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Offshore software development services: Common terms you should know

26/07/2023

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Are you facing difficulties in seeking for IT talents for your business? Well, you are not alone! According to THE 2022 GLOBAL TALENT SHORTAGE report by ManpowerGroup, 21 countries are recorded higher talent shortages than global average. IT & Technology ranks #1 top industries with the highest talent shortages. Though tech giants are announcing to discharge hundred thousands of employees worldwide, causing the global lay-off wave, IT talents are forecasted to still in high demand, especially those who obtain AI, machine learning, cybersecurity, cloud computing skills.

Talent shortages around the world

In order to stay ahead of the competition, businesses need to ensure its human resource stability. While seeking for the optimal solutions, business owners consider offshore software development an old-school, yet effective, lifesaving package. The allure of accessing top-notch talent, reducing costs, and scaling operations has made offshore development an enticing option. But beware! Successfully navigating this realm comes with its fair share of challenges.

Enter the world of offshore development, where managing performance can be as exhilarating as sailing through rough waters. We have just the knowledge buoy you need to stay afloat. In our latest educational blog post, we dive deep into the common terms every business owner should know to harness the true potential of offshore software development services.

common terms every business owner should know
What you should know about offshore software development services?

Understanding Offshore Software Development Services

Definition of offshore software development services

Offshore software development services refer to the practice of outsourcing software development tasks or projects to external teams located in a different country or region. Instead of relying solely on in-house resources, businesses collaborate with offshore development teams to leverage their expertise, cost advantages, and scalability. By partnering with offshore service providers, companies gain access to a global talent pool, enabling them to accelerate development cycles and bring innovative solutions to market faster.

Benefits of offshore software development services

  • Cost-effectiveness: One of the most significant advantages of offshore software development services is cost reduction. By choosing offshore providers, businesses can tap into regions with lower labor costs, allowing them to allocate their budget more efficiently. This cost advantage enables companies to invest in other areas of their business or allocate resources to additional development projects.
  • Access to skilled talent: Offshore software development services offer businesses access to a diverse and highly skilled talent pool. These offshore teams often possess specialized expertise and experience in specific technologies or industries. By collaborating with offshore professionals, businesses can leverage their knowledge and skills to build cutting-edge software solutions that meet their unique requirements.
  • Scalability and flexibility: Offshore software development services provide businesses with the flexibility to scale their development efforts quickly. As projects evolve or new opportunities arise, offshore teams can quickly ramp up resources or adjust the team size accordingly. This scalability allows companies to respond rapidly to market demands, ensuring efficient project execution and timely product delivery.

Addressing challenges in offshore software development services

  • Performance management: Managing the performance of offshore development teams can be a challenge due to geographical distance, cultural differences, and variations in work practices. To overcome this challenge, it is crucial to establish clear communication channels, set expectations, and implement effective project management methodologies. Regular monitoring, progress tracking, and performance evaluation help ensure that projects stay on track and meet quality standards.
  • Communication and language barriers: Effective communication is vital for successful offshore development. Language barriers, different time zones, and cultural nuances can hinder communication and collaboration. To address this challenge, it is essential to establish clear communication protocols, leverage collaboration tools, and foster a culture of open and transparent communication. Regular video conferences, documentation, and the use of project management tools can help bridge communication gaps and ensure effective collaboration.
  • Time zone differences: Offshore often involves teams located in different time zones. While this can be advantageous for round-the-clock productivity, it also presents coordination challenges. To mitigate the impact of time zone differences, it is important to establish overlapping working hours, define clear expectations for response times, and leverage asynchronous communication methods such as email or project management tools. Effective time management and coordination are key to maximizing productivity and minimizing delays.

Importance of knowledge and preparation

To navigate the landscape of offshore software development successfully, knowledge and preparation are paramount. Business owners, product owners, and IT specialists must invest time and effort to understand the common terms and concepts associated with offshore development. This knowledge empowers them to make informed decisions, communicate effectively with offshore teams, and proactively address challenges. By preparing their teams and acquiring the necessary knowledge, businesses can lay a strong foundation for successful offshore collaborations, unlocking the full potential of offshore software development services.

Common Terms in Offshore Software Development

Common terms of offshore development services
Common terms of offshore development services

Agile development

Agile development is an iterative and collaborative approach to software development that emphasizes flexibility, adaptability, and customer collaboration. It involves breaking down the development process into small, incremental tasks called sprints, allowing for frequent feedback and continuous improvement. Agile development principles include valuing individuals and interactions, working software over comprehensive documentation, customer collaboration, and responding to change.

