Nevertheless, software vendors are not lagging behind and today there are a huge number of software solutions that can be useful for various companies. And while many companies make their choice in favor of purchasing software from vendors, it remains obvious that such a solution is not able to solve many of the unique problems that companies face.

Given such a large number of different factors, it becomes obvious that it is impossible to give a clear answer to the build vs buy software question. In this article, we tried to compare both options and explain under what circumstances it is recommended to use each of them, with insights from a reputable software development company. Although this material is still not a direct guide to action, we believe that it can be useful for those who are faced with this dilemma.

1. When Do Entrepreneurs Face This Dilemma?

The situations when businesses need software solutions vary depending on the industry and the specifics of the company. In most cases, such companies first evaluate ready-made solutions, since their implementation can be done much faster. When it turns out that none of the ready-made products can truly solve the business problem, the question arises of whether to develop your custom solution.

So, as an example, we can consider an IT enterprise that seeks to optimize its business processes by introducing a high-quality CRM system. There are many ready-made options on the market, but none of them seems to be an effective solution. That’s when you need to develop a custom CRM, which will be tailored to the needs of a particular company and will bring value.

And although the decision to create a custom product “just for me” seems to be the most logical and correct, it is not suitable for each business. Before making such a decision, it will be wise to consider several points.

2. Build vs Buy Software: Technical Criteria to Consider

In deciding whether to build or buy software, you’ll have to evaluate all relevant factors. You need to assess factors like your project requirements, the upfront cost, long-term maintenance, etc. And more than just the internal factors, you should also consider how external users can work with it. Here are some criteria to consider:

2.1 Price

It is absolutely clear that entrepreneurs and business representatives are trying to reduce their costs. Often, the decision to implement some kind of software is explained by the desire to reduce future costs.

Within the build vs buy software dilemma, there are two main arguments most often encountered. First – the purchased solution will start to bring value almost immediately. Second – creating a homemade product can be an overwhelming burden for the company’s budget. Both arguments are valid. However, it is hard to say which one is the best for a particular case. A purchased solution doesn’t need large costs and is implemented quickly. However, more often than not, it still requires either a large single payment or a monthly payment. You will be charged constantly and the benefits that off-the-shelf software brings aren’t always sufficient.

Thus, although developing homemade software will cost more, eventually, it will pay for itself since it will bring business value. At the same time, it is worth making a reservation and saying that you need to sensibly assess your capabilities. It’s a terrible mistake to go into debt for the development process if you understand that your business has no opportunity to afford such expenses.

2.2. Maintenance & Control

Maintaining the work of any software is a separate stage that requires certain resources. Selecting between the build vs buy software, it is worth saying that the software vendor is most often engaged in maintaining the operation of its product. Thus, any bug fixes, database updates, etc. aren’t part of your duties, so you don’t need to spend resources on these tasks.

However, this coin has a downside. Since the purchased solution is being supported by the vendor, you, as a client, will have no control over the operation of this software. Thus, any shutdowns, unwanted bugs, or updates will be made regardless of your desire. Therefore, you can face a frequent situation when constant problems with the product or one unsuccessful update forces business representatives to refuse to continue using this software.

2.3. Coherence

Of course, modern businesses, especially related to the IT industry, have a set of complex tools and processes that harmoniously interact with each other. These can be time & task trackers, CRM, CMS, risk management tools, a bunch of different connectors and communication tools, and so on. That’s why the introduction of a new tool often causes coherency problems. Thus, a new solution may conflict with existing tools and require a complete overhaul of present workflows.

This problem can be avoided only by resorting to building a custom solution. By developing software from scratch, you can take this factor into account and build a product that ideally fits into the existing frame and will be coherent with the tools already in use. This is one of the most important points to consider in the build-or-buy software debate.

2.4. Customization and scalability

As you know, off-the-shelf solutions are called so because they do not imply any major adjustments. Yes, there are situations when software vendors make big changes and add new functionality based on the wishes of a large number of customers. However, no one will do it just for your sake. In case you urgently need additional features, you just have to stop using this product and choose something new.

On the contrary, the product developed by you has the capacity to scale and expand from the outset since you can point this opportunity at the design stage. Thus, your product is easily amenable to any changes and scales perfectly in connection with changing business requirements.

These four factors are crucial in the struggle between build vs buy software. Of course, some additional and unique factors are specific to certain companies. However, more often than not, businesses make decisions based on these four considerations.

3. The Pros & Cons Of Buy And Build Software For Businesses

To consolidate the information received, we suggest that you consider the following two tables of buy vs build software-pros and cons, which can become a reliable assistant in this dilemma.

3.1. Custom solutions

3.2. Ready-made solutions

4. Summing Up

As you can see, build vs buy software analysis implies that each option has its pros and cons that can be useful for certain companies in specific situations. Of course, a custom solution is always a more useful option, but it comes with some additional costs and risks.

We said at the beginning that we would not give a clear build vs buy software assessment. Nevertheless, to draw some line, let’s look at several possible consequences of a wrong build vs buy software decision.

• First of all, your problem will remain unsolved. Simply put, the wrong choice won’t bring you value and you just waste your resources.

• Also, making a choice in favor of custom development, while the existing solution on the market has all the needed features, you doom yourself to unnecessary waste of money and time.

• At the same time, choosing a ready-made solution, while you have a clear understanding of how to build your own software program, you lose the unique opportunity to receive real value, solve your problem, and bypass competitors.

We advise you to carefully approach the question of whether to make or buy software and study your case to make the only right decision for your business.

As your trusted software development company, we’ve chosen 08 most popular Software Development Models to show you their core features and how they would benefit your business.

1. Waterfall

The process moves cascaded through all development stages (analysis, design, coding, testing, and deployment). Each step has specific deliverables that are meticulously documented. The following stage cannot begin until the preceding one has been finished completely. As a result, software requirements, for example, cannot be re-evaluated during development. Furthermore, there is no way to examine or try the software until the final development step is completed, resulting in significant project risks and unexpected project outcomes. Testing is frequently rushed, and fixing errors is expensive.

Use Cases:

• Simple small to mid-sized projects with well-defined, repeatable needs (small company website development).
• Projects that require a higher level of control and a more predictable budget and timeframe (e.g., governmental projects).
• Multiple rules and regulations must be followed when working on a project (healthcare projects).
• Projects that make use of a well-known technology stack and tools.

2. V-Model (Validation & Verification Model)

Another linear model is the V-model, which has a testing activity for each level. Such workflow organization ensures high-quality control, making the V-model one of the most costly and time-consuming models. Furthermore, even though problems in requirements specifications, code, and architecture can be spotted early, changes throughout development are still expensive and difficult to implement. All requirements are gathered at the start, just like in the Waterfall instance, and they cannot be modified.

Use Cases:

• Projects where downtime and failures are unacceptably costly (e.g., medical software, aviation fleet management software).

3. Incremental & Iterative Model

The incremental development process is divided into multiple iterations (“Lego-style” modular software design is required!). In each iteration, new software modules are added, with no or minor changes to previously added components. The development process can be carried out in either a sequential or parallel manner. Parallel development speeds up the delivery process, whereas sequential development takes a long time and costs a lot of money.

With iterative development, software evolves and grows with each iteration. The software design remains consistent as each iteration builds on the preceding one.

Because software is given in pieces, there is no need for a detailed specification at the outset of the project, and tiny adjustments to requirements can be made during development. However, conditions cannot be drastically altered; essential requirements, particularly those for system architecture in the event of incremental development, must be established at the outset, as future integration of the provided software elements may become a problem.

Because tiny requirements amendments may be required during the development process, this SDLC approach often involves some client input.

Use Cases:

• Large, mission-critical enterprise programs made out of loosely linked components like microservices or web services.

4. Spiral Model

The Spiral model emphasizes extensive risk analysis. To get the most out of the model, you’ll need to work with people with a good risk assessment history. A typical Spiral iteration lasts about 6 months and includes four key activities: comprehensive planning, risk analysis, prototyping, and review of previously delivered parts. Spiral cycles that are repeated significantly lengthen project timelines.

This is the model in which the consumer is heavily involved. They can participate in the cycle’s exploration and review stages. The customer’s revisions are not acceptable during the development stage.

Use Cases:

• Projects with ambiguous business needs or requirements that are too ambitious or inventive.
• Projects that are enormous and difficult to complete.
• The launch of a new service or product through research and development (R&D).

5. The Rational Unified Process (RUP)

The Rational Unified Process (RUP) is a framework that combines linear and iterative approaches. According to the paradigm, Inception, elaboration, construction, and transition are the four phases of the software development process. Except for Inception, each step is typically completed in numerous cycles. All basic development activities (requirements, design, etc.) are carried out parallel across these four RUP phases, though at varying intensities.

RUP aids in the development of solid and flexible solutions, although it is still slower and less adaptive than a pure Agile group (Scrum, Kanban, XP, etc.). Depending on the project requirements, the level of client interaction, documentation intensity, and iteration length may vary.

Use Cases:

• Large and high-risk projects, particularly use-case-based development and high-quality software development in a short period.

The Agile – Development Models

Of all software engineering models, Agile methodology is used by more than 70% of businesses in their IT projects. Iterative development, intensive communication, and early client feedback are at the heart of Agile in general.

Each Agile iteration usually lasts a few weeks and results in a fully functional software version. This group’s approaches place a greater emphasis on swiftly delivering an active element of the application. They give more attention to software testing activities than thorough software documentation (detailed requirement specification, detailed architecture description). This encourages rapid creation, but it also delays software transfer to the support team and complicates maintenance because it takes longer to detect a problem when there isn’t a clear program description.

Agile emphasizes close collaboration among team members as well as with consumers. After each iteration, stakeholders analyze the development progress and re-evaluate the priority of activities for the next iteration to maximize the return on investment (ROI) and guarantee alignment with user needs and business goals.

As a result, Agile models are known for their frequent releases. They also help deliver applications that better suit customers’ expectations by allowing for continuous software enhancement through simple fixes and changes, quick updates, and feature addition. However, it is impossible to accurately predict the project’s budget, time, and personnel requirements because of a lack of precise planning and a willingness to change.

Use Cases:

• SDLC model for small projects or startup initiative that requires early input from end customers.
• Most mid-sized custom software development projects where business needs cannot be reliably converted into detailed software requirements.
• Large projects can be broken down into small functional components and developed slowly over time.

Which in this article, I will go through some of the most popular Agile Models like Scrum, Extreme Programming, and Kanban which you can find more about down below.

6. Scrum

Scrum is the most widely used Agile methodology. Iterations (‘sprints’) typically last 2-4 weeks and are preceded by comprehensive planning and prior sprint evaluation. After the sprint activities have been defined, no alterations are permitted.

7. Extreme Programming (XP)

A typical iteration in Extreme Programming (XP) lasts 1-2 weeks. If the team hasn’t started working with the appropriate software element yet, the paradigm enables changes to be made even after the iteration has begun. The supply of high-quality software is substantially hampered by such flexibility. To address the issue, XP recommends pair programming, test-driven development and automation, continuous integration (CI), limited releases, and simple software architecture and adhering to code standards.

8. Kanban

The absence of significant iterations is a fundamental differentiating aspect of Kanban. If they are used, they are kept to a minimum (‘daily sprints’). Instead, the focus is on visualizing the plan. The team uses the Kanban Board tool to keep track of all project activities, their quantity, accountable individuals, and progress. Increased transparency aids in a more accurate estimation of the most pressing tasks. Furthermore, because the model lacks a specific planning stage, a new change request can be made at any time.

Customer communication is ongoing; they can review work outcomes at any time, and project team meetings can take place daily. The model is commonly used in software support and evolution projects due to its nature.

9. Other Notable Software Development Models

Just like we have mentioned at the beginning of the article. There are many Software Development Models for you to choose from, and here are some honorable mentions.

9.1. RAD (Rapid Application Development) Model

The RAD Model, short for Rapid Application Development, is a variation of the Incremental Model. Several components are produced simultaneously as if they were smaller, individual projects when this model is implemented. The various elements are then put together to create operational prototypes.

• Advantages: The RAD Model provides for faster development and greater client feedback during the software development process.
• Disadvantages: The RAD Model’s application is limited because the project must be easily modularized into many steps. It also necessitates experienced developers with solid modeling and planning abilities. Issues with final component assembly could lead to unanticipated setbacks and the need to redesign components to fit correctly with the rest.

9.2. Prototype Model

The Prototype Model is based on generating software applications or system software prototypes used to visualize various software components. This model is intended to close the gap between misunderstood needs by allowing for extensive engagement and input with the user.

