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A New Guide to Offshore Software Development in 2025

05/11/2024

1.23k

Ngan Phan

Once considered a mere trend, digitalization has become a vital requirement for companies. Consequently, there is a growing demand for IT services. According to Statista, the global IT consulting and implementation services market is projected to reach $82.44 billion by 2027. Due to its affordability and easy availability for tech experts, offshore software development is emerging as a software development option in the modern digital era. Many startups and small enterprises are exploring offshore software development for its numerous benefits, including reduced time, costs, and effort.

This SupremeTech article aims to define offshore software development, provide potential benefits and challenges for your business, and introduce you to the most successful Vietnam offshore development company.

What is offshore software development?

Offshore software development involves outsourcing your software development needs to a third-party software provider in a foreign nation. After that, entrust them with the challenging programming responsibilities associated with your project.

Consider a scenario in which a US-based business collaborates with a successful offshore software development company in Vietnam to develop a digital transformation system.

This outsourcing model has recently gained popularity due to its numerous advantages. Specifically, it eliminates the geographical barrier to finding a suitable development team. Besides, the third-party vendor assumes full responsibility for the development process and product quality. Offshore software development services have become increasingly popular. They provide access to highly skilled employees at competitive prices, reducing the overall costs of managing a development team.

Offshore development is becoming a software development option in the modern digital era

Onshore vs. Nearshore vs. Offshore Outsourcing: Understanding the Differences

Due to unique geographical and collaborative dynamics, offshore outsourcing distinguishes itself from onshore and nearshore outsourcing. In onshore and nearshore outsourcing, the IT vendor operates in the same country or a nearby region, fostering accessibility in managing cultural norms, language barriers, and time zone differences.

Onshore Outsourcing

Onshore or domestic software development outsourcing involves collaboration with local individuals or vendors within the same region. For example, a software development business in the United States might outsource a project to a service provider in the same, close, or neighboring state, ensuring the project’s completion within the nation.

Nearshore Outsourcing

Nearshore outsourcing entails working with an IT partner in a neighboring country, typically for specialized needs like recruiting, consulting, or project-based services. Nearshore firms are located in the same time zone, on the same border, or in proximity. For instance, a U.S. corporation may outsource a software development project to a Canadian company, minimizing geographical distance despite being in a foreign country.

Offshore Outsourcing

In contrast, offshore development outsourcing introduces significant geographic distances, time zone differences, and often cultural or linguistic barriers between the client and the outsourcing partner. As proof, if a U.S.-based company delegated the project development process to Vietnam, an emerging IT destination, it engaged in offshore outsourcing.

The differences between Onshore, Nearshore, and Offshore outsourcing

Which services can be outsourced?

An offshore software companOutsourcing IT tasks to an offshore software company can be a strategic move for businesses looking to enhance efficiency and reduce costs. Here are some of the most frequently outsourced services that can significantly benefit from external management:

Custom Software Development

Custom software development is one of the primary services outsourced to offshore companies. This allows businesses to create tailored solutions that meet specific needs without the costs of hiring a full-time in-house development team. Offshore companies can provide the expertise to deliver high-quality software that aligns with business goals.

Cloud Infrastructure Management

Managing cloud infrastructure can be complicated and time-consuming. By outsourcing this function, companies can ensure that their cloud environments are optimized for performance, security, and scalability. Offshore providers often have the tools and expertise to manage cloud resources efficiently, allowing businesses to focus on their core operations.

LINE MINI App Development

Developing LINE MINI apps is essential for businesses targeting customers in Japan, Thailand, and Taiwan, as LINE is the leading messaging platform in these regions with millions of active users. Offshore software companies like SupremeTech specializing in this area can provide valuable insights and technical skills to create engaging applications that resonate with local users, enhancing customer interaction and satisfaction.

Omnichannel Retail Solutions

Today’s customers expect a smooth shopping experience across different shopping channels. Outsourcing the development of omnichannel retail solutions allows businesses to integrate their online stores, mobile apps, and physical shops, ensuring a cohesive customer journey.

Software Quality Assurance (QA) and Testing Services

Quality assurance and testing are vital components of the software development lifecycle. By outsourcing these services, companies can have experienced professionals thoroughly test their software before it goes live. This helps identify bugs and issues before deployment, ensuring a smooth user experience and reducing post-launch problems.

