S3Corp. Tech Blog

When considering an outsourced software development partner, many companies’ first thoughts are of India or China. It’s true that outsourced IT and software development has played an important role in the economy of both countries, and both have a wealth of skills available for potential partners. However, many other countries in the region are starting to emerge as leaders in outsourced development, offering superior quality and cost benefits that are causing organizations to expand their partnership searches.

Asian outsourcing heavyweights India and China have seen significant price increases and surges in employee turnover in recent years in first-tier cities such as Mumbai, Bengaluru, Shanghai and Beijing. In addition to these pressures, competition for quality engineers has increased in both countries, leaving companies scrambling to fill jobs with qualified developers. As India and China are rapidly changing, becoming both more highly skilled and more expensive, companies are looking for outsourcing benefits from other dependable, more economical partners in the Southeast Asia region—particularly Vietnam.

Vietnam

It’s hardly a surprise that Vietnam is gaining popularity as an alternative to rising outsourcing costs in China and India, too. Even large tech companies like Samsung and Microsoft have invested in large operations in the country as well as several growing tech startups. In addition to the Philippines, Vietnam was also placed in the top tier of emerging markets, alongside China and India, in a 2015 Gartner report.

Many organizations are looking to Vietnam, particularly because of China’s rising taxes on foreign enterprises in addition to trade tensions and perceived political risks. Vietnam, however, has implemented policies to promote the country as a prime outsourcing destination, with Ho Chi Minh City being the primary outsourcing location in the country today. Low attrition rates help keep wages low, whereas in India, in particular, climbing turnover numbers have increased the cost of offshore development.

English is the second most popular language in Vietnam, and the majority of the country’s college graduates have a high proficiency in the language. Because of this, most IT workers in Vietnam are able to effectively communicate with U.S. companies when completing outsourcing projects. They offer skills in software development  and other IT-related services such as Microsoft technologies, Java, MYSQL, PostgreSQL, front-end web development, cloud applications, mobile and web applications and software testing.

Over the years, more and more companies around the world are turning to Southeast Asia for help. In order to remain competitive as the global offshore development market continues to grow, they must find ways to reduce costs while consistently maintaining high levels of work. Companies are hoping to maximize efficiencies by spreading their workloads across diverse locations, and many have already begun working with partners in the rising Southeast Asian countries of Vietnam.