• Advantages: With a high level of user interaction, the Prototype Model can save time and money.
• Disadvantages: This model may produce misunderstanding among users as to the difference between a prototype and a finished product, and it may add unnecessary development time to prototype development.

Which SDLC Model Is Right For You?

Each of these SDLC Models offers a unique process for the variety of project challenges you will encounter in your career. Finding the right one depends heavily on not just the expected outcome, but the parameters by which the project is executed.

What is software development methodologies?

Software development methodologies are structured processes and techniques used to plan, design, develop, and test software applications. These methodologies provide a framework for managing the lifecycle of a software project, including requirements gathering, coding, testing, and deployment.

What is software process model?

Software process models are standardized frameworks that outline the stages and steps involved in the development of software applications. These models provide a structured approach to software development, ensuring that all essential phases are systematically addressed.

Knowing that companies are showing interest in nearshoring, but what is it and is it suitable for your company? In this article, we will discuss the advantages of nearshoring, and why a business should choose it?

What Is Nearshoring? How Is It Different From Offshoring And Onshoring?

There are three main types of outsourcing, which are Nearshore, Offshore and Onshore. Let’s see what are the different among these types.

1. Nearshore

Nearshoring is a type of outsourcing that occurs in a country close enough to the buyer’s location. In the software development services, nearshoring describes when a company outsources a project overseas but then relocates their engineering teams closer once their product is up and running so that they can continue to improve it over time and gain operational advantages over their competitors. For example, you’re based in the United States, nearshore locations could include Canada or Mexico; if you’re based in India or China, nearshore locations could include Malaysia or Thailand.

Nearshoring is suitable for companies that want to cut costs by outsourcing to areas with lower labor costs but don’t want the hassle of dealing with cultural or time zone differences. One of the advantages of nearshoring is that it also gives companies more control over the project management process.

2. Offshore

Offshoring is the same as nearshoring, except that the third party is not in close proximity. There may be a time difference involved. However, it eliminates the risks associated with hiring short-term contractors. It also means that businesses can pick and choose their developers without regard to geography. They collaborate on projects with your in-house team and consistently develop software.

Typically, offshore outsourcing involves countries with lower-cost economies. As a result, it may be the cheapest outsourcing solution, but it has some drawbacks such as cultural differences, time zone differences, and communication difficulties.

3. Onshoring

Onshoring is the opposite of Offshoring. It means moving business processes to a cheaper place inside the country’s borders. Onshoring makes a big difference in how much things cost and gives companies a lot of flexibility. Also, production coordination and communication are better and run more smoothly. Although it might be the most expensive type of outsourcing.

Overall, these are the differences among Onshore, Offshore and Nearshore:

Top Advantages Of Nearshoring

Businesses have outsourced for quite some time. Because it takes place much closer to home, nearshoring is a better alternative to outsourcing. Here are a few of the reasons why many businesses are adopting this strategic practice. So, what are the advantages of nearshoring?

1. Cost-Effective Labor Force

One of the most important advantages of nearshoring is cost efficiency. With nearshoring, you can choose a partner who will not only deliver the solution on time but also make the project more cost-effective than if it were done in-house. With the IT talent shortage getting worse and IT recruitment and hiring costs going up all the time, nearshoring is a way to cut costs, save time, and bring years of experience to a project right away. For example, if you are in the US, you can outsource nearshore in Mexico to reduce cost to 35%, according to ClickiT.

2. Time Zone 

This usually the downsides in terms of Offshore outsourcing but advantages of nearshoring.

Due to their close proximity, clients and vendors’ working hours sometimes conflict. Real-time cooperation is made easier. It is now simpler to:

• Plan meetings, engage in more constructive conversations
• Find solutions to issues more quickly.
• Increase the value of your money
• Put the project on track.

3. Culture & Communication

The ability to hire workers with similar cultural backgrounds to your business or product team members is one of the advantages of nearshoring. There won’t be any misunderstandings between coworkers owing to linguistic or cultural obstacles because you will only be conversing with speakers of your own tongue.

Also, with the close proximity, you will not be worried about the differences in culture since they are minimal, and might not even count as difficulty. Teams can work together more easily, communication moves more quickly, and exchanges are more fruitful as a result, increasing the effectiveness and standard of the outcome.

4. Better Control

When you outsource to another country, it’s simple to lose control over your business operations and miss out on possibilities and rewards. This is especially true if you’re unfamiliar with the language or culture of the nation where your outsourced staff is based.

By working with nearby personnel who are familiar with your demands and can communicate effectively with them to create competitive advantages, nearshore outsourcing enables you to maintain control over your project.

5. Reduced Environmental And Transportation Expenses

Shipping is responsible for 3% of the world’s CO2 emissions and 10% of those from transportation (Transport & Environment). Since the shipping industry isn’t doing as much as it could to reduce carbon emissions, some people think its impact could grow significantly in the next few years. So, one of the advantages of nearshoring is that businesses can make a big difference for the environment by reducing their reliance on shipping and the length of their sea trips.

Also, shipping fees tend to go up with the distance traveled, so companies can often save a lot of money by reducing the number of miles their goods have to travel to get to market.

6.Wider Pool Of Talent

When you send your project to another country, you get access to a larger pool of talent, which is one of the most important benefits. This means that there won’t be a shortage of skilled workers when you need them. Staff augmentation also lets you bring in and take out developers whenever you need to.

So, one of the most important advantages of nearshoring is that you don’t have to pay for the process of hiring and firing employees every time. Instead, you only pay for the hours they work. It lets them bring on designers or QA testers whenever they need to.

The Downsides Of Nearshoring

Nearshoring has pros and cons, which depend on your business:

• Moving large-scale production facilities or other complicated components of operations to a new market closer to home will involve significant upheaval in transferring goods and equipment and learning a new market.
• Nearshoring may be cheaper in the long run but requires an initial investment.
• If the corporation cannot set up production in the new market before closing its current operations, it may delay operations.
• Finding the proper people to work in a new market, negotiating a new regulatory system, and avoiding legal issues and financial fines for non-compliance can also be challenging.
• Finding a good partner within the new market can also be a worry. Moving from one region to another usually means breaking up a relationship with a local provider or partner that has probably worked well.

Savvycom – A Trusted Partner For Nearshore Outsourcing

If you are looking for a partner that offer top nearshore outsourcing services, then Savvycom is here to help!

Savvycom, one of Vietnam’s leading software outsourcing companies, provides Digital Transformation consulting and software solutions in banking, healthcare, and retail for domestic and international enterprises. The company, headquartered in Hanoi with three representative offices in Ho Chi Minh City, USA, and Australia, leverages technical capabilities in Vietnam to empower businesses worldwide through technology and become a top IT company in ASEAN and beyond.

The company has 100+ client endorsements, including Fortune 500 companies, more than 20 international honors and awards, and strategic collaborations with Apple, AWS, and Microsoft. Apple Consultants Network Partner in Vietnam.

What Is Nearshore Software Development Outsourcing?

Nearshoring is outsourcing to a nearby country. Nearshoring is when a software company outsources a project overseas but then moves its engineering employees nearby to improve the product and obtain operational benefits over competitors. If you're in the US, nearshore locations could be Canada or Mexico; if you're in India or China, Malaysia or Thailand.

Nearshoring is ideal for organizations who want to outsource to cheaper labor markets but don't want to deal with cultural or time zone issues. Nearshoring gives organizations more project management control.

How Is Nearshore Different From Offshore?

Hiring developers from a nearshore development center is referred to as nearshoring (situated in the adjacent region as well). Offshoring, in turn, is outsourcing to a country that is geographically distant.

What Determines The Cost Of Nearshoring?

Three main things determine the cost of nearshoring:

• Developer experience and skills.
• English fluency.
• Location.

 

How Do I Choose A Nearshore Partner?

Check out potential partners' websites and other online resources, like Medium blogs and case studies, and look for:

• Technical and business knowledge: Make sure that their developers have the right knowledge. Check to see if they've worked in your field or made things like yours before.
• Some models for making software that are available now are: Not all companies that outsource offer nearshore services.
• Track record with customers: Case studies, success stories, and customer testimonials are all good ways to tell if customers are happy.
• Business culture: Go to Glassdoor to find out what developers think of their employers. When a nearshore company has a strong developer culture, employees stay with the company longer and are more engaged.

In this article, we are going to audit the state of outsourcing in Vietnam, as well as publishing a list of 10 best software development companies in Vietnam so that you have a full view of why and how you can hire software development services in this competitive market.

1. Why Would You Outsource To Software Development Companies?

During this pandemic, businesses across the world are cutting down on local staff. Some are deferring their planned IT projects until a more stable time, and some are canceling projects indefinitely. The savior for all such companies is IT outsourcing with reasonable cost.

Outsourcing is a business practice in which certain company functions are assigned to outside service providers rather than performed in house. In other words, a company seeks external help or support to perform some of its business activities so it can stay focused on core business goals while saving time and money. In today’s tough scenario, businesses can survive through software outsourcing services – and some businesses might even be able to come out of this pandemic doing well.

The outsourcing industry has been an integral partner in companies’ crisis responses across sectors. Offshore software outsourcing development to another country such as Vietnam is a smart decision that companies should consider to maximize their productivity in a cost-effective manner. This proven approach has led to many successful projects, as it allows a business to focus on its core competencies. It should be used as a strategy that can really boost a business.

1. Cost savings: Outsourcing can often be a more cost-effective option than hiring and maintaining in-house staff. By outsourcing certain tasks, companies can reduce expenses associated with salaries, benefits, training, and infrastructure.
2. Access to specialized expertise: This allows organizations to tap into specialized skills and knowledge that may not be available internally. By outsourcing to experts in a particular field or industry, companies can benefit from their experience and ensure high-quality work.
3. Focus on core competencies: By outsourcing non-core functions enables companies to concentrate their resources and attention on their core competencies. By delegating peripheral tasks to external service providers, organizations can allocate more time and energy to strategic activities that directly contribute to their competitive advantage.
4. Increased efficiency and flexibility: Outsourcing can provide greater flexibility in resource allocation. External vendors can often scale their operations up or down quickly to meet changing business demands. This agility can help organizations adapt to market fluctuations and manage workload fluctuations more effectively.
5. Time savings: The benefits of having external helps allows businesses to offload time-consuming tasks to external providers, freeing up internal resources to focus on essential activities. This can lead to increased productivity and faster turnaround times.
6. Risk management: Outsourcing can help mitigate certain risks associated with specific functions. For example, by outsourcing IT security to a specialized firm, organizations can enhance their data protection measures and reduce the risk of cyber threats.

2. Vietnam – Ideal Destination For Offshoring

1. Pandemic Stabilization

Recognizing that its medical system would soon become overwhelmed by even mild spread of the virus, Vietnam chose prevention early and on a massive scale. The country reported one of the least cases in Southeast Asia with minimal deaths. We are also featured in various reputable newspapers for our relentless efforts and successful pandemic countermeasures. This has given businesses based in Vietnam a head start over global competitors at this time.

Update 16/5/2022:

• Over 80% of Vietnam’s population has been fully vaccinated.
• Vietnam has dropped the Covid-19 test requirement for foreign arrivals from May 15
• The recovery rate is 87.5%, while the Fatality rate is only 0.4%

2. Cost-Effectiveness

According to Innotech, outsourcing software development in Vietnam costs 50% less than the rivals from India and China. Anderson Vietnam also estimates that outsourcing per person in Vietnam is only $20,000 per person a year compared to $40,000 per person in India. These figures are convincing enough to place Vietnam as the top future contender for offshore development projects. 

As Indian companies enter the maturing cycle, the cost differential between India and Vietnam will increase even further. The outsourcing costs in India are most likely to increase in the coming years.

3. Potential Workforce

Human capital in Vietnam is witnessing positive trends. Some of the most notable highlights in Vietnam IT workforce in recent years are:

• Top 7 countries in Asia with the highest EF EPI Average.
• Top 5 countries in Asia with the fastest improvement in English skills.
• Top 10 countries in the world with the most engineering graduates.
• Top 10 countries of origin of international students in key study-abroad markets.
• Top 10 countries in Asia Pacific with the highest Human Capital Index.
• Top 10 in regional groups in global attraction and global knowledge skills.
• Top 30 countries in the world and top 2 in SEA countries for basic academic skills.

Moreover, Vietnam has a population of over 90 million people and over 60% of the population is under 30 years of age. With that being one of the countries with a young population, the Vietnamese – or Vietnamese workforce specifically – are perceived to be fast learners, dynamic, innovative, tech-savvy and flexible to changes. 