UI/UX Design

User Interface (UI) and User Experience (UX) design are crucial for making software easy to use and visually appealing. Offshore teams can provide specialized design services that focus on creating intuitive and visually appealing interfaces. This not only enhances user satisfaction but also increases engagement and retention rates.

Dedicated Development Team

Many businesses opt to outsource an entire dedicated development team. This model provides access to a pool of skilled professionals who work exclusively on a company’s projects. It offers flexibility in scaling resources according to project demands while ensuring the team is aligned with the company’s goals and culture.

Outsourcing has become the optimal solution for various business challenges. Beyond IT functions like cybersecurity, customer support, data storage, etc., businesses can outsource non-IT functions such as legal, tax, HR, finance, etc.

Comprehensive outsourcing, covering both IT functions and business operations.

The benefits of offshore software development

Deciding between in-house software development and partnering with an offshore development team can be challenging. However, offshoring software development presents an enticing economic proposition due to its various benefits:

1. Cost savings

Maintaining an in-house IT workforce with up-to-date technology knowledge is challenging and costly. Outsourcing software development eliminates the need to invest in IT infrastructure or spend time recruiting and training personnel.

Many offshore software development centers, such as those in Central Europe, offer flexible pricing and high-quality services. Favorable factors like a skilled workforce, official support, and tax advantages make countries like Vietnam, India, China, and Ukraine cost-effective choices compared to US developers.

Consequently, offshore software firms may provide similar services at a lower cost, enabling savings of up to 40% – 50% without compromising project quality or expertise.

Key benefit: Offshore development significantly reduces costs.

2. Obtaining qualified talents

Are you facing challenges in hiring IT professionals locally? Outsourcing development teams offers a perfect alternative, helping to resolve the shortage of IT professionals. Furthermore, when the project is completed, it can relieve the stress of managing and employing in-house development teams.

Offshore development can attract many skilled software engineers. These engineers have extensive experience creating software applications that meet global standards. They also bring valuable insights from working on international projects, which helps them understand the challenges in custom software development.

Offshore software development grants access to specialized talents and taps into a global talent pool

3. Time savings

Starting projects from scratch can be challenging. Hiring, training, and managing people takes a lot of time and resources, which can create stress due to tight deadlines. Offshore software development companies can help speed up this process. They have the expertise to deliver projects on time while keeping costs down. By using Agile methods and other development technologies, these companies ensure that projects are completed as planned, allowing for ongoing improvements and quick adjustments to any changes.

Time savings is one of key benefit when choosing offshore development

4. Approaching the latest technologies

The high cost of adopting new technologies often challenges many organizations. However, by partnering with IT outsourcing service providers who are deeply invested in technology and consistently stay abreast of new developments, you can confidently rely on them to gain access to new tech stacks.

Common offshore software development challenges

1. Time zone differences

Time zone differences can significantly affect communication and may cause delays in product development. These time differences can slow decision-making if a business requires prompt response and approval on an important issue.

At SupremeTech, we handle time zone differences by arranging work hours and clear communication. We schedule our meetings to fit your work hours so you get timely updates and quick responses to essential questions or approvals. This helps reduce delays and keeps your project on track without slowing development.

2. Lack of communication

Communication challenges are common in offshore software development for several reasons. One major issue is language barriers, which can make effective communication difficult. To mitigate this, it is important to choose a software outsourcing partner who is fluent in English or your preferred language. Additionally, their work processes should align with yours throughout the development cycle.

At SupremeTech, we address these challenges head-on. Our Business Analysts, or Proxy Product Owners, bridge the communication gap between the development and business teams. We not only communicate in your language but also enhance understanding of the various roles within the project, foster the development team’s sense of ownership, and align everyone towards a common goal for project success.

3. Data security issues

Data leakage is a pressing concern in offshore collaborations involving sensitive information. Address this issue by engaging a partner firm and establishing a Non-Disclosure Agreement (NDA). Additionally, inquire about the outsourcing vendor’s security measures, such as user privacy policies, secure data storage, encryption, and compliance with regulations like the General Data Protection Regulation (GDPR).

