What Are IT Outsourcing Services in Vietnam? Top Outsourcing Companies?

Calendar icon January 16, 2024
What Are IT Outsourcing Services in Vietnam? Top Outsourcing Companies?

In that piece, we might offer you a wide range of IT outsourcing services in Vietnam terms, kinds of IT outsourcing services in Vietnam. Let’s follow this article to discover much more about whether IT outsourcing services in Vietnam are a good fit for your organization and software development. 

What are the services for outsourcing IT?

Simply put, software outsourcing services are the practice of using a third party’s skills and knowledge to manage challenging tasks associated with software development.

The need for digital transformation and the market’s competition are driving up demand for software outsourcing. It is shown in a Statista report for the IT outsourcing industry that the global outsourcing market had a value of 92.5 billion US dollars. This figure/statistic in 2019 has demonstrated how strong the demand for outsourcing services is when compared to the market size years earlier which decreased to 76.9 billion U.S. dollars.

It makes sense that demand is rising given how quickly technology is developing. For continued development, business owners must continually assess their systems and make technological adjustments. And by digitizing and streamlining their business processes, organizations will be able to take advantage of software outsourcing to keep up with these trends. Additionally, it may give you access to a talent pool and the opportunity to collaborate with tech talent around the world.

Business owners and entrepreneurs can obtain the various IT functions they need to guarantee the best results for their clients by contacting outsourcing services. Beyond that, it can free them from the burden of spending money, taking time off work, and providing many other services that an internal team cannot.

Reasons why businesses should hire IT outsourcing services in Vietnam

IT outsourcing services
Figure 1: Reasons why businesses should hire IT outsourcing services

Many businesses are familiar with the concept of outsourcing, which is the practice of utilizing outside providers to do duties that are typically completed within an organization. Because they have no other option, small businesses frequently outsource their bookkeeping, distribution, payroll processing, and many other crucial functions. Many large businesses use outsourcing to cut costs. As a result, entire industries have developed to meet the outsourcing needs of businesses.

However, few firms, particularly small enterprises, are fully aware of the benefits of outsourcing. Although outsourcing can undoubtedly help you save money, that is neither the sole nor even the most crucial reason to do so. Small firms can get a number of long-term advantages from outsourcing their IT needs:

Save money

It is expensive to have in-house software development teams, especially for small businesses that are trying to cut costs. The organization may easily access the greatest services and skills by outsourcing its IT help desk, saving money that would have been spent on staffing, training, and other internal labor costs for software development. It is incredibly expensive to hire and educate IT professionals, and the caliber of temporary workers isn’t always up to par. You can concentrate more on your human resources by outsourcing the areas where you need them most.

Additionally, outsourcing partners assist your company in reducing the need to spend money on the supplies and resources needed for successful software development. Outsourcing converts fixed IT costs into manageable costs, which aids in budgeting successfully.

Saves time

Businesses can save money and time by outsourcing, in addition to cutting costs. In today’s environment, where there are few windows for seizing a developing opportunity, a quick time-to-market is essential. New software accomplishments must be developed and deployed more quickly as a result. Instead of creating in-house development teams that require firms to invest time and money in hiring and training new employees, outsourced software laborers save time by doing the work themselves.

Increase efficiency

You can concentrate more on your career and area of expertise when you outsource IT tasks because you won’t have to waste time learning and doing tasks that are not specialized. The outsourcing company also has industry knowledge, so the job is typically of a higher caliber and is completed more quickly than it would be by an internal team.

Self-sufficient businesses incur significantly greater development, research, distribution, and marketing costs, all of which must be passed along to customers. The cost structure and economies of scale of an outside provider might give your company a significant competitive advantage.

Decrease labor costs

For short-term or unrelated initiatives, hiring and training people can be quite expensive, and temporary staff may not always meet your expectations. Additionally, the current employees in your firm might not have the necessary specialist knowledge to evaluate and guarantee the quality of new hires when you hire them for brief tasks. To assure quality, you will therefore need to use outside QA or QC. As a result, outsourcing enables you to concentrate on your primary business.