4. Knowledge & Skills

As the surge of technology is making a significant impact on every generation, more and more STEM majors, schools and academies are opened to encourage the young to invest their talents in technology and relevant sectors and hone their skills. The rapid development in both quantity and quality of IT education in Vietnam provides an extensive supply of software developers for Vietnam outsourcing companies in the years to come. 

On the other hand, Vietnam students are often appraised for their fast absorption of knowledge, most of them have good to excellent academic background as certified by standardized exams, endorsements from global recruiters, honours and awards. 

5. Vietnam’s Developers Ranking

Workers in Vietnam have extensive English language training. Because the majority of the software engineers you’ll be hiring are college graduates, they’ll have attended English classes throughout the years and will most likely be fluent in English already.

With that said, it is considerably easier to outsource to other countries when you have solid English communication abilities. If you want to work in software engineering or business process outsourcing, you should have excellent communication skills.

3. Top 10 Software Development Companies In Vietnam

A glance back at 2021 from Savvycom Team

Many organizations would be unable to increase their efficiency and achieve the desired level of satisfaction without software development companies’ assistance and technological expertise. With the ever-increasing technical demands, it’s critical to choose the right company to guide you through the process and help you find the best solutions. Here are some of the top software development companies in Vietnam in 2021 that will find the most cost-effective ways to achieve their objectives:

1. Savvycom

Savvycom is one of the leading software development companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in finance, healthcare, and retail for domestic and international businesses. Headquartered in Hanoi and with three representative offices located in Ho Chi Minh City, USA, and Australia, the company’s mission is to leverage engineering resources in Vietnam and empower businesses worldwide by utilizing the power of technology, becoming a leading IT company in the ASEAN region and beyond.

The company’s successes are reflected in its 100+ endorsements from clients, including Fortune 500 companies, in its receipt of more than 20 international honors and awards, and in its strategic partnerships with technology brands such as Apple, AWS, and Microsoft.

Services:

• Offshore Software Development
• IT Outsourcing Trends Softwares 
• Custom Software Development
• Digital Banking Solution
• QA Outsourcing & Software Testing
• Healthcare IT Solutions
• Web Application Development
• Cloud Migration Services
• Mobile App Development
• Offshore Software Testing Services
• AI Development Service

2. Saigon Technology

As a company with a strong foothold in the international IT market for 10 years, Saigon Technology has always been the most mentioned name whenever it comes to searching for software outsourcing companies in Vietnam. An important part of making this company so popular with international visitors is also because it is ranked highly in the list of 15 Best Software Companies in Vietnam by the Vietnam Software Association, along with prestigious international certifications such as ISO27001 and Certificate of Excellence in IT Development Outsourcing, by the Vietnam Software Association in May 2019.

Saigon Technology is a well-established Agile software outsourcing business in Vietnam with a mature software development process and a strong track record of returning clients from all over the globe, mostly in Europe, Australia, Singapore, and North America. Clients rely on Saigon Technology for high-quality and professional application development, web development, mobile application development, and offshore software outsourcing services.

Services:

• Offshore Software Development
• Custom Software Development
• Software Outsourcing Services
• Web Application Development
• Cloud Migration Services
• Mobile App Development
• Offshore Software Testing Services
• AI Development Service
• Software QA Testing

Learn More About Saigon Technology On:

• Website
• Clutch Profile

3. KMS Technology

KMS Technology is a U.S.-based engineering and services firm with development centers in Vietnam, founded in 2009. International clients rely on KMS Technology because of the high quality of its products and the expertise of its Vietnamese engineers.

KMS is dedicated to making a long-term social impact by partnering with non-profit organizations that provide fair and better employment opportunities for disadvantaged students. In Vietnam, the company collaborates with universities regularly, participates in IT training activities and specialized events, and sponsors scholarship programs.

Learn More About KMS Technology On:

• Website
• Clutch Profile

4. Rikkeisoft

Rikkeisoft provides software services and solutions for clients worldwide, ranging from Web/Cloud Systems, Mobile Applications, Games, and Blockchain to AI, IoT, Business Processing, and Embedded Systems. Eight years after being founded in 2012, they have successfully established three branches around Vietnam and three affiliated companies. They take pride in our mission of building better lives through advanced technology for people. Their vision is to have 10,000 employees by 2025 and become one of the top Vietnamese software development companies in Southeast Asia.

Learn More About Rikkeisoft On:

• Website
• Clutch Profile

5. Positive Thinking Vietnam

Positive Thinking Company is a global independent tech consultancy group with a team of more than 3,500 talented tech specialists on the ground in over 35 cities across Europe, the USA, Asia, Australia, and Africa, they serve clients of all sizes. They believe collaboration betters our world. Their unique open ecosystem model allows us to deliver end-to-end tech solutions. Their services draw on a wide array of expertise, including apps & platforms, security, cloud, data & analytics, hyper-automation, and digital workplace.

Learn More Positive Thinking Vietnam On:

• Website
• Clutch Profile

6. CMC Global

CMC Global is a subsidiary of CMC Corporation with the goal of bringing Vietnamese ICT products, solutions, and services to the international market. We are proud to be the leading company in Vietnam in providing a wide variety of comprehensive IT Solutions & Services, ranging from traditional services to Digital Transformation, as well as Consultancy, to organizations worldwide, having been established in March 2017 as a strategic move by the Corporation to enter the global stage.

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• Website
• Clutch Profile

7. Tpp Technology

In Viet Nam, TP&P is one of the leading, highly diversified, and pioneering IT service providers and investment management firms. TP&P applies its extensive experience and specialized knowledge to various technology startup investment and service provision strategies, including software development, development and cloud management, and business consulting.

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• Website
• Clutch Profile

8. Smart OSC

SmartOSC is a full-service e-commerce agency that was founded in 2006. Lotte, Courts, PayPal, Boozt, SpaceX, Smartbox, eWAY, Priceline Pharmacy, Club 21, Delta Apparel are among the company’s more than 500 global clients. SmartOSC has a global presence with 500+ employees and offices in Vietnam, Australia, Singapore, the United States, and the United Kingdom as of January 2017.

SmartOSC provides consulting, UI/UX design, development, and managed services, among other things. The technical and business expertise of the company is based on a few platforms: Magento, Sitecore, Adobe, Hybris, and Kentico.

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• Website
• Clutch Profile

9. NashTech Vietnam

NashTech strives to create a nurturing environment that facilitates the growth of our employees, professionally and personally. They put effort, determination and ambition into creating a second home for their employees, where everyone is encouraged to be their most authentic self.

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• Website
• Clutch Profile

10. Orient Software

Orient Software began operations in 2005. Orient is currently one of the leading software development companies in Vietnam. Orient’s strong team of 315 skilled and experienced IT experts collaborate to provide software development solutions to clients with small to corporate-sized businesses worldwide after more than 15 years of providing professional IT solutions.

Learn More About Orient Software On:

• Website
• Clutch Profile

Furthermore, global circumstances increase the demand for online healthcare services. Telehealth websites and mobile apps are beneficial for modern people. Instead of scheduling an appointment with a doctor, waiting in a long line, or risking exposure, they can schedule an appointment with a therapist and receive care in a few clicks.

Telemedicine software solutions will also benefit doctors and hospitals. Private medical practitioners will no longer need to rent office space, and healthcare facilities will be able to reduce the number of hospitalizations. Furthermore, both parties gain a powerful channel for distributing their services.

However, telemedicine software has unique characteristics that you should be aware of. So here’s a comprehensive guide to developing telehealth software. We’ll review how to build a telemedicine platform, key features, and monetization strategies.

1. So, What is Telemedicine?

Instead of in-person visits, Telemedicine uses electronic communication technologies and software to track and treat patients. Simply put, Telemedicine is a method of providing medical care to patients over the internet. Its primary goal is to offer people on-demand access to various medical services while reducing doctors’ workload. Telehealth or Telemedicine software solutions allow patients to contact their doctors from afar at any time, and healthcare practitioners can better manage their resources and attract new patients without incurring high costs.

1.2. Overview of the Telemedicine Market

The telemedicine market is currently at its peak of success, with many optimistic predictions. In 2021, the global telemedicine market was worth $72.7 billion, and it is expected to grow to $168.4 billion by 2026. The reason for this is that virtual care delivery is a reaction to social distancing demands that have been implemented in many countries. Furthermore, Telemedicine enables healthcare providers to communicate with patients more effectively and provide better solutions to their health concerns.

1.3. Technologies Behind Telehealth / Telemedicine Software

• Conferencing via video – Sometimes, patients already know what their symptoms mean and want the diagnosis confirmed. Users can receive virtual consultations via the camera of mobile devices, desktop computers, or web applications, thanks to advances in audiovisual technology. Instead of standing in line, they can schedule an online consultation with a doctor.
• Store-and-Forward – This functionality allows recording, storing, and transmitting patients’ medical records to various healthcare professionals at another location to create a treatment plan without requiring an in-person visit. It’s also great to examine visible symptoms like bruises using photos.
• RPM – Remote patient monitoring (RPM) refers to using cloud computing technology to collect patient-generated data and transmit it to doctors. RPM solutions aim to detect symptoms early and provide medical assistance to patients remotely.

2. Strategies for Monetization

Without funding, no project idea will last long. The most common method of monetizing your platform is to charge patients a fee each time they pay for a visit. The cost of a consultation will vary depending on its length and the doctors’ specialties. For example, the Doctor on Demand service deducts 25% from transition fees, and patients pay $75 for a 15-minute consultation with a physician. When it comes to medical establishments, it is common practice to take a certain percentage to hospitals each month for each employee who uses the software. Again, the Doctor on Demand platform charges a monthly fee of $1 per specialist.

Other revenue models for telehealth software development are listed below.

• Annual subscription – Patients pay a yearly fee and are charged for any medical care they receive.
• Monthly charge – According to this model, patients and providers pay monthly fees to use the software.
• Franchising – If your market is saturated, consider shifting your emphasis and franchising your system to other countries.
• A fee per minute – This approach necessitates charging patients a per-minute fee for doctor consultations.

3. Telemedicine Technology Trends

The majority of current development trends can be beneficial to the development of telehealth software. Artificial intelligence, the Internet of Things, Big Data, and other technologies will help improve healthcare delivery. Let’s take a quick look at the most popular technological solutions.

• Artificial Intelligence –  AI-powered chatbots are designed to provide patients with immediate care. They can consult with patients about their symptoms and send the record to their doctors for treatment planning if necessary. Chatbots can also answer questions about physician schedules, competency, and other topics. According to research from Accenture, hospitals using AI-based apps can save around $150 billion annually.
• Internet of Things – Connecting IoT sensors to various mobile devices will improve health condition monitoring, diagnosis, prescription adherence, and more. Patients, for example, can track temperature, blood pressure, heart rate, and other attributes using wearables and other medical devices and send the results to their therapists for further analysis.
• Augmented Reality (AR) – AR technology will allow for the multidimensional visualization of healthcare data. For example, detecting disease using image recognition can assist doctors in diagnosing patients with real-time screening analysis that is as accurate as expert analysis.

4. Types Of Telemedicine Software?

The primary goal of telemedicine software development is to provide an appropriate environment for physician-patient relationships. Telehealth software solutions are commonly classified into four types:

• Urgent care on demand – Digitalization benefits emergency care the most. According to studies from Mckinsey, approximately 20% of emergency care provided in healthcare facilities can be delivered online. To build a custom telemedicine app of this type, you’ll need to include video and audio support, Google calendar integration, schedule-related features, document management, and EHR integration.
• Care that is pre-planned – This type is used for a patient checkup following an in-person visit. The doctor treats the patient in accordance with their treatment plan. If users have treatment-related questions, they can send text or voice messages to the physician (e.g., drug schedule, result monitoring, etc.).
• Mental assistance – These days, such software is gaining popularity because many people suffer from physical and psychological exhaustion. They enable you to provide mental health services to users in the comfort of their own homes, making them feel safe and secure.
• Self-care technology – Numerous self-care applications are available, but only a few offer professional support to patients. This software allows users to monitor their health, such as blood pressure, heart rate, oxygen level, or the number of pills they need to take. Such platforms have demonstrated their effectiveness in treating chronic health conditions such as asthma and cardiac failure. Such solutions, however, are linked to IoT devices.

