Why should you choose to work with Vietnam IT Outsourcing Companies?
Concurrently, we will unveil the reasons why Vietnam companies is ideal to outsourcing IT tasks. If you wish to collaborate with an IT outsourcing company in Vietnam, you can gain an in-depth understanding of these businesses and extend your options.
What is ITO (IT outsourcing)?
Firstly, let’s dive into the definition of IT Outsourcing (ITO). It refers to a strategic business practice in which an organization delegates the management and execution of its information technology (IT) functions to external service providers. This approach allows businesses to focus on their core competencies while leveraging the expertise and resources of specialized IT service providers. The scope of IT outsourcing can range from basic tasks to comprehensive management of entire IT infrastructures.
Popular Services Offered of IT Outsourcing
Common IT Outsourcing Models:
Statistics: Vietnam ranked first among outsourcing nations for IT
Statistics on Global IT Outsourcing and Vietnam
We inhabit a world filled with highly competitive enterprises, most of which are under significant pressure to increase their brand values and expand their operations. The Vietnamese bazaar is no exception.
Businesses that want to survive must have techniques for decreasing expenses without sacrificing product quality. IT outsourcing companies in Vietnam are viewed as a strategic instrument for reducing costs and increasing innovation-based proficiency, contributing to many enterprises’ success.
However, before utilizing this service, businesses should evaluate the suppliers to select the optimal partner. Professional and reliable IT outsourcing firms will help you save money and assure long-term work quality.
The need for software outsourcing services has surged, particularly as businesses struggle to keep their teams functioning efficiently. The market for software outsourcing increased by 8.5% between 2021 and 2028. Today’s software outsourcing data illustrate how the need for software outsourcing will evolve through 2022 and beyond.
Principal IT outsourcing figures
As a result of the pandemic, 45% of worldwide companies have planned to enhance their outsourcing services. Cloud-based technologies enable 90% of businesses to take advantage of outsourcing market prospects by connecting with dispersed specialists (according to Deloitte). Since companies intensified their quest for digital transformation expertise, the IT outsourcing market has surpassed $1,3 trillion (according to Statista).
70% of organizations utilize the software outsourcing industry for cost reduction, as outsourcing reduces expenses compared to in-house teams. (according to Gartner). Approximately 24% of small businesses engage offshore software development firms to improve productivity.
Current software development market growth in Vietnam 2022’s stats
Vietnam has accepted favorable developments in digital transformation during the past few years. As a result of its expanding technology sector, Vietnam is seen as a suitable location for outsourcing IT services. Each year, educational institutions train 50,000 IT professionals, making the IT industry the most prominent in Vietnam. IT outsourcing in Vietnam is nascent. Vietnam moved up five positions on the Global Services Location Index in 2017. (according to A.T. Kearney, an outsourcing software services consulting firm).
According to Statista, the IT Services of Vietnam market is anticipated to achieve a revenue of US$2.07 billion by 2024, with IT Outsourcing taking the lead and an estimated market size of US$0.70 billion in the same year. A steady annual growth rate (CAGR 2024-2028) of 11.51% is forecasted, leading to an expanded market volume of US$3.20 billion by the year 2028. The average Spend per Employee in the IT Services market is expected to reach US$34.90 in 2024. In a global context, the United States is set to generate the highest revenue, reaching US$495.30 billion in 2024.
According to OutsourceAsia, the following data pertains to various IT services in Vietnam:
A.T. Kearney ranks in the top 50 nations that provide IT, BPO, and software services (Global Services Location Index 2019). Vietnam is ranked sixth in the report, as opposed to eleventh in the 2017 edition. Intriguingly, the index swings significantly in the direction of digital resonance: financial attractiveness, people and skills, business environment, etc.
Does Vietnam merit investment as one of the ideal IT outsourcing countries? Let’s examine how Vietnam IT outsourcing market surpasses other software outsourcing markets.
How Vietnam Becomes The Perfect IT Outsourcing Destination?
Vietnam has several advantages in terms of Demographics, Human Resources, Technology, and Cost-Effectiveness, making it a rising star among the leading outsourcing nations.
Demographics
Vietnam’s population exceeds 97 million, ranking it fifteenth among the twenty countries with the most significant populations. Vietnam is a young country with an average age of 32. It indicates that a high number of individuals participate in the labor force. Each is well educated, particularly in technology.
Many developers begin coding at a young age, with 8.8% starting before 20. 53.2% of software engineers in Vietnam are between the ages of 20 and 29. Thus, an offshore software development company’s IT personnel are young, talented, and competent.
Human resources for IT Outsourcing Services
Vietnam is a great place for IT outsourcing for those seeking new technologies and utilizing a Vietnam software outsourcing company. Therefore, investing in human capital is crucial, particularly for software engineers. Vietnam’s investment in STEM (science, technology, engineering, and mathematics) education has increased.
In addition, offshore software development firms collaborate with educational institutions to create training programs. Reputable colleges invest more in education to increase the quantity and quality of Vietnam IT outsourcing market.
