What Makes Outsourcing Vietnam Amazingly?

We live in a globalized world. Nothing is restricted to a single country. Many companies have people working on the same product in various parts of the world. Software companies can easily accomplish this. Software development firms do not require that all programmers working on the same project be in the same location. Through the internet, they can easily share their progress and update the code. Have you ever thought about outsourcing Vietnam? Outsourcing Vietnam is now becoming a hot trend for any type of business process outsourcing, especially in software outsourcing. Let’s take a look at a beginner guide about outsourcing Vietnam

Let’s find out together!

1. What Is Vietnam Software Outsourcing?

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We live in a globalized world. Nothing is restricted to a single country. Many companies have individuals working on the same product in various parts of the world. Software businesses may easily accomplish this. Software development firms do not require that all programmers working on the same project be in the same place. Through the internet, they may quickly communicate their progress and update the code.

Vietnam software outsourcing capitalizes on these advantages to become one of the industry’s forerunners today.

Every business aims to reduce its operational costs to improve its earnings. This is where outsourcing may help. Outsourcing allows businesses to access more diversified and less expensive personnel. Both parties benefit from software outsourcing Vietnam. It produces more jobs in developing countries while also benefiting firms who outsource by increasing their revenues.

The benefits of outsourcing will only be realized if you outsource to the proper country. Although India has long been known as an outsourcing hotspot, the Indian market is reaching saturation, prompting corporations to consider other South-East Asian nations such as Vietnam. Vietnam is well on its way to becoming the next India. There are numerous reasons why outsourcing to Vietnam is advantageous.

2. Why Should You Consider Outsourcing Vietnam?

Are you wondering why outsourcing Vietnam is a great idea for businesses? Vietnam is high-rated as one of the top outsourcing countries in Asia because of many reasons.

In comparison to 2019, the position appears to be moving up and becoming a new entrant into the top ten digital nations. By ranking ninth, Vietnam demonstrated that it is a wise choice for software outsourcing, particularly in the “new normal” following the advent of the pandemic in 2020. And we predict that Vietnam will soon become a top IT outsourcing country.

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Another research report, Tholons’ report for the top 100 outsourcing destinations, placed Vietnam at number eighteen. This was a dominant position, and regardless of the top cities for outsourcing, Vietnam would rank around ninth as the leading outsourcing country.

2.1. Price

Price is the first factor when you consider outsourcing Vietnam. Hiring a developer in Vietnam is substantially less expensive than hiring one in the United States. A Vietnamese developer can be hired for 90% of the cost of an American developer. Because the primary goal of outsourcing is cost reduction, and the primary site for outsourcing has been India, the expenses should be compared to those of an Indian developer. A Vietnamese developer is 30% less expensive than an Indian developer. So, not only does Vietnam have a higher literacy rate than most other developing countries, but it also costs less to outsource to Vietnam. Better talent at a cheaper cost is a winning mix for firms wanting to outsource.

2.2. Labor force

Vietnam has an increasing number of IT experts, however, the majority of them are paid less than their peers in the region. Highly experienced engineers in Vietnam make roughly $10,000 per year, which is $5000 less than the national average. Even with the same talents, they may earn nearly $30,000 in Thailand, their neighbor.

Competitive labor cost has long been an appealing cause for international entrepreneurs to visit Vietnam. According to a StackOverflow poll, Vietnam ranks seventh from the bottom in median developer wages.

2.3. Socio-economic stability

Vietnam comfortably ranks among the most politically stable countries in Southeast Asia. For the preceding 30 years, the economy has grown at a phenomenal speed. These issues contribute considerably to the expansion of the Vietnam software outsourcing company.

This country has undergone an enormous transformation during the previous 15 years. According to World Bank data, Vietnam’s GDP per capita increased by 2.7 times between 2002 and 2018. In 2019, it surpassed $2700. According to the World Bank, 45 million people were pulled out of poverty during this time period.

2.4. Economic stability

Vietnam has a stable sociopolitical environment that is conducive to foreign investment. Furthermore, Vietnam’s GDP has expanded by 7.4 percent each year on average (CEIC), making it the fastest-growing country in the APAC region. As a result, there are enough criteria to be certain about a stable environment for the project to run well.

2.5 Ethnic/Religious stability

In Vietnam, there are no ethnic or religious conflicts.

In the country, there are no motives for ethnic or religious violence. Because the region is politically, economically, spiritually, and ethnically secure, it is also considerably safer for western peers to travel to Vietnam for training or other office-related purposes.

2.6. Political stability

Vietnam comfortably ranks among the most politically stable countries in Southeast Asia. For the previous 30 years, the economy has grown at a tremendous pace. Both of these causes contribute significantly to the growth of the Vietnam software outsourcing business.

This country has undergone an enormous transformation during the previous 15 years. According to World Bank data, Vietnam’s GDP per capita increased by 2.7 times between 2002 and 2018. In 2019, it surpassed $2700. According to the World Bank, 45 million people were pulled out of poverty during this time period.

