Software Development In Vietnam: A Competitive Concern For Other Outsourcing Destinations.
Software development outsourcing has long been a great way to save money while maintaining high-quality work. Countries like India, the Philippines, Taiwan, China have been on the outsourcing destination list for so long. Still, recently, Vietnam has signed up and been recognized as one of the leading countries in software development.
The CIO magazine mentioned that by outsourcing software development to Vietnam; businesses could save up to 90 percent of costs compared to software development in the States, and 1/3 to 1/7 times cheaper than India. Vietnam is being validated as a cost-effective and high-quality offshore development destination in Asia.
Forbes used to refer to Vietnam as “a small but mighty powerhouse,” and it is not a rumor that this country was chosen to become one of the ideal landing places.
A brief history of Global IT & Software Development outsourcing in Vietnam
The IT & Software development outsourcing market in Vietnam is actually still young. Around 12 years ago, some big multinational tech names like Intel or Oracle started tapping into the growing tech workforce in Vietnam. The government had invested in STEM education to generate a rich in skilled technologists workforce.
Fast forward to today’s landscape, the tech and outsourcing market has grown consistently. Now the country’s tech and outsourcing industries are so booming, making it a competitive concern for India as tech giant like IBM, Samsung, Display, Microsoft continue to invest in Vietnam.
This year, Apple started to recruit regional operations, new product manager, operations manager, engineering program engineer, mechanical quality engineer, and many more tech-related positions in Vietnam. This is one good news for the Vietnamese economy.
What surprises outsiders viewing this small Southeast Asian country is what they find inside Vietnam: a highly adaptive approach to work and technology. Probably 80 percent of foreigners who came to Vietnam in the 90s and have lived here since then will admit experiencing a rapid change in the Vietnamese economy.
When Vietnam joined the WTO in 2017, it has strived Western companies to establish a footmark here. Over ten years, here comes a highly adaptive IT workforce in Vietnam.
Reasons make Vietnam an ideal IT outsourcing destination
Despite the affordable and reasonable price, Vietnam can contribute much more value and bring many benefits to businesses. Here are some of the reasons making Vietnam a promising software outsourcing pot at this time.
Controlled COVID19 situation
The fact that Vietnam is able to control disease caused by the coronavirus reassures the adaptive capability of the workforce and the advantage of working remotely. Companies are still working, of course, there is a slight downturn, but Vietnam has managed to keep the total cases under control. Now the whole country is getting back into the groove.
This is the perfect time to get to know your offshore outsourcing IT services and software development solution and consolidate technology application systems to serve customers better.
Convenient geographical location and language efficiency
Vietnam is located in the center of Southeast Asia, holding a strategic potential for foreign companies to invest. With the long coastline, which allows it to access proximity to the international shipping routes, Vietnam is at the perfect strategic location.
Vietnamese people can also learn English relatively fast due to the similar Latin alphabet as English. English is the most favorite foreign language to learn in this country; this results in half of the Vietnamese population can speak English, which eliminates the language barrier, making international collaboration a breeze.
Vietnam is a fast-growing economic country with high and steady GDP growth over the last few years. World Bank stated the GDP rate in Vietnam grows stably around 6.46 percent annually since 2000. This development started after the economic reforms launched in 1986 and the rise hasn’t stopped ever since.
Up to now, Vietnam’s economy has integrated deeply into the regional and global economies, making it a flourishing skills marketplace, well-suited for outsourcing.
Economic analysts predicted that if Vietnam’s economic development continually rises at this rate annually, soon it could be compared to what China’s economy experienced 10 years ago — giving Vietnam the next hub for producing goods and services.
The advanced young talent pool
Worldmeters stated that the median age in Vietnam(30.8) is 6.5 years younger compared to China (37.8). It is estimated that 60 percent of the population is under 35/ The workforce is young and large, there is no sign of decrease. Moreover, the country promotes education and develops IT in general and software technology in particular.
With support from the government, the IT workforce is focusing on advanced technology skillset like AI, Cybersecurity, ERP, Big Data, Data Science, Mobile Application Development, etc. Vietnam has gradually reinforced its responsiveness to the technology industry around the world.
A trusted software development partner
Gartner’s Leading Global Locations for Offshore Services stated in 2016 that among many countries with advantages in technology, especially software, in Asia, Vietnam is deemed as an emerging country with many benefits (skillful workforce, world-class projects, product quality, loyalty, geographical location advantages, competitive prices).
Vietnam ITO Conference has attracted massive attention from enterprises from many countries like Singapore, Japan, USA, Korea, etc. The workforce also has lower turnover than most places when it comes to outsourcing sectors.
At TP&P Technology
We are proud to be one of the top software outsourcing companies in Vietnam. We have a skillful team with extensive knowledge and experience and are ready to partner with you.
Not only do we provide software development services, but we also offer IT consulting services for those who need it. Talk to one of our experts to find out what we can help you with your upcoming project.