Latest Technological Solutions
The IoT, Artificial Intelligence, Blockchain, and other forms of cutting-edge technology have helped turn Vietnam into a hub for those working in the technology field. Software engineers have the opportunity to improve their technical abilities through this opportunity.
Additionally, it encourages kids to study hard and make much effort to catch up with the most recent technological advancements.
Prospective Locations For Investors
IBM, Sony, and Apple have identified Vietnam as a prospective location for the software development industry. For instance, they relocated the Nokia production from China to Vietnam.
Moreover, Japanese companies have opted to invest in Vietnam’s software development industry for a variety of reasons, including IT outsourcing (ITO) and business process outsourcing (BPO) (BPO). Therefore, international investments allow Vietnam to advance technologically and improve its professional services.
Economic Efficiency
Because the cost of labor is so much lower in IT outsourcing Vietnam compared to the United States, owners of businesses there can realize significant cost savings in their day-to-day operations. MarketsInsider claims that Vietnam is currently one of the top destinations in the world for outsourcing information technology (2019).
Top 30 trustworthy IT outsourcing companies in Vietnam
MOR Software
MOR Software is an industry-leading IT outsourcing company specializing in creating products and software for the Japanese, Korean, Singaporean, and Vietnamese markets.
MOR Software has subsidiaries in Tokyo, Ho Chi Minh City, Hanoi, and Da Nang. With a team of essential employees who have studied and worked in Japan for a significant amount of time, this IT outsourcing Vietnam company has been constructing a professional working environment in the Japanese style while constantly valuing the openness and friendliness of Vietnamese businesses.
Since October 1, 2018, MOR Software Hanoi has been a MOR Software Joint Stock Company branch. Currently, MH has 150 workers throughout its outsourced and product segments, aiming to rapidly expand to 1000 high-skilled talents by the end of 2023.
MOR Software specializes in creating products and software for the Japanese, Korean, Singaporean, and Vietnamese markets
Information:
Headquarters: 10th Floor, Mekong Tower, 235 Cong Hoa Street, Ward 13, Tan Bình District, Ho Chi Minh City, Vietnam.
Abbreviation: MOR JSC.
Established Year: 2016
领英推荐
Company size:
Awards & Certifications:
TMA Solutions
Since its establishment more than two decades ago, TMA Solutions Company has been one of the most prominent IT outsourcing services Vietnam providers, establishing a positive reputation and gaining global recognition for its superior software outsourcing services. The company offers various software development outsourcing services to clients worldwide, including Software Development, Software Testing, Porting & Migration, Production Support, IT Managed Services, and Visual Design.
Information:
Headquarters: 111 Nguyen Dinh Chinh Street, Ward 15, Phu Nhuan District, Ho Chi Minh City, Vietnam
Abbreviation: TMA
Established Year: 1997
Company size: 4000+ employees
Awards & Certifications:
NashTech
Every person at NashTech is encouraged to think creatively, to be the driver of initiatives, and to elevate everything from excellent to outstanding. Because of its extensive experience in the information technology field, NashTech can provide insightful solutions that address the issues faced by businesses and produce desirable results.
Information:
Headquarters: 3 Noble Street, London, EC2V 7EE
Abbreviation: NASHTECH VIETNAM
Established Year: 2008
Company size:
Awards & Certifications:
Miller Gold Tech
Miller Gold Tech is a multinational custom software development firm with offices in Melbourne, Sydney, the United States, and Ho Chi Minh City, Vietnam. They have strong international and Vietnamese experience. Since its founding in 2009, they have provided excellent software design and development services to organizations and brands worldwide.
Information:
Headquarters: Level 6, 575 Bourke Street, Melbourne, Victoria 3000, AU
Company size:
Positive Thinking Company
Positive Thinking Company is an independent worldwide technology company that provides comprehensive technology solutions via a global delivery strategy. Good Thinking Company strives to produce positive business outcomes that assist their clients in navigating their ever-changing business settings so that they can flourish in their global economy.
Information:
Headquarters: Lyon, Rhone-Alpes, France
Abbreviation: NETCOMPANY VIET NAM CO., LTD.
Established Year: 2007
Company size:
Awards & Certifications:
Nitrotech Vietnam
As the last name of the top IT outsourcing company in Vietnam, Nitrotech Vietnam is an outsourcing business for software development. They have been supplying products of exceptional quality, expert services, and innovative solutions to several industries, including high-tech, financial services, telecommunications, and retail. Nitrotech Vietnam was founded in 2010 to provide quality software outsourcing services to global leaders.
Information:
Headquarters: 9th floor, ACB Building, No. 218 Bach Dang, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam
Established Year: 2010
Company size:
Concurrently, we will unveil 5 of the top 30 most reliable Vietnam IT companies. If you wish to collaborate with an IT outsourcing company in Vietnam, you can gain an in-depth understanding of these businesses and extend your options in this article.
Wrapping Up
With its talented developers and stable economic environment, Vietnam will be the perfect place for IT outsourcing after China and India. Employing an IT outsourcing Vietnam firm would help the organization save expenses and ensure high-quality software solutions. MOR Software, one of Vietnam’s most prominent outsourcing businesses, pledges to deliver profitable software solutions and superior customer care.