The cost and expenses are one of the biggest factors in running a business. Every business owner wants to keep their operating cost to a minimal level as much as possible. Overall, the tech industry is short of talent, so wherever companies can source the manpower to execute the technical tasks, they would need to outsource.

While outsourcing to Vietnam seems a viable option for IT companies, the question that arises is which country and region to pick.

1. What is software development outsourcing?

When you want to get your business work done at a reduced price and have someone who can do that (irrespective of their location), you outsource the project and task to them. The most beneficial industry of this culture is IT, as any work can be completed from anywhere around the globe without any need for proximity.

Read more: How do I outsource software development?

 

outsourcing to vietnam service

2. Challenges of outsourcing to Vietnam

Language barrier

Despite a huge growth in education, a big part of Vietnamese developers face challenges in effectively using English, particularly in speaking and listening. This hinders their ability to engage in advanced communication and management. Addressing this issue is crucial, and a more comprehensive education plan could provide a simple solution.

Attitude

IT staff generally enjoy quite good salaries compared to their peers in other sectors. That makes some of them arrogant, lazy, and selfish. There’s still room for improvement in attitude and work ethic on the part of Vietnamese IT workers.

Government

You may be surprised, but government personnel in Vietnam are quite low-tech. They prefer to do things manually with pens and papers rather than computers. And the infrastructure and software are still outdated. If the government sets a good example by improving its technology first, it will serve as a huge boost to the entire country.

3. Why should you choose outsourcing to Vietnam?

Despite the aforementioned challenges, there are a lot of opportunities that are worth noting.

Vietnam, in present times, has become a highly popular destination for IT and software outsourcing owing to several advantages over other countries. According to Statista, the Revenue of Vietnam’s IT outsourcing market is projected to reach US$590.40m in 2023. The revenue is anticipated to show an annual growth rate (CAGR 2023-2028) of 16.77%, resulting in a market volume of US$1,282.00m by 2028. Here are 4 key benefits of outsourcing to Vietnam.

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Economical Workforce

The most important advantage IT companies look to when outsourcing their work is the availability of low cost. And Vietnam offers that. The average developer hourly rates in Vietnam are relatively cheaper compared with the world and adjacent countries, including India, Thailand, and China. Also, the country’s cost when it comes to rendering outsourcing services is way lower than the neighboring outsourcing attractions including India, China, and other nations.

Read more:

High Education Level

Being low on the cost doesn’t mean that the knowledge and skill level are low. This is where Vietnam has grown and evolved considerably in the last few years, having created a system of IT-specialized schools that develop young talent who holds expertise in software, programming, and other IT domains.

The education level, as a whole, is of high class with a literacy rate of 97%, and a higher percentage of that is engaged in learning information and communication technology. Vietnamese students pay a lot of attention to teaching Software Engineering in Vietnam. There are many good schools there that teach Computer Science, like the National University of Natural Science. The focus on English is also high as now almost all schools in Vietnam require students to have an IELTS certificate of at least 6.0.  Now you will find a growing percentage of Vietnamese working professionals in the IT industry very fluent in English communication.

Education nurtures the root of everything. So if you’re outsourcing to Vietnam, education is one of the key benefits you should keep in mind.

Young Personnel

outsourcing to vietnam

outsourcing to vietnam

According to Vietnamnet, Vietnam is currently experiencing a special time, known as the ‘golden population period,’ which started in 2007 and will last until 2039. By April 2023, Vietnam is expected to reach a significant milestone with its 100 millionth citizens.

If we evaluate the population dynamics of Vietnam, then the statistics show that up to 70% of people are under 35 years of age, and around half are between 15 to 35 years of age. This means that a higher percentage of the population is the young workforce who are knowledgeable and skilled in the latest market trends and technologies. Besides, Vietnamese young people are generally smart, and hardworking, and the percentage of people with a college education is high. This is one of the key reasons why outsourcing to Vietnam is a smart move.

Stable Country

With a constant growth rate of around 7%, and the country devoid of any political conflict, religious extremism, and economic stability, it provides the ideal platform for Western countries to work with people from a liberal and steady culture. This allows foreign companies to get ideal support without any external indulgence or diversion and can freely move to the country for training and other purposes.

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The above reasons make this destination an ideal location for software outsourcing for any small to large enterprise, considering any size of work. The Vietnamese are highly polite, friendly people who adhere to timeliness and proficiency in their work.

Read more: Why Ho Chi Minh City for IT Outsourcing? The “Software Development Hub” in Asia

4. Top outsourcing companies in Vietnam

Vietnam is home to plenty of trusted software outsourcing companies; however, here are a few top outsourcing companies when you consider outsourcing to Vietnam.

