If you’ve been in the IT industry for a while, you might have already heard that outsourcing Asia is skyrocketing. According to Grand View Research, the market size for global outsourcing will reach $405.6 Billion by 2027. India remains the best spot as far as scale and accessibility of abilities are concerned. Meanwhile, China, the Philippines, and Vietnam are standing out as the top software outsourcing Asia.
Why choose Asian countries for outsourcing? In this article, we’re excited to walk you through five amazing Asian destinations for software outsourcing services. For each country, we’ll share three great reasons why they might be the perfect fit for your needs.
Top 5 countries for software outsourcing Asia
Here are the best destinations in the Asia Tech hub where you should outsource your software project.
Beginning with India. Why is India so popular for software outsourcing Asia?
Based on Statista, The IT Outsourcing market in India is projected to reach a revenue of $8.81 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of 17.92% from 2023 to 2028. This growth indicates a strong and expanding outsourcing sector within the country.
Besides, India is renowned for being an affordable outsourcing destination, boasting a vast pool of cost-effective software developers and programmers who typically charge between $15 and $30 per hour. In addition to these attractive rates, India’s urban population is well-educated and skilled in the latest technical areas. The country also prides itself on its strong technical infrastructure, which has enabled many young individuals to acquire advanced programming skills.
Despite the country’s history of being a communist republic with a Communist political impact, most customers discover that the nation has a profoundly versatile way of dealing with up-and-coming programming and technology advancements. Vietnam has become a dynamic powerhouse for innovation and information technology.
Vietnam has been the key player in the business process outsourcing (BPO) and IT outsourcing (ITO) industries. The BPO market has grown from 20% to 35% annually, with a revenue of 2 billion USD in 2015. Big companies from South Korea, Japan, North America, Australia, and Europe are among our clients. As those countries have high demands for IT services the cost of labor, IT infrastructure, and staff management are among their difficulties in operating their projects effectively. Fortunately, most software outsourcing companies have grown fast, especially in Vietnam with the latest technologies such as big data, artificial intelligence, and the Internet of Things. Vietnamese engineers and developers can carry out projects for customers all over the world with dedication and profound knowledge.
Vietnam has been one of the highest growth information-technology and telecom markets in the world in the past ten years. Nearly 60 percent of the country’s population aged below 35 years could quickly access new technologies, while over half of the population is using the internet.
Read more: Why should I choose outsourcing to Vietnam?
The Philippines has likewise experienced a peaceful transformation that has reshaped the redistributing programming advancement business to fulfill the needs of rising enterprises. The country is socially like most Western nations while additionally boasting of being the third biggest English-talking country on the planet. The 94 percent English education rate combined with a strong college framework creates more than 30,000 alumni who are capable in IT and other specialized, particular territories. Further, the Philippines’ programming engineers are costing a fifth of the expense compared to that of Western nations. The BPO industry has a record pace of development of over 25 percent a year in only the previous decade.
Another good player in the software outsourcing industry is Thailand. As indicated by a 2016 review by A.T Kearney, software offshore Thailand holds the number 6 situation among the ASEAN nations with a proficient offshore work showcase. The country has an amazing foundation with a strong college and school framework to help the IT offshoring workforce every year. The improving utilization of the English language has additionally made Thailand a paradise for remote financial specialists looking for the IT industry.
There is a solid sign of China offering probably the best tech and IT administrations in the locale as well as over the globe. Effectively a PwC report found that a developing number of IT organizations are set up in China to take the influence of the information technology industry. The positioning offers a look into China’s drive to create instructive, preparing, and other steady foundations to help advance data innovation and other tech-related administration enterprises among its populace.
Things to consider when choosing software outsourcing Asia
● Billing rates
Programming engineers from China would interfere with you by nearly $100 every hour in the charges rate. Vietnam and the Philippines take action accordingly with both sharing a normal hourly rate of $20 – $30. Luckily, you can find some companies in Vietnam offering lower rates starting at $17 per hour.
Vietnam is one of the most competitive choices in the world for ITO (information technology outsourcing), according to a market survey from Gartner, thanks to low labor costs, personnel stability, and the “golden population” period. Great advantages Gartner noted that the labor cost in Vietnam is just equal to half of that in India. Meanwhile, Vietnam has entered the golden population period meaning for every two people or more working, there is only one dependent person. Lam Nguyen Hai Long, deputy director of the Quang Trung Software Park, cited a series of advantages that could make Vietnam the world’s leading ITO provider. Vietnam produces 40,000 IT bachelor’s degrees every year. Besides the tax incentives offered to investors and the policies on human resource development, the government also encourages investment in high-tech zones and software parks.