Control capital costs

Cost-cutting may not be the only reason to outsource, but it’s undoubtedly a key consideration. By outsourcing, you can turn fixed costs into variable costs, free up funds for use elsewhere in your organization, and avoid making significant outlays at the beginning of your venture.

Compared to on-site jobs, newcomers to outsourcing will worry that overseas companies cannot guarantee the required quality as on-site teams or achieve established milestones and goals identified with the same productivity and excellence. Additionally, language barriers, difficulty establishing and maintaining communication, and other issues can make outsourcing seem too risky.

However, many outsourcing companies focus not only on providing low-cost solutions to their customers. But also on ensuring that these solutions are of the highest standard, in compliance with technical specifications rigorous engineering, making the utmost commitment, and meeting all deadlines.

When to Employ IT Outsourcing Services

  • Lack of IT Talent: On a global scale, top-tier talented software developers are hard to come by. To address this issue, IT outsourcing companies use remote methodologies.
  • Complex Projects: Complex projects require a great deal of technical know-how to complete. Without them, it is simple to hit roadblocks and build up downtime.
  • Support & Consulting: IT outsourcing services can also provide consulting and support for projects that are already underway or have derailed.
  • Specialized Roles: Numerous projects call for highly specialized technical positions or short-term positions that are unattractive to top-tier talented developers.
  • Tight Deadlines: Success or failure may depend on getting the right results at the right time. Without enough power, deadlines are simply postponed.
  • Cost-efficiency: IT outsourcing firms offer the same or better benefits while eliminating the costs associated with hiring internal personnel.

A brief overview of the technology of IT outsourcing services

Outsourcing is the way of using the external tech services provider to convey most of the IT attributes requested from the corporation or organization including directing plans, controlling infrastructure, and implementing the service desk. 

IT outsourcing providers might have a strong sense of responsibility for IT maintenance and assistance that is named a fully controlled service, or they might assist the plant’s in-house IT group. That is usually discussed as co-sourced IT support and is often an approach extracted from huge companies. 

The company can use one vendor for all their IT tasks, or various service partners to convey different things. 

IT outsourcing services in Vietnam
Figure 2. A brief overview of IT outsourcing services in Vietnam

Why should businesses choose Vietnam for IT outsourcing

Asia, Eastern Europe, Latin America, and North America are popular destinations for overseas software production. In terms of outsourcing in Asia, India, and China, many, still hold the top two positions as the world’s most dominant outsourcing destinations. However, among the countries in the Asia-Pacific region. Vietnam is emerging as a center for IT outsourcing services

Despite Vietnam’s relatively short history of IT outsourcing (about 20 years), the country has risen to prominence in this area, becoming a natural extension of its global clientele due to its wide range of capabilities. and inherent transformation. According to the Tholons Services Globalization Index 2019, Vietnam is ranked 13th among the world’s top 20 digital countries.

Young Population Structure & Education Level

The main benefit of outsourcing to Vietnam is the country’s young population. In Vietnam, about 70% of the population is under the age of 35 and about 45% are between the ages of 15 and 35. This age advantage suggests that about half of the population is ready to work.

According to TopDev’s report, Vietnam has about 400,000 IT companies and more than 50,000 IT students have graduated from more than 153 IT Organizations each year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in the Developer Skills Chart Of Skill Value Report in 2018.
  • Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
  • Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016.

University specializing in IT training

Companies that want to outsource software development want graduates to major in information and communication technology. In the field of information and technology, there are more than 250 colleges and universities offering courses. In addition, 187 technical schools offer courses in Technology and Information.

As a result, students can learn about subjects that will help them pursue a career in software development. Therefore, when there are more outsourced businesses in Vietnam, more students will choose to pursue a career in software development.

Most candidates choose programming because of their love and passion for it. What makes them feel most satisfied is the training and the opportunity to develop skills. Career path and salary are also two key factors in meeting candidate satisfaction.

