Why is Vietnam the Top IT Outsourcing Destination of 2023?
Why is Vietnam an ideal destination for software outsourcing development?
Vietnam is steadily gaining ground and expressing its competitive position in the industry of offshore software development. Due to a population of the ideal labor force, which is youthful and committed to the industry, Vietnam offshore software has provided clients from across the world with a range of international-level projects, with reasonable service costs and enthusiastic assistance from the offshore development team. Therefore, it is a great option for customers looking for Vietnam software development.
1. Reasonable price
At the moment, India is the most well-liked outsourcing location worldwide. However, according to Innotech, outsourcing software development in Vietnam is 50% less expensive than its competitors in India and China, even though the products are of a higher quality and have the same amount of capacity.
Additionally, Vietnam software outsourcing costs only $20,000/person a year there compared to $40,000 in India. Vietnam is now the strongest candidate for offshore development projects based on these statistics.
The cost difference between India and Vietnam will widen even further as Indian enterprises progress through their maturation cycle. India will certainly see an increase in outsourcing expenses in the years to come.
Vietnam has a technical labor force, low wages, and better English language proficiency skill tools to earn a place in the rating of offshore software development rates by country. California consultancy firm NeoIT ranked the Ho Chi Minh City of Vietnam as the top non-Indian city with potential for outsourcing in 2006 due to the infrastructure and the labor pool.
In 2017, Vietnam's software outsourcing industry is ranked in the top 10 outsourcing destinations in the world.
Vietnam software outsourcing rate: US$15-30/hour.
Read Also: Outsourcing Billable Rate at TIGOSOFT
Vietnam's low labor costs have made it a popular outsourcing destination for foreign investors and importers. Despite a yearly increase in its minimum wage rates – the new salary ranges this year are between $15 and $30 per hour – it is considered more competitive in the region.
The rates per hour starting from $18 to $22 for top-quality engineers. Vietnam is a new emerging market and an investment in the country is worthwhile with 30% to 40% fewer expenses than China.
With labor costs 90% below the U.S and 60% below India, Vietnam offers unbeatable development value.
2. Abundant workforce
Positive trends can be seen regarding Vietnam’s human capital. Some of the most important developments in the Vietnam offshore software workforce in recent years include:
- Top 7 Asian nations having the highest average EF EPI score.
- Asia’s top 5 nations where English proficiency is improving the quickest.
- Top 10 nations with the most engineering degrees worldwide.
- Top 10 international students’ home nations in important markets for study abroad.
- Top 10 nations in Asia-Pacific by human capital index.
- Top 10 in regional groupings for talents related to global attraction and knowledge.
- Top 30 countries in the world and the top 2 SEA nations for basic academic abilities
Additionally, there are over 90 million people living in Vietnam, and more than 60% of them are under the age of 30. Being one of the nations with a young population, the Vietnamese, or more precisely the Vietnamese workforce, are thought of as quick learners, dynamic, innovative, tech-savvy, and adaptable to changes.
In addition, despite having a population of more than 97 million, 60% of Vietnamese citizens are under the age of 30. In Vietnam, the government has given young people good care in terms of their spiritual and educational development. Vietnamese students, on the other hand, are frequently recognized for their quick acquisition of knowledge. The majority of them have high to great academic backgrounds, which are attested to by standardized exams, recommendations from international recruiters, honors, and prizes. It is understandable why there are more and more teams of young software developers.
3. Cultural Compatibility and Time Zone
Next to the dynamic economy, the education system strongly focuses on making English a second language at schools and universities. Although you could not find the same level of spoken English in Vietnam as India or the Philippines, many senior engineers are now fluent in English, and up to date with every change in the technology landscape. They can confidently leverage their tech knowledge and experience to discuss any cutting-edge solutions and bring innovative ideas to the table. Besides, lots of Vietnamese expatriates who used to work as engineers in the west return home, they play the facilitator role to overcome cultural and language barriers.
One more thing, the time zone is one of the most significant advantages when western companies outsource their software development in Vietnam. With a comprehensive plan of workloads, you could tap into a nearly 24-hour cycle of productivity. When the offshore teams accomplish their jobs the night before, the in-house team could move on from that the next day. With the support of Agile Management, which is very familiar with Vietnamese tech companies, you can create the effectiveness of collaborative work.
4. Young and Dynamic working age
The country has a young population, which means that many skilled people are joining the workforce. Vietnam also has many universities and other learning institutions that are investing in providing courses related to IT. These institutions cooperate with many software development companies in developing effective training facilities that help improve the technical skills of the developers.
60% of Vietnam's population is under 30 years old, while the population of Vietnam is more than 97 million people. In Vietnam, the young generation has been well taken care of by the government for education and spiritual life. Therefore, the young software developer teams are increasing in number and it's not difficult to understand.
5. Diverse technical skillsets
Vietnamese engineers’ technical skillsets are various from Backend, Frontend, and Full-stack to Database, and so on, which partly shows their ability to handle multiple projects with different requirements. The major technical skillsets can be listed as follows:
- Backend developers: C, Java, .Net, PHP, Python, NodeJS, Ruby/Ruby on Rails, Pers, Scale, and Goland
- Database: Oracle, SQL, MySQL, PostgreSQL, MongoDB, Redis
- Mobile: Android, iOS, Xamarin, Flutter
- Full-stack developer
Moreover, there is a wide range of other positions serving for implementing a project end-to-end such as business analysis, project manager, UI/UX designer, Agile facilitator, etc.
To help you get insight into how popular programming jobs are in Vietnam, we would like to provide you with more details with the following data:
Vietnam offers competitive outsourcing advantages. But it is important to consider a company’s specific needs and requirements before entering into an agreement with an outsourcing service provider in the country.
And if you find Vietnam a promising destination for software outsourcing, let's discover fourteen specific cultural insights into Vietnam software development companies and best practices to work well with them.
TIGOSOFT is one of the leading firms in outsourcing in Vietnam. With 7 years of experience, we’ve been assisting startups and organizations of all kinds with software solutions. We improve workflow efficiency, address business issues, and aid in acquiring competitive strategy with cutting-edge tech stacks.
We are ready for long-lasting and be well-prepared for any model you pick up. So let’s contact our team of experts if you have any queries or concerns about outsourcing. We’ll be more than pleased to assist you!