In recent years, especially since the covid pandemic, Vietnam has become a prominent destination for outsourcing software development. Its flourishing outsourcing industry and competitive advantages and benefits have attracted international companies seeking skilled tech talent at cost-effective rates. However, there are some limits for someone new to deciding on the proper partner collaboration in Vietnam, and some factors must also be considered.
Software Development Outsourcing Overview
To simply define, software outsourcing is when a business partners with a third-party vendor to develop software solutions on their behalf. This outsourcing process involves delegating control of a specific development area or project to a qualified external enterprise with the necessary resources, talent, capabilities, and time to handle the required tasks.
Understanding the Global Software Outsourcing Landscape
Before delving into Vietnam’s merits, let’s briefly examine the broader outsourcing landscape. Countries like India, China, and Eastern European nations have long been synonymous with software outsourcing. While these regions have undeniable strengths, such as established IT infrastructure and a vast talent pool, they face challenges like rising labor costs and cultural differences.
Software Outsourcing Models
There are three typical models of outsourcing software development that businesses can choose from:
Onshore Outsourcing: This business approach entails using a partner organization based in the same nation or region. It is possible to choose software outsourcing firms located in different states but in the same area. Since there are no language barriers in this approach, communication is made more straightforward, but the expenses may be greater than in other outsourcing models like nearshoring and offshore.
Offshore Outsourcing: Unlike on-shoring, which is localized, offshoring services let customers acquire reputable software outsourcing services from outside. For instance, a US business might decide to work with a software outsourcing company in Poland, India, or Vietnam. Offshoring is frequently considered more affordable for remote project administration than on-shoring.
Near-shore Outsourcing: Near-shoring services entail working with software outsourcing companies in foreign nations close by that have a comparable time zone to your own or that are situated in a nearshore region. A US corporation might, for instance, use nearshore services from Mexico or Puerto Rico.
By selecting the appropriate software outsourcing model, businesses can benefit from cost-effective solutions, access to top-notch talent, and the ability to stay competitive in the software technology market.
Advantages of outsourcing software development to Vietnam
IT outsourcing to Vietnam offers a wealth of benefits in terms of resources and quality, made possible by reasonable pricing, a solid IT infrastructure, and a welcoming business environment for the IT sector.
Cost savings
The most notable difference in software outsourcing lies in the cost of hiring developers. In the United States, the average cost of employing full-time software developers ranges from $52 per hour and upwards, according to Talent.com (2024). In contrast, hiring a developer in Vietnam typically costs between $20 to $45 per hour, about 50% less than in the U.S (based on data from Clutch.co, 2024). Furthermore, outsourcing software development to Vietnam is approximately one-third less expensive than outsourcing to India.
A skilled and educated workforce
The young and educated population of Vietnam contributes to the country’s excellent talent base for software development. With over 6,000 IT businesses, the nation is a sizable player in the worldwide IT outsourcing market. Vietnamese programmers are well-known for their technical aptitude, adaptability, and command of current technology.
The workforce, with a strong focus on STEM subjects, is highly educated and proficient in these areas.
English proficiency
English proficiency is a crucial factor when outsourcing software development. Vietnam has a higher English proficiency rate compared to other outsourcing destinations. English is widely taught in schools, and Vietnamese developers often possess good communication skills in English. This shared proficiency allows clients and outsourced teams to collaborate and communicate effectively.
A favorable business climate
To entice foreign businesses, Vietnam has actively built a favorable investment climate. The government has implemented helpful rules, streamlined procedures, and offered incentives for companies wishing to outsource to Vietnam. The nation’s political stability and dedication to economic progress make a trustworthy and secure outsourcing environment possible.
Time zone advantage
Businesses outsourcing software development to Vietnam benefit from its time zone (GMT+7). With overlapping working hours between Vietnam and regions like the European nations, real-time communication and collaboration are facilitated. In addition, Vietnam and U.S. teams can collaborate effectively and work around the clock, reducing delays and increasing productivity to ensure timely project completion.
As we explore the dynamic landscape of software outsourcing in Vietnam, one standout company is Trustify Technology. Positioned as a key driver in redefining software excellence, Trustify Technology offers a distinctive combination of innovation and reliability.
Trustify Technology As Your Premier Software Development Outsourcing Partner in Vietnam
At Trustify Technology, we provide end-to-end software outsourcing services, empowering clients to overcome internal resource constraints and achieve their business growth and digital transformation goals seamlessly.
Quality Assurance Through Top IT Talents in Vietnam
Our commitment to delivering top-notch outsourcing services is exemplified through our hiring and working with the finest IT talents in Vietnam. Trustify Technology ensures high-quality software development by leveraging the expertise of a proficient team with advanced technical skills. Our dedicated professionals, proficient in English, are equipped to establish a streamlined and efficient outsourcing process tailored to your unique requirements.
Benefits of Partnering with Trustify Technology for Software Development Outsourcing
By partnering with Trustify Technology, you gain the immediate access to a dedicated Delivery Team comprising the industry’s top software engineers awaits you. With Expertise harnessing over 17 years in software development outsourcing, Trustify Technology boasts a track record of successful projects, a large team of full-time IT professionals, and a robust quality management process to securely meet your project’s quality, time, and budget expectations.