InApps Technology

At InApps Technology, we’re proud to share that we’ve earned the top spot in Vietnam and the 5th position in Southeast Asia for Application Development on Clutch, thanks to fantastic ratings and reviews from our clients.

We’re the go-to choice for mobile app development in Vietnam and stand out as a key player in Southeast Asia. Additionally, we’re honored to be recognized as the 90th-best global B2B software development firm.

Our track record includes

  • over 200 successful projects
  • Serving more than 60 global clients
  • impressive 70% customer retention rate
  • a whopping 96% customer satisfaction level

These numbers contribute to InApps Technology’s reputation as a reliable, innovative, and client-focused software development company, making it a compelling choice for businesses seeking outsourcing to Vietnam.

Orient Software

Orient Software, a distinguished software development company, excels in offering high-quality software development services. Their work ethos revolves around solid ethics, collaboration, tenacity, and responsibility, underpinned by experience, dedication, and professionalism.

Here are a few highlights of their strengths:

  • Expert Teams: Expert teams drive their success, consistently exceeding client expectations. They achieve this while firmly adhering to their core values.
  • Talent and Growth Focus: Committed to hiring and developing top IT talent, ensuring staff are passionate and dedicated.
  • Client Satisfaction: They boast a high rate of repeat business and maintain a strong focus on quality assurance.
  • Established Track Record: Operating since 2005 with over 350 staff members, the company is ISO 9001 and ISO 27001 certified.

Saigon Technology

In 2022, Saigon Technology earned recognition at the Clutch Leaders Awards for Asia as a top Vietnamese software development firm. Boasting a decade of experience and over 300 software engineers, the company runs three outsourcing centers. It proudly holds ISO 9001 and ISO/IEC 27001 certifications, marking its commitment to quality management and information security. This demonstrates their commitment to excellence and security in software development.

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Saigon Technology’s strong team of more than 350 in-house experienced engineers is skilled in Agile IT. They are proud to offer top-quality web and mobile app development services globally, through both offshore and outsourcing models. Their mix of expertise, worldwide presence, industry acclaim, and dedication to quality makes them a leading choice in IT outsourcing to Vietnam.

KMS Technology

KMS Technology boasts a track record of building profitable software companies, and the creation and successful launch of several product companies through their internal incubator, KMS Labs. They are famous for Ease of Collaboration, assisting clients throughout the software development lifecycle, and offering long-term support and maintenance.

KMS also boasts Senior-Level Talent, working with experienced software engineers trained in emerging technologies. They are capable of delivering on short timelines and high-pressure jobs.

4. Outsourcing to Vietnam with InApps Technology

InApps Technology distinguishes itself in the software development industry for several key reasons, making it a preferred choice for many clients looking for outsourcing to Vietnam. Here are the top five key factors:

  1. Expertise and Recognition: InApps Technology is recognized for its expertise in software development, as evidenced by its high rankings on Clutch, a platform for B2B reviews. The company holds top positions in Vietnam and Southeast Asia in several categories, including Application Development and IT Staff Augmentation. This recognition reflects its commitment to quality and excellence in the technology sector.
  2. Diverse and High-Quality Services: InApps offers a wide range of services. These include custom software development, offshore development, IT staff augmentation, and custom enterprise software solutions. This diversity allows InApps to cater to various client needs, from startups to large enterprises, across multiple industries such as Edtech, Healthcare, SaaS, E-commerce, Marketplace, Blockchain, and more.
  3. Talented and Extensive Talent Pool: InApps boasts a pool of over 500 top talents. They can swiftly deploy skilled professionals to meet diverse client needs. This vast talent pool guarantees quick and efficient project delivery. Their focus is on aligning the right resources with each specific project.
  4. Client-Centric Approach: InApps places a strong emphasis on client satisfaction, striving for a high retention rate (>70%) and client satisfaction score (96%). The company actively strives to understand and meet client needs, delivers personalized solutions, and ensures prompt support and on-time delivery.
  5. Commitment to Innovation and Technology: InApps stays at the forefront of technological advancements, utilizing modern technologies and approaches. This commitment to innovation is evident in their work with cutting-edge technologies like AI, Blockchain, and cloud computing, ensuring that clients receive advanced and competitive solutions.

Wrapping Up

These numbers speak volumes about our commitment to delivering quality and building lasting partnerships. When you choose outsourcing to Vietnam with InApps, you’re choosing a trusted outsourcing partner for your software project. Talk to us about your software outsourcing project!!!

>> Read next: Top 13 Trusted Software Outsourcing Companies In Vietnam

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I am a dynamic Tech Explorer and Writer for InApps Technology. With a background in software engineering and a knack for writing, my content brings a fresh and insightful perspective to the tech scene. I love making their content not just informative but also incredibly engaging for both tech novices and aficionados. Join me on a journey through the ever-evolving digital landscape, where I decode complex concepts into captivating stories.

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