Low cost

According to MarketsInsider, Vietnam ranks 5th in the list of “Best countries to outsource in the world in 2019”. Depending on the developer’s skillset, hourly rates for Vietnamese developers range from $20 to $40. Compared to $100 an hour in developed countries, this represents a significant cost saving for US and Western European businesses.

Moreover, many Vietnamese IT and solution providers are now embracing potential innovations such as AI, machine learning, and blockchain… Therefore, Vietnam is an ideal location for companies looking for cost-effective solutions as well as advanced technology.

Countries attract a lot of investment capital

Many large technology companies such as Intel, IBM, Cisco, and Apple have chosen Vietnam as a potential land for investment. An example of this was when they decided to move Nokia’s production from China to Vietnam.

Many Japanese companies have chosen to invest in the Vietnamese software industry because of a multitude of benefits, especially in terms of IT Outsourcing and Business Process Outsourcing. These investments allow Vietnamese software developers to not only thrive in technical skills but also gain the international experience needed to provide professional services to clients.

Three Cities Specializing in IT Outsourcing Services in Vietnam.

IT Outsourcing Services in Vietnam
Figure 3: Three Cities Specializing in IT Outsourcing Services in Vietnam.

Vietnam’s technology industry has a large number of talented developers and it is a good place to grow and promote your business to achieve its business goals. The three famous cities below will be the leading providers of outsourcing services because they play a large role in the Vietnamese outsourcing sector.

Hanoi

The capital Hanoi is located in the North of Vietnam. Hanoi University of Technology is a famous place for training many talents in the field of technology in Vietnam. The average number of information technology graduates each year is about 10,000.

Danang

Da Nang City is located in central Vietnam. As a dynamic young city, the fastest-growing is in the field of tourism. Da Nang University of Technology is a famous university with an important role in training human resources for the information technology industry, providing a large number of software development workers each year for software companies. soft in Vietnam.

Ho Chi Minh

Ho Chi Minh City is in the South of Vietnam and is the economic locomotive of the country. This is the most attractive place for many investors, where they can find many of the top software outsourcing companies in Vietnam and where they can live and build their careers.

The famous universities specializing in training high-quality software engineers for most software companies in Ho Chi Minh City are the Ho Chi Minh City University of Science, Ho Chi Minh City University of Technology, and the Ho Chi Minh City University of Technology. Ho Chi Minh City and the Ho Chi Minh City University of Technology, University of Information Technology. Especially, the University of Science Ho Chi Minh City is in the top three universities with the best source code in the world.

How many types of IT outsourcing services?

Types Based on Geography

Nearshore outsourcing

The procedure of conveying IT-related work to an organization in a nation that shares a border with your nation. That type might make interaction and communication or travel with double organizations simple. 

Offshore outsourcing

That relates to conveying IT-related work to the organization in an international nation, like India, China, and others that might provide low expenses, and tax savings. 

Onshore outsourcing

That relates to contracting the external service partner and lying in a similar nation, to offer IT-related work on-site. 

IT outsourcing services in Vietnam
Figure 4. Onshore IT outsourcing services

Types based on products

Cloud computing

Contracting the external supplier to provide IT-related services through the Internet, like platform-as-a-service, and software-as-a-service. 

IT outsourcing services in Vietnam
Figure 5. A relationship between cloud computing and other elements

Managed services

That relates to contracting the external provider to execute network control functions like virtual private networks, and firewalls. By outsourcing, you might select the ideal managed services for the organizations to assist particular organizations’ demands. 

An adequately controlled service supplier offers a comprehensive technology services range for one or a lot of tech domains. Their massive group of skilled IT specialists makes a leading end-user experience by providing operational assistance and improvements for a variety of IT apps or services. 

What models of IT outsourcing are there?

