Vietnam’s IT outsourcing sector is experiencing significant growth, fueled by a large pool of technologically skilled workers ready to support foreign businesses. The country ranks second in the Asia Pacific region for outsourcing potential, offering attractive opportunities for both local and international companies. With 54% of foreign businesses utilizing IT outsourcing services in Vietnam, the practice helps reduce costs and enhance operational efficiency.
Vietnam produces approximately 50,000 IT students and 400,000 IT engineers annually, providing an immense talent pool for outsourcing. In 2019, the country boasted 430,000 software developers, with the software industry growing at nearly 14% per year. Vietnam’s total ICT revenue reached US$112.4 billion in 2019, with exports accounting for US$91.5 billion, reflecting its lucrative IT outsourcing landscape.
Despite these advantages, outsourcing to Vietnam presents challenges, including the need for reputable IT service providers and a rising demand for skilled labor in specialized fields like cybersecurity, AI, and data science. The Vietnamese government’s “Make in Vietnam” policy, launched in 2020, has further propelled the sector, with digital technology firms expanding by 28%, reaching 60,000 companies. This initiative, coupled with competitive costs, continues to attract global interest in Vietnam’s IT outsourcing capabilities.
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In this article, we have given a thorough idea of how a Vietnam IT outsourcing company functions, along with a glimpse of the best IT outsourcing companies in the country.
Overview of Vietnam IT Outsourcing
If you are looking to set up a Vietnam IT outsourcing company, then you should consider investing in the following in-demand outsourced IT services, which are used by foreign companies to lower costs:
IT outsourcing companies in Vietnam mainly serve the following sectors:
Opting for Vietnam IT outsourcing provides the benefit of low-cost operations that are more efficient and effective. Most companies save their recruiting and employee training costs through outsourcing so that they can divert the funds to more important aspects of business.
However, there are certain disadvantages to taking the help of an IT outsourcing services company. This includes:
- High-security risks and intellectual property issues
- Lack of visibility and control
- Communication problems
Read Related: Vietnam’s ICT Industry: A Dynamic Market for Foreign Investment
Why Should You Choose a Vietnam IT Outsourcing Company?
A Vietnam IT outsourcing company is more beneficial than similar companies from other countries due to the availability of skilled manpower. According to a 2020 study done by the US-based online learning platform Coursera, Vietnam outperformed Japan and Australia to emerge as the second-best in business, technology, and data science skills.
Moreover, IT jobs in Vietnam are increasing exponentially, making it a preferred destination for many large technology companies. This is already visible in Vietnam, where ICT companies are holding meetings with Apple’s Vice President to join the tech giant’s supply chain. Similarly, Samsung is investing US$300 million to develop R&D facilities in Hanoi, which will require more than 4000 IT workers. Ho Chi Minh City has emerged as the base for the US technology company Axon Enterprise.
As per the 2021 Global Services Location Index, Vietnam has emerged as a new digital hub as it fares well in four categories – people skills and availability, digital resonance, financial attractiveness, and business environment. IT outsourcing, especially ICT exports, is at the forefront of this, as seen in this stress on the “Make in Vietnam” policy, which focuses on digital technology companies in 12 areas like:
Furthermore, tech startups from Vietnam received over US$1.4 billion in venture capital funding in 2021 which speaks of the country’s large network of software companies. Many of these IT outsourcing companies in Vietnam are regarded as the best by top companies in the world.
Although only 53% of the IT workers in Vietnam have 2-3 years of experience, most of them have senior leadership skills. Additionally, most of these IT professionals have the Common European Framework of Reference (CEFR) approved B1 and B2 level English language proficiency skills, which are necessary for getting jobs in outsourcing. Hence, the best outsourcing companies in Vietnam have a huge pool of talented and skilled workers at their disposal.
Read More: Vietnam’s Workforce: High Demand Skills and Advice for Business in 2024
Best IT Outsourcing Companies in Vietnam
To know how a Vietnam IT outsourcing company would be beneficial for your enterprise, you need to investigate the leading software outsourcing companies in the country.
FPT Software
FPT Corporation, which serves more than 26 countries across the world, is one of the best outsourcing companies in Vietnam. You can judge the company’s expertise by its clientele, which includes over 700 reputed companies, of which 100 feature in the Fortune Global 500 companies list. FPT has an annual revenue of US$1.3 billion.
Saigon Technology
This Saigon outsourcing company has been in business for more than a decade (established in 2012) and has made a mark as the best agile software outsourcing company in Vietnam with just 270 IT engineers. The Vietnam Software Association placed Saigon Technology among the Top 15 Agile software outsourcing companies in Vietnam in 2019 and 2020.
Harvey Nash
When it comes to the best IT outsourcing companies in Vietnam, Harvey Nash emerges as a top contender as it’s a global player that provides a skilled workforce to businesses in Australia, the USA, Europe, and Asia. It has more than 3000 employees working in 36 locations, catering to the changing needs of its overseas clients.
