Offshore Dedicated Development Team in Vietnam: What US companies need to know

Discover how to form an offshore dedicated development team in Vietnam, covering characteristics of Vietnamese developers, cost, how to build, and tips for managing.  

The Grand View Research (2026) reported that the IT service outsourcing market in the US continues to expand and is expected to reach the revenue of US $386,654 million by 2033. However, due to the high demand for specialized developers, the cost for hiring them becomes significant higher (Gartner, 2024). 36% of US-based companies looking for AI development services are looking to hire partners outside of the US. As we can see, external software development capacity is already part of the US technology environment for cost optimization and access highly skilled IT talent.  

Vietnam ranked 7th globally among 78 countries in The 2023 Kearney Global Services Location Index, strengthening its position as an emerging outsourcing destination. Key global markets facing a tech shortage talent, including the US, Singapore, and the UK, are becoming top employers of skilled Vietnamese professionals. In this guide, we will break down all the things that US-based companies should know before structuring an offshore dedicated team in Vietnam. 

Key takeaways

• In the US, 36% of companies looking for AI services are looking for hire vendors outside, meaning that external development capability is an important part in the technology landscape.  
• Vietnam is one of the leading outsourcing hubs in the Southeast Asia region for global companies, including the US.  
• If you hire offshore teams, scaling is relatively easy. You just need to notify your vendor in advance (often in 30 days). 
• There are some common pricing models in software outsourcing, including Fixed Price, Time & Material, and Dedicated Team, which can directly affect the development cost.  
• Besides some fixed costs that your companies have to cover when hiring offshore developers, many US-based companies overlook hidden costs such as onboarding, developer replacement, and payment-related cost.

Why US companies should hire an offshore team in Vietnam

An offshore dedicated development team is a group of developers, which is based in a faraway country, working exclusively for your software project. It is different from IT Staff Augmentation and Project-based outsourcing. While Staff Augmentation is hiring individual role to extend the existing team, project-based means that you hire a software development partner to deliver a specific project.

Why US companies go for offshore teams instead of in-house team

Instead of building a technological in-house team, which requires a huge investment due to high recruitment cost and IT talent salary, US-based companies shifted towards hiring offshore dedicated development teams.  

High salary in the IT sector 

The US is among the highest-paying countries for IT talent globally. The average IT salary in the US is around $52,74 per hour or $109,707 per year, which is notably higher compared to other countries. Beside salary, when hiring an in-house software development team, companies have to cover equipment, benefits, and training cost, significantly increasing the total cost. If working with an offshore development team, US-based businesses can avoide these additional cost as your vendors (who provide you with developers) will cover them for you.  

High demand for skilled IT talent

87% of US technology leaders said that they face challenges finding skilled talent, while 76% reported a tech skill gap in their departments. Meanwhile, the demand for specialized IT employees in the US continued to increase, particularly in the skills of AI/ML, data engineering, or cybersecurity, worsening the tech skill shortage in this nation. Working with offshore teams can allow business to acsess a global talent at more competitive cost.  

Focus on core business activities 

Software development is not alwaý the core competency of every company in the US. In many cases, when businesses want to allocate effort to important functions, such as product strategy, business operation, or customer experience, while assigning software development support for offshore teams.  

Faster team scaling  

When building an in-house team, scaling is time-consuming. Scaling up requires time for recruitment, onboarding, and training, while scaling down requires a long handover period, as well as additional cost.  

If you hire offshore teams, scaling is relatively easy, since you just need to notify your vendor in advance. Scaling up often takes around 1-2 weeks, while scaling down does not come with any cost.  

Why choose Vietnam for software development  

Vietnam reported strong growth in internation hiring in recent years, highlighting its rising influence in the global tech market.  

Competitive development cost  

The IT salary in Vietnam is quite competitive and significantly lower compared to other technology hubs like the US. We will clarify deeper this content later in this article.  

Highly skilled IT talent  

Vietnam owns a strong pool of highly skilled IT professionals, with around 1.26 million ICT workers., and around 224,000 employees in the software companies and 84,000 employees in the IT services providers (Ministry of Science and Technology, 2025).  

Good English communication  

Vietnamese developers often have good English communication, allowing them to work effectively with international teams.  

Around-the-clock development process  

The time difference between the US and Vietnam is typically  from 11 to 15 hours, allowing companies in the US to create a follow-the-sun workflow. While the US team is offline, the Vietnamese team can continue the process.  

Vietnam-based developers vs. US-based developers  

Understanding the basic differences between Vietnamese software engineers and the US-based developers is important for better collaboration and management.  

Communication style  

While Vietnam-based developers tend to be polite and indirect, especially when dealing with disagreement, the US-based team typically gives direct feedback.  

Teamwork 

The US team is highly individualistic and works more independently. Meanwhile, the Vietnamese team is really good at working as a team.  

Problem solving  

Vietnam-based team: Flexible in working around and adapting to client requirements, carefully checking the problem before suggesting any solutions 

US-based team: Tends to suggest alternatives quickly.  

