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Benefits of Outsourcing Software Development Services in Vietnam

It appears that the demand for IT outsourcing around the world is shifting toward Vietnam with much more competitive advantages. This helps to explain why software outsourcing services are expanding throughout Vietnam’s many regions and why the demand for these services is skyrocketing.

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Software outsourcing has caused significant worldwide upheaval over the last few years. The total income of the Vietnamese IT service industry reached 7.32 million US dollars in 2020, a million more than the previous year. Additionally, it is anticipated that in the upcoming years, its rate of development will remain the same or perhaps go up.

Outsourcing is gaining recognition

The time it takes to finish a project is greatly reduced, which is a major benefit of outsourcing. When you outsource your technical requirements, you may get started on your solution straightaway, whereas initiating the project and assembling an internal team can require 2 months or longer. An outsource partner will relieve you of the tedious job and hasten the start of your project. Vietnam is gradually establishing itself as a center for software outsourcing and the global IT industry.

Vietnam is known as an affordable, high-quality option for software development in Asia. According to CIO magazine, outsourcing to Vietnam can result in cost savings of up to 90% compared to producing software domestically. Even better, Vietnam offers software development at prices that are between a third and a sixth of what they are in India. These statistics are quite convincing for international businesses to begin outsourcing their software development to Vietnam.

Vietnam is a wise choice for outsourcing needs

Newcomers to outsourcing can worry that foreign companies are incapable or unwilling to deliver high-quality service, interact with the local personnel, and/or accomplish predetermined milestones and goals as competently and excellently as local employees. Language limitations, difficulties in forming and sustaining contact, and other local obstacles could make outsourcing appear like a dangerous alternative. But there are many outsourcing firms that put more of an emphasis on providing their clients with high-quality, precisely specified, extremely dedicated, and on-time solutions than on just providing them at a low cost.

Here are the reasons why Vietnam makes a smart decision for modern outsourcing needs: Vietnam is highly reliable and has a population that is highly concentrated in the IT sector. Its university graduates’ are familiar with Western economic practices, values, and their ability to communicate with clients in English with minimal to no cultural barriers.

Benefits of Outsourcing Software Development Services

Following are some of the benefits of outsourcing software development services to Vietnam.

Low labor costs

Excellent chances for outsourcing software development can be found in Vietnam. India and China have been outsourcing for quite some time and their cost has gradually gone up. However, Vietnam is still in its youth.

High technical literacy within the labor force

Companies can recruit a large number of highly qualified software developers from Vietnam to collaborate with them. With some of the best IT specialists in the Asian Region and even the world, Vietnam is becoming a great market for software outsourcing. In truth, Vietnam has a large number of talented developers who collaborate on projects all around Asia. As a result, you’ll discover that their excellence consistently prompts comparisons between these groups. There will always be inspiring backstories, regardless of where someone goes or what sort of project they undertake. The majority of clients share tales of how extraordinary Vietnamese talent really was at finding swift solutions when everyone required results right away.

Hospitable business environment

With its knowledgeable workforce and cutting-edge technologies, Vietnam is a fantastic place for engineers. They have a strong sense of responsibility, are always on time, and continually innovate in their line of work thanks to excellent communication skills. When the time comes for them to complete duties or express any concerns that may develop during these processes, they are also incredibly patient.

Healthy economy

Vietnam has shown remarkable resiliency in the midst of a COVID-19-related economic disaster. It is even impacted by this epidemic because of its broad connections to the world economy. Although many other industrialized nations are currently restricted or working from home because they cannot pay treatment costs, Vietnam continues to operate as usual.

The language barrier isn’t an issue anymore

Vietnamese, unlike most other Asian languages, uses the Latin script, exactly like English does, thus making learning English for Vietnamese speakers very simple. The majority of Vietnamese college graduates are fluent in English, making it the second most widely spoken language in the nation. The English Proficiency Index 2022 placed Vietnam’s English proficiency 60th overall and 7th in Asia. Therefore, when working on outsourcing projects, 90% of IT workers in Vietnam are able to converse in English at an intermediate or better level.

Final Thoughts

Over the past ten years, Vietnam has seen a boom in its outsourcing of software. Vietnam is a key source of outsourcing for Intel as well. Nortel Networks, Bayer, Sony, Cisco, and Anheuser Bush are a few more businesses that have chosen to outsource to Vietnam.

The Vietnam software outsourcing market is attractive, with plenty of room for expansion and untapped potential. Vietnam’s Ministry of Information and Communications estimates that the country’s ICT market was worth USD 20 billion in 2019. Between 2021 and 2025, it is anticipated to expand at a rate of 10% to 15% annually as both the public and private sectors adopt more ICT solutions.



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Shanika Wickramasinghe

Senior Software Engineer and Freelance Technical Writer. I write about any Computer Science related topic.