Addressing data leakage, a critical concern in offshore software business collaborations

4. Quality assurance

Maintaining quality control when working with an unfamiliar team can be difficult. Offshore developers might have different ideas about how business should be conducted and projects should be managed. This can lead to a final product that doesn’t match your expectations. Additionally, you might be collaborating with recent college graduates or less experienced developers.

To address quality control issues, SupremeTech consistently follows global standards for quality and security. We have achieved ISO certification to guarantee the security, quality, and efficiency of our products, services, and systems. Our information security policies are audited by CyberGRX, ensuring we meet high standards. Additionally, we are proud to have been recognized as a Silver Partner of ISTQB in 2022 for our software testing practices.

When should you work with an offshore development vendor?

Offshore development provides clients substantial benefits, including cost and time savings, access to highly skilled engineers, and the latest technology. However, offshore outsourcing faces many challenges, including time zone differences, communication issues, data leakage, and quality assurance concerns. Offshore development becomes an excellent alternative when you aim to:

  • Prioritize core business activities.
  • Access industry professionals.
  • Increase technological competence.
  • Accelerate project completion.
  • Control the software development costs.
  • Reduce operational costs.

In conclusion, offshore development provides firms various alternatives to save effort, time, and money. To keep your budget while getting decent results, you may hire offshore IT experts to create a versatile and successful new product. Contact us for a consultation on any queries about offshore software development.

References:

Statista Research Department and 14, M. (2024) Global: IT consulting & implementation market revenue 2018-2029, Statista. Available at: https://www.statista.com/forecasts/1079927/it-consulting-implementationservices-revenue (Accessed: 28 October 2024). 

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          How to Step Out of the “Forwarder” Shadow?

          Have you ever, as a Comtor or Business Analyst (BA), felt like… a messenger? Every time the client asks something, you turn to the team, copy their answer, translate it, and send it back — just passing messages instead of actually owning the conversation. At SupremeTech, our BA team jokingly calls this role the “Professional Forwarder.” Through many “lost in translation” moments, we’ve learned valuable lessons on how to step out of that shadow — to become real connectors between the client and the team. Let’s hear from our BA team as they share practical tips to help you move beyond being a “forwarder” drawn directly from real project experience. Signs You Might Be Forwarding Too Much 1. The classic line: “Let me check with the team.”It’s not wrong — but if you’re saying it too often, it might mean you don’t fully understand the issue. 2. Lack of confidence in meetings: Many new BAs struggle with open-ended questions. When you don’t fully understand the product, you can’t confidently answer questions from both the client and your internal team. The PM asks about progress, you look at the Sprint Backlog full of numbers — and still don’t know where to start. 3. Avoiding technical talk: The moment you hear technical terms, you “pass the ball” to the PTL — without really understanding what’s being discussed. 3 Steps to Escape the “Forwarder Manager” Role So, how can you move from being a Forwarder to becoming a true communicator — someone who understands, connects, and leads discussions effectively? Here are three simple but powerful steps you can start practicing right away: 1. Before Forwarding, Ask Yourself: Do I understand at least 70% of this content?Have I tried to reproduce the bug, test the feature in the DEV environment, or explore the possible cause myself?If I were the dev/tester receiving this message, would I have enough context to understand it?Can I classify the issue — is it about UI/UX, logic, data, or business flow?Can I try to answer part of it first, then confirm later? 👉 This habit helps you learn something new every day, instead of just finishing tasks every day. 2. In Every Meeting – Observe and Lead What is the team really discussing? Do I understand the big picture?If the conversation is technical, how does it relate to the overall context?Is anyone confused? Can I help clarify? If you find yourself unsure about all three — take notes, take notes, and take notes.Meeting minutes and your own notes will help you retain details and follow up later for deeper understanding. 3. Build Strong Foundations Whether you’re a Comtor, BA, or PO, a solid foundation in product knowledge, business logic, and basic technical understanding helps you make better decisions — and lead your team effectively. Don’t get stuck thinking “that’s not my task.” Instead, learn actively by: Reading about technical keywords used in your project.Redrawing the business flow yourself to truly understand it.Asking devs, QCs, PTLs, and clients for their perspectives.Finding a technical advisor who can review your understanding and answer your tech-related questions. Every time you’re about to forward a message, pause for a minute — dig a little deeper.Each pause adds to your knowledge and analytical mindset. These small daily efforts will sharpen your skills and confidence — helping you grow not only as a professional BA, but also as a potential Project Leader who truly adds value to the team.

