Offshore software development may be a perfect option if you plan to save money and get high-quality web development or mobile app development. Why should choose Vietnam to outsource? Hiring a dedicated software development team in Vietnam might be good. But are there any pitfalls I should know about?
So, let’s take a closer look at Vietnam in terms of its attractiveness for software development outsourcing.
- Convenient location, wide tech talent pool as well as low labor costs.
- Vietnam is among the leading countries in offshore software development service.
- Microsoft, Intel, IBM and other companies chose Vietnam as an ideal IT outsourcing destination.
In this article, we will explain all the reasons to outsource to Vietnam including business opportunities, current reputation on the IT market and well-known projects. Let’s go!
Table of contents
So why choose Vietnam to outsource?
Today, Vietnam is top emerging Asian countries for outsourcing services with an incredibly fast pace. Therefore, innovative specialists in different industries has increased, especially tech professionals.
With a young population, the workforce with many talented IT developers, attractive labor costs, a stable environment, and low taxes, Vietnam is now a sweet place to outsource, especially in offshore software development.
Another advantages when outsourcing in Vietnam is high-tech labor resources but the cost is low. Compared to China, India is the leading Offshore country so far, the labor cost of Vietnam is also cheaper.
Read also: How to outsource software development?
1. Talented IT Developers
Vietnam is a country with a young population structure, currently in a period of what can be called the golden population period. The average age of Vietnam’s population is about 28.5 years old. Therefore, the resources of young engineers in Vietnam are incredibly abundant.
According to Reuters, Neil Fraser, a software engineer at Alphabet Inc’s Google said: “Vietnam has the highest-performing computer science students I’ve ever encountered.”
Another important point is that the talent pool in Vietnam is continuously growing:
- Nowadays, most of the developers belong to Millennials generation.
- At present, the number of developers in Vietnam at a young age accounts for the majority with 53.2% aged 20 – 29 years old.
- The number of senior developers over 5 years of experience accounts for about 30%.
- There is a large number of developers with only a few years of experience but having Senior/ Lead expertise.
- About 70.5% of developers said they mostly update their knowledge through tech blogs, events or social media.
For summary, tech talent in Vietnam are eager to work for international companies and to gain exposure the startup ecosystem. As long as you can offer an learning-friendly environment with cutting-edge technology projects, you will be able to attract young offshore developers in Vietnam to gain the experience and exposure.
2. Tech Education In Vietnam
The tech industry is nothing without the people who push it forward. And Vietnam can boast thousands of talented, professional, driven people.
At present, the government also plans to invest more in 20 schools currently teaching IT in Vietnam. With regard to IT human resource, each year Vietnam has more than 50.000 IT students graduating from over 153 universities. In global IT rankings, Vietnam ranks top 29 in terms of skill value, top 6 in terms of top coder and top 23 in terms of hacker rank.
Besides, foreign languages as well as social interaction skills should become the focal point when training instead of only concentrating on IT skills and knowledge.
According to research conducted by the World Economic Forum, Vietnam is one of the top 10 countries with the most engineering graduates.
In the past, language is a barrier for Vietnamese developers when working with a foreign customer. But, thanks to the effort of the Government to enhance foreign language skills, they have more opportunities to participate in the global boiling technology revolution 4.0.
For example, at AgileTech, we have a free English speaking club. Also, we regularly hold seminars where team members share their knowledge on a certain topic with each other.
3. Business Environment
This year, A Gartner report named Vietnam in the top 30 countries for offshore software development services. Speaking from our past outsourcing destination – India, you can find modern IT skills in Vietnam equal to and in some cases exceed what India offers.
- GDP growth: According to KPMG, the annual Gross Domestic Product (GDP) in Vietnam tripled from US$600 per person in 2005 to a favorable US$2,185 in 2016, a massive increase in just a decade.
- Government’s Resources: The Government of Vietnam has quickly caught wind with the Industry 4.0. The authority and administration has issued an initiative with the title of ‘Vietnam Silicon Valley’.
- Attractive Tax: The government provides location-based incentives, benefiting disadvantaged locations based on the companies’ levels of investment and development.
- Stable Political Climate: This is one of the great advantages when hiring an offshore software development company in Vietnam
Moreover, the rise of tech business and the increase in opportunities is driving an entrepreneurial spirit
- VNG, a gaming, media and communications focused company is rumored to have a unicorn valuation.
- MoMo, a local online wallet, raised an unprecedented $28 million from Standard Chartered and Goldman Sachs.
As Vietnam has a strong IT developer resource pool and lots of other potential conditions, many famous technology corporations are now choosing Vietnam to invest including Samsung, Hindustan Computers Limited, LG. And in the near future, Apple will also join the game.
Read also: The rise of super app in Vietnam
4. Culture & Work Ethic
China and especially India, are clearly the “outsource mecca” for the past two decades. These two countries have gone through all the challenges of software outsourcing. Currently, their biggest challenge is retaining employees because they tend to migrate to other countries to find career opportunities.
However, this is not a problem for Vietnam. Vietnam is particularly unique because of its low staff turnover rate. Here, you not only have your own family but also have a big family. Typical of Vietnamese culture is the desire to stay in the country, work locally and provide for their families. This is the difference and important advantage of outsourcing the Vietnam environment.
Moreover, Vietnamese people have always maintained a precious tradition that is a hard-working spirit. Starting from an agricultural country, diligence and no fear of difficulties have associated with Vietnamese people.
Among Asian countries, Vietnam is known for the image of people who work hard and in life. Moreover, the solidarity and mutual support of the Vietnamese people is also a precious virtue, it is the core of the teamwork spirit that is essential for the field of programming.
5. Price-quality Ratio
In Vietnam, the price to hire an offshore software developer rates range from $10-$25/ hour. While in other Asia countries like India or China, you will be asked to pay from $18 to $50 per hour for the same scope of work.
The offshore software development cost to get a skilled developer with four years experience is a about US$2,000. This is almost half the salary of an equivalent employee in Singapore assuming you will be able to attract the right talent.
In addition, the cost of office or coworking space in Vietnam is low. All the more reason shows that Vietnam is one of the best IT outsourcing destinations in the world.
Next, how much does it cost to build an app in Vietnam? If you have an app idea, the estimate time is from 400 hours of development/ version. As the result, when IT outsourcing in Vietnam, the app development cost from $4,000 to $10,000.
What about web development cost? In fact, in Vietnam, the web cost estimation the web cost estimation to build a website is from $3,000 (for wordpress website, it could be start from few hundred USD). To sum up, we give you the approximate website creation cost of all stages from the table below.
As you can see, there are a lot of different factors impact on hiring offshore software company. Of course, pricing is not always the most important aspect you should consider when deciding on a country for IT outsourcing. The answer is not “one size fits all”. Each IT outsourcing company has a different quality service and target to particular users.
There are large pool of tech talents in Vietnam are skilled at:
In summary, Vietnam is the country with all the characteristics which you should be looking for. Vietnam’s IT engineers have high concentration levels, honest, loyal and dedicated.
For these reasons, Vietnam is one of the best offshore development centre to seek talented IT developers for your remote software development team.
By providing multiple needs and services, AgileTech is here to ensure your technology project as a successful element of your omnichannel strategy. We have expert Project Managers along with excellent teams who have delivered the best products to customers in more than 10 countries, namely the U.S, U.K, Germany, France, and Singapore.
As a leading mobile development company in Vietnam, we have huge experiences in many fields including e-commerce, car-sharing platform, health care, Livestream and many more. Our dedicated software development team is ready for your custom requirements. You can contact us at email@example.com or via (+84) 936 281 059 for more information.