Software Outsourcing To Vietnam in 2023: The Expected Trends

Today, outsourcing software development to emerging nations like Vietnam has become a popular option for businesses looking to reduce overhead and gain access to a highly skilled workforce.

Vietnam, in particular among Asian countries, has a rapidly growing economy and a large pool of talented software developers, making it an attractive destination for companies looking to outsource their software development needs. In this article, let's explore the benefits of outsourcing software development to Vietnam, as well as the future trends in this area.

Benefits of outsourcing software development to Vietnam in 2023

One of the main benefits of outsourcing software development to Vietnam is cost savings. The cost of living in Vietnam is significantly lower than in developed nations like the USA or EU countries, and this is reflected in the salary of Vietnam software developers.

According to the 2022 Vietnam IT market report by TopDev, for a software developer with 3 years of experience, the monthly salary that they earn in Vietnam range from $697/per month (HTML/CSS) to $1,775/per month (cloud technologies like AWS engineer), which is significantly lower than the amount that software developers with 3 years of experience or more, make annually in developed nations like the US (According to Indeed.com, software developers in the US, on average, can earn more than $118,000 per year). Thus, by outsourcing software development to Vietnam, you can save more than 30% on labor costs compared to hiring in-house developers or hiring software engineers in the local markets of developed nations.

This can result in significant savings for your businesses, which can be used to invest in other areas of the company.

Another benefit of outsourcing software development to Vietnam is access to a highly skilled workforce. Vietnam has a large pool of talented software developers (with approximately 480,000 software engineers & IT developers, according to the 2022 Vietnam IT market report by TopDev) many of whom have received a high-quality K12 & University education (Vietnam’s average duration of schooling is 10.2 years, second only to Singapore among the Association of Southeast Asian Nations countries, as per Worldbank) and have experience working with international clients and enterprises.

Additionally, the Vietnamese workforce offers a strong culture of hard work and dedication, which is reflected in the work ethic of its software developers. By outsourcing software development to Vietnam, customer companies can gain quick access to a skilled workforce dedicated to delivering high-quality software on time and within budget.

Outsourcing software development to Vietnam also allows companies to tap into the country's rapidly growing economy. Vietnam has one of the fastest-growing economies in the world, and this is reflected in the growth of its software development & ICT industry. Additionally, Vietnam's government has made it a priority to develop the country's IT industry, and this is reflected in the country's focus on education and training in this area.

Vietnam Software Outsourcing Trends in 2023

In addition to the above-mentioned benefits, there are also future trends that companies should be aware of when outsourcing software development to Vietnam in 2023.

Agile Software Development 

One of the prominent trends is the increased focus on Agile development methodologies. Agile development methodologies, such as Scrum, have become increasingly popular in Vietnam and are being adopted by an increasing number of software developers and software development companies like TPP Software. This enables us to provide our clients with faster development times and allows more flexibility in the development process.

Cloud Technology

Another expected trend is the increasing adoption of cloud technologies. Vietnam has a rapidly growing cloud computing industry, and this is reflected in the rising adoption of cloud technologies by many businesses (e.g. AWS adopted by a big commercial bank) and software development companies in Vietnam. Such a strong adoption allows for more scalable and flexible software development and can result in cost savings for companies.

AI & Machine Learning

The outsourcing of Artificial Intelligence and Machine Learning projects is also becoming more prevalent in Vietnam's software and IT industry. Vietnam's software developers and AI engineers are becoming more skilled in these areas, which is making it possible for companies to outsource more complex software development projects to Vietnam. This is particularly helpful in the field of natural language processing and computer vision, which are becoming increasingly important in industries such as finance and investment.

DevOps

Finally, the increasing use of DevOps methodologies is also a trend that companies should be aware of when outsourcing software development to Vietnam. DevOps is a methodology that emphasizes collaboration between development and operations teams, which can result in faster development times and more efficient software development. Vietnam's software development industry as well as Vietnam's businesses in various industries are increasingly adopting Cloud and DevOps methodologies, which can help to provide outsourcing customers with more efficient and effective software development solutions.

Potential drawbacks when outsourcing software development projects to Vietnam

While outsourcing software development to Vietnam can offer many benefits, there are also some potential issues that you should be aware of before making your outsourcing decision.

One particular problem is the potential for communication difficulties. Vietnam has a different culture and business environment than many developed countries, and this can result in misunderstandings or miscommunication.

Furthermore, language barriers can also be an issue, as not all software developers in Vietnam are fluent in English. This can make it difficult for companies to effectively communicate their requirements and for the development team to understand the project. To address this issue, at TPP Software, we provide our team of developers with an English training program to ensure smooth communication with our clients through the project lifecycle.

Another drawback is the project synchronization and alignment due to time zone differences. Vietnam is located in Southeast Asia which is in a different time zone compared to some developed countries. This can make it difficult for customer companies to schedule meetings and for the development team to update on the project's progress, which can also result in delays in the development process. Proper management and project updates should be thoroughly implemented to resolve such an issue.

Last but not least, the lack of infrastructure can also be a minor issue. While Vietnam's major cities have developed infrastructure, there are also areas in Vietnam where infrastructure is underdeveloped, which can make it difficult for companies to access the resources and support they need, especially when freelance Vietnam software developers work remotely sometimes.

Final Thought

In conclusion, outsourcing software development to emerging nations like Vietnam offers a number of benefits for companies, including cost savings, access to a highly skilled workforce, and the ability to tap into the country's rapidly growing economy.

Additionally, if your businesses are looking to outsource your next software development projects to Vietnam, as a tech leader, you should also be aware of future trends in this area, such as the increased focus on Agile development methodologies, and the adoption of cloud technologies as well as AI and Machine Learning.