Vietnam is the go-to when it comes to software development outsourcing for many leading tech firms at present. Cutting-edge technologies, the best workforce, and incredible cost-efficiency, along with excellent results make the country the best choice when outsourcing software development requirements. Saigon Technology stated that prominent US tech companies continue to invest in Vietnam.
A lot of tech companies from other developed countries as well, like Australia and Japan have already set up offices and hired software professionals in Vietnam in recent years. The trend is gaining popularity all over the world. Vietnam is on the list of the most politically stable countries across Southeast Asia with the economy experiencing rapid growth for years now. These factors play a vital role in software development outsourcing in Vietnam.
Vietnam outsourcing means many companies looking to develop software in a way that’s more cost-effective. The country, based on the Global Service Location Index 201, ranks 20th among the top countries recognized as an excellent destination for software outsourcing. With more than 60 percent of its population under the age of 30, Vietnam is in the ‘golden population’ phase of the world.
Factors that make Vietnam the Best Choice in Software Development
1. Cost
One of the most compelling reasons why companies outsource their software development requirement is the cost. Vietnam has the lowest labor costs. Hiring developers in the country is approximately nine times less costly compared to Europe or the US. And, when compared to India, it is one-third to one-seventh the cost.
Moreover, the cost of office space is affordable. The cost of building and operating offshore development teams is more affordable in the country, thus a tech startup could save a considerable amount of money in the long run. Additionally, most software service providers in Vietnam have flexible pricing models, which help companies control their budgets and get the best value from their investments.
2. Strong Workforce
For all projects, human capital is the foundation. The potential of developers is paramount, particularly in an offshore setting. Vietnam is a young and literate country, with a growing interest in technology. The young generation is tech-savvy and 83 percent of graduates from colleges and universities have Computer Science degrees. Furthermore, the 80,000 IT graduates per year make the country a particularly good destination for software development requirements.
Many organizations prefer Vietnam to build a software development team than in other countries. Again, the large pool of talent in major cities makes it a compelling destination for organizations far and wide.
3. Stable Government
The Vietnamese government has proven to be stable and secure and widely recognized as legitimate by the major trending countries all over the world. Vietnam enjoyed political stability for over thirty years now. At present, the government has been in place since the reunification in 1975. From an economic standpoint, the country has a robust and strong economy. The economic and investment growth outperforms other outsourcing destinations across the globe.
In the past fifteen years, the country has undergone tremendous transformation. Based on the World Bank statistics, Vietnam’s GDP per capita has increased by 2.7 times from 2002 to 2018 and crossed $2700 in the year 2019. Furthermore, the World Bank stated that 45 million people in the country were lifted from poverty during this time.
4. Government Incentives
Vietnam is clearly moving towards open markets, offering incentives, particularly in the Information Technology field. It signed a decree to build and develop its software industry. Furthermore, it has kept import duties on IT products low and has even implemented several taxes and other incentives for IT organizations. The government allows foreign investment, and, more importantly, full foreign ownership of Vietnamese companies in the IT field.
A lot of multinational companies are taking their projects and businesses to Vietnam since it’s a smart and safe place to invest. With a sound cultural and political standing, the country is ripe for long-term IT investment. Moreover, the incentives that the government offers make it an excellent place to take offshore software development projects.
5. Language
In the past, the English language barrier was a major hindrance that the country had to deal with while competing with other software outsourcing destinations. This is no longer true these days. The younger generation of Vietnamese professionals has better education and proficiency in English. Software developers, whether working as freelancers or working in a software development firm, could communicate with clients in English fluently.
6. Trusted Outsourcing Companies
These days, you can find many software outsourcing providers in Vietnam. Many clients all over the world are looking for a trusted software service provider with a good track record. The country is home to numerous top service providers, which include Saigon Technology, ICTS, and more with customers in many countries. Among the many countries they serve include Australia, the United States, Canada, Singapore, Norway, Germany, France, and so on.
Leading software service providers in Vietnam offer exceptional and quality offshore software development services at competitive rates. Moreover, they also provide the best quality custom development, web application, mobile app development, UI/UX design solutions, and a whole lot more.
The Progressive IT Industry in Vietnam
The progression of Vietnam in the field of IT, particularly in software outsourcing, is fast and evidenced in several ways. One of the most obvious is how IT professionals have stood out among experts compared to other industries. Companies could fulfill their growing offshore development requirements through the huge number of skilled software developers in the country.
The abundance of tech talent and skill in the industry comes with technical brilliance and creativity. Vietnamese software developers have honed their skills through cutting-edge technologies, such as cloud computing, IoT, and Blockchain among others. Furthermore, the expertise in the field offers the best quality software solutions to clients across various industry verticals.
Conclusion
With a young and growing Information Technology workforce, Vietnam is a natural offshore location. The country has got what it takes to be the leading market choice in years to come. The unique combination of affordable rates and high-quality services makes Vietnam one of the best software outsourcing destinations worldwide.
