In recent years, Vietnam has been recognised as the emerging market for offshore IT outsourcing in the global tech community. Based on data from the Global Skill Index 2020 report, Vietnam’s technology skills ranked 2nd in the Asia Pacific and 22nd globally. With these top tech talents and competitive outsourcing costs, Vietnam is a promising destination for those who are looking to hire a dedicated software development team.
Vietnam’s IT market has been gaining momentum recently since prominent US tech dominants such as Microsoft, Intel and IBM etc. have been actively and continuously investing in it. Moreover, some tech companies have already set up and hired Vietnamese software developers due to their highly skilled IT workforce.
The rise of demand for technology outsourcing providers
As the technology’s rapid development, the needs for IT specialists who are well-versed in advanced technologies (e.g. Blockchain, Machine Learning, and Data Science etc.) have been continuously rising. Companies which already have their own in-house IT team also can benefit from outsourcing, especially when it comes to projects which require the mentioned tech innovation. Additionally, the report of Statista also indicates that the global market of outsourcing services had grown significantly about $50 billion USD from 2000 to 2019.
Since the shortage in number of US technical professionals and the incredibly high hiring cost, many companies are searching for other potential markets. Therefore, developing countries are expected to become the potential land for offshore IT outsourcing in the coming years.
Why should Vietnam be chosen to outsource software development?
Outsourcing to Vietnam is gaining recognition as a low-cost high-quality software maker in Asia. Besides, the copious workforce with many talented IT specialists and expert software developers makes Vietnam become a perfect outsourcing supplier. Not only high-tech labour resources is the advantage, but there are also many reasons for hiring engineers in Vietnam:
1. Potential Workforce
Human capital is the spine of any projects, business activities and the whole corporate system. Especially in offshore IT outsourcing, where techies and the expertise equipped with them are the commodities, the potential of software developers is of high concern. In Vietnam, the resources of young, dynamic and well-trained engineers have been constantly growing. Moreover, there is a large number of developers with only a few years of experience but having Senior/ Lead expertise.
Therefore, tech corporations can benefit from these tendencies – by choosing skilled software developers from the vast tech talent pool in Vietnam and cooperating with them through the extended team model.
2. Tech Education in Vietnam
As the surge of technology has made a meaningful effect on people’s lives, more STEM majors, academies and schools are opened to educate and hone the young generation with their skills. The speedy development in both quantity and quality of IT education in Vietnam provides a huge number of software developers for Vietnam outsourcing companies in the years to come.
Not only IT skills and knowledge should be concentrated when training but also social interaction skills and foreign languages. In the past, the language was a barrier for Vietnamese developers when working outsources for foreign partners. This has been changed since lots of effort from the Government was brought out to enhance foreign language skills for students. World Economic Forum also shows that many Vietnamese software engineers have academic backgrounds as certified by standardized exams, endorsements from global recruiters, honours and awards.
3. Business Environment
Strong IT developer resource pool and lots of other potential conditions are also factors that make Vietnam become a lucrative market for outsourcing software development.
- Convenient travel location: There are several direct connecting flights worldwide, which make it possible to set up efficient cooperation with flexible working hours.
- IT initiation strategy: Vietnam has quickly caught wind with Industry 4.0 and has issued an initiative with the title of ‘Vietnam Silicon Valley’.
- Tax incentives: As Vietnam is aiming to be a start-up country, generating favourable conditions for businesses especially tech unicorns, the government has issued uplifting terms in Preferential Corporate Income Tax treatment for investment in encouraged sectors such as high-tech, software.
4. Cost Efficiency
The price of hiring offshore software developers in Vietnam is about 90% cheaper than the price of such services in Europe or the USA. Compared to India, developing software in Vietnam costs between one third and one-seventh times cheaper (rate ranges from $10-25/hour in Vietnam while the payment for India’s engineer is from $18-50/hour). In addition, the cost of office or coworking space in Vietnam is low. These are very convincing figures for companies to start venturing their offshore development to Vietnam.
Besides, Vietnamese tech workers always keep up to date with the newest technology for instance Blockchain, Internet of Things (IoT), Machine Learning, Cloud Computing etc. and have a willingness to work within a low salary rates. Thus, the cost of developing an app/ website in Vietnam is much lower than other countries.
Vietnam is on its way to write a new chapter in the history of outsourcing software development. As an emerging software outsourcing destination, Vietnam will be a perfect fit for companies looking for a technological advance. With the high concentration levels, honesty and dedication, Vietnam’s IT engineers have always been favoured by many tech partners.
Moreover, as having relentless learning and growing culture, we ensure our expertise will always be at the forefront of technology. BeeSight Soft believes that with our 10 years of tech expertise, our devoted and skillful engineers can create a world-beating website/ app and bring value to our treasured clients.
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