29 May 2020
IT Outsourcing: Top 3 Destinations In Asia For Cost-Effective Solutions

Back

IT Outsourcing: Top 3 Destinations In Asia For Cost-Effective Solutions 


In today's world context, IT outsourcing is not only to cut costs but also to reap the benefits like getting access to skilled expertise, enhancing the time budget so that the whole team can focus on other tasks, increasing flexibility while working as well as efficiency.

It is expected that the global IT outsourcing market will be booming with revenue growth by up to
$481 billion in the next two years. Eastern Europe and the Middle East are expected to hold a major role in the software development outsourcing industry. 

IT Outsourcing: Top 3 Destinations In Asia For Cost-Effective Solutions


It is proven that offshore outsourcing services bring multiple benefits, almost half of the US companies use outsourcing software services to save cost, improve employees’ productivity and effectiveness, and reduce the project’s timeline.

Moreover, since it saves you time and human resources up to approximately 30 percent, you’ll be able to manage risks better.

Asia, new land for software development outsourcing, not only it will provide you with skillful software engineers, but also help you cut down costs.

But among all of the choices: all 48 countries, millions of software developing companies, which country or company should you go to? How can you know for sure it’s the best choice? 


Here are three top software outsourcing destinations compared by their market size, rates, and skills


Vietnam


If Vietnam has always been one of your travel destinations, then why not choose it as your strategic partner companying you on your way to success?


Big names in the technology industry like IBM, Microsoft, Intel, and in the future, probably Apple as well all have parts of their businesses outsourced to Vietnam


So what makes Vietnam so attractive to those tech giants?


  • First of all, the product development's labor cost is approximately 90 percent less than in the States. 
  • Second of all, in Vietnam, low labor salary cost (of course it is low compared to the price in other Western countries) doesn’t mean low quality. Thousands of graduates with an IT degree make the labor market in the Tech industry in Vietnam so diverse. You can easily find skilled and experienced software engineers at affordable prices.
  • Third of all, there must be a reason why big businesses in various industries choose Vietnam to “try before they trust”. Vietnam's economy, especially Ho Chi Minh city has been changing rapidly since 1990.  You can always find Ho Chi Minh city in the list of new tech innovation hubs and software outsourcing solutions due to its quality and prices.

Another factor that makes Vietnam the first one in this list is because the Vietnam Government has been actively supporting technological growth since it has now become a new driving force for the economy. In the past 10 years, Vietnam has been investing nonstop in education to train a new generation to be ready for a dynamic working time.


On top of that, companies in Vietnam have paid extra attention to intellectual property protection so you can be at ease that your software product won’t be exposed.


This small Southeast country should be taken into serious consideration when it comes to software outsourcing.

India

If Vietnam is a total breath of fresh air in the technological world, India has always been there, firmly, skillfully, and humble. 80 percent of European and US firms agree that India is the number one outsourcing country in the world.

The National Association of Software & Service Companies also states that 50 percent of all Fortune 500 companies would rather to choose Indian IT companies than other countries’


Still need more proof? Let us list out all the global multi-nationals corporates choosing India as their outsourcing destination: Alibaba group, Foxconn, Sequoia, Softbank, American Express, Oracle, Dell, and Telstra, and so on. 


Taking American Express (AMEX) for an example, it has been practicing business process outsourcing in India for a while. In fact, in 1994, AMEX had its Financial Center East in New Delhi.  Before that, the company itself had decided to offshore its back-office operations to India.


Or IBM, one of the biggest American corporations with revenue up to 77.14 billion USD in 2019 is already partnering with more than 100 IoT and big data startups in India.


It is undeniable that India is full of well-educated, innovative, and talented software engineers.


Philippines

Another Southeast Asian country on the list!


The Philippines is quite westernized in terms of working culture and language due to its history. The IT sector in this country is growing rapidly over the past decades.

Many companies specialize in software development and lately, emerging technologies like blockchain and AI. The latest report shows that the outsourcing field in the Philippines was estimated at
23 billion USD, and the software industry revenue is nearly 3.2 billion USD. Quite impressive! 


It might sound a little bit anxious when working with a partner whose English is not their native. You might think that there will be a huge gap in communication, but this should not be the case when working with Philippines vendors as they offer collaboration with engineers with a high level of English proficiency.

As a matter of fact, English is the official language of the Philippines, 92 percent of the population can fluently communicate using this international language.


And if you’re still wondering about their skills then you should know that there are more than 190,000 developers in this beautiful country. It is expected that the number will grow up to 210,000 by 2022.


Conclusion

No matter how many articles stating that offshore software outsourcing is not a very smart move for your business, there are many global brands and organizations still do it simply due to the benefit it brings. 


We hope that this list will help you to have a different perspective about offshore outsourcing and to be able to choose the best options for you.


Share:

Can't wait to work with us?

Contact our team today and we’ll get back to you within 24hours to discuss your requirement.