Software Outsourcing Service has gained global popularity over the past few years. If previously, China and India were known as the leading nations in this field. However, everything has changed and several countries, including Vietnam, are becoming a growing market in the IT Outsourcing Field. Thousands of organizations and businesses are looking to outsource their projects in this country. But why is it? Why is the Vietnam market highly appreciated as a promising destination for foreign investors to make a move on? Let’s check it out to know more!
1. What Is IT Outsourcing?
Outsourcing can be described as a contract between a business and a third-party provider. In this contract, IT Outsourcing would take the responsibility of handling technology functions, such as software development, infrastructure solutions, and software support. There are 2 main cooperation types that clients can choose when reaching a B2B outsourcing company, including Offshore Development Centre (ODC) and Project-based.
According to the Statista report, the revenue of IT Outsourcing Services is predicted to reach US$359,832.3m at the end of 2021, and this figure continues to increase to result in a market volume of US$551,956.3m by 2026. The accelerating trend implies the widespread adoption of outsourcing teams among businesses, be it a small start-up or a big corporation. This can be explained by the fact that the advantages of outsourcing can be substantial, ranging from cost savings and efficiency gains to greater competitive advantage.
2. 05 Reasons To Choose Vietnam For IT Outsourcing
a. Competitive Cost
Vietnam can offer other global enterprises cost reductions, making it an appealing choice for any business all over the world. To prove it, the CIO magazine claimed that the cost of outsourcing development in Vietnam is 90% lower than that of US service. The savings are even 50% compared to China and 30% to India. You may have been worried that low-cost offerings are linked to poor quality. However, this situation is different in Vietnam. Not only can you pay a reasonable price but you also get high-quality software developers when choosing to outsource to Vietnam.
b. Top Professional IT Engineer Workforce
Vietnam is no doubt a promising location for seeking a reliable B2B Outsourcing Company because of the dynamic and talented labor. According to TopDev’s report, Vietnam has about 400.000 IT Engineers and over 50.000 graduated IT Students from over 153 IT Institutions per year. Besides, in order to meet the ever-growing demand for human resources, many IT firms have collaborated with education institutions to set up the training courses, give scholarships in order to improve the Vietnamese Tech Talented. Such talents also have an opportunity to study abroad in the US, UK, and other developed nations to broaden their knowledge in the technical field.
With such a great foundation in education, it can be assured that such graduates can contribute their innovative and creative thinking to the IT field. Moreover, the good fortune of having a group of workers in the ‘golden age’ also provides great opportunities for even further development and advancement in this field. To sum up, Vietnam can provide not only quantity but also quality for the software outsourcing market both in the domestic and international one.
c. Cutting-Edge Technology
In terms of technology, Vietnam - one of Asia’s fastest-growing economies - is making its mark on a global stage. The country is leading with a number of cutting-edge technologies, such as Blockchain, IoT, AI & Machine Learning, Cloud Computing, etc. Whatever technology your businesses want to apply, the Vietnamese Outsourcing Company can adopt. This can be achieved thanks to the technical expertise through studying as well as the hands-on experience working on complex large-scale projects accessed by millions of users throughout the world.
d. English Proficiency
Language can be a huge challenge as far as success in the IT industry is concerned but in Vietnam, the language barrier has steadily been abolished in recent years. Apart from the mother tongue, almost all graduates are exposed to a second language, especially English, regardless of any degree, making Vietnam stand at the 13th ranking in the Asian area in terms of English proficiency. This also means that the outsourcing team, be it a project manager, sales team, or software developers, would have no barrier in using English and are often greater than the national average. Therefore, foreign businesses and Vietnam IT Outsourcing Company can easily communicate with each other, have further discussions, and understand the requirements, hence, successfully launching the final product. This, along with a number of other factors, certainly positions Vietnam among the top IT outsourcing countries in the world.
e. Social Stability
Compared to India’s Kashmir wars with Pakistan or the 2006 Thai coup, Vietnam is considered one of the most secured Asian nations. According to Minority Rights, 95% of citizens are ethnically Vietnamese and more than 80% of them do not belong to any specific faith group at all. Such statistics have proven that Vietnam is really free of religious conflict. Furthermore, Vietnam was also listed at the 12th ranking as the safest among the Asia-Pacific Region by Global Peace Index 2020. So, it can be said that Vietnam is a stable socio-economic and political situation country, and especially, its strategic location in the Asia Pacific region, which can create a hospitable business environment for outsourcing.
3. Why Choose Outsourcing Service In SotaTek JSC?
Established in 2015, SotaTek is the largest part of Sota Holdings, a global Software Development as a Service and IT consulting group with headquarters in Vietnam and international offices in the US and Japan. Since its establishment, we have served a huge number of global enterprises in various industries, including Retail, Health Care, Finance, Education, Media and Entertainment.
As a leading Outsourcing Company in Vietnam, our 550+ dedicated team has the capability and experience to conquer any size of outsourcing projects with a 30% reduction cost in the planned time in order to come up with the results that would exceed your expectations. No matter what type of custom development service you require, Web & Mobile App Development, Blockchain Technology, Odoo ERP, AI & Machine Learning, or Cloud-based Services, SotaTek can provide you with the best solution to meet your specific demands.
So, if you need a consultant about technology, do not hesitate to contact us right now. We would serve you with our most enthusiasm, determination, and commitment.