In the context of offshore development, Agile methodologies provide several benefits. They facilitate effective communication and collaboration between onshore and offshore teams, ensuring a shared understanding of project goals and requirements. Agile practices enable rapid iteration and quick feedback loops, allowing offshore teams to adapt to changing requirements and deliver valuable software increments consistently.

Scrum

Scrum is a specific Agile framework widely used in software development. It provides a structured approach to project management, enabling teams to organize their work, prioritize tasks, and optimize productivity. In Scrum, development work is divided into short time-boxed iterations called sprints, usually lasting two to four weeks. Each sprint involves planning, daily stand-up meetings, development, testing, and a review of the completed work.

Within the Scrum framework, several key terms and roles are important to understand. These include the product owner, responsible for defining and prioritizing the product backlog; the Scrum master, who facilitates the Scrum process and ensures the team adheres to Agile principles; and the development team, responsible for delivering the software increment during each sprint. Scrum provides a transparent and iterative approach to software development, making it well-suited for offshore teams collaborating with onshore counterparts.

DevOps

DevOps is a set of practices that integrates software development (Dev) and IT operations (Ops) to enhance collaboration and improve the software delivery process. It aims to streamline workflows, automate processes, and foster a culture of collaboration and continuous improvement. DevOps encompasses areas such as infrastructure automation, continuous integration/continuous delivery (CI/CD), and monitoring and feedback loops.

In the context of offshore software development, implementing DevOps practices can bring significant benefits. It enables smoother collaboration between onshore and offshore teams, ensures faster and more reliable software deployments, and enhances overall project visibility and transparency. DevOps principles promote efficient communication, standardized processes, and rapid feedback cycles, leading to improved productivity, quality, and time-to-market for offshore development projects.

Dedicated development team

A dedicated development team refers to a group of specialized software developers and professionals who work exclusively on a specific project for a client. Unlike traditional outsourcing models, where tasks are assigned to different teams or individuals, a dedicated development team remains focused on a single project, providing continuity, consistency, and a deep understanding of the project requirements.

The advantages of a dedicated development team in offshore software development are numerous. It allows for greater control and flexibility over the development process, as the client can directly manage and communicate with the dedicated team. The team members become intimately familiar with the project, its goals, and the client’s expectations, resulting in higher productivity and better alignment. Additionally, a dedicated team offers scalability options, allowing the client to adjust the team size based on project requirements easily.

Within a dedicated development team, roles and responsibilities are clearly defined. They typically include software developers, quality assurance specialists, project managers, and other roles specific to the project’s requirements. This dedicated team structure fosters collaboration, accountability, and a shared sense of ownership, leading to efficient and successful offshore software development projects.

Best Practices for Managing Offshore Software Development Services

Preparing your team for offshore collaboration

To ensure a smooth offshore collaboration, preparing your team for the unique dynamics of working with an offshore software development service is essential. First, familiarize your team with common offshore software development terms and concepts. This will promote a shared understanding and effective communication with the offshore team. Additionally, establish clear communication channels, both synchronous and asynchronous, to facilitate seamless collaboration and timely information exchange.

Utilize offshore software development to achieve greater success
Utilize offshore software development to achieve greater success

Setting expectations and goals

Clearly defining project requirements and milestones is crucial for successful offshore software development. Ensure that your team and the offshore service provider understand the project’s scope, deliverables, and timelines. Communicate your expectations and goals to align everyone towards a shared vision. Regularly monitor progress and performance metrics to ensure the project stays on track and meets the desired outcomes.

Building strong relationships with offshore teams

Building strong relationships with offshore teams is a key factor in the success of your collaboration. Cultivate trust and cooperation by fostering open and transparent communication channels. Encourage regular interactions and establish a culture of inclusivity and respect. Regularly evaluate the progress and provide constructive feedback to address issues and foster continuous improvement promptly. Building a strong relationship with the offshore team promotes effective collaboration, enhances productivity, and improves overall project outcomes.

Leveraging project management tools and technologies

Project management tools and technologies play a vital role in managing offshore software development services. Leverage appropriate project management tools to facilitate efficient task tracking, document sharing, and communication. These tools can streamline project workflows, enhance visibility, and promote transparency. Collaborative platforms, version control systems, and task management software can also contribute to effective project management and streamline the coordination between your team and the offshore service provider.