          31/10/2025

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          BA Team

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          How to Step Out of the “Forwarder” Shadow?

          31/10/2025

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          Team Người Việc: Winning with AI-Assisted Development at SupremeTech

          AI

          AI-assisted development

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            How Team Người Việc Won SupremeTech’s AI Hackathon 2025 with AI-Assisted Development and Agile Thinking

            24 hours. 10 teams. Countless lines of code. One team claimed the spotlight and took half of the 100 million VND prize pool. SupremeTech’s first-ever AI Hackathon was more than just a competition, it was a test of endurance, creativity, and teamwork. For one intense day and night, our participants pushed the limits of AI-assisted development, turning raw ideas into functioning prototypes under extreme time pressure. Among them, three teams rose above the rest. Their solutions not only showcased strong technical execution but also revealed how AI hackathon use cases can bring real business value in areas such as customer experience, automation, and data-driven decision-making. These top three use cases highlight the future potential of AI and the passion of SupremeTech’s people to turn vision into reality. Brought home the Top Prize - Team Người Việc stood out for their sharp strategy and teamwork. Their winning project solved a familiar yet complex issue in the tourism industry: managing group travel efficiently while ensuring every participant enjoys a seamless experience. Presented in clear business logic, executed with agile methodology, and powered by AI-assisted development, their solution proved that innovation thrives when technology meets human insight. Introducing the Team: Small but Strong Team Người Việc brought together a crew of four: Hung Dinh, Huy Nguyen, and Dung Nguyen as front-end engineers, and Khanh Nguyen as the business analyst. While other teams had five members, this smaller team turned their size into strength. With Khanh shaping the business logic and user journey, and the three engineers transforming those ideas into a functional product, they created a strong link between business insight and technical execution. Each member brought a distinct perspective: one focused on monetization and business value, another on operational flow, and others on technical quality and user experience. Together, they created a strong team that has both business insight and technical execution. Khanh shared that: “Everyone respected each other’s opinions. We weren’t chasing perfection, we were building something real, something that worked”. The Challenge: Turning Hot and Heavy Topic into Opportunity When the AI Hackathon began, the participating teams didn’t get to choose their challenge. Each team drew a topic randomly from a pool of three, and fate handed team Người Việc a challenge that was both broad and complex: Destination and Experience Management System for Tourism. Instead of seeing it as an obstacle, the team saw great potential in this topic: “It’s actually very close to what SupremeTech does,” one member shared. “Tourism and service coordination are among the industries where our clients face similar pain points. If developed further, this could even become a real product for the company”. For most teams, tackling something this wide in just 24 hours would be overwhelming. But for Người Việc, it became the perfect opportunity to combine business logic, agile thinking, and AI-assisted development into a single solution. Dũng, one of the front-end engineers shared: “We didn’t see it as just a travel problem. It’s a coordination problem that every company faces because of too many people, too little time, and too many things to track.” The Idea: Transforming Tourism Coordination with AI Manual planning and coordination often create time-consuming processes, lack of feedback, and fragmented communication across travel agencies, corporate HR departments, and trip participants. To solve this, Người Việc envisioned an end-to-end platform that connects all stakeholders, from travel agencies and corporate planners to event organizers and trip participants.The system enables users to: Create and customize travel itinerariesConnect directly with travel agencies through a marketplace modelTrack schedules via QR codeProvide instant feedback during the trip. In short, it bridges the gap between demand and supply in hospitality, creating a more transparent, interactive, and seamless travel experience. The Process: From Brainstorming to AI-Assisted Development What set Người Việc apart was their strategic mindset before touching a single line of code. Instead of rushing to use AI tools right-away, the team began with a face-to-face brainstorming session, mapping out what a real group trip looks like from start to finish: from planning and agency communication to real-time updates and user feedback. To validate their ideas, they even called friends working in hospitality to understand pain points from the field such as: how agencies handle client requests, where information gets lost, and what travelers actually expect. Only after this discovery phase, the team