Advantages of outsourcing software development to Vietnam

In recent years especially since the covid pandemic, Vietnam has become a prominent destination for outsourcing software development. Its flourishing outsourcing industry and competitive advantages and benefits have attracted international companies seeking skilled tech talent at cost-effective rates. But there is some limit for someone new to deciding on the proper partner collaboration in Vietnam, and also consider some factors.

That is why Trustify Technology provides this article to highlight the benefits of outsourcing software development to Vietnam, emphasizing key advantages that make it an appealing choice for businesses.
Overview of software outsourcing and its typical models

Software outsourcing is when a business hires a third-party supplier to create software. This outsourcing process involves delegating control of a specific development area or project to a qualified external enterprise with the necessary resources, talent, capabilities, and time to handle the required tasks.

You can read about what is software outsourcing in our article right here

There are three typical models of outsourcing software development services that businesses can choose from:

• Onshoring: This business approach entails using a partner organization based in the same nation or region. It is possible to choose software outsourcing firms located in different states but in the same area. Since there are no language barriers in this approach, communication is made more straightforward, but the expenses may be greater than in other outsourcing models like nearshoring and offshore.
• Offshoring: Unlike onshoring, which is localized, offshoring services let customers acquire reputable software outsourcing services from outside. For instance, a US business might decide to work with a software outsourcing company in Singapore, India, China, or Vietnam. Offshoring is frequently considered more affordable for remote project administration than onshoring.
• Nearshoring: Nearshoring services entail working with software outsourcing companies in foreign nations close by that have a comparable time zone to your own or that are situated in a nearshore region. A US corporation might, for instance, use nearshore services from Mexico or Puerto Rico.

By selecting the appropriate software outsourcing model, businesses can benefit from cost-effective solutions, access to top-notch talent, and the ability to stay competitive in the software technology market.

Advantages of outsourcing software development to Vietnam

IT outsourcing to Vietnam offers a wealth of benefits in terms of resources and quality, made possible by reasonable pricing, a solid IT infrastructure, and a welcoming business environment for the IT sector.

Cost savings

The most significant difference in the cost of employing a senior developer in the United States may range from $65 to $130 per hour. Hiring a developer in Vietnam costs only $20 to $45. Additionally, outsourcing software development to Vietnam is around one-third less expensive than in India.

A skilled and educated workforce

The young and educated population of Vietnam contributes to the country’s excellent talent base for software development. With over 6,000 IT businesses, the nation is a sizable player in the worldwide IT outsourcing market. Vietnamese programmers are well-known for their technical aptitude, adaptability, and command of current technology. With a focus on STEM topics, the workforce is well-educated and well-versed in these subjects.

English proficiency

English proficiency is a crucial factor when outsourcing software development. Vietnam has a higher English proficiency rate compared to many other outsourcing destinations. English is widely taught in schools, and Vietnamese developers often possess good communication skills in English. Clients and outsourced teams can cooperate and communicate more successfully when they speak the same language.

A favorable business climate

To entice foreign businesses, Vietnam has actively built a favorable investment climate. The government has implemented helpful rules, streamlined procedures, and offered incentives for companies wishing to outsource to Vietnam. The nation’s political stability and dedication to economic progress make a trustworthy and secure outsourcing environment possible.

Time zone advantage

Businesses outsourcing software development benefit from Vietnam’s time zone (GMT+7). Real-time communication and collaboration are made possible by overlapping working hours with nations like the United States and Europe. This time zone advantage reduces delays and boosts productivity when completing projects.

Cultural compatibility

Vietnamese culture places a strong emphasis on tenacity, loyalty, and dedication. Vietnamese developers are well known for their tenacious work habits, commitment to excellence, and readiness to go above and beyond to fulfill project requirements. This builds productive working connections and improves the outsourcing experience overall.

Conclusion

Outsourcing software development to Vietnam offers various advantages for businesses, especially organizations seeking cost-effective solutions, access to a skilled workforce, and favorable business conditions.

With its competitive advantages, including cost savings, an experienced and educated workforce, English proficiency, a good business environment, time zone advantage, and cultural compatibility, Vietnam has positioned itself as a top destination for outsourcing software development. By leveraging Vietnam’s strengths, businesses can enhance their productivity and competitiveness in the global market.

To find out which partner is the best for you to outsource in Vietnam, you can read this article.

Source: https://trustifytechnology.com/en/news/advantages-of-outsourcing-software-development-to-vietnam/