What Infrastructure Would a Software Development Company Encounter Outsourcing to Vietnam?

When outsourcing software development to Vietnam, companies can expect to find a well-educated and talented workforce at a low cost.

11:34 23 August 2022

Outsourcing software development to Vietnam is becoming increasingly popular for companies worldwide. There are many reasons for this, including the country's well-educated and talented workforce and its low cost of living. 

 

In this article, we will look closely at what companies can expect when they outsource to Vietnam. We will discuss the infrastructure and business environment in the country, as well as list some of the top outsourcing companies in Vietnam.

 

Why Should a Software Development Company Consider Outsourcing to Vietnam?

There are many benefits to outsourcing software development to Vietnam. 

 

Cost savings

One of the most significant advantages is the cost savings that can be achieved. The cost of living in Vietnam is relatively low, which means that labor costs are also lower than in other countries. In addition, the Vietnamese government offers several incentives for companies that outsource their operations to the country. These incentives include tax breaks and preferential business licenses, and permits treatment.

 

High quality of the workforce

Another benefit of outsourcing to Vietnam is the high quality of the workforce. The education system in Vietnam produces a large number of talented engineers and developers each year. In addition, many Vietnamese workers have experience working with international companies, which means that they are familiar with western business practices. This makes it easier for companies to communicate their requirements and expectations to their outsourcing partners.

 

Enhanced infrastructure 

The infrastructure in Vietnam has also improved significantly in recent years. The country now has some modern facilities and infrastructure that can support the operations of Outsourcing Companies. In addition, the Vietnamese government has made it easier for foreign companies to set up their operations in the country.

 

Favorable business environment

The business environment in Vietnam is also favorable for Outsourcing Companies. The Vietnamese government has been working hard to improve the business environment and make it more attractive to foreign investors. In addition, the country has a large number of bilateral and multilateral trade agreements, which makes it easier for companies to do business in Vietnam.

 

Education, Talent Pool, and Expats Returning Home

One of the biggest benefits is the country's well-educated and talented workforce. The education system in Vietnam is excellent, and many students learn English from a young age. This makes it easier for companies to communicate with their Vietnamese counterparts. 

 

Additionally, the talent pool in Vietnam is deep, and many experienced software developers are looking for work. Outsourcing companies in Vietnam also have access to a large pool of experts who have returned home after working abroad. These workers often have experience working with international companies and are familiar with Western business practices.

 

Favorable Political Conditions

One of the reasons why Vietnam is an attractive destination for outsourcing is because it has very favorable political conditions. The country has been steadily moving towards democracy since the 1990s, and today it is considered a "consolidated democracy." This means that businesses can operate in Vietnam without fear of political instability or interference.

 

In addition, Vietnam is a member of the World Trade Organization (WTO) and has signed free trade agreements with many countries, including the United States. This makes it easy for companies to do business in Vietnam and export their products to other markets.

 

Finally, Vietnam is one of the few countries in Southeast Asia that is not embroiled in territorial disputes with its neighbors. This makes it a very safe and stable place to do business.

 

Government Investment for IT

The Vietnamese government is investing heavily in the country's IT infrastructure and business environment. This includes establishing special economic zones, developing hi-tech parks, and providing tax incentives for businesses. As a result of these efforts, Vietnam is quickly becoming an attractive destination for outsourcing.

 

Moderate English-language skills

One of the biggest advantages of outsourcing to Vietnam is the English-language skills of the workforce. While not everyone in Vietnam speaks English fluently, there is a large population of young people who are educated in English and can communicate effectively. This makes it easier for companies from English-speaking countries to outsource software development to Vietnam.

 

3 Top Software Outsourcing Companies in Vietnam

When it comes to outsourcing software development, there are many great options available in Vietnam. Here are three of the top software outsourcing companies in the country:

 

1. Saigon technology

Saigon Technology is among the top software outsourcing companies in Vietnam. The company was founded in 2012 and has since completed over 200 projects for clients all over the world. Saigon Technology specializes in a wide range of services, including web and mobile app development and custom software development.

 

What sets Saigon Technology apart from other software development companies is its dedication to quality. The company has a strict quality control process, including regular code reviews and unit testing. Saigon Technology also offers all clients a 100% satisfaction guarantee.

 

If you are looking for a top-notch software development team in Vietnam, then Saigon Technology is a great option to consider.

 

• 100% satisfaction guarantee
• A strict quality control process
• Over 200 completed projects
• A wide range of services offered

 

2. Axon Active

Axon Active is a Swiss-based software development company that has been operating in Vietnam since 2006. The company has over 250 employees, all of whom are based in its Ho Chi Minh City office. Axon Active specializes in agile software development and has worked with clients such as Coca-Cola, Lufthansa, and Siemens.

 

3. KMS Technology

KMS Technology is a top provider of software services, including development, testing, and consulting services. The company has more than 1500 employees, and its headquarters are in Ho Chi Minh City. KMS Technology has been in business since 2006 and has worked with some of the world's top companies, including Dell, Microsoft, and Samsung.

 

The company has ISO 27001, CMMI Level-III, and PCMM Level-III certifications. In addition, KMS Technology is a member of the Microsoft Partner Network and the Amazon Web Services Partner Network.

 

KMS Technology offers a wide range of software development services, including web and mobile application development, e-commerce solutions, enterprise resource planning (ERP) systems, and more. The company has a team of experienced developers who are skilled in a variety of programming languages, including Java, .NET, PHP, and Python.

 

3 Key Challenges of Outsourcing to Vietnam

When it comes to outsourcing software development, there are a few key challenges that companies need to be aware of. These include:

 

Infrastructure: One of the biggest challenges when outsourcing to Vietnam is the infrastructure. The country's infrastructure is not as developed as other Southeast Asian countries, such as Singapore or Malaysia. This can make it difficult for companies to communicate with their team and get the work done promptly.

 

The Business Environment: Another challenge that companies face when outsourcing to Vietnam is the business environment. The country's business environment is still relatively new and undeveloped. This can make it difficult for companies to find qualified employees and negotiate contracts.

 

The Language Barrier: One of the most significant challenges of outsourcing to Vietnam is the language barrier. Although English is becoming more popular in the country, it is still not widely spoken. This can make communication difficult and may require companies to invest in language training for their employees.

 

Final Thoughts

Outsourcing your software development to Vietnam is a great way to save money and get access to a high-quality workforce. The country has a well-educated and talented workforce, and the cost of living is relatively low. 

 

In addition, the Vietnamese government offers many incentives for companies that outsource their operations to the country. If you are thinking about Outsourcing your software development, then you should consider working with a reputable Outsourcing Company in Vietnam.