moved into design and development. They first created clear user stories and workflows on their own, then applied story-based prompting by feeding those stories into ChatGPT and Copilot to generate database schemas, API endpoints, and code snippets. This structured use of AI helped them align technical output with business logic and speed up development. Their approach became a model of how AI-assisted development and agile methodology can complement each other, keeping logic clear while boosting speed. Their mantra throughout the process was simple yet powerful: Think first, then use AI smartly. This mindset kept their workflow focused, turning AI into a productivity multiplier instead of a shortcut, and became a highlight in their AI hackathon journey.Without a QC member, the team stayed flexible and shared responsibilities across roles. Each member could take on multiple tasks when needed, but they still kept a clear structure in how they worked. The PTL and BA stepped in as real users, testing features and giving feedback from a user’s point of view. After defining their user roles and business logic, Team Người Việc translated their ideas into a working prototype. Their platform acts as a bridge between corporate planners and travel agencies, creating a space where requests, itineraries, and feedback flow seamlessly in real time. The system’s core features included: Trip creation and customization: HR or operation teams can build itineraries, adjust timelines, and submit requests tailored to their needs.Agency collaboration: Travel agencies receive those requests, update details, and negotiate directly through the platform, no more back-and-forth emails or lost messages.Participant tracking: Each trip generates a public QR code, allowing members to follow updates, view schedules, and send instant feedback during the journey.Transparency and engagement: The platform closes the communication loop, giving every stakeholder a clearer view of the process. With these key flows completed, the team delivered a functional MVP, a product with clean logic, smooth handoffs between roles, and enough structure to be reused or scaled for other industries. Modern Tech Stack Built for AI-Driven Innovation To bring their concept to life within 24 hours, Team Người Việc designed a tech stack that was modern, lightweight, and AI-friendly. Every layer from frontend to deployment was chosen to balance speed, scalability, and maintainability. Frontend Layer: Fast and Built for Clarity The team developed the user interface using Next.js 15 to handle both page rendering and API routes. Combined with TypeScript, it provided type safety and consistency across all modules, reducing human errors in the rush of development. For styling and components, they used Tailwind CSS and shadcn/ui, which allowed them to quickly create a clean, responsive design without spending time reinventing basic UI elements. Despite the tight schedule, the frontend still delivered a cohesive experience from trip creation to QR-based tracking, proving that with the right stack, agility doesn’t mean sacrificing structure. Backend Layer: Structured Logic and Data Flow Behind the interface, the team used Prisma ORM to manage the database layer. Its schema-first approach, paired with TypeScript integration, helped them maintain data consistency while iterating rapidly. The backend services were also written in Next.js, utilizing server functions to keep everything unified and easy to deploy. This setup gave the team clear control over their data models and allowed them to focus on the business logic, ensuring that trip creation, feedback collection, and participant interactions all flowed smoothly without manual handling. Infrastructure & Deployment: Stability under Pressure To keep their development-to-demo pipeline fast and reliable, Người Việc deployed their system on AWS using Dokploy - a self-hosted CI/CD solution that automates Docker-based deployments. This environment allowed them to push code, test changes, and release updates seamlessly without dependency conflicts. By using Docker containers, they replicated production conditions from the start, ensuring that the MVP remained stable and demo-ready throughout the hackathon. The setup was simple enough for rapid iteration yet robust enough to be scaled for real client use. AI Tools: A Smarter, Not Faster, Way to Build AI played a key role in the team’s workflow but only after the foundation was set.ChatGPT acted as their assistant for ideation and logic design, helping refine user stories, define acceptance criteria, and clarify user flows. Meanwhile, GitHub Copilot served as their pair programmer, generating clean snippets, suggesting improvements, and handling repetitive coding tasks. Instead of using AI as a shortcut, Người Việc used it as an accelerator by integrating it at the right moments to enhance productivity while keeping control of direction and logic. >>> Read more related articles: AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025How Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025 Judges’ Feedbacks Business Perspective From a business perspective, the judges saw Team Người Việc as a perfect example of practicality and vision. Their solution showed how AI-driven development can address real client