5. Telehealth Software Development’s Technical Aspects

So, how do you actually create Telemedicine Software? Whatever healthcare solutions you choose, all telehealth platforms include the patient’s and doctor’s perspectives. The features required for each role are listed below.

5.1. Features of Telemedicine Software for Patient Registration

First and foremost, there is the sign-in feature. Because telemedicine applications contain sensitive information, the registration process should adhere to EHR integration standards and allow for document uploads. Patients can sign up via email, mobile phone, or third-party services like Facebook. To ensure data security, two-step authentication via SMS or email is essential. Furthermore, it is critical to include data privacy agreements that are visible on the main screen.

Profile administration

Following registration, a user should be able to add personal information such as name, age, gender, personal preferences, location, and the ability to synchronize with existing hospital records. The user’s EHR is required information in the profile. This information allows physicians to evaluate a patient’s medical conditions and examine their therapeutic history. Patients can schedule appointments with doctors.

Video conference

This is an essential feature in the development of telemedicine software. Remember that video and audio should be of high quality so doctors can see the symptoms and correctly diagnose the patient. Furthermore, data transfer speed may vary depending on the user’s connection, so your software must adjust the video quality automatically to provide flawless information delivery. RTMP (Real-Time Messaging Protocol) and WebRTC are two streaming protocols that can be used for this purpose (Web Real-Time Communication).

Messaging via text

Minor issues like a runny nose or cough do not necessitate a video call. Instead, patients may text a doctor for advice. This option allows physicians to respond in their spare time without interfering with other patients. Users can also attach photos and files for visual cues. Twilio is an excellent tool for implementing live chat.

Scheduling

This feature will allow patients to monitor and manage their doctor’s appointments. Users should be able to see the physician’s available time, schedule meetings, and cancel their appointments. Users receive a confirmation email or text message once the appointment is approved. If you’re creating a telemedicine app, use the Google Calendar API to integrate Google Calendar. As a result, patients can reschedule meetings and see the doctor’s available time slots directly on the calendar.

Notifications

Aside from calendar notifications, users can receive custom notifications for monthly visits, prescription renewals, and physician queries. Furthermore, they will assist you in informing your customers of future updates.

Reviews

Patients should be able to leave feedback about their doctor visits. Include a rating system that allows users to rate the doctor (for example, on a scale of one to five) and leave a comment. Physicians can monitor their performance and, if necessary, improve the quality of their service based on user feedback. Furthermore, reviews from other customers will assist users in making more informed decisions and locating trustworthy specialists.

Payment information

Payment functionality is critical in the development of telemedicine software. Payment methods such as PayPal, Stripe, and Braintree can be integrated, as can custom payment services or third-party services such as MasterCard or Visa. The primary advantage of payment gateways over third-party providers is that they handle fast, secure transactions and are simple to implement. Suppose you want to create a custom system service. In that case, you must adhere to the most recent data regulation and security protocol. In this case, working with a professional software development company is preferable.

5.2. Features of Telemedicine Software for Doctors

Some telemedicine app features are also available on the doctor’s side. Some are similar to the patient’s side, while others are not. Let us now consider what features should be implemented by the physician. Some functions are identical to those on the user side, while others are distinct.

Profile of a Doctor

Physicians must also create a profile, including their specialization, qualifications, experience, and other information. Client rates and reviews, as well as shifts, should be included in the profile.

Electronic Health Records (EHRs)

Before meeting with patients, doctors must be granted access to the patient’s EHR. As a result, they can accurately diagnose their clients’ health conditions. Make sure that physicians cannot download medical files from your database. Both of you will be fined if your phone contains sensitive information.

Communication

The development of telehealth software necessitates two-way communication between patients and physicians. Doctors should also be able to text or call patients to inquire about test results, treatment progress, or general well-being. If a planned physical examination is required, the doctor should be allowed to schedule an appointment with the client on their own.w

Exchange of internal data

The doctors may have to refer their patients to a different specialist. They should be able to exchange client information between departments in this case. Your job is to ensure that internal data exchange runs smoothly and securely.

6. What Are Telemedicine Software’s Advantages?

Patients, doctors, and healthcare providers all benefit from telemedicine software. The most common reasons for incorporating telehealth software development are accessibility and seamless delivery of healthcare services. Consider the primary benefits that each party can obtain from your software.

6.1. Advantages for Patient’s Convenience

Patients receive high-quality care at their preferred location. It means there’s no need to make an appointment ahead of time, waste time on the road, or stand in long lines. It is crucial for people living in remote areas without nearby healthcare facilities.

Accessibility

People worldwide can now access healthcare services anytime, from remote-controlled medical robots used to simplify surgery to more basic healthcare apps used to monitor blood pressure. Going even more profound, some healthcare technological solutions will be able to educate people on best practices.

Service cost savings

Telemedicine solutions are less expensive than traditional methods of care. During the COVID-19 pandemic, healthcare providers were compelled to offer packages that included various telehealth services to provide immediate medical care at a reasonable cost.

Increased Revenue for Healthcare Providers

Video meetings save time and money over in-person meetings. Healthcare facilities can save money on rent, administrative costs, sourcing suppliers, and hiring personnel. Furthermore, the study found that telehealth applications cut maintenance costs by 94% on average. Hospitals, on the other hand, will see increased client flow due to patient reduction, allowing them to earn money in the short term.

Improved cross-team collaboration

As telemedicine software is updated, healthcare practitioners can learn new processes and gain sophisticated skills to manage telehealth systems effectively. Furthermore, this intention may encourage employees to attend specialized courses, resulting in improved team collaboration in the future. In fact, personnel miscommunication is responsible for approximately 80% of errors. A well-educated and strong team will assist healthcare institutions in making the most of telemedicine software, thereby improving patient care.

Fewer visits canceled

It irritates clinic staff when patients fail to attend scheduled meetings or cancel or reschedule them at the last minute. According to research, such appointment cancellations cost healthcare providers more than $150 billion annually. Telemedicine software development allows physical meetings to be replaced with virtual ones. Patients’ cancellations will be communicated to doctors via push notifications or in-app calendar notifications. As a result, they can consult with more people without wasting time.

6.2. Advantages for Doctors Effective time management

According to research, more than 15% of physicians experience work burnout. With in-app schedules and push notifications, better time management and work-life balance will be possible. With a single click, doctors can change their schedules, browse their patients’ medical histories, schedule meetings, and apply for sick days. It will lead to more thorough patient examinations and prescribed care.

Keeping medical records

Doctors can effectively access and store patients’ EHR with custom telemedicine software. It’s difficult to find clients’ records or hand them to other specialists for accurate medical prescriptions in a traditional hospital. Digital solutions will ensure continuous data access and transmission.

Paperwork administration

Healthcare solutions are helpful not only for medical issues but also for automating administrative processes in businesses. Because most back-office functions will be automated, there will be no need to fill out various forms and internal documentation. Breaking down this inefficiency will result in increased profits and better treatment.

7. Challenges In Telemedicine Software Development

As you may have noticed, telehealth software development provides significant advantages to users. However, there are some details you should be aware of, and let’s take a closer look at each.

7.1. Security

First and foremost, you must implement all security measures to safeguard personal user data. For this purpose, you can use various telemedicine tools, protocols, and algorithms. Here are some key points to think about:

• Maintain conformity – Ensure that your telemedicine platform meets all regulatory standards, which we’ll review below.
• Encryption – Encrypt your data to lessen the impact of careless data loss and cyber-attacks. AES 128 Bit and SHA 256 are the most widely used standards for telehealth app development.
• Self-assessment – To ensure complete data security, perform self-examination and look for vulnerabilities whenever software is upgraded.
• Patient education is essential – Patients should also be aware of data security standards and include strong passwords, virus protection, and firewalls on medical consultation devices where applicable.

7.2. Compliance with Regulations

Telehealth software solutions must be implemented in accordance with specific regulatory and medical standards because they process personal patient data. These rules are designed to safeguard critical information and prevent cybersecurity breaches in real-time.

Here is a list of country-specific standards with which your telemedicine software must comply.

• HIPAA (United States)
• PIPEDA (Canada)
• IEC 62304 (international)
• DICOM (international standard to manage medical imaging data)
• ICD-10 (international classifications of disease)
• Directive 95/46/EC on Data Protection (Europe)

Your medical application should also meet FHIR and OWASP standards. Furthermore, secure messaging and encrypted data transmission protocols must be used to transfer patients’ EHRs and EMRs within and outside healthcare organizations.

7.3. Video High Definition

Full HD video is critical in the event of physical harm to patients. Poor video quality can lead to incorrect symptom interpretation and diagnosis. As a result, a good device camera is essential. In some cases, however, invalid code and bandwidth issues may result in poor video quality. Consider an IT vendor who understands how to build a telemedicine system with video chat support and has extensive streaming experience.

8. Process of Developing Telehealth Software

Because it directly affects people’s health, developing this software requires significant responsibility and careful planning. As a telemedicine software development company with experience in the healthcare industry, we’ll go over the steps you should take to create a user-centric app.

Step 1: Planning

You’ve decided to create your own telehealth platform. However, before you choose the right type, platform, or technologies, define the purpose of your future product. In the case of telemedicine apps, it is a benefit you will provide to your potential users. For example, you may wish to create a healthcare solution that includes powerful video conferencing software to facilitate patient-doctor communication, or you may wish to create pharmacy management software to automate pharmacy-related processes, or you may require an all-in-one solution.

When you’ve identified the problem that needs to be solved, it’s time to look at your main competitors and market leaders. Pay attention to their strengths and, more importantly, weak points to determine what you can do better to attract more leads. The following step is to identify your target audience. Again, careful analysis and research will enable you to segment your audience and develop features that meet their expectations and demonstrate demand. In addition, you must consider high-level integrations (for example, with EHR), collect compliance requirements for relevant regulations such as HIPAA, and determine the software license required.

Step 2: The Discovery Phase

Because clients and software engineers may have different visions of required features, the Discovery phase is critical for telehealth software development. At this point, Business Analysts examine your company’s goals and project concept. They create a project specification that includes information about the product, such as features, design, technology stack, number of third-party integrations, and so on. Finally, after all the data has been analyzed, you will be given a final estimate.

Step 3: User Interface/UX Design

UI/UX designers define the core user scenarios (e.g., video meeting setup, prescription renewal), visualize the main features of telemedicine software, and plan convenient customer journeys for all users involved at this stage. Then, they create an app prototype that shows how the platform will look, and perform and what it can do in the future. Finally, appealing user interface elements are created by designers.

Step 4: Product Development

It is the most critical and challenging aspect of developing a telemedicine platform. It stands for developing the product’s server-side, integrating APIs, and converting an appealing UI design into functional software. It is preferable, to begin with, a minimum viable product (MVP) to test the software concept and launch the app with minimal investment. The core concept of MVP is to create a telemedicine app/software with enough features to attract first users and gather early feedback. Furthermore, once you start making money, you can reinvest in adding advanced features.

Step 5: Testing

The telemedicine platform cannot be deployed without extensive testing. QA engineers conduct multiple tests at this stage to verify the product’s functional requirements, find and fix potential bugs and malfunctions, and ensure software security and regulatory compliance. The results are then entered into the bug report and transferred to software developers for further correction. Before the final client review, QA engineers ensure that all functionality works as expected and meets project requirements.

Step 6: Delivery & Upkeep

After completing all previous telehealth software development stages, it is time to deliver a finished application to customers and stakeholders for testing and feedback. If necessary, you make improvements based on the information gathered. Due to the complexity of telemedicine solutions, it is preferable to continue working with the dedicated development team. They can keep the software running smoothly by adding new features or improving existing ones, fixing bugs, and providing seamless software performance. Furthermore, system security and standard compliance must be checked regularly.

What Is the Price of Telemedicine Software?

The cost of developing telehealth software varies depending on the type of software, the complexity of the features, the design, the integrations, and the rates of software developers. When all of them are considered, the average cost to build a telemedicine platform will range between $150,000 and $250,000+. Unfortunately, no specialists can give you an exact price until they know what functionality you require and what type of Telemedicine app you want to develop.

Key Features Of A Telemedicine Software

Because all telehealth platforms include the patients' and doctors' perspectives, here are the features that each side requires to be able to complete their desired actions:

For Patients

• Sign-in: To protect the patient's sensitive information
• Profile administration: To allow the user adds more personal information and sync with hospital records.
• Video conference: To assist doctors in diagnosing the patient from their symptoms.
• Text messaging: To allow a user to describe and receive advice from doctors for minor symptoms.
• Scheduling: To let patients monitor and manage their doctor's appointments.
• Notifications: To notify patients regarding their appointments, physical queries, etc.
• Review: To let users rate the services they received.
• Payment: To provide secure and convenient payment methods for users.

