If you’re reading this, chances are you are looking for ways to optimize software development efforts. Outsourcing to an offshore country seems like an attractive solution – you get to focus on the core business, with development tasks taken care of by an experienced team at a modest price.
In this article, explore with us why tech giants such as Apple, Samsung, Google, and Amazon are all choosing Vietnam as the next strategic destination, and the necessary steps to guarantee your success in software outsourcing in Vietnam.
Top 5 reasons for software outsourcing in Vietnam
1. Technical expertise
According to TopDev’s report, over 400,000 IT specialists are currently working at over 60,000 technology companies across Vietnam. And with 400 universities and educational institutions offering programming and software development courses, approximately 57,000 tech freshmen are graduating each year. Moreover, the nation does not fall behind in terms of developer skills, ranking #2 in Southeast Asia and #10 worldwide, as stated by Accelerance and Pentalog.
2. Young and educated workforce
Vietnam had a strong working population of approximately 75 million in 2021, with 40–45% of those under 35, according to Statista. The nation’s literacy rate also ranks the highest in the Asia Pacific with 95,4%. This means that the country is well suited to meet any outsourcing demands, regardless of size or complexity.
3. Reasonable pricing
Being one of the key benefits of software outsourcing in Vietnam, let’s look at how developers’ average hourly rates differ around the world. Be noted that the numbers can vary depending on specialization and seniority.
If the development quality is guaranteed by a reliable firm, then Asia is, without a doubt, the most cost-efficient destination. Compared to other technology hubs in the region, Vietnam’s development cost is significantly less than Singapore, China, and India, and on par with the Philippines.
🔸 Learn more about web app development cost and saving tips
4. Socioeconomic stability
Vietnam has a relatively more stable socio-political environment when compared to other Southeast Asian countries. The nation is now ranked No. 44 in the Global Peace Index 2022, up from No. 50 in 2021. This indicates that there are minimal risks and conflicts for foreign businesses, backed by strong support initiatives from the government.
Additionally, the nation’s economy quickly rebounded from the Covid-19 pandemic, with an 8.2% GDP growth in 2022, the fastest pace ever since 1997.
🔸 Read more: Software Outsourcing amid Covid-19 pandemic
5. English proficiency
The EF English Proficiency Index 2022 placed Vietnam’s English proficiency 60th worldwide and 7th in Asia, a significant improvement compared to previous years. Vietnamese and English both use the Latin alphabet, making it relatively simple for Vietnamese speakers to learn English. And since English is a mandatory subject in Vietnamese education, graduates frequently have a high level of English proficiency.
Vietnam bears several disadvantages such as the major timezone different from the US and EU regions, and the lack of a national data protection law. However, it’s still considered one of the most attractive IT outsourcing destinations thanks to the aforementioned facts.
How to choose the right IT/software outsourcing partner
Once you’ve decided on a suitable country, which is Vietnam in this case, the next step is to establish selection criteria for your software outsourcing in Vietnam. There are more factors to consider than just price (cheaper is not always better!)
- Technology & industry expertise: Pick an outsourcing vendor with a proven track record within the domain, preferably your business sector. You should be with a strategic advisor who can advance your project, not developers who only follow the guidance. Remember to check whether they are familiar with the software and hardware you already have in place.
- Project scope: Depending on the business’s actual outsourcing needs, whether it’s development, design, or end-to-end service, you should pay more attention to vendors specializing in that area. Also, take into consideration your project size as well as future scaling plan, and make sure the vendor has adequate resources to facilitate them.
- Pricing models: Based on the balance of responsibilities and ownership between the client and the provider, there are 3 main types of outsourcing: project-based, time & materials, and dedicated team.
|Time and materials
|Established agreement on scope and pricing
|Pay for actual time spent and required infrastructure
|Hire a permanent team of external developers
|Small and medium projects
|Medium and large projects
Several outsourcing firms, including Ekoios Technology, collaborate on all 3 models to give clients the freedom of choice. However, we advise that you carefully consider all the pros and cons, as well as your own preferences, to select the most appropriate method.
- Development process: Agile and Waterfall are two main but vastly different processes, and it’s crucial that your outsourcing partner excels in the chosen method. If you have clear project outcomes from the beginning, Waterfall is the best fit as it requires specific deliverables for each phase before moving on to the next one. Alternatively, Agile is faster-paced and suitable for a collaborative team who are experimenting with ideas and shaping the final product.
At Ekoios, we take pride in being an experienced firm in agile development, fuelled by a competent team and a diverse stack of ready-made solutions. Get your Proof of Concept in under 2 weeks, and your project delivery in just half the usual time and resources – by putting in a request with us today.
- Security protocols: Learn about the privacy policies and data practices of the outsourcing providers you’re considering. You must be confident that the chosen vendor can handle the business’ sensitive information as it is required for development, testing, and other tasks. And it’s always a good idea to sign nondisclosure agreements (NDAs)!
Top 20+ companies software outsourcing in Vietnam
For your convenience, we’ve put together a list of top software outsourcing providers in Vietnam, based on data from various awards, ranking authorities, and company websites.
1. FPT Software
2. CMC Global
3. Ekoios Technology
6. Kyanon Digital
7. Groove Technology
10. KMS Technology
|17. Enlab Software
|18. InApps Technology
|20. Xenia Tech
|15. Newwave Solutions
|16. Adamo Software
Best practices for effective software outsourcing
Drawing on our own experience working with global clients of all sizes and industries, here are Ekoios’ top tips for ensuring project success for both you – the client and us – the software outsourcing in Vietnam service provider.
- Allocate a dedicated PIC: Both the outsourcing team and the client team must commit to a project for it to be successful. Your team’s PIC needs to provide the initial training, technical access, issue resolution, and throughout testing for the outsourcing team. The project’s quality and timeline will be impacted if questions cannot be answered promptly.
- Define your goals & deliverables: Knowing your ultimate objectives—whether they’re an MVP, an upgrade, an integration, or anything else—is crucial. Before getting started, both parties should have a clear understanding of the objective and a plan for getting there.
- Clear communication & documentation process: Establish the protocol, platform, and person in charge for different types of communication, as well as different stages of the development process. Set up regular meetings to discuss project progress and any rising issues. Update the plan continuously and keep all stakeholders informed.
- Foster a long-term partnership: Having a strategic partner for all development needs holds much more advantages than a one-time transaction. When you find a suitable vendor, try to form a strategic partnership with benefits for both sides. Respect and treat the offshore developers as your own, and you’ll find the favor soon returned.
- Be strict on quality & confidentiality: Never skimp on testing to ensure your product is thoroughly functional and secured. It can cost 4-5 times more to fix software bugs after deployment than during development. Additionally, a high-quality product translates to satisfied customers who return for more business.
📌 Read more about Software outsourcing models using in Vietnam
Software plays an irreplaceable role in any modern business operations. And for businesses without competent resources or crucial needs to develop an in-house team, outsourcing is the optimal option. Among all destinations, Vietnam is highly sought-after due to the nation’s abundant resources, highly skilled workforce, and reasonable costs. However, to maximize the benefits of software outsourcing in Vietnam, you will require a trusted partner, strategic planning, and effective management.
Take the first step on this journey by talking with an Ekoios specialist. We would be glad to give our input on your project, and help you ideate on the most suitable technology or development process, with over 20 years of experience building innovation solutions ourselves.
As we have reached the end of the article, here’s sincere good luck on your digital transformation journey!