Partnering with Trustify Technology brings forth a multitude of benefits:
- Quick access to a vast pool of talented software engineers.
- Efficient reduction of development costs and training time.
- Rapidly fill technical gaps supporting business growth.
- Enhanced productivity by focusing on core competencies.
- Accelerated time-to-market for your products.
Industry Expertise and Comprehensive Services
Our extensive industry experience spans Healthcare, Supply Chain Management, Retail & E-commerce, Financial Management, Banking & Insurance, Asset Management, and more.
Trustify Technology’s Software Development Outsourcing Services cover a wide array, including Machine Learning & AI, Big Data Analytics, Enterprise Business Applications, Web and Mobile Applications Outsourcing, Software Testing & QA Outsourcing, and more.
Trusted Software Development Outsourcing Process
At Trustify Technology, we follow a meticulous outsourcing process, step by step as follow:
- Ideation & RFP: We prepare a tailored proposal based on your detailed Request for Proposal (RFP).
- Analysis & Planning: Identifying project scope and resources, we create a development plan with time and cost estimates.
- Project Implementation: Upon contract signing, we commence development, studying your requirements and existing project elements.
Ensuring Success Through Best Practices
To ensure the success of your software development projects by partnering with Trustify Technology, we emphasize:
- Application of best software development practices and Agile Scrum methodologies.
- Proficiency in English and a well-established communication process.
- Proven experience with projects similar to yours, supported by case studies.
- A substantial pool of skilled software engineers is readily available.
- Implement DevOps practices and ensure high software quality through Continuous Integration/Continuous Deployment (CI/CD) and continuous testing.
Top Software Outsourcing Companies in Vietnam
FPT Software: A Pioneer in Innovation
With a legacy of innovation spanning decades, FPT Software takes the lead as one of Vietnam’s top software outsourcing companies. Renowned for its diverse range of services, FPT Software excels in custom software development, quality assurance, and digital transformation solutions. Their client-centric approach and commitment to excellence have earned them a stellar reputation in the industry.
TMA Solutions: Transforming Visions into Reality
TMA Solutions is a name that resonates when transforming visionary ideas into tangible software solutions. Specializing in software development, maintenance, and testing, TMA Solutions boasts a team of skilled professionals dedicated to delivering high-quality products. Their adaptive methodologies and customer-focused strategies set them apart in competitive outsourcing.
Savvycom: Where Creativity Meets Code
In the realm of software outsourcing, Savvycom stands out for its fusion of creativity and technical expertise. With a focus on mobile app development, web solutions, and AI-driven applications, Savvycom has carved a niche for itself. Their commitment to staying ahead of technological trends ensures clients receive innovative and future-proof solutions.
NashTech: Elevating Businesses through Technology
At the intersection of business and technology, NashTech is a critical player in software outsourcing. Offering a comprehensive suite of services, including software development, cloud solutions, and IT consulting, NashTech empowers businesses to thrive in the digital era. Their customer-centric approach and unwavering commitment to quality have solidified their position in the industry.
KMS Technology: Driving Digital Transformation
In the fast-paced world of digital transformation, KMS Technology accelerates businesses toward success. With a focus on software development, quality assurance, and DevOps services, KMS Technology is a reliable partner for companies seeking to navigate the complexities of modern technology. Their emphasis on agility and collaboration ensures timely and effective solutions.
Axon Active: Crafting Agile Software Solutions
Agility is the hallmark of Axon Active, making them a standout choice for software outsourcing. Specializing in Agile development methodologies, Axon Active excels in creating software solutions that adapt to the changing business landscape. Their emphasis on transparency and collaboration fosters a dynamic partnership with clients, ensuring the delivery of tailor-made solutions.
LogiGear: Excellence in Software Testing
In the realm of software testing, LogiGear reigns supreme. As a leading outsourcing company in Vietnam, LogiGear specializes in delivering top-notch software testing and test automation services. Their commitment to ensuring software reliability and performance has garnered them acclaim from clients worldwide.
Harvey Nash: Bridging the IT Talent Gap
Harvey Nash plays a pivotal role in bridging the talent gap in the IT industry. With a focus on IT recruitment, outsourcing, and consulting, Harvey Nash connects businesses with skilled professionals. Their global presence and comprehensive services make them a trusted partner for companies seeking to augment their IT capabilities.
Tinhvan Group: Empowering Digital Transformation
Tinhvan Group is a beacon of innovation at the forefront of digital transformation. Specializing in software development, cloud computing, and cybersecurity, Tinhvan Group empowers businesses to embrace the digital future. Their holistic approach and commitment to security make them a reliable partner in the ever-changing tech landscape.
Conclusion
Outsourcing software development to Vietnam offers various advantages for businesses, especially organizations seeking cost-effective solutions, access to a large skilled IT workforce, and favorable business conditions.
With its competitive advantages, including cost savings, an experienced and educated workforce, English proficiency, a good business environment, Vietnam has positioned itself as a top destination for outsourcing software development. By leveraging Vietnam’s strengths, businesses can enhance their productivity and competitiveness in the global market.
Embark on a successful software development journey by connecting with Trustify Technology. Contact us to launch your project and experience excellence in software development outsourcing.