“It’s no surprise that Vietnam is being talked about as an alternative, amid rising costs and attrition rates in popular offshoring destinations like China and India.” – TechCrunch, 2015.
● Skill positioning
China and India have twofold the number of understudies with degrees from top IT building and science schools. Such a situation may maybe what fuels China and India to rank second and twelfth separately in the worldwide positioning of programming and specialized abilities. Built-up players, for example, in the Philippines now appreciate an expert foundation of being a safe house for call focuses. Additionally, new participants, for example, Vietnam and Thailand are likewise turning into an asylum for developing ability pools of programming administration conveyance.
Foreign investors are pouring into Vietnam a lot because Vietnamese human resources are well-educated, adaptable, passionate, and have very good programming skills compared to Southeast Asian countries.
Nowadays, language programming is very developed and easy to do. The language is increasingly easy for Vietnamese students to learn programming very quickly, even just a few months to learn the programming language. Vietnamese developers are good at analysis, troubleshooting, and tech solution brainstorming in general. Besides, their English fluency and soft skills are also appreciated.
Why choose Vietnamese companies for software outsourcing Asia?
There are many reasons to choose Vietnamese software outsourcing companies, like low-cost attribution, established infrastructure, a large pool of IT talents, and many more.
The cost of hiring a developer in Vietnam in comparison to the price of hiring one in the United States is considerably cheaper, at least 50%. Compared to India, China, or the Philippines, Vietnamese developers’ rates are just as equal or even cheaper while their skills (both technical skills and soft skills) are equivalent.
Since many big players in the industry like Intel, Samsung, and IBM have already started outsourcing to Vietnam, they need to order the groundwork and help come up with the essential infrastructure. Any new company that desires to outsource to Vietnam solely must exploit this ripe state of affairs. This provides a lot of benefits for foreign corporations to outsource to Vietnam.
InApps Technology – The Top Software Outsourcing Company in Vietnam
Why choose InApps?
InApps is the Top software development company in Vietnam. There are many software development companies in Vietnam offering IT outsourcing services and InApps Technology is proud to rank:
- 1st out of 40 firms for Top Mobile App Development Companies in Vietnam
- 1st out of 31 firms for Top Software Development Companies in Vietnam
- 2nd out of 38 firms for Top Web Development Companies in Vietnam
Here are some reasons why clients choose InApps Technology as their software development company in Vietnam:
- Clear delivery management and visibility of service metrics
- Transparency and Predictability.
- Close Collaboration.
- Flexible Team Structure.
- Latest Development Methodologies: Agile, Scrum, Extreme Programming (XP) and Test-Driven Development (TDD)
- Competitive Hourly Cost
Here are some of the top reasons to hire InApps Technology developers:
- English communication— 80% can read and understand spoken English.
- Cost-efficiency — You can find excellent developers for $17-$21 per hour.
- Good Communication Skills — They are good communicators and aren’t afraid to speak up or challenge you. They want to do a good job and succeed.
- Talented workforce — Young developers who studied and worked abroad in the US, Australia, Northern Europe, or Japan.
- High-level of Tech skills — Excellent at analysis, troubleshooting, and tech solution brainstorming. They are passionate developers who love what they do and desire self-development.
Frequently asked questions
Why outsource to the Philippines?
12 reasons why the Philippines is one of the best outsourcing destinations:
- Cost efficiency
- Cultural compatibility
- English proficiency
- Highly skilled workforce
- Flexible workforce
- Reduced legal liabilities and management issues
- Data security and privacy
- 24/7 staffing – timezone neutral
- Economic growth
- Track record of the BPO industry
- Government support
- Fringe benefits
What country or region is the best for software outsourcing?
Vietnam is well-known for its high-quality services. Nonetheless, it is famous for the low costs of these services. Clients may save a lot of money by outsourcing to specialists in the nation because labor costs are 90% cheaper than in the United States. Another element contributing to Vietnam being one of the best countries for offshore is the availability of a diverse pool of software development specialists. Because the Vietnamese government recognizes the importance of education and training, residents are well-educated and have a strong chance of being hired for careers overseas.
How many software developers are in China?
According to the 20th edition of the State of the Developer Nation report, there were 26.8 million active software developers in the world at the end of 2021. Experts predict that the number of developers will grow to reach 45 million by 2030.
Need to find a Reliable Tech Partner? InApps developers are at the epicenter of the IT industry in Vietnam. Our skilled and experienced teams can work on any software outsourcing Asia project that you might need, as proven by their high customer retention rate. Feel free to explore the website to learn more about our offerings and technology solutions. Fill in the contact form below and we’ll advise you on the best approaches to the development process as well as roughly estimate your software project concept cost.
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