For Doctors

• Doctor profile: To let doctors create their profiles with information regarding their specialization, qualifications, etc.
• Electronic Health Records (EHRs): To provide access to patient's medical records for accurate diagnosis.
• Communication: To facilitate two-way communication between doctor-patient via text or call.
• Exchange of internal data: To allow the exchange of client information in case the doctor needs to refer their patient to a different specialist. 

What Is The Process Of Telehealth Software Development?

There are 6 steps an experienced telemedicine software development company will follow to ensure the delivery of a reliable and useful healthcare app:

1. Planning: Define the purpose of your desired product & identify your target audience
2. Discovery phase: Business analysts examine your business's goals & project concept to create a project specification.
3. UI/UX design: Define user flows, and features and visualize the app's interface.
4. Product development: Develop the product's server-side, integrate APIs and convert the UI design into functional software.
5. Testing: Conduct multiple tests to verify the product's functions and fix bugs.
6. Delivery & upkeep: Deliver the final app and make improvements if required. 

How Can A Telemedicine Software Monetize?

Telemedicine software's main goal is to provide patients assess to healthcare services and reduce the workloads for doctors. Telemedicine software may follow one of the revenue models below:

• Consultation session charge - The software charges a patient a fee every time they pay for their consultation.
• Annual subscription - The patient pays a yearly fee and is charged for the medical services they use.
• Monthly charge - Patients and providers are charged monthly fees to use the software.
• Franchising - If your market is saturated, consider franchising your system to other countries.
• A fee per minute - A patient is charged with a per-minute fee for doctor consultations.

What Are The Challenges For Telemedicine Software Development?

Telemedicine software may bring ample benefits, yet there are some serious concerns regarding its development as well.

Security

Because software like this contains a lot of sensitive information about users, it would require top security methods. 

Compliance with regulations

Asides from an app's security methods, a business needs to be aware of the regulations their app would have to compliant. Here are some of the country-specific standards that telemedicine software may need to comply with: IEC 62304 (international), DICOM (international standard to manage medical imaging data), Directive 95/46/EC on Data Protection (Europe), HIPAA (US), etc.

High definition videos

The video's quality is extremely important to assist doctors in diagnosing their patient's physical symptoms. 

But it’s high time that firms realize that software testing has a life cycle of its own.

1. SDLC vs. STLC (Development vs Testing)

The complete journey of a product from its start to becoming the final product is taken care of by SDLC. Among the various phases of SDLC, testing is one of the most important. Software testing is a part of SDLC. And this part has got its own life cycle—STLC. 

So how is SDLC different from STLC?

1.1. SDLC

• Focus on building a product
• A parent process
• Understanding user requirement and building a product that is helpful to users
• SDLC phases are completed before testing
• End goal is to deploy a high-quality product that users can use

1.2. STLC

• Focus on testing a product
• A child of SDLC process
• Understanding development requirements and ensuring the product is working as expected
• STLC phases start after phases of SDLC are completed
• End goal is to find bugs in product and report to development team for bug fix

2. What is STLC (Software Testing Life Cycle)

The Software Testing Life Cycle (STLC) is a sequence of specific actions performed during the testing process to ensure that the software quality objectives are met. The STLC includes both verification and validation. Contrary to popular belief, software testing is not just a separate activity. It consists of a series of methodological activities to help certify your software product.

The STLC is a high-quality strategy directly associated with and part of the Software Development Life Cycle (SDLC), which in turn is a framework with 6 core principles:

1. Requirements analysis;
2. Planning;
3. Engineering and design;
4. Software development;
5. Testing;
6. Deployment.

In simple terms, the SDLC is a cycle where actions at each stage are reflected in subsequent stages. 

The STLC also has its stages and most closely intersects with the SDLC at the fifth stage, which I’d describe below.

3. What to use the STLC for

By knowing that the STLC is a set of measures, we can assume that it includes various stages, such as planning, control, implementation, standardization, and so on. All this leads us to the fact that the STLC is needed not only to test the developed product but also for the following: 

• Removing its shortcomings during the earliest and most profitable stage of development;
• Increasing the quality and transparency of the development process;
• Maximizing control over the quality of the product being developed at all stages of the SDLC;
• Influencing the application of Agile, Scrum, SAFe, etc.;
• Delivering a quality product not only to the Client but also to the Users.

4. The role of the STLC in the SDLC

As mentioned earlier, the Software Testing Life Cycle and the Software Development Life Cycle are closely related to each other, but they simultaneously pursue different tasks of the same goal, namely: 

• collecting the requirements in the desired form and developing the declared functionality (as for the SDLC);
• analyzing requirements, assisting the client and the development team, and confirming the quality of the implemented functionality (as for the STLC).

The overall goal is client satisfaction and achieving the highest possible score at the Verification and Validation stages.

Where the SDLC and the STLC lines move in parallel for most of the project but begin to converge rapidly during the software development phase with deep synchronization during the SDLC Test phase. This graph is relevant to many different types of projects, not just large or independent ones, and will remain the same for the implementation of a task within a project and reverse for a project with a huge number of iterations (but in this case, the lines will diverge and converge more often).

5. What are the STLС phases

The STLC has several interconnected phases and is generally very similar to the SDLC system. These phases are sequential and are called: 

1. Requirement Analysis;
2. Test Planning;
3. Test Case Development;
4. Test Environment Setup;
5. Test Execution;
6. Test Cycle Closure.

Let’s take a closer look at each of them.

5.1. Requirement Analysis

Requirements analysis is one of the most important phases because this is when you can fix project flaws almost completely free of charge. The requirements analysis phase also identifies the potential need for automated testing and allows making economic calculations of labor costs based on the project estimation. This is also when the Entry Criteria and the Exit Criteria are discussed and documented. 

5.2. Test Planning

At this phase, a test plan is formed. This is the concretization of all phases of the testing itself, timing, participants, and responsibilities. As a result of this, we receive data on:

• the participants and their roles in testing;
• the necessary testing tools;
• the necessary test environment.

5.3. Test Case Development

Test development implies using manual and automated testing to achieve full coverage of the software’s functionality, with the process being based on the requirements set up beforehand. More often than not, the test cases for automated testing are written separately, since the cases for manual testing are described in the form of cheat sheets.

5.4. Test Environment Setup

The test plan makes it clear which test environment should be used. At this STLC phase, operating systems and virtual machines are configured, testing tools like Selenium, Katalon Studio, and the project’s test environment and databases are deployed. We also make requests to DevOps and Admins if support is needed.

5.5. Test Execution

Tests are performed based on ready-made test documentation and a correctly configured test environment. All test results are recorded in the Test Management System. Negatively passed tests, where the actual result differs from the one expected, are recorded as errors and transferred to the development team for revision with subsequent rechecking after correction.

5.6. Test Cycle Closure

The last phase of the STLC is the final generation of testing reports for the client. These should include the time spent, the percentage of errors found to positive test results, the total number of errors found and fixed. As far as the testing department is concerned, this is the moment for analyzing its work, summing up the results, analyzing its productivity, and the opportunity to make suggestions for improving the quality of testing. 

6. Conclusion

The fact that the closest point of convergence happens during the “Test Execution” stage is direct proof of the importance of testing in software development. At the same time, we see that some phases of the STLC and the SDLC are very similar to each other both in name and in meaning, which suggests that the Software Testing Life Cycle and the Software Development Life Cycle are inevitably linked at all stages of software product development.

1. The Definition Of Personal Health Record software

A personal health record is a collection of information about your health. If you have an immunization record or a folder of medical papers, you already have a basic, traditional personal health record. But that traditional personal health record comes with a major drawback: you rarely have them with you when you need them.

Electronic personal health records also known as personal health record software (PHRs) or personal medical record software remedy that problem by making patients’ health information accessible anytime via web-enabled devices, such as computers, smartphones and tablets through a premade personal health record template.

In general, PHR needs to include anything that helps doctors and patients manage their health:

• Doctor’s names and phone numbers.
•  Allergies, including drug allergies.
• Medications, including dosages.
• List and dates of illnesses and surgeries.
• Chronic health problems, such as high blood pressure.
• Living will or advance directives.
• Family history.
• Immunization history.

Personal Health Record software The software can also add information about what the patient’s doing to stay healthy and prevent disease, such as:

• Home blood pressure readings.
• Exercise and dietary habits.
• Health goals, such as stopping smoking or losing weight.

Furthermore, IT in healthcare has been promoted as a route to giving patients more control over their health because of the availability of various mobile apps and information platforms.

2. Types Of Personal Health Record software

Updating Personal Health Record Online

There are 4 different types of PHR – differentiated by architectures: provider-tethered, payer-tethered, third-party, and interoperable PHRs:

• Provider-tethered PHRs are tied to a healthcare organization’s internal record system.
• Payer-tethered systems are tied to a given payer’s system.
• Third-party PHRs are used to aggregate data from different, unconnected sources.
• Interoperable PHRs represent a “future type” of record “populated with data from all regional data sources via standards-based automated data exchange. The connections with these sources would create a record that is more complete than any individual repository (e.g., electronic health records, payer claims databases).

Jio Health – Telemedicine App Built by Savvycom

Professional Healthcare Solution By Savvycom

Contact us to get a free initial consultation regarding your project and its estimation in terms of cost, timeline, and needed technical talent.

3. Personal Health Record Software Development Cost?

According to Center for Information Technology Leadership (CITL), there are 2 primary components in a PHR system: infrastructure, and applications utilizing the infrastructure.

The PHR infrastructure includes components and functions that allow patients to collect and share their health information. Personal health record applications are any functions within a personal health record system that allow patients to manage their own health and the health of others (dependents) through education and monitoring as well as enable the exchange of data with others regarding their health and well being. Privacy and security functionality is embedded throughout the PHR system in both infrastructure and applications.

These components form the basis of a PHR function taxonomy and can range from 300,000$ to 800,000$ depending on the features and complexity of your PHR system as well as doctor & patient app.

1. Infrastructure functions for healthcare information exchange:

• Information collection.
• Information sharing.

2. Application functions:

• Information self-management.
• Information exchange.

The cost to develop a personal health records software is, therefore, the sum of infrastructure-function development cost and application function development cost.

4. Infrastructure-Function Cost

Online Personal Health Record replacing traditional one

IT infrastructure is a set of components that are the foundation of an IT service; typically physical components (computer and networking hardware and facilities), but also various software and network components the components required to operate and manage IT environments.

As the above indicate, the infrastructure of PHR allows patient and external parties (such as doctors, patients’ relatives, etc) to view patients’ health information by pulling and aggregating data from multiple data sources such as payer, provider, pharmacists, as well as inserted information from the patient and health monitoring devices.

 Some specific examples of infrastructure functions include sharing test information, creating complete medication lists, secure messaging (secure Internet email), and supporting private and secure access to data and applications within the PHR.

The infrastructure components adapted in personal health record software includes data centers, client user authentication and authorization, Internet connectivity, user interfaces, user support, record matching services, and data storage.

4.1. Data center

A data center is the physical space that houses the servers, network infrastructure, and related hardware and all other application infrastructure required for a Personal Health Record Software.

4.2. Client user authentication

Client user authentication and authorization includes user login security as well as access controls.

4.3. Internet connectivity

Internet connectivity is the cost required for the PHR system to provide data exchange with healthcare stakeholders and web-based access to its users.

4.4. User interfaces

User interfaces are the displays that a user sees when they login and navigate the site.

4.5. User support

User support depends on the size of the PHR. User support consists of the help desk and on-going training provided to PHR users. The cost of user support is an estimate of the number of user support contacts per user of a pre-existing PHR system.

4.6. Record matching services

Since Personal Health Record Softwares combine disparate sources (i.e., combining provider data from multiple EMRs, payers, labs, imaging centers), record matching services are needed.

Additionally, any PHR will need interfaces to external applications to retrieve patient data located across disparate ancillary systems:

• For provider-tethered and payer-tethered PHRs, these interfaces are minimal, estimated to be only 20% of the full cost of building an interface from the beginning because they are accessing their own data in an electronic format.
• For third-party PHRs, many interfaces are required because they do not have access to clinical or administrative data without interfacing to a provider or payer system. Therefore, the interface cost of third-party PHRs is very high.
• For interoperable PHRs, only one data interface would need to be created for each type of interface because all data and transactions are standardized between PHRs and other healthcare stakeholders (e.g., lab, pharmacy, payer, etc.).

