All the Facts About IT Outsourcing in Vietnam – Updated Until 2023

IT outsourcing has truly become a disruption in the global software development industry, especially when the Covid-19 pandemic hit the earth in 2020 and completely changed the way we run business. New research by Commit projects that software development outsourcing will sharply grow by 70% in 2023. This opens a bright scenario for IT outsourcing in the future. The reasons for a company to take on IT outsourcing are different, but one thing stays the same. It is the goal of getting their IT needs to be met while still saving costs and resources. Since IT outsourcing is nothing new around here, there is a wide range of destinations when it comes to outsourcing software development, and IT needs. And among various options, Vietnam software outsourcing is one of the most promising ones. The country has become the new IT powerhouse in Asia and the home of so many software development projects of various sizes.

📌 9 Facts about IT outsourcing in Vietnam

#1 Vietnam is known for its affordability

One of the most attractive attractions of IT outsourcing in Vietnam is that it is much more affordable than other IT outsourcing markets. Lower salaries and living costs compared to Western countries make Vietnam a great destination for companies who want to save money while still getting top-notch software development solutions. Moreover, quality services are guaranteed since the country has a large pool of talented engineers, developers, and coders.

#2 Vietnam has a large and qualified IT workforce

Vietnam is home to over one million IT professionals who are highly skilled in software development. In comparison with other countries, Vietnam has the second largest number of tech-savvy workers in the world and ranks third among countries that export software services abroad. The quality of work provided by Vietnamese technicians is exceptionally high as they often have great qualifications from leading universities around the world.

#3 Vietnam offers great tax incentives 

Companies that outsource to Vietnam can enjoy some great tax incentives from the government’s policies as part of an effort to foster business growth in this sector. This incentive package includes exemptions on corporate and income taxes, as well as import duties.

#4 Vietnam has a fast-growing economy 

Vietnam is currently one of the fastest-growing countries in Asia, with an average annual GDP growth rate of 6% over the last 20 years. Since 2013, this number has grown to 7%, making it clear why so many businesses are looking towards Vietnam for outsourcing software development projects.

#5 Diverse technical skillsets

The diversified technical skillset has made Vietnam renowned for IT outsourcing. Vietnamese developers and engineers are experts in a wide range of technologies, including mobile app development, web development, e-commerce solutions, software engineering, and data science. This provides companies with the flexibility to choose from different specialists according to their individual needs. 

#6 Vietnam has great political stability

Another key factor that makes Vietnam a great destination for IT outsourcing is the country’s political stability. Since the Reunification of North & South Vietnam back in 1976, there has been no major political unrest in the country. This ensures a safe environment for businesses to invest in, making it easier for companies from around the world to outsource their software development projects to Vietnam with confidence.

#7 Easy communication when working with developers and IT companies in Vietnam

Vietnam is fast becoming a multilingual society, with English being widely spoken in larger cities. This makes it easy for companies to communicate and collaborate with their offshore IT team, ensuring smooth project delivery.

#8 Agile and Scrum universal adoption

Vietnamese developers are well-versed in both Agile and Scrum methodology, which is becoming increasingly important for companies that want to ensure the success of their software development projects.

#9 Integrity and transparency

Vietnamese software development companies are known for their high levels of transparency and integrity. This means that when companies outsource to Vietnam, they can rest assured, knowing that all the information associated with their project is secure.

Overall, Vietnam has established itself as an attractive destination for outsourcing software development projects due to its affordability, talented workforce, tax incentives, political stability, and diverse technical skillset. With all these advantages, there’s no doubt that Vietnam is set to become a leader in the software outsourcing market in the years to come.

📌 8 Effective Tips to successfully outsource IT projects to Vietnam

So as to get the most out of IT outsourcing, companies should ensure that they choose the right partner and have the appropriate processes in place. A few tips may help:

✅ Have a clear understanding of the project requirements:

Before outsourcing any project, it is fundamental to have a clear understanding of the deliverables, timeline, and budget requirements. This will ensure that the right partner is chosen and that expectations are properly managed.

✅ Define goals and milestones:

When deciding on a development plan for an outsourced IT project, it’s essential to create measurable goals and milestones to help track progress. This will allow for more efficient management of the project’s timeline, budget, and deliverables.

✅ Utilize Agile methodology:

Agile methodology is becoming increasingly popular when it comes to software development projects as it allows for frequent feedback loops and iterative improvements. By utilizing this method, companies can improve their chances of success with outsourced IT projects.

✅ Establish communication protocols:

Good communication is key when outsourcing IT projects, so having a well-defined protocol in place prior to starting any work is essential. This should include how often meetings or calls will be held, who will be accountable for providing timely updates, etc., for ensuring that everyone involved stays in the loop.

✅ Choose the right partner:

It is important to choose a reliable and experienced outsourcing partner with a proven track record of successful IT projects to increase the chances of success. Be sure to do your research before deciding on an offshore team for your project.

✅ Monitor progress:

Once the project has begun, it’s important to monitor progress regularly so that any issues can be quickly addressed and rectified if needed. This allows for better management of timelines, budgets, and deliverables.

✅ Provide feedback:

Providing timely and constructive feedback during development will ensure that any problems are identified early on, allowing them to be fixed before they become bigger issues further down the line. By providing regular feedback, companies can ensure that the project is on track and going according to plan.

✅ Build relationships:

Finally, it’s important to strive to build a strong and long-lasting relationship with your Vietnamese team and ensure that everybody is on the same page in terms of the project’s goals and objectives. This will help create an atmosphere of trust and understanding, which is essential for successful IT projects.

With these tips and the many advantages of IT outsourcing to Vietnam, there is no doubt that Vietnam is becoming a popular destination for offshore software development. By following these tips, businesses can be assured of success when outsourcing their IT projects to Vietnam. With its highly skilled workforce, great tax incentives, fast turnaround times, and low cost of living, Vietnam is the perfect choice for any IT project.