Conclusion

It is important to reiterate the significant advantages that offshore software development services offer to businesses. By opting for offshore development, companies can unlock cost savings, tap into a global talent pool, and achieve scalability and flexibility in their development projects. Offshore software development services provide opportunities to accelerate innovation, increase productivity, and gain a competitive edge in the market.

To navigate the complexities of offshore software development successfully, we emphasized the importance of acquiring knowledge and preparing your team. Understanding the common terms and concepts in offshore development allows you to effectively communicate with offshore teams, manage expectations, and overcome challenges. Educating yourself and your team will set the stage for fruitful and successful offshore collaborations.

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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. 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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

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          AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025

          SupremeTech’s first-ever AI Hackathon was more than just a competition. It was a thrilling test of creativity, focus, and endurance. For 22 hours, teams of passionate innovators raced against time to turn bold ideas into working prototypes that could bring real business value through AI. Among them was team Người Lào, whose project tackled one of the most relevant challenges in modern retail: building an omnichannel e-commerce and loyalty platform supported by AI. The goal was to create a system that connects online shopping, personalized loyalty programs, and in-store interactions into one seamless customer journey.What made Người Lào stand out was their business-driven mindset. Instead of treating the task as a purely technical challenge, they saw it as an opportunity to transform how Vietnamese cosmetic retailers connect with their customers. Their answer was ViEC Beauty, an innovative AI-powered e-commerce solution built on Zalo Mini App, turning a familiar local platform into a powerful tool for digital commerce. Meet The Team Team Người Lào was formed with the simple spirit of having fun, staying friendly, and learning together. Everyone joined with an open mind, ready to give their best once the challenge began. The team brought together members from different backgrounds, covering all key roles in a real project from infrastructure and front-end to back-end, business analysis, and quality control.Phuoc Pham, the team leader, believed great teamwork mattered more than perfect technical skills. What he looked for were people who knew their strengths and were willing to give their all. With that mindset, Người Lào grew into a team built on trust, respect, and laughter, values that ultimately became their greatest strength. When a Familiar Task Became the Toughest Challenge At first, the assignment sounded simple: create a multi-channel e-commerce and loyalty platform for retail stores. Building e-commerce systems was something most members already did in their daily work. But soon they realized that creating a typical shopping app would not stand out. To impress the judges, they needed something fresh, a solution with clear business impact and technical creativity. In just 22 hours, with five members and the support of AI tools, Người Lào had to deliver a product that was practical, scalable, and market-ready. Finding a Small Idea with Big Impact After a few brainstorming sessions, they decided to focus on a small but meaningful niche: the Vietnamese cosmetic retail market. This idea came from observing how many small cosmetic shops in Vietnam were struggling to keep up with the digital shift. While big players like Shopee and TikTok Shop dominate online sales, a large number of small cosmetic stores still lack proper digital tools to compete. These stores serve a loyal base of middle-aged customers who have strong purchasing power but are often left behind in the rush of digital transformation. They do not need complex apps or flashy platforms. What they need is something simple, familiar, and trustworthy. Người Lào identified three major problems these small retailers face: Losing connection with middle-aged customers who prefer personal interaction but no longer visit the store as often.Lack of customer insights makes it hard for shop owners to understand shopping habits or preferences.Being overshadowed by large e-commerce platforms, which are slowly taking over their loyal customer base. With those challenges in mind, Người Lào saw an opportunity to make a real difference. Instead of competing with big platforms, they wanted to empower small retailers with a digital tool that feels local, personal, and easy to use.That was when the idea of building an AI-powered e-commerce solution on Zalo Mini App, namely ViEC Beauty, was born. ViEC Beauty is a platform that could bring e-commerce and loyalty features right into the ecosystem that Vietnamese users already trust and use every day. It was a smart move that combined business empathy, technical creativity, and a clear understanding of the local market. From Idea to Prototype in 24 Hours Once the idea was clear, the real race began. With only 24 hours to bring ViEC Beauty to life, Người Lào jumped straight into action. The plan was simple: divide roles clearly, trust each other’s strengths, and move fast. Hieu Vo, the dev lead, took charge of integrations and overall coordination. Anh Duong focused on