Comprehensive Guide to IT Outsourcing to Vietnam

With technological skills ranked second in Asia Pacific and big foreign corporations banking on Vietnamese engineers for their expansion plans, the prospects of IT Outsourcing to Vietnam is promising.

The Total ICT Revenue that Vietnam witnessed in 2019 was $112,35 Billion USD.

With technological skills ranked second in Asia Pacific and big foreign corporations banking on Vietnamese engineers for their expansion plans, the prospects of IT Outsourcing to Vietnam is very promising.

International and local businesses alike can be hired through outsourcing. It is estimated that 54% of companies use third-party companies to perform tasks they used to do in-house. Among the main benefits of outsourcing are cost reductions and efficient operations. 

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The choice of outsourcing can be triggered by a variety of factors, including the cost of doing the work in-house, the availability of skilled workers and reputable outsourcing companies, and most importantly, the low cost of outsourcing to developing countries like Vietnam.

Outsourcing in the IT sector

IT businesses are moving overseas in order to take advantage of lower costs and/or more favorable economic conditions. Some of the frequently outsourced IT services are:

  • Development of applications and software
  • Hosting/developing websites
  • Providing support or managing applications
  • Help desk/tech support
  • Management and development of databases
  • Communication technologies
  • Buildings and infrastructure

Sectors include:

  • Ecommerce
  • SAAS
  • BPO (Business Process Outsourcing)
  • Edtech
  • Blockchain
  • Fintech

A major benefit of IT outsourcing is that it allows one to get the work done much more efficiently and effectively. Moreover, it helps in reducing the cost of recruiting and training employees. This allows an organization to channelize their funds toward more important investments.

Although IT outsourcing may seem appealing, not every company can benefit from it. Working on projects with IT outsourcing might come with the following disadvantages:

  • Lack of visibility and control
  • Communication problems
  • Intellectual property and security risks are high

Why should you choose Vietnam for IT outsourcing?

Coursera, an online learning platform based in the United States, published a report that benchmarked 60 countries and 10 industries for skills in business, technology, and data science. Vietnam outperformed Japan and Australia to finish in second place and only trailed by New Zealand.

According to a comprehensive report by TopDevVietnam it is expected that Vietnam will be the destination of many large technology corporations around the world. Rory Sexton, Apple’s vice president of supply chain, says Apple is open to meeting with Vietnam ICT companies wishing to join the company’s supply chain.

Similarly, Samsung – one of the foreign corporations that helped accelerate Vietnam’s economy, said it will invest $300 million in R&D in Hanoi, and will need 4,000 more IT workers. Ho Chi Minh City also houses Axon Enterprise, one of the US’s leading technology companies developing law enforcement solutions.

Top IT outsourcing providers:

The first step in your journey of outsourcing your IT to Vietnam is to do comprehensive research on IT outsourcing software companies in Vietnam. Based on our research these are the top firms in Vietnam with reputable services and fully bilingual services for foreign needs.

FPT Software

Located in Vietnam, FPT Corporation provides IT services across 26 countries with revenues estimated at USD 1.3 billion. More than 700 customers have been served worldwide by the company, with 100 of them being Fortune Global 500 companies.

Harvey Nash

In an increasingly competitive and technology-driven world, Harvey Nash supports many of the world’s leading companies to recruit and manage the skilled workforce they require. The company employs over 3,000 people across 36 locations in the USA, Europe, Asia, and Australia, enabling it to meet constantly changing client needs with the agility and reach of a global organization.

Saigon Technology 

As a leading Vietnam-based Agile software outsourcing company, Saigon Technology was established in 2012 with the help of 270 software engineers. According to The Vietnam Software Association in 2019 and 2020, the company is among the top 15 Agile software outsourcing companies in Vietnam.

TMA Solutions 

A leading company in the global software outsourcing industry, TMA Solutions has been providing quality software outsourcing services since 1997. The company has 3,500 engineers, making it one of the largest software outsourcing companies in Vietnam. They have strong training and have completed numerous large and complex projects successfully.

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FAQs

There are 400,000 IT engineers in Vietnam as of the year 2019

The growth rate of Vietnam's software industry is approximately 13.7%

Vojtech Zehnalek

Verified by:​

Vojtech Zehnalek, MSc.

Vojtech Zehnalek is the CEO of the Cekindo Vietnam office. He graduated in Economics and International Trade from the University of Economics in Prague, the Czech Republic, and he also earned a Business Degree at the Vlerick Business School in Belgium.