development, it is crucial to find a clear path to success.

The key to successful offshore development lies in meticulous planning from the preparation stage and effective communication.

By clearly defining the project’s objectives and requirements and ensuring that all stakeholders share a common vision, you can prevent misalignments in expectations and facilitate smooth progress.

In this article, AIoT, which operates offshore development projects in Vietnam, will introduce the practical steps to advance offshore development, focusing on Step 3 of the seven-step process.

Step 4: Contracts and Internal System Setup

1. Communication System
   • Regular Meetings
     Set up regular online meetings for project progress checks and problem-solving.
   • Information Sharing Tools
     Use communication tools like Slack or Teams to share information in real-time.
2. Project Management
   • Selection of Project Manager
     Appoint a project manager to manage the overall project in collaboration with the offshore team.
   • Use of Task Management Systems
     Utilize project management tools such as JIRA or Trello to track task progress.
3. Quality Management
   • Establish Quality Assurance System
     Conduct regular code reviews and tests to ensure quality.
   • Set Standards
     Clearly define quality standards for deliverables and the acceptance process, sharing this information with the offshore team.
4. Knowledge Sharing and Training
   • Onboarding Program
     Prepare an onboarding program to help the offshore team adapt quickly to the project.
   • Technical Training
     Conduct regular training sessions on necessary technologies and tools.
5. Risk Management
   • Risk Assessment
     Identify potential project risks in advance and establish a system to address them.
   • Problem-Solving Process
     Clearly outline the response flow for any issues that may arise.

Payment Structure in a Contract

In a typical contract, the following payment structures are generally adopted:

1. Advance Payment
   At the time of contract signing, an advance payment of a certain percentage (usually 20% to 30%) of the contract amount is made for resource allocation and preparation costs before the project starts.
2. Milestone-Based Payments
   Payments are made upon achieving defined project milestones. This method allows for quality checks of deliverables as the project progresses.
3. Final Payment Upon Delivery
   Before the final delivery of the project, a certain percentage of the remaining contract amount is paid, contingent on meeting acceptance criteria.

Trust Us!

AIoT aims to be a reliable partner that supports your business success by addressing the challenges of offshore development and building long-term relationships. Please entrust your needs to AIoT, and let’s work together towards success.

If you are struggling with offshore development or considering a new project, please consult us. We possess abundant experience, high technical capabilities, and thorough quality management and security measures to guide your business to success.

• ☆ I want to balance cost reduction with high-quality development.
• ☆ I want to enhance market competitiveness with a speedy development system.
• ☆ I want to build a long-term relationship with a trusted partner.

We are here to meet those needs.
Feel free to contact us. Our specialized consultants will propose optimal solutions tailored to your requirements.

For inquiries, please visit the Contact Us page!
Alternatively, feel free to reach us at the following phone number:
TEL: 03-4500-6968

Happy Together!