Working process  

As Vietnamese developers are used to working with international clients through multiple projects, they are very familiar with tools, frameworks, and platforms which support communication and reporting.  

How much does it cost to hire an offshore dedicated development team

Hiring a dedicated development team in Vietnam is more affordable for US-based companies. Even though there is no fixed number, as offshore dedicated development team cost depends on multiple factors. It is important to decide on the pricing model that will be used before taking a look at the hourly rate card.  

Pricing models

Pricing model is one of the most notable factors influencing the total development cost as it determines how costs are calculated, the level of budget control, and who bears the risk when the scope changes. With the same project scope, applying each pricing model can have a different cost.  

Here are some common pricing models that US-based companies should know:  

Fixed price: Client pays a fixed price set by the software development vendor , often billed monthly or yearly. Client covers the additional cost if scope changes.  

Time & Material: Client pays for the actual time and resources used for the project, often billed at an hourly rate or daily rate for each developer  

Cost = Time (hours/ days) x Hourly/ Daily rate  

Dedicated Team: Client pays a recurring monthly fee based on team size and time.  

Cost = Number of developers x Rate/ Month

Hourly rate of software developers in Vietnam by level

Hourly rate card is typically considered a reference to estimate the software development cost. Hourly rate is different based on level and expertise.  

To get more accurate figures, it is better to contact the software development partner for details.  

Hidden cost that you should not overlook

Beside some fixed cost that your companies have to cover when hiring offshore developers, there are hidden cost that are often overlooked.  

• Onboarding and ramp-up time: Despite having prior experience, offshore developers still require times for onboarding, ramp up, and knowledge transfer.  
• Developer replacement: When a developer leaves, hiring a new one is time-consuming as it requires CV review, onboarding and knowledge transfer. Also, it is necessary to clarify the responsibilities of both sides in case of developer replacement: Who will cover this cost?  
• Payment: Payment terms, exchange rate, and exchange rate timing play important roles in affecting the total development cost.  

Choose an offshore software development partner

Technical expertise  

Depending on the project, different tech stack will be required. For example, an AI project may need Python, Machine Learning, and LLM APIs. Choose the vendor with tech stack needed for your project.  

Also, if the software development partner has deep experience in your domain, it will be a strong fit. Also, check the team size, team composition, and skill level of each team member. Adamo Software has a team of 170+ engineers, with more than 40% being at senior level.  

Cost  

Check the pricing model that your software development vendor uses, their hourly rate card, what costs are included, and who bears the additional costs in cases of overtime and staff replacement.  

Supporting tools, platforms, or frameworks 

Does your vendor have supporting tools for communication and reporting? Does it primarily work with an Agile framework? If so, are there any additional costs associated with using these tools and platforms?  

US compliance  

It is necessary to check basic data protection practices, including:  

• Do they have ISO certification, such as ISO 27001 and ISO 9001:2015? 
• Are their developers provided with equipment, such as laptop? 
• Are NDAs signed?  
• How is source code stored and delivered to client? (ex: Github)  

Also, the development process of your partner should comply with the specific US regulations. Some specific industries in the US have their own regulations, for example, healthcare has HIPAA.  

Setting up an offshore dedicated team

Steps to hire an offshore dedicated development team in Vietnam

Step 01. Define project requirements 

Define the project requirements and budget, then determine the needed roles, team structure, and tech stack required.  

Step 02. Find and shortlist vendors 

Based on the criteria that we have mentioned before, you can proceed to evaluate and list a few potential vendors. Then you can make the decision on your software development partner.  

Step 03. Interview and form team  

After choosing the vendor, the client provides requirements for the roles you need. The vendor receives the requirements, provides suitable candidates to screen and interview. Once the developers are finalized, the team formation is successful. 

Step 04. Onboarding and knowledge transfer  

Setting up needed tools, access permissions, workflows, and help the team understand the codebase, product, and business requirements.  

Step 05. Start development process and team management  

Establish Agile/process, communication framework, sprint planning and performance tracking.  

Scale up a Vietnam-based offshore team  

US-based companies often scale up when the scope expands, workload increases, and they need more technical expertise. However, scaling up is not simply add developers to the project. You need to make sure that they can quickly catch up with the existing team.   

Normally, adding a developer to an active project takes about 1-2 weeks, depending on whether the vendor has staff available. After looping in the new employee, client should hand over knowledge and workflows so they can quickly catch up.  

Scale down a Vietnam-based offshore team  

Scaling down is reducing the number of developers when project demands decrease. Instead of maintaining the entire team throughout the project, the client can scale down to save costs. However, a notice period, usually around 30-45 days, is required. This timeframe allows the vendor to arrange personnel and plan for project delivery.

Ramping up your team fast with an offshore dedicated development team in Vietnam

Adamo Software is an AI and software development company based in Vietnam, delivering a dedicated development team services for global clients. Our team is proficient in modern tech stack and cloud platforms, including Python, NodeJS, React, .NET, Google Cloud, and Azure. Adamo Software delivers full-cycle outsourcing and helps businesses use the right resources tailored to their needs.  

Adamo Software is your go-to hub for IT expert. Talk to us about building your own dedicated team.