4.7. Data storage

Personal Health Record data repository is considered as the primary data storage for different PHR systems. The PHR data repository consists of all data entered by users, data from messaging, and pointers to all primary data sources. Additionally, third-party and interoperable PHRs require additional storage capacity for clinical and administrative data. This repository is necessary since neither type of PHR is assumed to have access to healthcare data, unlike provider-tethered and payer-tethered PHRs, which have existing data warehouses. The data storage consists of the actual data as opposed to pointers to ensure constant access to the data.

The infrastructure cost is, eventually, the sum of these components’ cost. Therefore, understanding these components would help you estimate the infrastructure cost better.

5. Application-Function Cost

Multi-Functions App can attract most user

A PHR application is any function within a PHR system that allows patients to learn about, monitor, manage their own health and the health of others, and to engage in two-way data exchange transactions with others regarding their health and well-being.

PHR applications for any healthcare or wellness activity are feasible and may support clinical and administrative types of functions. For example, PHR systems could include a health maintenance function and an insurance verification function.

6. Detailed cost table

After breaking down the components of PHR’s development cost, we make an estimation of the total cost by architectures as follow:

Application Costs

Based on our approach, we estimated that the average software development cost for a proto-typical PHR application or service was $450,000. This was based on an estimated design, develop, build, and testing average cost of $150,000. This estimate was then multiplied by 300% for management and support costs, as well as core data development costs.

Infrastructure Costs

For our cost model, we developed one-time acquisition and on-going annual costs for all infrastructure components based on PHR architecture (Table 1). Significant cost drivers are highlighted in italics. The costs for these identified components are an order of magnitude greater than for other cost components. To understand the costs per user across architectures, we took the total cost and divided it by the 1,000,000 users per architecture. We then projected the estimated acquisition and annual cost per user by architecture.

Source: US National Library of Medicine National Institutes of Health

The cost of developing a PHR software is seemingly high due to its complexities. However, that also comes with greater returns.

7. Finding A Reliable PHR Software Development Company

The term “Personal Health” has been in 2020 the top concern of many even if you were the next president of the United States or just a common folk living in a small country. Online Personal Health Record Software  is going to be a must coming into 2021, if you wish to keep up with this trend you shall need to be updated with the latest technology. Are you currently in search of a partner to help you create your own Personal Health Record Software? Feel free to contact us. At Savvycom we have a highly professional and experienced team to help you at every step.

Savvycom estimation cost table for developing PHR App

1. Insourcing and Outsourcing: What do they mean?

Every role in every company can be done one of two ways:

• Insourcing is the assignment of a project to a person or department within a company rather than to a third party. Insourcing is the opposite of outsourcing.
• Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.

Both options have pros and cons. In many cases, especially for software development, it comes down to whether you have or need to hire the in-house skills, or whether you can find those skills outside the organization.

1. How Insourcing Works

In practice, insourcing is used to describe a task or function that a company could have outsourced to a third party. As a rule, insourcing provides companies with more control over decision-making and the ability to move more quickly and precisely, especially if institutional knowledge factors into some elements of the job.

Since the 1990s, companies have increasingly outsourced rather than insource, seeking cheaper labor in developing nations. To the extent that employees’ time costs a company more than it would pay a third party to do the same work, insourcing can produce higher expenses.

The decision also depends on the best allocation of resources across a set of tasks as well. Employees who are qualified to undertake a project if it is insourced might be more profitably deployed on other projects.

2. Why Outsourcing is such a popular choice?

In 1989 Outsourcing was first recognized as a business strategy

“Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. The concept, which The Economist says has “made its presence felt since the time of the Second World War”, often involves the contracting of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call centre support). The practice of handing over control of public services to private enterprises, even if on a short-term limited basis, may also be described as “outsourcing”.” – Wikipedia.com

Outsourcing was first recognized as a business strategy in 1989 and became an integral part of business economics throughout the 1990s. The practice of outsourcing is subject to considerable controversy in many countries. Those opposed argue that it has caused the loss of domestic jobs, particularly in the manufacturing sector. Supporters say it creates an incentive for businesses and companies to allocate resources where they are most effective, and that outsourcing helps maintain the nature of free-market economies on a global scale.

Outsourcing can help businesses reduce labor costs significantly. When a company uses outsourcing, it enlists the help of outside organizations not affiliated with the company to complete certain tasks. The outside organizations typically set up different compensation structures with their employees than the outsourcing company, enabling them to complete the work for less money. This ultimately enables the company that chose to outsource to lower its labor costs.

2. How to decide: Outsource vs. Insource?

1. How “core” is this function?

In every business, there are core and non-core roles.

For example, an insurance company needs actuaries and risk assessors. Insurance companies also need customer service teams and salespeople. All of these are essential to the operation of the business. Outsourcing any of these functions means one company is entrusting a core part of what makes them successful to another company, which is always risky.

However, an insurance company also needs reception staff, janitors, and other non-essential teams. Do they need to hire these in-house, or can they outsource? Since the late 80s, the argument has been to outsource that sort of work. In many ways, for many large corporations and small and medium companies, software development work sits between a “core” – essential function – and non-core, and therefore something that is outsourced – or some of the work outsource and the rest managed in-house. Software and IT is essential for the operation of many companies.

And yet, many companies prefer to outsource a percentage of the work they require. Software often plays a key operational and strategic role in the growth and service delivery plans for many companies. Even most financial, health, and insurance sector companies can’t manage without chief technology and chief data officers. Behind those in senior management roles are whole teams delivering on core objectives. And often, working with them, are outsourced teams making a substantive and significant contribution.

In smaller companies, this hybrid approach may not be affordable. Therefore, the outsourcing model, from a cost perspective, is the preferred route. 

Key takeaways:

• Insourcing is better when the role is a core business function and for one or more reasons (reduce risk, compliance, company culture, etc.), you need to keep it in-house.
• Outsourcing is better when a role is non-core and you would benefit from lower costs, increased innovation or there is strong competition for talent (e.g. as is the case with software developers).

2. What will it cost?

Since the outsourcing movement trend started, it was about cost. Keeping internal, in-house – also known as insourcing – costs low.

When you have an insource team, you have to factor in the following costs:

• Gross salary
• Tax and other mandatory government contributions
• Pension contributions
• Office and IT costs

Recruitment and training are also costs that need to be taken into account. And bonuses and expenses, potentially, depending on the role and competition for the talent that you need internally. If you are struggling to recruit for a specific role, then chances are your competitors are eager to hire those same skills, forcing up the salaries and other benefits that companies need to offer.

When you outsource, you agree on a fixed hourly or daily rate for the life of the contract, with potential adjustments depending on flexible elements of the project/contract, and that is it. The firm or individual you have partnered with are managing their own costs (such as office overheads and pension contributions, etc.) as a percentage of the payment agreed between both parties.

Software developers – especially those with several years of experience and niche skills in competitive fields (e.g. data scientist engineers and blockchain developers) – are in demand. Recruiting the talent you need can be difficult. It is also worth questioning whether you need those skills in-house, or if outsourcing would be a more effective solution?

Developing a complex software platform or product could require a team of 5 or more. Going the insource route means determining the skills required, the right salaries to offer, recruiting the team, and paying those salaries for at least one year. Whereas, when you go the outsource route: all of the recruitment work – and associated costs – have been taken care of by a third-party. Once the project is complete, your obligations and costs are over. It is that simple.

Key takeaways:

• Insourcing is better when a core team of developers is needed long-term. A company is looking to grow and develop a team of software specialists and this function is more effective when it is brought in-house.
• Outsourcing is better when a project has a defined end-date and goal in mind. Recruiting an internal team would prove too expensive, take too long and it would mean assigning them a new task once the project is complete, or letting them go. In cases such as this, outsourcing always proves more effective.

3. How urgently do we need this delivery?

Traditional recruitment route takes time

Insourcing – going the traditional recruitment route – takes time. You need to advertise a role – or a whole team – and either work with a recruitment agency (which is an extra cost) or manage the process internally, which absorbs in-house resources (more time, more money). After that, you need to make offers, onboard new staff, and then get the project moving forward.

The insourcing recruitment process can take anything from a few weeks – which is quick – to several months. If you’ve spotted a star potential hire in another firm, they aren’t going to want to wait that long. Top talent is soon snapped up by an eager competitor with a bigger budget or faster process.

When it comes to hiring developers, anyone who’s ever recruited for software roles knows how competitive the landscape is. Talent doesn’t come cheap. Neither does experience. You are competing against big tech firms, other corporates, high-growth startups, and development firms. Your company is also restricted by geography. Most new hires come from within a commutable distance – in most cases, up to an hour.

Outsourcing software development allows tapping into global tech talent. The talent that wouldn’t ordinarily find your company is suddenly accessible and ready to work with you. And the beauty of outsourcing means that you aren’t waiting months from deciding to go ahead with the project and having the team in place to deliver the work. In some cases, you can assemble a skilled team ready to work on a project within two weeks.

Compared to insourcing, outsourcing can save a huge amount of time and money.

Key takeaways:

• Insourcing is better when you are recruiting a team for a long-term project and you know an internal team is a preferred method. Just be ready to invest the time and budget to put this team together.
• Outsourcing is better when a team is needed to get moving on a project quickly. Waste no time, and keep your costs lower with outsourcing. Outsourcing software development projects can actually help strengthen other core processes. When you outsource software development to other companies, you avoid overwhelming your in-house developers with work that doesn’t match their skill level, further allowing them to focus more on strategic goals.

4. What skills do we need?

Putting the right team together depends on the technology stack already in use, how the new application or platform is going to interact and integrate with that stack, and the skills you’ve already got on-board. Outsourcing software development is the right solution when you need access to rare technologies. There are over 2000 different programming languages out there and, certainly, you can’t hire engineers who know all of them in-house.

With an internal team, you need to be sure you are going to need those skills for a fixed period of time (e.g. 6 to 12 months, at a minimum). Is the project scope sufficient for them to be kept busy, full-time, over a prolonged period, and if not, what mix of skills would it be useful for them to have to support others on the project?

If you are going to outsource software development work to a technology team, you need to start with a clear understanding of the scope and therefore skills required. Developing this scope should involve the input – if not the direction of – an internal tech leader. Someone who can scope out the project and bring the insight that translates business goals into technology outputs. With these insights, you can outsource or insource a team that includes the most relevant and useful skills to deliver the project outputs and goals required.

Whether you go with outsourcing or insourcing depends on other factors, such as cost and how soon the project needs completing.

Key takeaways:

• Insourcing is better when you are recruiting for a set of skills that already align with other core competencies, and these skills are going to be needed long-term.
• Outsourcing is better when the skills required are non-core, when it’s more cost-effective to outsource and those skills aren’t essential to the company in the long-term (e.g. once the project is complete). Outsourcing software development can actually help strengthen other core processes. When you outsource software development to other companies, it does not overwhelm your in-house developers with work that doesn’t match their skill level, further allowing them to focus more on strategic goals.

5. What risks are involved?

While outsourcing software development can offer many benefits for a company, it also involves some additional risks that have to be considered. Managing risk is something companies are increasingly aware of when outsourcing.

When software and data are involved, the greatest risks involve the potential theft of data and failing to comply with regulatory burdens (such as GDPR in Europe and PCI DSS).

Quality control is another risk that comprises worry about when outsourcing software development. How can we be sure the work will meet the standards we need? Is our data secure with a third-party? Is our company’s IT security in safe hands?

Insourcing means that you retain control. You’ve got more control over the quality, over the transfer and movement of data and over ensuring that compliance standards are maintained. It doesn’t mean that things can’t go wrong. Unhappy employees can steal data. Internal systems can fail, causing data breaches. And the quality of work delivered – internally – is often on the same level, if not worse – than the service provided by an external provider.

Whatever the reason for seeking outsourcing developers may be, the need to find a trustworthy partner always remains. One way to mitigate and manage these risks when working with a third-party is to verify and vet them. Make sure that they’re a reputable firm, or in the case of developers, that they have strong references and are used to working with similar companies. Or better yet, work with a partner such as Savvycom to make sure you are getting someone with the right skills, experience, and reputation needed to deliver high-quality, impactful work.

Key takeaways:

• Insourcing is better when you need to manage risks closely and need to keep a particular piece of work in-house.
• Outsourcing is better when you have closely vetted an external provider and are confident they will deliver the work needed without compromising data security and compliance. If the work being delivered poses little risk to data integrity and the customer-experience then outsourcing is a sensible and cost-effective approach.

