Outsourcing is the process of obtaining goods or a service from an outside supplier. Outsourcing software development has become a critical factor in growing the economies of emerging countries. China and India currently hold the lead in the market of outsourcing. China’s economy specializes in affordable manufacturing and India is the leading country for outsourcing services, such as customer support.
Vietnam is a rising star in the world of outsourcing quality software development at a cost-effective price. It has been suggested that outsourcing software development to Vietnam can save over 85% of the cost compared to development in North-America or Europe. When it comes to software development, Vietnam has consistently beaten India in pricing.
Is Outsourcing the Right Move for Your Business?
Outsourcing is a double-edged sword. Outsourcing allows your business to offload production responsibilities onto someone else, usually for a cheaper price than if you were to do it yourself. However, outsourcing may make it more difficult to ensure that the standards of production are being met, especially if the business you are outsourcing to is in a different country.
If your business is looking in the right place, it is surprisingly common to find someone who will deliver a low-cost solution while still maintaining a high level of quality. Given its consistent track record, Vietnam has presented itself as a smart choice for companies with modern outsourcing needs. There is no surprise that tech giants such as Intel, IBM, and Microsoft have all outsourced to Vietnam.
Pricing
The average labor costs in Vietnam are around 90% less than if you were to complete the same job in North-America, which means that your company will spend less on production expenses and this capital can be put into other investments or R&D. According to Customer Think, Vietnam ranks number 1 for outsourcing software development.
Economy
Vietnam has one of the lowest turnover rates for an emerging economy. The Vietnamese government has recognized that a huge portion of its GDP comes from outsourcing and has prioritized the education of its workforce in these areas. IT jobs in Vietnam have a turnover rate of around 5% compared to other emerging economies such as India where the rate can reach up to 10%.
Vietnam’s economy is growing exponentially and maintains a level of stability which is a reassuring factor for large corporations who have committed a lot of capital into outsourcing to this country.
Politics
Political instability isn’t an uncommon trend among emerging nations. Vietnam however has had 30 consecutive years of political stability without any conflict from neighboring countries. Vietnamese leaders have also put emphasis on maintaining working relationships with western countries.
Communication
Communication is the first step in developing a business relationship and fortunately for English-speaking countries, Vietnam uses the Latin alphabet which makes it that much easier for someone in Vietnam to learn the English language. English is also the second most commonly spoken language in the country and a large portion of Vietnam’s university graduates are proficient in English.
Outsourcing, if done correctly, will be a more cost-effective and efficient method of production for your business. Vietnam has proven time and time again to be the best country for outsourcing software development and will continue to excel in this sector.
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