Australian solutions provider SMS Management & Technology has partnered with a Vietnamese software development company to open a new "Offshore Development Centre".
Seventy SMS development staff based in Vietnam were absorbed into the new ODC on Monday, according to a company statement released to the ASX.
The centre provides testing and technical labour on demand, which SMS said allows "a large number of resources to surge onto projects at short notice without SMS holding costs". The ODC has access to up to 1600 developers provided by the Vietnamese partner, TMA Solutions.
"This arrangement transforms fixed costs into variable costs while also greatly expanding the capacity and range of off-shore technical skills we can draw on," said SMS CEO Tom Stianos.
"In the past we had the conflicting objectives of wanting to grow SMS's in-house facility while also reducing fixed costs."
The technical skills available from the ODC will include Microsoft, Oracle, IBM, Salesforce and mobile apps.
The statement also said the new centre had "language skills to support multi-country deployments" that was a crucial part of SMS' South East Asia expansion.
SMS Management & Technology saw revenues of $278.5 million last year and employs over 1600 staff across Australia, Hong Kong, Singapore and Vietnam.