NFQ Asia
This Ho Chi Minh City-based Vietnam IT outsourcing company started its journey in 2015 and gradually bagged three consecutive Best IT Employer awards in the country. NFQ Asia provides quality service to its European e-business clients, leveraging its growth-oriented workplace and well-trained IT professionals.
TMA Solutions
One of the oldest IT outsourcing companies in Vietnam, TMA Solutions, has been serving this sector since 1997. It’s also one of the largest soft outsourcing companies in Vietnam, with over 3500 IT engineers who have completed many complex projects in 30 countries.
CMC Global
With more than 3500 IT professionals who have served in over 200 successful projects, CMC Global is the best IT outsourcing company in Vietnam for large-scale software development projects. The company provides services like RPA service implementation, cloud service management, custom software development, and cloud migration.
SotaTek
Last but not least is SotaTek, a Hanoi-based software development company with the largest number of blockchain experts in Vietnam and Southeast Asia. This IT service provider has 12 offices in Vietnam, South Korea, Japan, Australia, and the US with over 1200 IT professionals serving clients from more than 25 countries. The company has successfully completed more than 500 projects in sectors spanning Retail, Finance, Real Estate, Healthcare, Education, and Media Entertainment.
It has also bagged the Top 10 Blockchain Service Provider award consecutively in 2021 and 2022. SotaTek has been providing software outsourcing solutions in Vietnam for more than 8 years with services like IoT, AI, Machine Learning, CRM services, Blockchain, app or web development.
Read More: The Developing IT Industry in Vietnam: Update 2024
Types of Software Outsourcing in Vietnam
To get the help of a Vietnam IT outsourcing company, you need to know the different roles involved in the software development field. IT outsourcing companies in Vietnam should have the following types of software developers, and you should choose the company based on their expertise.
1. Frontend Developers
Frontend developers are an essential part of Vietnam software outsourcing service providers, as they are the ones who will create and maintain the user interface. Usually, these are web developers with ReactJS and Angular knowledge along with expertise in CSS, HTML5, Javascript, CMS, and WordPress.
2. Backend Developers
Backend developers are the ones responsible for the integration of Application Programming Interfaces (APIs). These developers are the backbone of software outsourcing in Vietnam, as they ensure the performance and logic behind the applications are maintained. Usually, NodeJS developers, Python developers, PHP and .NET developers fall in this category, along with Ruby, C and Java developers.
3. Mobile Developers
When it comes to software outsourcing in Vietnam, companies can’t disregard mobile developers as they create the apps available on Apple iOS, Google Android or Microsoft Windows mobile platforms. Usually, developers with expertise in React Native or Ionic belong to this category.
4. Offshore Full Stack Developers
These people manage both backend and frontend software development in terms of Javascript, PHP, NodeJS, C# Net, etc.
Salary and Benefits of IT Outsourcing in Vietnam
Every Vietnamese IT outsourcing company should provide certain salaries and benefits to their employees, i.e., the software developers.
1. Salary
While junior developers with 2-3 years of experience are entitled to a US$500 – 1200 monthly salary, senior developers with 3-7 years of experience receive US$1000 – 2000 per month. On the contrary, UI/UX designers can get US$600 – 2000 per month as a salary.
2. Tax and Insurance
The IT outsourcing companies in Vietnam must pay the social insurance and health insurance of software developers along with their taxes. Other than that, developers are entitled to unemployment insurance and trade union fees. All these payments should be 15-35% of the basic salary of the IT workers.
Read More: Understanding Vietnam Social Insurance: Social, Health & Unemployment Insurance (SHUI) for Employees
3. Other Benefits
Some employers can also include the following benefits in the package given to IT professionals based on their needs and the company’s ability to provide them. This includes:
- Lunar New Year bonus which is equivalent to one month’s salary
- Overseas or domestic company trip allowance given once a year
- Private health insurance
- Annual company dinner or party
- Training and career advancement opportunities
Due Diligence for IT Outsourcing Companies in Vietnam
As the country’s education system advances to meet the skilled labor demands of an emerging market, we need to pay attention to the due diligence aspect of outsourcing. Every Vietnamese IT outsourcing company should do the following background checks:
- Professional Background Check: Tally the candidate’s past experience and performance by cross-referencing or through detailed references from their previous employers.
- Criminal Background Check: This is a standard procedure to ensure that the candidate wasn’t involved in any criminal case or indulged in an illegal activity.
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Recruit Your Own Team in Vietnam without Setting Up a Company: Employer of Record Services Explained
Conclusion
We can conclude by saying that this guide on the top IT outsourcing companies in Vietnam showcases the country’s role in the global outsourcing landscape where it has solidified its position with innovation and a customer-centric approach. Cost-effective solutions and the availability of a skilled workforce have ensured that every Vietnam IT outsourcing company is committed to quality. This has reaffirmed Vietnam’s role in the future of IT outsourcing.
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