The relationship model you select is determined by your particular circumstances. Before entering into a contract with an information technology outsourcing provider, you should choose a partnership model. The most typical IT outsourcing models are shown below, and they can be chosen based on business requirements:

Staff Augmentation

This is the best solution to the talent shortage issue. works well for businesses that need to strengthen their internal IT department with qualified personnel but already have one.

Dedicated team

For businesses that need long-term software development, this is an IT outsourcing solution. The corporation can reportedly save money on hiring, administration, and office expenses by employing a skilled IT department.

Project-Based

This paradigm also referred to as full-process outsourcing, is the most widely used in IT outsourcing services. The project’s total control and accountability, including all phases of the process, team management, outcomes, deliverables, and risks, are given to the IT vendor.

Standardized model

Many times, businesses that outsource their IT needs seek out quick business solutions. By introducing a standardized model, you may quickly and affordably prepare your project for the market. It should be mentioned that as standardized services are typically less expensive than custom solutions, the latter is better suited for new or small firms.

How does a company choose a trustworthy software outsourcing provider?

There are countless numbers of IT outsourcing businesses worldwide. How to choose between these businesses is a difficult decision. A business owner or entrepreneur cannot merely state, “I like this one,” although they do have that right. It is simple to choose a software outsourcing provider at random. However, it’s another matter altogether to guarantee that they can deliver the highest caliber goods or the best results.

  • How can you effectively outsource?
  • Where can I locate a software development firm?
  • What do businesses contract out?

Here are a few guidelines for picking the best provider of software outsourcing services.

Define goal/goals clearly

It is a crucial step because without knowing where you are going, you cannot move forward. Business owners should specify the goal or goals they hope to accomplish in terms of their company’s operations before contacting a software development company.

Build a new or improved management system for the company, for instance, or improve business profit by incorporating new ideas into software products, integrating technology to provide better services, or optimizing business procedures.
The evaluation will assist business owners in determining whether to outsource or not. Additionally, this can assist them in determining precisely what they wish to outsource. Keep in mind that having a clear vision will help you find your way.

After that, spend time evaluating internal resources with the business team or anyone else who might be involved in the upcoming project. Budget, business sector, skills, new technology in the IT project, and even competitors are some of the factors to take into account. The number of potential partners will be reduced thanks to this evaluation, which also aids in selecting the best business.

In addition, it’s essential to look into the technical abilities, experiences, and competencies of in-house developers. It will outline some concepts, such as the technical expertise required, whether the internal team is up to the task, and how many software developers might be added to the project.

By doing this, the review will be a reliable resource for choosing between staff augmentation, dedicated teams, and project-based development as the project’s IT software outsourcing model.

Beyond this, it also enables the IT outsourcing provider to offer the best outsourcing services at a competitive price, supplying qualified personnel and the right amount of team members to meet the needs and objectives of the company. Keep in mind that the software outsourcing company can estimate more accurately the more precise the information and requirements are provided.

Even though this is an important step and has an impact on the entire project, it shouldn’t be too rigid. Business owners enter the “win-win” relationship once the contract is signed. They have established a solid foundation from a business perspective because they are a dependable software outsourcing company with experience in numerous projects.

As a result, they can talk about and determine the best software solutions that increase business profits. For instance, offering IT consulting, suggesting to enhance the features of the requirements, advising the size of the development team, or recommending the most recent/appropriate technology for the software product.

Decide the type of outsourcing services

outsourcing services
Figure 6: Decide the type of outsourcing services

There are benefits and drawbacks to choosing onshore, nearshore, or offshore outsourcing, respectively. The choice must be supported by internal resources and careful consideration of all other considerations. For instance:

  • The various time zones
  • The hourly wage for each developer
  • The capacity for dialogue
  • the project’s scope
  • The project’s required amount of time (long-term or short-term).

Make a list of potential company

The time has come to look for potential partners after choosing the different types and models of outsourcing. Make a list of at least 5–7 potential outsourcing firms for software development. This can be done in a variety of ways. For instance,

Ask your friends and business partners for recommendations or referrals if they have worked with the software outsourcing company. Because friends and partners have previously worked with those software development companies, it is a secure channel. They will be able to determine which company to partner with and how knowledgeable, experienced, and professional each is.