Jio Health – Telemedicine App Built by Savvycom

Outsourcing Done Right With Savvycom!

Our team can help you with the development of your application. Contact us to get a free initial consultation regarding your project and its estimation in terms of cost, timeline, and needed technical talent.

6. Control vs. Innovation

Another argument for outsourcing is that external companies can solve problems more effectively. Internal teams soon get bogged down in office politics and internal processes that can slow down innovation. Neither of which is helpful when you are creating innovative software products and solutions.

Working with external providers reduces the risks associated with internal teams. Outsource teams can move faster, innovate quicker, are more agile and will come up with solutions those on the inside often miss.

Key takeaways:

• Insourcing is better when core skills and competencies from the innovative process need to be kept in the company.
• Outsourcing is better when you need a team who can move fast, come up with innovative new solutions, and deliver quickly.

3. What about a hybrid solution?

Sticking to one solution over another isn’t always the way forward, not when you could take a hybrid approach. When you’ve got an internal software/IT team with a range of core skills, and then you need to augment those internal skills with more specialized experiences from a third-party, outsourcing to support the internal team is a smart and cost-effective move.

This way, your internal team gains the strength of the external provider for the duration of the project, without the overheads and long-term costs associated with hiring more insource team members. Your company gains the best of both worlds.

4. The main reasons why people choose Outsourcing

• There are many benefits to outsourcing software development.
• Outsourcing is more cost-effective.
• It gives you access to a wider talent pool without the risks associated with trying to recruit talent that everyone else is scrambling to hire.
• Compliance and regulatory risks can be managed using vetting, contracts, and the support of a trusted platform that verifies developers and the firms they work for, such as Savvycom.
• Launching a software development project is quicker when working with an outsourced team: You can go from the green light to getting started within two weeks.
• Outsourcing software development projects allow growth through innovation while reducing risks and increasing profit simultaneously.
• Assemble all of the skills and experiences you need, without going through a prolonged recruitment and onboarding process.

5. How could Savvycom help your business?

Savvycom is one of the highest ranking from Clutch software outsourcing vendors in Vietnam. After 11 years serving effective software solutions for over 120 clients, having received 100+ of feedback on excellent communication and agility, we guarantee the best quality, reliability and shortest time-to-market to our clients.

Understanding your business

Tell us your needs, desired functionality, the business methods used, and we can build you the software solutions. Our software is scalable and flexible enough for you to easily adapt down the road.

In-depth discussion

We begin every relationship with an in-depth discussion about the short and long-term desires for your project.

Agile

At Savvycom, we believe in Agile methodology where everyone works together innovatively and productively to solve complex problems. Each project will have an Agile master who closely connects the development team and the client, making sure that the whole process is well communicated, smooth and transparent.

Requirement analysis

Our engineers will review any hidden requirements and your existing codebase, if you have one. We need to know your goals and understand your existing software to ensure the success of the project. This also makes sure the development stage can run smoothly.

Create an effective action plan

By the end of this phase, Savvycom works together with you to make a plan of development that accords with your business goals, timeline and operating budget.

IPR protection

In a world where the strongest gift is the power of thinking, protecting your intellectual property rights becomes a must for any business. Savvycom understands this fact, and will guarantee that all your information, data, processes are secured, protected, and well-guarded.

What exactly is Agile? Is it really a hit, or just a miss covered in unhealthy compliments?

What is Agile Software Development?

Agile software development refers to software development methodologies centred around the idea of iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams. The ultimate value in Agile development is that it enables teams to deliver value faster, with greater quality and predictability, and greater aptitude to respond to change. 
All that being summarized in three keywords: better collaboration, fast process and flexible to changes.
In detail, here’s a diagram that describes the whole process:

Agile software development process prioritizes collaboration | Source: TMS

Calculating the pros and cons

Everything has its upside and downside – so does Agility. Although Agile Software Development is a bit of a trend lately, it doesn’t assure that the methodology will be a great match to your business model. Thereby, the first step to know whether Agility fits your company is to deep-dive into the values it really offers.

Advantages

Flexibility and adaptation: These are seemingly the biggest superiority of Agile methodology in comparison with other methods (e.g waterfall). In agile development, the whole process is broken down into smaller iterations. At the end of each iteration, a working product shall be finished and sent to the customer for immediate comments and feedback. 
Adjustments, therefore, are made in the next iteration as per customer requirements. Put it simpler, agile development is a process of constantly re-building the product until it satisfies the customers. Various versions will be made at the end of each iteration, each of which is a working product. 
Hence, if there is any unexpected events or change of requirements, you don’t have to do it all over again as in the waterfall method – you just have to start from where it goes wrong.
Transparency: Agile development promotes the idea of face-to-face meetings and straight-forward communication as well as mutual contributions, therefore, all ideas, comments, criticisms, disagreements, etc are made sure to be delivered to the whole team. 
This not only improves the collaboration among team members but also mitigates the possibility of misunderstanding and unnecessary conflicts, enhancing the efficiency later on.
Better efficiency: Agile development is all about cross-functional collaborations and on-time product delivery. Teams are no longer involve only people of the same positions: it diversifies from coders, designers, testers to QA, with which each of them bears a customer-oriented mindset. Therefore, wastes are minimised, goals are faster to be attained.
Higher satisfaction: Agile development provides immediate feedback at the end of each iteration to make sure the product is as close to customer requirements as possible. 
Moreover, communication factor in Agile is always prioritised, which encourages customers to involve as much as possible in the development process, to the point that it seems like making them part of the team, therefore shortens the gap between the “employer” and “employee” – not only in terms of work but also in personal life.

Disadvantages

Less predictability: Often time, Agile developers find it hard to quantify some deliverables (time, cost, effort, etc) put into designing software. This might lead to frustration, bad decisions, poor practices and end up firing back to the development team itself.
(Too) high commitment: Agile development requires the development team to keep the customer updated about the product frequently and constantly. This might put a big pressure on the team to report everything to the customer and adapt to their ever-changing requirements as well as to commit til’ the end of the project.
Considerable fall-of-track possibility: Agile development requires little planning at the beginning of a project. As such, needed actions are sometimes unclear, which might cause you to forget the main focus and leave you in an inescapable cycle.
Moreover, because of the lack of detail planning, many probabilities might be yet to take into consideration, and the level of preparation for pop-ups is likely to be low. Your project might suffer tremendously due to this if you don’t have the flexibility to deal with unexpected crises.

Measure the efficiency of Agile Software Development

The pros of Agile development, at some points, may exceed the cons, however, if a PM fails to facilitate and evaluate the results, the opposite effect would likely to happen. Therefore, learning some metrics to accurately and effectively measure the performance will never be a waste.
Some basic yet useful measures are:
Velocity: Velocity measures the amount of work (a number of features) completed in a sprint. While it isn’t a prediction or comparison tool, velocity provides teams with an idea about how much work can be done in the next sprint.
Sprint burndown chart: The sprint burndown chart shows the amount of work remaining to be done before the end of a sprint. The tool is particularly valuable because it displays the progress towards the goal instead of listing completed items. It’s also very useful in uncovering planning mistakes that a team made at the beginning of a sprint.
Cycle time metric: The cycle time metric describes how much time was spent on a task, including each time the work had to be reopened and completed again. Calculating the cycle time provides information about the overall performance and allows for estimating the completion of future tasks. 
Cumulative Flow Chart (CFC): The cumulative flow metric is described by the chart area showing the number of different types of tasks at each stage of the project with the x-axis indicating the dates and the y-axis showing the number of story points. Its main goal is to provide easy visualisation of how tasks are distributed at different stages. 
Flow efficiency: Flow efficiency is a very useful metric in Kanban development that is mostly overlooked by development teams. While flow efficiency complements cumulative flow, it gives insights into the distribution between actual work and waiting periods.
Code churn: Code churn is a very useful visualization of trends and fluctuations that happen to a codebase both in terms of the overall process and the time before a release. It measures how many lines of code were added, removed, or changed. Sometimes the graphs show all three measurements.
Code coverage: Code coverage defines how many lines of code or blocks are executed while automated tests are running. Code coverage is a critical metric for test-driven development (TDD) practice and continuous delivery. 

Tools to optimize Agile Software Development process

With the development of technology as today, there are countless tools you can use alongside Agile Development. The major tools will be categorized into different groups, which are most likely to be:

Source control tools

Git: Git is a distributed version-controlled system for tracking changes in source code during software development. It is designed for coordinating work among programmers, but it can be used to track changes in any set of files. Its goals include speed, data integrity, and support for distributed, non-linear workflows.
Mercurial: Mercurial is a distributed revision-controlled tool for software development. Mercurial’s major design goals include high performance and scalability, decentralization, fully distributed collaborative development, robust handling of both plain text and binary files, and advanced branching and merging capabilities while remaining conceptually simple.
Subversion: Subversion is a free/open-source version control system (VCS). That is, Subversion manages files and directories, and the changes made to them, over time. This allows you to recover older versions of your data or examine the history of how your data changed. In this regard, many people think of a version control system as a sort of “time machine.”

Continuous integration tools

Hudson: Hudson is a powerful and widely used open-source continuous integration server providing development teams with a reliable way to monitor changes in source control and trigger a variety of builds. Hudson excels at integrating with almost every tool you can think of. Use Apache Maven, Apache Ant or Gradle or anything you can start with a command-line script for builds and send messages via email, SMS, IRC and Skype for notifications.
Jenkins: Jenkins is an open-source continuous integration software tool written in the Java programming language for testing and reporting on isolated changes in a larger code base in real-time. The software enables developers to find and solve defects in a code base rapidly and to automate testing of their builds.
Travis CI: Travis CI is a hosted, distributed continuous integration service used to build and test projects hosted at GitHub. Travis CI automatically detects when a commit has been made and pushed to a GitHub repository that is using Travis CI, and each time this happens, it will try to build the project and run tests. This includes commits to all branches, not just to the master branch.

Team management tools

Agile Manager: HP’s Agile Manager is built to organize and guide teams from the beginning as they plan and deploy working code through the agile model. At the early stages of the cycle during the release plan, the managers gather the user stories and decide how the teams will attack them. These set the stage for the sprints and deployment
Active collab: Active Collab is organized to help software shops deliver code and account for their time. The heart of the system is a list of tasks that can be assigned and tracked from conception to completion. Also, there is a system-wide calendar helps the team understand and follow everyone’s roles. The system checks the amount of time devoted to all the tasks so the team can determine how accurate their estimates are.
Pivotal Tracker: Pivotal Tracker is just one of a constellation of tools from Pivotal Labs created to support agile development. The core of the project is a page that lists the tasks that are often expressed as stories. Team members can rank the complexity with points, and the tool will track how many tasks are being finished each day. The constellation includes Whiteboard for team-wide discussions, Project Monitor for displaying the status of the build, and Sprout, a configuration tool.

Case studies for lessons learnt

You are still doubting of the efficiency of the Agile development method? Maybe these successful stories would prove it for you!

LEGO

LEGO is probably one of the most popular cases when it comes to Agile software development. It began the agility journey by introducing changes at their team level. There were 20 product teams working at the organization at the time. At first, just 5 teams were transformed into self-organizing Scrum teams. Then, bit by bit, the remaining 15 teams followed in their footsteps.
However, success doesn’t come that fast. After the initial reconstruction that individual teams became Agile, they were rather struggled with cooperating effectively together. In an effort to address the problem, LEGO decided to follow the SAFe (Scaled Agile Framework) framework pattern and added another level of abstraction – the program level. 
At this level, a team of teams is formed (also known as Agile Release Train, or ART for short). At LEGO, the team of teams was meeting every 8 weeks for a big room planning session, which lasted for one and a half days. During this meeting, teams showcased their work, worked out the dependencies, estimated risks, and planned for the next release period. 
There’s also a portfolio level, which is the top layer of the system. It is collection of long-term business plans, stakeholders, and top management. 
But what does SAFe does exactly to LEGO? By applying SAFes model, spreadsheets, excessive documentation and other unproductive practices are eliminated; developers are empowered to do things themselves; effective face-to-face plannings and meetings encourage people to communicate, make problems more visible to deal with, improve the processing pace as well as increase the accuracy in estimation and prediction. 
It not only solves LEGO’s team-cooperation dispersion issue but also guards against all potential hazards they might face in the future, therefore, increase the company’s efficiency towards the goals
Key-takeaway: What we can derive from this case is that building different levels of management as per SAFe can not only reinforce the collaboration among teams but also make the whole development process more effective so that the goals are closer to attain.