needs, especially in industries like travel and hospitality. However, the judges also provided constructive feedback for future improvement. While the idea covered a broad scope from sales to operations, they suggested narrowing the focus to one specific stage in the travel management cycle. By doing so, the solution could achieve higher feasibility and faster adoption in real-world scenarios. The judges also encouraged documenting the team’s AI-assisted project management workflow as a reference for future AI hackathon journeys within SupremeTech. The final presentation showcased all the best qualities of their teamwork. The judges highlighted Người Việc’s clear storytelling, strong time management, and smooth demo delivery that effectively illustrated how their system worked. The team’s confident, structured presentation left a lasting impression and perfectly captured the spirit of SupremeTech’s AI Hackathon. Technical and Engineering Perspective From a technical point of view, the judges recognized Người Việc as a team that combined strong engineering skill with thoughtful use of modern tools. They developed their product on a well-defined code base with clear development standards, following a structured flow from analysis and design to implementation, which is remarkable under the time pressure of a 24-hour hackathon. The highlight of their approach was the story-based prompting technique, which kept the project’s logic coherent from start to finish. By crafting prompts around user stories rather than isolated tasks, the team ensured that every AI-generated piece of code served a real business purpose. This balance between automation and human reasoning became one of the defining features of their success. Teamwork: Staying Calm When Things Went Wrong No hackathon story is complete without chaos and Người Việc had their moment too. Just before the final presentation, disaster happened: the team’s slide suddenly became inaccessible because their shared drive was locked by the judges. With only minutes left, they borrowed a laptop, rebuilt the slides from scratch, and walked onto the stage calm and composed delivering a confident demo that looked effortless to the audience. The team recalled “After 22 hours of coding, what stayed with us wasn’t exhaustion. It was that moment when everyone looked at each other and said: We'll make it work, no matter what.” Voices from the Winners For Team Người Việc, winning the hackathon was not just about the prize, it was about learning how humans and AI can truly collaborate. Reflecting on the experience, Dũng shared: “We realized that AI isn’t just a tool, it’s a real teammate, if you know how to ‘talk’ to it. Each team used AI differently: some for brainstorming, some for UI design, others for presentation. But the prompts we gave were never the same, and that’s why the results were so different. AI only shows its real power when people know how to guide it.” As winners, the team also offered advice for those who will join future hackathons: “Prepare everything you can beforehand: boilerplate code, deployment setup, tools, and your fighting spirit. Once the event starts, every minute counts. And above all, trust your team” Conclusion Team Người Việc proved that real innovation is not only about technology, but about people working together with purpose. By combining business insight, teamwork, and the smart use of AI, they turned a difficult 24-hour challenge into a real achievement. For SupremeTech, this victory is more than just a competition result. It’s a reminder that the future of development starts with clear thinking, strong teamwork, and the courage to explore new ways of building with AI. Appendix: 1. How the Team Applied AI Throughout the Project StageApproachAI Application/ Tools UsedAnalysis & DesignThe whole team brainstormed together, role-playing as real users to map out workflows and features.No AI used — this was the most human-driven stage focused on critical thinking.User Story writingConverted rough ideas into logical workflows, defined goals, and acceptance criteria.ChatGPT acted as a virtual BA, turning brainstorm notes into professional User Stories and Acceptance Criteria.Coding (User Story Based)Developers implemented each User Story while communicating directly with the AI assistant for suggestions and refactoring.GitHub Copilot served as a coding partner, reading stories, suggesting code, refining syntax, and accelerating implementation.Testing & ReleaseThe PTL and BA acted as real users to test the product, identify bugs, and refine the UX before release.No AI used — manual testing for real-user validation. 2. Team Tech Stack LayerTech StackFrontend & Backend (Fullstack)Next.js 15 (App Router)UI Libraryshadcn/ui + TailwindCSSAI AssistantChatGPT + GitHub CopilotInfra / DeployAWS + Dokploy 📩 Read more articles about us here: SupremeTech’s Blog

            22/10/2025

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            Quy Huynh

            AI

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            How Team Người Việc Won SupremeTech’s AI Hackathon 2025 with AI-Assisted Development and Agile Thinking

            22/10/2025

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            Quy Huynh

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