building the back end with Laravel and setting up the admin site. Hieu Cao worked on the front end of the Zalo Mini App. At the same time, Huong Nguyen took on both the Business Analyst and Quality Control roles to ensure everything aligned with the initial vision. Meanwhile, Phuoc Pham, the team leader, acted as the bridge connecting everyone - reviewing ideas, making key decisions, and preparing the final presentation slides. With all the key roles covered, the team had a 360-degree view of the project, from technical implementation to business logic and user experience. They spent the first ten hours coding with AI Copilot and documenting the workflow. It was intense but exciting until the team hit a wall. The AI started producing conflicting UI components due to unclear process design in the initial prompts. What was supposed to save time ended up creating bugs that needed hours to fix. But instead of getting frustrated, the team stayed calm, laughed it off, and worked together to debug and refine the product until everything clicked into place. When the final hour arrived, they had a fully working Zalo Mini App—not perfect, but functional, meaningful, and proudly built within a single sleepless day. The Product: Core Features That Matter ViEC Beauty, an AI-powered e-commerce solution built within the Zalo ecosystem, offered small beauty retailers an accessible and familiar way to sell online and engage customers. Core App Features Product Catalog: An easy-to-browse collection of beauty products directly inside Zalo.Basic Loyalty Point System: Customers earn and redeem points to encourage repeat purchases.Admin Dashboard Prototype: A simple dashboard for store owners to manage products, orders, and sales.Zalo Integration Setup: Allows stores to send personalized notifications, skincare reminders, and promotions through the Zalo Official Account. Super Admin System A more advanced panel included: Real-time data analytics for instant business insightsInventory management to track stock levelsCRM tools to maintain relationships and engagementCampaign and promotion management to run and measure marketing activities Even though some features like Group Orders and AI Skin Analysis were still in ideation, ViEC Beauty already demonstrated how a simple, focused solution could bring AI-powered value to small businesses. Tech Stack The team built ViEC Beauty with React and Zalo SDK for the front end, Laravel for the back end, MySQL for the database, and EC2 cloud infrastructure for hosting. They chose familiar and reliable technologies to move fast and deliver results within 24 hours, prioritizing execution over complexity. >>> Read more related articles: SupremeTech’s AI Hackathon 2025: A blend of Product-Focused Spirit and AI-assisted DevelopmentHow Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025 Judges’ Feedback The judges praised Người Lào’s strategic focus on a niche market and their decision to build on the Zalo Mini App, calling it a practical and high-potential approach. They noted that while the product targeted small beauty retailers, a limited market segment, it had strong potential for real-world implementation. They recommended expanding ViEC Beauty into a multi-store SaaS platform, adding community-driven features, and integrating AI more deeply for personalization and competitiveness. On the technical side, the judges commended the team’s clear planning, fast execution, and AI integration. They encouraged the team to make AI applications more visible and explore scalability for larger projects. Overall, Người Lào left a strong impression with a well-executed prototype and a clear vision for future growth. Teamwork Memorable Moments For Phuoc Pham, the leader, the biggest lesson was simple: strong determination makes anything possible. He learned to stay focused, manage effort wisely, and balance ambition with practicality so the team could deliver on time. To him, the real strength of Người Lào came from teamwork, from every member understanding their own strengths and supporting one another toward a shared goal. Huong Nguyen shared that the hackathon was an unforgettable experience, a test of creativity, patience, and collaboration. From ideation to final delivery, every member gave their best and learned how to manage time, communicate, and step outside their comfort zones. Winning third place was a proud moment, but for the team, the valid reward was the experience itself, learning, laughing, and building something meaningful together. Conclusion For Người Lào, the SupremeTech AI Hackathon 2025 was more than a contest. It was a journey of teamwork, creativity, and discovery. In just 24 hours, they turned an idea into a working Zalo Mini App that blended business insight, AI innovation, and human collaboration. Their story proved that success is not just about winning but about learning how to move fast, stay focused, and create with purpose. ViEC Beauty started as a hackathon project, but it carries the potential to grow into something much bigger for Vietnam’s beauty retail industry. Team Phuoc Pham T. - Senior Infra EngineerHieu Vo H. - Senior BE EngineerDuong Nguyen V. A. - BE EngineerHieu Cao K. - FE EngineerHuong Nguyen T.T. - Quality Control Engineer  Tech Stack Frontend: React, Zalo SDKBackend: LaravelDatabase: MySQLInfrastructure: EC2, Cloud 📩 Read more articles about us here: SupremeTech’s Blog

          21/10/2025

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          AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025

          21/10/2025

          218

          Ngan Phan

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