Vietnam is emerging as a destination for software outsourcing as it has the advantages of a young, talented labor pool with the lowest labor cost, and a safe, stable sociopolitical environment.
As a consequence of the US trade war with China and its intention to end preferential trade treatment with India, Vietnam has become an attractive alternative destination for business process outsourcing.
Within the ICT sector, business process outsourcing (BPO) is the field of the IT industry that is poised for growth due to:
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A growing talent pool
Vietnam has a young and dynamic growing workforce with a median age of 30 years, a relatively young population compared to China (37.4 years). The country is home to a young generation who has access to the most modern IT education.
According to the Vietnam Economic Times, the country currently has a 96% literacy rate, and 80% of college graduates hold degrees in sciences. This makes the country an outstanding option for outsourcing software projects as the increasingly educated population has a high level of scientific and technical literacy.
Additionally, as the capital of Vietnam, Hanoi offers deeper technical expertise and more stability for longer-term investment. Through its embassies and government institution, the capital opens perspectives of foreign exchanges and partnerships unrivaled by other cities in Vietnam.
Moreover, Hanoi hosts hundreds of scientific research institutes and over 50 universities and colleges as a center of education focused mainly on technology, and here you can find the largest technical university if the country – Hanoi University of Science and Technology (Read more).
A vibrant digital sector
Vietnam is home to a vibrant start-up environment. In 2018, local start-ups received US$889 million in funding, triple the amount in 2017, according to Topica Founder Institute.
Amongst start-ups in Vietnam, the majority are based on technology and digital (FinTech, E-commerce & Travel Tech).
As the digital epoch is making a significant bearing on every generation, more and more schools and academies are opened to spur the young to invest their talents in technology and relevant sectors and hone their skills.
The rapid progress in both the quantity and quality of IT education in Vietnam contributes to a huge amount of software developers for outsourcing companies in the coming years.
Vietnamese employees are often praised for being hard-working and skillful as the image of this country in the eyes of overseas collaboration. From a scratch agriculture country, Vietnam gradually strives to integrate into the evolution of the 4.0 Era.
Vietnam is particularly unique due to its low turnover rate. Generally, companies in this country have an IT-related turnover rate of less than 5% compared to other countries, such as India, this turnover rate can be 10% or even higher. People tend to be loyal to their company, once working with Vietnamese, you are welcome to join a big family. This is the difference and important advantage of outsourcing the Vietnam environment.
According to Innotech, Vietnam’s labor costs for IT outsourcing and business processes are about 50% less than in India. The rates range to hire an offshore software developer is from $15-$30/ hour. While in other Asian countries like India or China, you have to pay from $25 to $50 per hour for the same scope of work.
Operation costs also tend to be cheaper, at about one-third of the levels in India.
To sum up, all things combined, international partners could have high hopes for the workforce in Vietnam to rise and shine.
Software outsourcing to Vietnam
With relentless learning and enhancement, companies in Vietnam are still proving to be an ideal option in terms of it outsourcing in the world.
In the capital city of Hanoi, a dedicated team of Young and Creative from Techvify constantly strive to attain knowledge and increase their competence to provide the trusted and best-qualified solutions to customers.
We hold an array of multidisciplinary skilled employees forming the core of our capability in various fields of software development such as Finance, Insurance, E-commerce, Manufacturing, Hospitality, and Internet Services. Our key motto does not stop at bringing success to our clients but gaining customer satisfaction after each project.
Get in touch with us to receive the top-notch services that can lead to your success.
As CEO of Techvify, The top leading Vietnam Software Development company, I focus on pursuing my passion for digital innovation. Understanding the customer’s pain points to consolidate, manage and harvest with the most satisfactory results is what brings the project to success.