When it comes to software development outsourcing, companies are looking for such IT firms that can assist in achieving business goals quickly and efficiently. Vietnam has also recently become one of the leading countries in software development outsourcing. This blog post focuses on the leading reasons why Vietnam is considered an ideal tech hub for outsourcing software development.
Top Reasons That Make Vietnam an Ideal Tech Hub for Outsourcing Software Development
Vietnam has been gaining recognition as a promising destination for outsourcing software development. Here are the reasons why:
Growing IT Industry
Vietnam’s IT sector has grown rapidly since 2015, with a CAGR of 16.9 % in four years according to the software and IT Services Association of Vietnam. The government has also done a lot to support the tech industry by developing infrastructure, providing tax breaks as well creating favorable business conditions. Consequently, Vietnam has transformed into a tech startup hub with more than 3002 startups as of the year In fact, this number continues to grow. A flourishing tech industry promises a repository of proficient IT practitioners and diverse technology applications, which have positioned Vietnam as an excellent place to outsource software development.
Large Pool of IT Professionals
There is a pool of skilled IT professionals in Vietnam. Many of these professionals have international experience and are quite fluent in the English language; therefore, it is easy to communicate with them. Also the younger generation is more technically employed, and Vietnamese universities offer IT studies many of them graduate with such qualifications each year. Large pool of IT talent reduces cost without sacrificing quality and is a good resource to outsource software development.
Competitive Cost
Vietnam provides competitive rates compared to other outsourcing destinations while maintaining quality in its offerings. 4 As A.T Kearney found out in a report, Vietnam is the 4th most cost-effective outsourcing destination. The low cost of living and wages in the country also play a critical role in ensuring that it remains practically competitive. Statistically, outsourcing software development to Vietnam can save clients up to 30-50% as compared with developed countries such as the U.S or UK without sacrificing quality in service delivery.
Cultural Compatibility
Because of the cultural compatibility, Vietnam could be a place to outsource software development for companies from English-speaking countries. The Vietnamese culture encompasses value systems that emphasize commitment, ongoing education and respect. Communicating with the Vietnamese is respectful, indirect and they prefer to build long-term relationships based on trust while doing business. This cultural similarity is a unique advantage for companies seeking outsourcing partners in Vietnam.
Government Support and Stable Environment
Vietnam’s government has invested heavily in developing the tech industry and continues to offer incentives for foreign investment. Additionally, the government has created a stable business environment, supporting foreign businesses in legal and administrative procedures. Vietnam’s stable macroeconomic environment is another critical factor, with a growth rate of 2.91% despite the COVID-19 pandemic, making it a safe destination for outsourcing software development.
Read Also: Top Software Development KPIs
Check Out the Following Top-rated Software Development Outsourcing Vendors in Vietnam
First of all, make sure you know that there are no two service providers that are the same, and the best software development agency for you will depend on your own project requirements. So, this is not a ranking but rather a list of the top 5 software outsourcing companies in Vietnam to give you an overview of the options available.
1- Orient Software
Established in 2005, Orient Software has quickly risen to prominence as one of Vietnam’s top software development companies. Orient Software is known for its expertise in various technology stacks, ranging from .NET, Java, PHP and mobile platforms thanks to a committed group of top-rated software engineers. Their promising service portfolio includes everything from customized software development to mobile application development and web development up to offshore. Combined with their dedication to Agile approaches, this makes them efficient and effective in delivering high-quality software solutions.
Orient Software differs from other companies due to its emphasis on customer satisfaction. This client-centric philosophy holds firm through their focus on understanding their clients’ businesses, designing solutions based on specific requirements and providing ongoing support throughout the software lifecycle. Also, the company heavily invests in lifelong learning and development of its team which results as innovative solutions catching up with tomorrow’s rapidly developing tech landscape.
2- Savvycom Software
Savvycom Software, has been offering the best software development services since over a decade now and based in Hanoi. Their tech team of savvy skilled professionals stands out in providing the best technology solutions, especially software development mobile application development and cloud computing. Savvycom Software is one of the most highly sought software development companies in Vietnam due to its client-centric approach and talent for innovation that has gained much trust from clients around the globe.
3- Axon Active
Axon Active is an offshore software development company headquartered in Switzerland. It operates its own software center from Vietnam, founded in 2008. They provide full-fledged software development services ranging from mobile application developing to web applications and software testing. The agile working environment makes their unique Scrum teams stand out amongst competition.
4- TMA Solutions
TMA Solutions is one of the oldest and largest software development company located in Ho Chi Minh City, Vietnam. Since its foundation in 1997, TMA Solutions has been delivering strong and affordable software solutions to clients from different sectors.
5- FPT Software
Another major software company in Vietnam that is also renowned for its diverse range of technology and IT services, FPT Software. They have 17,000 employees across the world and have completed more than one thousand software outsourcing projects. Their constant drive for innovation and technological progress has made them a popular choice both by many businesses.
Conclusion
Technology constantly evolves and businesses are looking for innovative technology solutions, which makes these software development companies in Vietnam ready to contribute significantly towards the digital future. With qualified manpower, ideal business setting and a focus on client victory, such companies represent the power of Vietnamese software development market.