CISCO

Different from LEGO, CISCO applies Agile not on the whole business, but on a specific product called the Subscription Billing Platform.
Before switching to Agile methodology, Cisco had a history with the Waterfall methodology. As such, the company used to construct their teams based on the functions, each team focuses on one act of the development process. For example, there is a designing team, a building team, a testing team, and a deploying team.
However, the method turned out to be a bad match for Cisco. Defects were many, and deadlines were being frequently missed. People were working overtime with low productivity. 
To solve the problem, Cisco plays the same game as LEGO: switch to SAFe. Cisco then created three ARTs (Agile Release Trains), which can be considered as a team of teams, for capabilities, defects/fixes and projects.
Every day, the team had a 15-minute meeting to determine work items. Therefore, greater transparency is provided: each team will have a heads-up about what the other teams were doing and are able to manage themselves, promoting accountability through status updates and awareness.
However, it seems like it is not enough for Cisco – they want the efficiency to peak more. As such, they combined the SAFe with the Scrum framework that is previously used on another product – the WebEx app for Samsung. Some XP practices, such as test-driven development and continuous integration (CI), were used as well.
Once Cisco started following the SAFe methodology and introduced Continuous Integration (CI), they receive various achievements as you can tell through the numbers below, which proves the power of Agility:

• 40% decrease in critical and major defects.
• 16% decrease in DRR (Defect Rejection Ratio).
• 14% improvement in DRE (Defect Removal Efficiency) 

All the products are on time other than overtime like before.
Key-takeaway: The biggest lesson you can take from here is that you can use various Agile framework within the same organisation at the same time to maximise expected results. 

JIO HEALTH

Jio Health, a product developed by Savvycom, is a mobile app that runs on iOS and Android to help doctors deliver better health care, as well as help patients to connect directly with their Care Provider without any restriction. This could be called as an Uber-solution in Healthcare Industry but means more than just delivering or connecting. It helps community health be better and short the gap of reaching private Healthcare among patients and doctors, and is referred to as A breakthrough in Health-care service by several critics. 
At the beginning, Jio – the business customer that required Savvycom to build the app – had certain concerns about how the vision and mission they wanted the product to deliver could be understood by developers. However, with Agile, the major development method of Savvycom, the communication between client and developer reached 30% growth in comparison with that of the waterfall method in other traditional development company. Jio, thanks to that, wasn’t merely a customer – they had really become an engineer, a part of the development team. The close synergy had, therefore, paved the way for the product to be well-designed in accordance with Jio’s expectation. 
Furthermore, thanks to Agile, despite more than 10 times of restructuring and rebuilding the software to match Jio’s feedback, it only cost Savvycom around 7 months to completely finish the challenge – which in the end even left Jio with astonishment.

“Savvycom has gone above and beyond the traditional engagement of vendors. We really can’t even tell the distinction between where Savvycom begins and Jio ends. It’s been a wonderful experience!”

(Raghu Rai, CEO of Jio Health)

Key-takeaways: Close collaboration remains the best practice of Agile methodology. The advantages a company can earn through team working with customers – or Agile in a larger sense, is limitless and shall apply to almost every process of development.

FAQs – Frequently asked questions

Q: Is Agility for software development only?

A: Sure no. There are various variants of agility, apart from software development. The principles of Agile, as discussed in the previous pages, can be applied in every other part of the company. In the end, it’s all about flexibility, communication, cross-functional collaboration and customer-oriented mindset, which shall be promoted in literally all fields of the economy. Especially in terms of HR, developing an agile culture can make a big positive impact on the success of the company in the long run. Agility is more than just a method – it’s a work style.

Q: Is Jenkins an Agile software development tool?

A: Yes, it is. It’s even considered by many developers as one of the most popular Agile development tool thanks to its free-of-charge basis as well as high configuration and customisation.

Q: Is Tally an Agile development tool?

A: Nope. It’s just an Accounting software. If you are stuck with the books and numbers, it might be a great sidekick.

Q: Why Agile software development is not suitable for large-scale projects?

A: It’s true that Agile works terrifically well for maintenance, iterative development, and also for prototypes. But large projects always try to align budget, communications, marketing, support organizations, training, and so they need to know when to mesh the efforts with the product launch. Therefore, a waterfall approach to the project as a whole fits better.

Q: Is Agile development a framework or a methodology?

A: Agile is neither a methodology or a framework, meaning methodology or a process is much more complete and will specify how work should be done whereas a framework, on the other hand, is purposely incomplete ( like SCRUM, XP, Crystal). Therefore, Agile is more likely to be a set of principles and values.

Last words

A lot of necessary information and practical case studies were highlighted in this post to “bright” your mind. The key for you today is the Manifesto for Agile Software Development (the four values and twelve principles), the Agile process, the tools used and the measures taken in Agile Software Development, all of which should be a solid basis for both stakeholders and developers.
In case you have any further questions, feel free to contact us for more insights and knowledge. We would love to help you understand how your company can leverage with Agile!
Contact us

• Phone: +84 24 3202 9222
• Hotline: +84326752886
• Email: contact@savvycomsoftware.com
• Official Website: https://savvycomsoftware.com/

Mistake #1: Blocking the event loop

 JavaScript in Node.js (as in the browser) provides a single-threaded environment. This means that two or more parts of your application cannot run simultaneously. Parallelization is carried out due to asynchronous processing of input/output operations. For example, querying Node.js for a database for a document allows Node.js to focus on another part of the application:

 
However, a piece of processor-occupying code can block the event loop, causing thousands of connected clients to wait for completion. An example of such code is an attempt to sort a very large array:

Calling the sortUsersByAge function is unlikely to cause problems in the case of a small array. But when working with a large array, this will catastrophically reduce overall performance. Problems may not arise if this operation is absolutely necessary, and you are sure that no one else expects an event loop (say, if you are making a tool that is launched from the command line, and asynchronous execution is not needed). But for a Node.js server serving thousands of clients at the same time, this approach is unacceptable. If this user array is retrieved directly from the database, then the best solution would be to retrieve it already sorted. If the cycle of events is blocked by the cycle of calculating the overall result of a large number of financial transactions, then this work can be delegated to some external executor so as not to block the cycle of events.
Unfortunately, there is no silver bullet to solve problems of this type, and each case requires an individual approach. The main thing is not to overload the processor as part of the execution of the Node.js instance, which simultaneously works with several clients.

Mistake #2: Calling a callback more than once

JavaScript is based on callbacks. In browsers, events are processed by passing links to functions (often anonymous) that act as callbacks. Earlier in Node.js, callbacks were the only way to link the asynchronous parts of the code with each other until promises were implemented. However, callbacks are still in use, and many package developers still use them when designing their APIs. A common mistake is to call a callback more than once. Usually, a method that does something asynchronously expects a function that it will call after the completion of its asynchronous task:

Note the return statement after each “done” call, with the exception of the last. The fact is that calling a callback does not interrupt the execution of the current function. If you comment out the first “return”, passing this function a password that is not a string will result in a call to “computeHash”. And depending on the further scenario of the operation “computeHash”, “done” can be called multiple times. Any unauthorized user using this function can be taken by surprise by calling a callback several times.
To avoid this error, just be vigilant. Some developers made it a rule to add the keyword “return” before each callback call:

In many asynchronous functions, the return value is not important, so this approach often avoids calling the callback multiple times.
 

Mistake #3: Deeply Nested Callbacks

 This problem is often called the Callback Hell. Although this in itself is not an error, it can cause code to quickly get out of hand:

The more complex the task gets, the deeper the nesting can be. This leads to unstable and hard-to-read code that is difficult to maintain. One way to solve this problem is to separate each task into a separate function, and then link them together. At the same time, many people find it best to use modules that implement asynchronous JavaScript patterns, such as Async.js:

In addition to “async.waterfall”, Async.js also contains a number of other functions that enable asynchronous JavaScript execution. For the sake of brevity, a fairly simple example is presented here, but more often than not, everything is much worse in reality.
 

Mistake #4: Expecting that callbacks will be executed synchronously

 Asynchronous callback programming is not unusual for JavaScript and Node.js. Other languages might​​accustom us to the predictability of the execution order, when two expressions are executed sequentially, one after another if there are no special instructions for moving between them. But even in this case, we are often limited to conditional statements, loops, and function calls.
However, in JavaScript, callbacks allow you to make sure that a certain function may not be executed until a certain task is completed. Here the function will execute without stopping:

When calling the “testTimeout” function, “Begin” will be displayed first, then “Waiting”, and after about a second – “Done!” If something needs to be done after calling the callback, then it must be called in the callback itself.
 

Mistake #5: Assigning “exports” instead of “module.exports”

 Node.js treats each file as a small, isolated module. Let’s say your package contains two files a.js and b.js. In order for b.js to access functionality from a.js, the latter must export this functionality by adding properties to the “exports” object:

If this is done, then any a.js request will return an object with the “verifyPassword” function in the properties:

And what if we need to export this function directly, and not as a property of any object? We can do this by overriding the “exports” variable, but the main thing is not to access it as a global variable:

Pay attention to “exports” as a property of the “module” object. The difference between “module.exports” and “exports” is very large, and a misunderstanding of this leads to difficulties for beginner Node.js developers.
 

Mistake #6: Error generation inside callbacks

 JavaScript has a concept like exception. Imitating the syntax of almost all traditional programming languages, which also have exception handling, JavaScript can generate and catch exceptions using try-catch blocks:

However, in cases of asynchronous execution, try-catch will not work as you expect. For example, if you try to protect an impressive piece of code with numerous asynchronous segments using a large try-catch block, then this may not work:

If the callback passed to db.User.get is called asynchronously, the try-catch block will not be able to intercept the errors generated in the callback because it will be executed in a different context than the try-catch context. Errors in Node.js can be handled in different ways, but you must adhere to one template for the arguments of all function (err, …) callbacks – the first argument in each callback is to expect an error if any.
 

Mistake #7: Assuming that all numbers are integers

 JavaScript does not have an integer data type, here all numbers are floating-point numbers. You may think that this is not a problem since numbers that are not large enough to cause problems due to floating-point restrictions are not common. This is a delusion. Since floating-point numbers can contain integer representations only up to a certain value, exceeding it in any calculation immediately leads to problems. Oddly enough, this expression in Node.js is regarded as true:

 The oddities with numbers in JavaScript don’t end there. Despite the fact that these are floating point numbers, they work with operators designed for integer data:

However, unlike arithmetic, bitwise operators and shift operators work only with the last 32 bits of such large “integer” ones. For example, if you shift “Math.pow (2, 53)” by 1, then the result will always be 0. If you apply bitwise OR, it will also be 0.
 
Most likely, you rarely encounter large numbers, but when this happens, use one of the many libraries that perform precise mathematical operations with large numbers. For example, node-bigint.
 

Mistake #8: Ignoring the benefits of streaming APIs

Suppose you need to create a small proxy server that processes responses when requesting any data from another server. Say, for working with images with Gravatar:

In this example, we take an image with Gravatar, read it in Buffer, and send it as a response to the request. Not a bad design, as these images are small. But what if you need to proxy gigabyte-sized content? It is better to use this method:

Here we take an image and simply transmit it as a response to the client, without reading the entire buffer.
 

Mistake #9: Using Console.log for debugging 

Console.log allows you to output anything to the console. Pass it an object, and it will print a JavaScript object to the console. Console.log accepts any number of arguments and displays them, neatly separated by spaces. Many developers are happy to use this tool for debugging, but it is recommended not to use “console.log” in real code. Avoid “console.log” even in commented outlines. It’s better to use libraries specially written for this, like debug. Using these libraries, you can easily enable or disable debugging mode when starting the application. For example, when using “debug”, if you do not set the appropriate environment variable DEBUG, then the debug information will not get to the terminal:

To enable debug mode, just run this code by setting the DEBUG environment variable to “app” or “*”:

Mistake #10: Not using dispatcher programs

Regardless of whether your code runs in production or in your local environment, it is highly recommended that you use a dispatch program. Many experienced developers believe that code should “crash” quickly. If an unexpected error occurs, do not try to handle it, let the program crash so that the dispatcher restarts it within a few seconds. Of course, this is not all that dispatchers can do. For example, you can configure the restart of the program in case of changes in some files, and much more. This greatly facilitates the development process on Node.js. The following managers are recommended:

• pm2
• forever
• nodemon
• supervisor

Each production process manager has its own pros and cons. Some work well with several applications on the same machine at the same time, while others are better at logging. But if you want to start using the dispatcher, then you may choose any of the proposed ones.