According to Trading Economics, Vietnam’s GDP per capita is predicted to reach $2185 by the end of 2020. Various elements such as economic stability, sound policies, and effective governance have all played a significant role in Vietnam’s rapid development.

2.7. Business environment

Viet laws and policies support business and foreign investment, and the country is continually strengthening its protection and enforcement of intellectual property rights.

2.8. Language

Vietnam-ranks-seventh-out-of-19-Asian-countries-in-English-proficiency

Vietnam’s English skills were higher in Southeast Asia than those of Indonesia (74th), Cambodia (84th), Thailand (89th), and Myanmar (93rd).

According to the current annual English Competence Index released today by Swiss Education First (EF), a global language training firm, Vietnam ranks 31st out of 72 countries in the globe and seventh out of 19 Asian countries in English proficiency.

And, according to the ranking, Vietnam scored 54.06 out of 100, trailing Singapore, Malaysia, the Philippines, India, South Korea, and Hong Kong in Asia.

3. The Challenges Faced In The Vietnam Outsourcing Market

Difference Time-zone

Due to different time zones, it would be difficult for a corporation in the United States or the United Kingdom to hire a software outsourcing company in Vietnam. However, this would not be a difficult task and might be quite time-efficient. You can, for example, prepare the assignments in the afternoon before leaving the workplace and send them to the development team. Developers are working on it as you sleep, and they will be able to deliver you the finished jobs the following morning. Many IT outsourcing businesses will give you several essential personnel who will work with you during your day/their night.

See more: Vietnam software outsourcing: Opportunity or Challenge?

4. List Of The Top Vietnam Outsourcing Company

4.1. FPT-software – Vietnam outsourcing company

Location:  Ha Noi, Ho Chi Minh City, Da Nang

With 32,000 employees, FPT Software is one of the largest VietNam technology. FPT is a reputation Vietnam outsourcing company. They offer a wide range of services, including a digital platform, RPA, AI, smart factory, IoT, cloud, AR/VR, enterprise mobility, managed service, business applications, application service, testing, platform modernization, and so on.

Its parent firm, FPT, is one of Vietnam’s most well-known brands. The brand can be found in a variety of industries, including technological services, education, and retail.

4.2. OutsourcingVN – Outsourcing Vietnam 

Location:  Ha Noi

The name that we can’t forget when talking about Viet Nam software development outsourcing company is OutsourcingVN. By partnering with OutsourcingVN, you may tap into the combined knowledge and expertise of OutsourcingVN to inject significant abilities into your software development project. OutsourcingVN, being one of the best outsourcing software development firms in Vietnam, aims to establish long-term business ties and assist you in overcoming your most difficult software development challenges. OutsourcingVN offers a variety of outsourced software development services. They are all adapted to the individual requirements of OutsourcingVN partners.

So, If you’re wondering if software development outsourcing is the appropriate fit for your company, evaluate the timeline of your project, your available internal talents and resources, your budget, and the dangers associated with your line of work. Outsourcing software engineers can assist you in achieving product-market fit at record speed and with unrivaled results.

4.3 InApps Technology

Location: Ho Chi Minh city

InApps Technology, one of the best software outsourcing companies in Vietnam, has been the software development solution supplier for many start-ups worldwide despite only being in the sector for four years. 

They now provide four services: website development, outsourced mobile app development, UI/UX design, and offshore development. InApps Technology, which began modestly but has made an impression on the business, steadily reveals itself to be an impressive member of the outsourcing game, with up to 45 website development and 60 mobile app development projects.

4.4 LARION

Location: Ho Chi Minh city

Larion was established in 2003 to focus on collaborative success. The main values of this organization are teamwork and ultimate customer pleasure.

With its portfolio of complex solutions and many customers from many industries. Therefore the company has been on the top Vietnam outsourcing companies list for years. Besides, their services are worth considering because of their highly qualified developers and inexpensive costs. Another distinguishing element of LARION is their go green philosophy, which discourages the use of paper documents as much as possible.

Maybe you are interested in the Top 10 Vietnam Software Outsourcing Companies

Opportunity For Investors

Many major players in the technology industry have already made investments in Vietnam. Intel, IBM, Fujitsu, Foxconn, and Canon are a few examples. When more companies invest in outsourcing to a country, the country’s infrastructure develops in tandem. This makes it even more appealing for more businesses to outsource to Vietnam. This is a virtuous circle in which more companies outsourcing to a country make it easier for more companies to outsource to that country. Since some major players, such as Intel and IBM, have already begun outsourcing to Vietnam, they have laid the groundwork and assisted in the establishment of the basic infrastructure. They have also piqued citizens’ interest in working in an IT company. Any new company looking to outsource to Vietnam only needs to take advantage of this favorable situation.

In conclusion, all of the reasons listed above are compelling reasons for software companies to outsource to Vietnam. This decision will only benefit any Vietnam software company.

Thank you for reading!

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