IT Outsourcing to Vietnam: The best practices

IT Outsourcing to Vietnam: The best practices

Table of Contents

Are you thinking about outsourcing your IT services? Vietnam may be the answer for reducing operating costs, increasing the scalability and productivity of your operations, and improving customer service. IT Outsourcing to Vietnam makes strong business sense as it provides access to talented software engineers at more competitive prices than many other locations worldwide. 

In this article, we’ll cover some best practices when IT Outsourcing to Vietnam to help ensure the success of any projects you undertake with a Vietnamese partner.

Why IT Outsourcing to Vietnam?

Even after only two decades, Vietnam has gained traction as an offshore software provider for businesses worldwide. It is quickly becoming the go-to destination providing numerous advantages such as higher productivity due to solid language familiarity and access to a large pool of tech talent. Companies worldwide are increasingly turning towards IT Outsourcing to Vietnam to benefit from these advantageous capabilities.

Low cost: Vietnam has become a leading destination for cost-effective IT outsourcing, offering up to 90% savings compared to U.S.-based providers and 30%-50% lower prices than those in India and China. Because of these impressive budget advantages and their commitment to quality workflows, global organizations are increasingly turning toward this East Asian nation for reliable IT services at competitive prices.

A young and well-educated workforce: Boasting a population of over 65% under 40 and an overall literacy rate of 96%, it offers outstanding opportunities for IT Outsourcing to Vietnam. The young, well-educated workforce available gives business owners access to dynamic professionals with the necessary knowledge to thrive in this modern economy.

Socioeconomic stability: Vietnam’s resilient socio-political environment has become a top contender for foreign investment businesses. Its global peace ranking of No. 44 in 2022 is a testament to this stability. This strong foundation is also complemented by an impressive economic recovery from the Covid-19 pandemic – recording 8.2% GDP growth that year and achieving the fastest pace since 1997.

English proficiency: Vietnam has experienced a remarkable surge in English proficiency over the past few years. Ranking 60th globally and 7th on an Asian scale according to EF’s 2022 English Proficiency Index – success can be attributed not just to their adoption of the Latin alphabet for both Vietnamese & English languages but also due to its mandatory inclusion as part of educational curriculums across schools in Vietnam.

The advantages of IT Outsourcing to Vietnam are plentiful, from cost savings to access to a vast and skilled labor force. Below are other benefits of IT Outsourcing to Vietnam.

Fast-growing, cost-efficient ICT Industry

IT Outsourcing to Vietnam: The best practices

Vietnam IT Industry Growth & GDP Growth in White Book of Vietnam Information and Communication, 2021 (Source: Sunbytes)

Vietnam is setting itself up for accelerated economic growth with a promising ICT sector. The projected revenue illustrates that the industry’s success can outpace even its national GDP at an esteemed YoY growth rate of 8%.

Government officials and businesses have devoted immense effort to improving ICT operations across local markets to propel this development further and capitalize on potential opportunities within digitalization. Such support catalyzes outsourcing interests in Vietnam, potentially paving the way toward unprecedented sustainable modernization and prosperity.

Competing coding/ development rates

Vietnam’s free market and welcoming policies have encouraged leading tech companies like IBM, Intel, Sony, Canon, and Apple to invest in the country. This influx of funding has enabled Vietnamese IT developers to hone their technical skills while gaining international experience – both essential for providing professional services on a global scale. IT Outsourcing to Vietnam opportunities rapidly becomes an increasingly attractive destination for business investments.

A large source of qualified IT Workforce

IT Outsourcing to Vietnam: The best practices

The average age of developers who participated in the Vietnamese IT Industry Market 2021 by TopDev (Source: Sunbytes)

Vietnam is a talent powerhouse for IT development, boasting 430k developers and over 1 million individuals in the tech sector. Each year around 50 thousand fresh graduates from 100+ IT institutions enter into this dynamic workforce, equipped with highly skilled abilities to drive innovation on any project.

Businesses looking for the perfect coding partner can look to Vietnam, where coders boast expertise in various programming languages such as PHP, Javascript, Java, and Python. With their proven track record and experience with SQL development too; IT Outsourcing to Vietnam could be an excellent choice.

Digital Transformation in IT outsourcing services

With an eye toward the future, Vietnam is taking a bold step in its digital transformation journey. Launching its National Digital Transformation program with clear objectives for 2030, Vietnam has committed to becoming “a stable and prosperous nation at the forefront of digital economy and society.” To realize this vision, authorities have laid out specific goals to strengthen their domestic tech sector- molding Vietnamese technology companies that can compete globally.

The Government has moved quickly to make ICT projects and policies a reality, approving outsourcing initiatives as part of the nation’s digital metamorphosis.

