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VnExpress English

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Five risks that can undermine offshore software partnersh...
Thy An · 2026-06-22 · via VnExpress English

As more companies turn to offshore software development to access talent and manage costs, project execution, communication and long-term support remain among the key factors influencing the success of vendor partnerships.

Drawing on more than 850 client engagements over the past 14 years, Vietnam-based software development company Saigon Technology said organizations evaluating offshore partners should pay close attention to resource stability, communication processes, technical leadership, reporting transparency and post-launch support.

According to Thanh Pham, CEO of Saigon Technology, concerns about service quality and delivery consistency are among the most common issues raised by prospective clients seeking new development partners.

"The conversation I hear most often is about the gap between what companies signed up for and what they actually receive," Thanh said.

Thanh Pham (C), CEO of Vietnam-based software development firm Saigon Technology, honored as top 10 ICT companies in Vietnam in 2026. Photo courtesy of Saigon Technology

Thanh Pham (C), CEO of Vietnam-based software development firm Saigon Technology, honored as Top 2 for global digital services in Vietnam in 2025. Photo courtesy of Saigon Technology

Resource continuity and team stability

One of the most frequently cited challenges involves maintaining consistent project resources over time.

According to Thanh, companies may begin projects with experienced engineering teams, only to face changes later because of staff turnover, absences or internal resource reallocations. In some cases, senior engineers assigned during the early stages of a project are replaced by less experienced personnel.

He said organizations should discuss staff retention rates, backup resource plans and knowledge-transfer processes before entering long-term agreements.

Employees enjoying staff party at the office. Photo courtesy of Saigon Technology

Employees enjoying staff party at the office. Photo courtesy of Saigon Technology

Responsiveness during critical situations

While time-zone differences are often viewed as a challenge in offshore development, Thanh said response times during urgent situations can have a greater impact on project outcomes.

"When production incidents occur, clients need someone to take ownership immediately," he said.

According to Thanh, clearly defined communication channels and escalation procedures can help reduce delays and improve coordination between client and vendor teams without needing full overlap hours.

Technical leadership and accountability

Another area companies should evaluate is the availability of senior technical leadership within vendor organizations.

Although project managers often oversee schedules and client communications, they may not always be responsible for key architectural or engineering decisions.

"The project manager should not be the only accountability layer," Thanh said. "Without senior technical ownership on the vendor side, clients require a functional manager and a technical manager working alongside the PM."

He noted that access to experienced technical leaders can help address complex issues more effectively and support long-term project success.

Project visibility and reporting

Transparent reporting mechanisms are another important consideration, according to Thanh.

Without structured reporting processes, project risks or delays may remain undetected until they begin affecting delivery timelines or product quality.

"When clients have to chase their vendor for updates, transparency has already broken down," he said.

Regular progress reporting, clear performance metrics and proactive communication can help organizations maintain visibility throughout the development lifecycle.

Post-launch support

According to Saigon Technology, challenges can also emerge after a product has been delivered.

While some vendors view deployment as the completion of a project, many clients require ongoing support as products evolve and respond to user feedback, operational issues and changing business requirements.

"There is a difference between vendors who see delivery as the finish line and those who see it as the beginning of a long-term partnership," Thanh said.

Thanh Pham (C), CEO of Vietnam-based software development firm Saigon Technology. Photo courtesy of Saigon Technology

Thanh Pham (C), CEO of Vietnam-based software development firm Saigon Technology. Photo courtesy of Saigon Technology

As organizations increasingly prioritize product performance and long-term business outcomes, post-launch support and continuous improvement have become more important considerations.

According to Thanh, it should be a clear-eyed conversation between client and offshore partner about commitments, reporting, retention, and accountability.

He added that while cost remains an important factor, organizations are increasingly placing greater emphasis on quality, transparency and long-term collaboration when selecting software development partners.