Check social media tools, especially LinkedIn and Twitter. These social media platforms will demonstrate their identity and culture. Of course, these channels can’t always deliver exactly what companies want. However, this will at least offer a few suggestions and choices to consider.
Another option might be to approach B2B businesses. You can choose from a list of businesses like Clutch, Upwork, and Good firms that feature the best outsourcing development companies. The shortlist can be based on a category, such as BPO outsourcing, software outsourcing services, custom software development, or software development services. Even though this is a great source of information, business owners should be selective.

Do thorough research on their background

When you have a list of software outsourcing companies, the next step is to research each company’s history. The following inquiries and standards will assist in choosing the best outsourcing firm.

  • Reputation
  • How well-mannered they are
  • What are their qualifications and expertise? It is a crucial inquiry because it will eliminate businesses that are unsuitable for the project. The owners of the company should get in touch with them directly if they have a solid reputation for a particular set of abilities or knowledge but no online presence.
  • Look over the case study. A case study will demonstrate how the business resolves issues and show whether or not this case is comparable to the client’s project.
  • How long has the company been operating in the market?
  • Size of the business
  • What opinions do their customers have?
  • Which development methodologies do they employ? Waterfall, Agile, or Scrum?

Business owners can typically contact the software outsourcing company after compiling a list of IT outsourcing firms. Naturally, this list had to be the result of a thorough investigation and consultation with reliable sources. This step is not necessary, though. Knowing who is in charge of the project will reassure the business.

Contacting potential partner

After finishing their research, clients can now get in touch with prospective outsourcing partners. Afterward, set up a meeting to talk more about the project.

It would be beneficial to explain the project’s issues and expectations. Asking for the developers’ resumes or, if possible, requiring solutions will ensure that the software outsourcing company hires the most talented and skilled individuals. At this crucial time, references from previous jobs and clients can be a reliable source.

Finally, the business owners are on the right track if the company meets the expectations and requirements. If everything continues to run smoothly, let’s wait for the results and monitor how quickly the company expands.

Top companies in the field of software outsourcing in Vietnam

Wiicamp – Web, App, and Custom Software Development agency

Established in 2018, Wiicamp has been providing excellent software development, IT outsourcing solutions, and offshore development services for businesses in Vietnam and Southeast Asia.

Wiicamp helps companies in digital transformation, maximizing their productivity with technologies and transforming ideas into tangible products. Our expertise includes:

  • Mobile app development services
  • Website development services
  • Custom software development services
  • Web/App design services

Owning profound knowledge and experience in mobile app Development Service and website development services business, Wiicamp is capable of designing, developing, and maintaining projects that fit our clients’ requirements from tailored business management systems to fast-grown mobile apps and further. Our mission is to help businesses reduce the hassles of product development instead of concentrating on their core business development.

Wiicamp aims to become a Leading Software development company in Vietnam and Southeast Asia in the coming years.

TMA solutions

TMA was established in 1997 with only 6 employees. Since then, TMA Solutions has grown rapidly and established different offices in other countries such as Canada, the USA, etc. TMA Solutions is one of the largest offshore software service providers in Vietnam with a full range of software services, from testing and maintenance to full-cycle development and end-to-end solutions. end.

VTI Corporation

The main business of this 3-year-old company varies from finance, insurance, and securities to entertainment as they aim to build secure, high-performance, flexible, and efficient infrastructure for customer applications.

Wrapping It Up

IT outsourcing functions might keep going to boost at a considerable pace. The continued strong development of either the breadth or depth of IT outsourcing requests that this controlled practice is more than a fad and below the suitable conditions. In addition to that, IT outsourcing can provide the benefits extracted from its elements. 

We expect that this post from Wiicamp about IT outsourcing services in Vietnam will be beneficial for you and might assist you in outsourcing greatly.       

Sources: Internet