In today’s highly competitive business world, in order to achieve a balanced mix between cost saving and quality software development, many businesses turn to outsourcing as a solution. To make outsourcing a success, it’s critical to partner with the right software development team to receive the desired business results within budget.
In addition to skill level, years of experience in the software development market, and breadth of services offered, customer companies also consider the factor of outsourcing location when making the ultimate decision of whether to outsource their software development projects or expand their teams. And Vietnam is one of the world’s top destinations for outsourcing software development.
In fact, Vietnam has long been one of the leading outsourcing companies in Asia and Southeast Asia for decades. If you’re considering hiring software development teams, let’s consider why Vietnam is becoming increasingly popular in recent years.
Top 7 reasons that make Vietnam an ideal software development outsourcing destination
Hiring a software development team in Vietnam offers many advantages, especially for businesses that want to succeed in the new digital economy. These advantages include: access to a vast pool of professional IT talents, strong ICT infrastructure and a positive business environment, etc. and the list of benefits does not end there. Here are a few more reasons why foreign companies choose to source to Vietnam:
1. A strong ICT services market
Vietnam has a strong labor market and is home to diverse industries, startups (with 3 tech unicorns valued over 1 Billion USD), and innovation hubs. They provide opportunities for communication, collaboration, and knowledge sharing among industry professionals. All this contributes to the steady growth of the country’s IT services market.
According to statistics from VnEconomy.vn, the information and communications sector generated $154 billion in 2023, a year-over-year growth of 1.49 per cent, as reported by the Ministry of Information and Communications. Total employees in the sector grew to over 1.76 million, an increase of 2.72 percent compared to 2022.
These characteristics are closely related to the aforementioned goal of hiring a Vietnamese software development team.
2. Vast talent pool
According to the same 2023 report, Vietnam has more than 1.76 million ICT professionals. Highly trained software engineers and IT professionals have vast experience, skills, and expertise in a variety of fields, making them one of the most sought-after professionals in the region.
Talent pool of this magnitude does not develop overnight. To some extent, this is a result of the quality of education that software engineers receive, which is also a factor worth noting.
3. Strong STEM and ICT education
Vietnam has prominent universities in South-East Asia, including international universities such as RMIT Vietnam University, Vietnam-German University, among others. As reported by Statista, Vietnam saw 55,000 graduates majoring in information technology in 2021. Of these, approximately 16,500 met the qualifications needed to fill roles in the sector based on employer standards.
Such a wide educational network has helped Vietnam software engineers gain recognition in various surveys worldwide, like Topcoder Country (15th place) and EF English Proficiency (7th place out of 23 in Asia).
The country’s expertise has attracted the attention of many enterprises worldwide, who have opened offices throughout Vietnam. Their availability highlights a strong demand for software development teams in Vietnam.
4. Presence of Global Tech companies
Many global tech enterprises such as Apple, Intel, Microsoft and Accenture all opened and have offices in Vietnam. These companies hire local engineers to build IT products and provide IT services. This is a sign of good will as these companies carefully weigh the risks and benefits before opening an office abroad. Moreover, their existence reflects the growth of the research and development sector. This shows that there are global IT experts who are very knowledgeable even in the latest and advanced technologies.
5. Cost effectiveness
Competitive salaries and an excellent IT talent pool in Vietnam make it a lucrative destination for software outsourcing. The cost of software development jobs in Vietnam is significantly lower than in the US and lower than in Western Europe or Great Britain. However, the exact costs largely depend on the skills and experience levels of the software engineer team hired for the projects as well as other terms and conditions of the outsourcing contract.
Also, just because it’s cheaper to develop software in Vietnam doesn’t mean the team is any less talented. It simply means that their total pay is less than the average wage that software developers in developed nations command. For example, according to Numbeo.com, the cost of living in Vietnam is less than half the European average and upward of 50% lower for businesses compared to the US.
6. Digital Technology Firms specializing in various industries
According to the Vietnam Ministry of Information and Communications, about 5,600 digital technology firms were established in 2021.
With a wide range of software companies, you can choose a professional software development company that can help you build your technology department or develop solutions for finance, manufacturing, logistics and sales, retail, digital communications, automotive energy and other industries where you want to strengthen your position in the market. It can be useful if you set up your software development team in Vietnam.
7. Growing business environment
The country’s business environment provides a solid foundation for companies looking to build software in Vietnam. This stability reduces risk and helps building long-term relationships. It also fosters an environment that encourages innovation, growth and investment by providing efficient collaboration on outsourced software development projects.
Moreover, the favorable business environment provides a competitive advantage for companies that hire teams from Vietnam to approach neighboring markets with confidence.
In addition, Vietnam’s software companies have been outsourcing for decades and they understand the Western culture very well, which makes communication and cooperation with Vietnamese developers simple and effective. This makes Vietnam an ideal location for offshore outsourcing for many US companies.
How can Trustify Technology help you hire a software development team in Vietnam?
By partnering with Trustify Technology, you gain access to a large pool of IT professionals in Vietnam. Our development center in Vietnam employs over 150 highly skilled and qualified engineers, offering unmatched expertise. With an established presence in both the UK and the US, we are able to operate from around the world to meet your needs.
We follow a rigorous selection process to find the best software engineers for your team. Suppose you want to build a cohesive, organized IT system or simply need to restructure your team, we can offer services tailored to your needs.
With Trustify technology, you can quickly and efficiently scale your team or add new members during the software development process. Contact us to find out how hiring reliable software development services in Vietnam can benefit you!