Factors to consider

Business needs vs. Requirements: Deciding Team-based or Project-based model

To get the most out of your IT Outsourcing to Vietnam provider, start things off by setting a concrete goal. This will help you pinpoint exactly what type of assistance your business needs and save valuable time on potential misunderstandings.

When selecting an IT Outsourcing to Vietnam model, it’s essential to consider which languages, skillsets, and frameworks are necessary for the project. The desired experience level should also be considered – how many years of expertise are demanded by your current venture? Establishing a team-based or project-based approach can ensure that all requirements have been accounted for to make this process as successful as possible.

To ensure successful IT Outsourcing to Vietnam, start by clearly outlining your ideas/features and requirements. Establish a dialogue with the prospective provider so you understand which tasks need their support – then evaluate your options for the best outcome.

Expertise and Experience: Looking for the right level

With your project goals and expectations firmly established, consider the level of expertise and experience required from potential providers. Thoroughly review portfolios to confirm they meet requirements – plus evaluating team profiles & past projects can give you an understanding of their capacity, size & background knowledge: all factors that should be considered when deciding whether IT Outsourcing to Vietnam is suitable for you or not.

Budget and costs: Avoiding Ambiguity

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Businesses worldwide increasingly seek out Vietnam as an outsourcing destination for one key factor: savings. Though pricing does vary from provider to provider, depending on factors such as project size and scope, overall costs of IT services remain comparatively affordable compared to other nations.

Careful consideration of the cost breakdown is essential when optimizing your strategy – clear away all uncertainty to get precisely what you need for a competitive price.

IT Outsourcing to Vietnam: The best practices

Narrow down potential IT outsourcing providers

With any outsourcing project, finding the right provider is vital. After you’ve considered all that Vietnam offers for your business needs, it’s time to get down to brass tacks and narrow down a targeted list of potential providers who can make your vision come alive – with reliable cost-effectiveness along the way. To ensure success on this front, be sure your objectives are crystal clear and requirements well-defined before beginning the evaluation process.

Avoid terms such as “best” or “top” on Google

Finding the right IT Outsourcing to Vietnam providers can be essential for your business. However, when searching on Google, it’s important to avoid terms such as “best” or “top.” These often have been created using SEO writing tactics and may only sometimes lead you to unrealistic results. A better approach is searching with more specific queries related directly to what services are needed – like “game development company in Vietnam” or “blockchain development Vietnam” instead.

Review platform

IT Outsourcing to Vietnam: The best practices

Finding reliable IT and B2B providers can be a tricky task. Thankfully, Clutch.GoodFirms.co, TrustPilot.com, and Sortlist.com are specialized listing sites designed to make your search much more accessible. Not only do these websites provide essential company details for quick contact, but they also offer honest customer feedback so you can vet potential vendors with confidence before making the big decision.

Make sure your search for the perfect outsourcing partner is comprehensive – comparing at least 10-15 vendors in each category is recommended. Carefully review prospective candidates’ profiles, portfolios, and reviews before deciding. This thorough approach makes you feel confident that every detail of their work has been considered part of the analysis and comparison process.


Finding a reliable solution provider can be simple and easy – Vietnam is an attractive destination for IT outsourcing, and you may already know someone who has had successful experiences there. Additionally, it’s worth consulting global communities on Quora or Reddit; their testimonials could provide valuable insight into potential providers.

Estimate cost

With your research in hand, it’s time to narrow the list down and contact potential partners directly. Not only should you get an estimated cost for their services but also take a deeper look into what isn’t publicly available – resources on-hand as well as communication & management skill sets of each partner will provide greater insight that can help make your decision easier when it comes to finding IT Outsourcing to Vietnam solutions.

Complete the contract

Make sure to get the contract finalized so that you can trust your chosen provider. Before providing sensitive data, have them sign an NDA as a seal of commitment – any refusal or failure signals they are unreliable and should be kept at bay from doing further business with them.

A contract is essential for establishing a working relationship between two parties. It’s in your best interest to thoroughly review and negotiate the terms, paying particular attention to nuances like payment processing, quality assurance, and project management – addressing any issues now could save you from potential complications.

Communicate regularly

IT Outsourcing to Vietnam: The best practices

After signing the contract, viewing your IT Outsourcing to Vietnam partner as a collaborative teammate is essential. Establishing open and regular communication will be critical in meeting project deadlines and resolving any issues that may arise during its completion. Work together for perfect results.

It is now clear that IT Outsourcing to Vietnam is a viable option. Additionally, the country is politically stable and offers good business incentives. Organizations need to know the best practices for engaging with Vietnamese partners to make the most of these advantages, such as selecting the right vendors and defining detailed project parameters early on.

Taking appropriate action can help organizations make well-informed decisions about moving IT Outsourcing to Vietnam and potentially achieve significant returns. With its reputational strengths, competitive pricing, and technical capabilities, Vietnam offers potential for businesses seeking solutions for their IT development projects.

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