Software Outsourcing has been the hype in the business world in recent years, so what is Software Outsourcing exactly, is it the right choice for your company, and if yes, where and who to outsource your contract to?
1. What is Software Outsourcing and the Benefits of Outsourcing?
Software outsourcing is a contract, implying a process to engage a third-party agency to be in charge of developing your business software, which can range from web app development, mobile app or website development, and beyond. Software outsourcing should not be mixed up with software offshoring, referring to keeping the work process in-house, yet moving to another nation, mainly to benefit from cost-efficiency.
According to Statista’s report, the Global IT Outsourcing market’s value was $92.5 billion in 2019, and increased to around $132.9 billion in 2020, and is expected to continue its growth in the next 5 years. The accelerating trend implies wide adoption of software outsourcing among businesses. Software outsourcing lets you transfer the work to the professionals, which maximizes flexibility while reducing risks and expenses as well as allowing your team to retain focus and increase efficiency.
So now you have a better idea of Software outsourcing and its great potentials, the next step is Where and Who to outsource your project to?
2) Why Vietnam for outsourcing?
Asian countries have been reputed as the golden destinations for software development, thanks to their highly professional engineers, great efficiency and especially, cost-effectiveness, which make Asian IT Agents favorite partners of global corporations. China and India have long-established their positions in the field, yet as the outsourcing industry evolves and changes, Vietnam has been the outstanding emerging name.
In the “Leading Global Locations for Offshore Services” report of 2016 by Gartner, Vietnam was entitled one of the top 5 locations for outsourcing, with Ho Chi Minh City being in Top Outsourcing Cities for the 8 consecutive years (Tholons, 2009-2016). In the latest report “Tholons Services Globalization IndexTM (TSGI) 2019”, Tholons also placed Vietnam at number 13th in the Top 50 Digital Countries. There are several competitive edges that have facilitated the significant growth of Software Engineering in Vietnam.
a. Top Professional IT Engineering Workforce
Vietnam was listed in the Top Countries with the most IT Graduates in the world in 2015 by World Economic Forum, which reported the nation to welcome over 100000 IT graduates to the workforce every year, and this number has witnessed constant growth since then. Vietnamese Technology and Science institutions have also been well-regarded by The Higher Education, ranking within the top 300 and 400 IT institutions worldwide in 2018,2019. Besides, Vietnam’s IT workforce also includes top graduates coming back from abroad studying in the USA, EU, or other developed countries.
With a great foundation and technical and academic knowledge, Vietnamese engineers are also well-known for their conscientiousness and innovation. Data from the Global Skills Index 2020 report rated Vietnamese technology skills second in the Asia Pacific and 22nd globally. Moreover, the country’s young and sizable population provides great opportunities for even further development and advancement in the Technology field.
b. High-quality services with great cost-effectiveness.
One of the major advantages of outsourcing in Vietnam is the significant expense savings of these software development contracts. When choosing Vietnamese agents as software development outsourcing partners, global investors can save up to 90% of their project costs, thanks to lower capital and human resources expenditure.
Yet low cost does not go along with lower quality. With a famous customer-centric culture, Vietnamese IT agents provide top-quality service packages to serve different needs of clients. Whether you are looking for a one-off project partner or a long-term and flexible agent, you can easily find your best fit among hundreds of IT companies in Vietnam.
c. Welcoming Business Environment
Vietnam places “growth through transformation” and globalization at the core of its Economic Development Plan, focusing on facilitating free market and welcoming Foreign Direct Investment.
Vietnam has been a bright spot for foreign investors around the world, thanks to its stable socio-economic and political situation, sustainable economic acceleration, and especially, its strategic location in the Asia Pacific region.
d. The Covid-19 situation
Since the beginning of the global pandemic, Vietnam has hit several international headlines for its great success in responding to and managing the pandemic situation. Despite sharing a 1450km border with China – the largest Covid-19 spot in the world, Vietnam managed to control the situation so that by July 2020, the nation reported under 400 cases with zero deaths. The government’s aggressive and early response have successfully kept the situation under control. By now, most economic and social activities in Vietnam have been back to normal, yet still under close supervision of the authorities to prevent any risk of the virus spreading.
As a result of this successful response to the pandemic, Vietnam has maintained its economic growth, even in the face of the global recession. The International Monetary Fund has revised upward its forecast for Vietnam’s 2020 GDP growth by 0.8 percentage points to 2.4 percent, lying among the top world growth this year.
3) Why SotaTek JSC?
SotaTek is a leading Software Development Company established in 2015, headquartered in Hanoi, Vietnam, with international offices in Osaka and Tokyo, Japan. Our company name, SotaTek stands for “State of the art Technology”, representing our product standards and our desire to conquer new peaks of technology.
At SotaTek, we deliver full-cycle services that cover all aspects of Software Engineering. Whether you are a startup or a major corporation, through intensive two-way communication, we gain deep insights into your business vision, bringing you the most optimal suite and cost-effective solutions.
Our dream team of 200+ talents has proudly offered over 150 clients worldwide the most advanced IT Outsourcing Services, especially for system integration and development. We leverage top-notch technologies including, but not limited to, Artificial Intelligence, Machine Learning, and Blockchain to assist enterprises of all industries, empower their sustainable business growth. SotaTek’s growing client network has currently spread across 14 nations, with 250 projects and more to come in the future.
SotaTek is confident and proud of its power to create new values for the customers, with great passion and dedication, we strive to create a prosperous future for all, through promoting and innovating the best IT technologies.