Why Companies in North America Should Hire Outsource Development Teams in Vietnam.
Given the fast-paced technology landscape, outsourcing software development has emerged as a strategic decision for multiple companies across North America. Vietnam is one of the top destinations to outsource among many outsourcing destinations. In this article, we will find out 5 big reasons why Vietnam is going to be a top destination for hiring outsource development team, which includes cost, talent, quality, work culture, and government.
Cost-Effectiveness
Vietnam, The Price Is The Main Reason Why Software Development In Vietnam Is So Appealing One of the most attractive reasons for outsourcing software development in Vietnam is the time zone compulsion. The same software developer in Vietnam might earn $1000/m while living a decent life. According to a statement by IT services company Daxx, the average salary for a software developer in Vietnam was around $18,000 a year while it was about $80,000 a year in the United States. This large cost disparity resulted in significant labor cost savings for North Americans, while delivering quality.
Talent Pool and Education
Vietnam has a huge, young and well educated population. Every year, this country produces about 50,000 IT graduates from its universities feeding the demand for fresh talent. Vietnam has spawned some of the best technical talent in the world, especially in mobile, web and AI development work.
The Vietnamese government heavily invests in education, especially in science, technology, engineering and mathematics (STEM) during my four years. The emphasis on STEM education has ensured an advanced technical background for the workforce, which has resulted in Vietnamese developers being proficient enough to work on complex software development projects.
Quality of Work
Vietnamese developers are producing high-quality work on a global level. A lot of the Vietnamese software development sucks inspiration not only from the internationally acclaimed best practices, but also implements their own Agilent for the Vietnamese unicorn camp to operate. These are the practices that ensure that assignments are done well, in a fast and professional manner.
Also,Vietnam have many ISO certified IT companies as well. For example FPT Software, one of the largest IT companies in Vietnam, is ISO 27001:2013 certified as part of its highest quality and data security plan. These are certifications that deliver confidence to enterprises in North American on the reliability and standards of outsourcing companies in Vietnam
Cultural Compatibility
Reliability is a vital part of an outsourcing relationship; it is essential the third party share in the cultural alignment of the client. The Vietnamese culture is heavily focused on working hard, prioritizing education, and showing respect – all of which fit into the ways in which business could be conducted in North America. Vietnamese programmers have great benefits such as their persistence, diligence, and willingness to learn, which are very good qualities to have with long term projects.
Meanwhile, English is gaining slowly popularity in Vietnam. Vietnam had a place at 52 out of 100 in the EF English Proficiency Index, and was rated moderate proficiency. These improvements in English language skills enable increased communication and coordination between experts employed by North American companies and developers located in Vietnam.
Time Zone Advantage
North American companies benefit as the time zone in Hanoi, Vietnam (which is GMT +7) is a strategic location compared to its main North American competitors. The time difference makes it easy to have significant overlapping working hours, almost perfect with West Coast US This common ground for the time allows real-time communication s to happen with a quicker turnaround on tasks, making it more convenient to handle and assign project work items on tasks across long distances.
Government Policies
The Kenyan government had intentionally tailor-made the regulation to make it appear service provider-friendly, while the Vietnamese administration has undertaken a number of initiatives to nurture the ecosystem of the IT industry. Some of them are tax breaks for IT firms, expenditure on technology infrastructure, and help to startup and innovation. The proactive approach of the government has provided the fertile ground to the industry to prosper.
In Vietnam, the Ministry of Information and Communications has run programs to support digital transformation and foreign investments for trade of technologies. This gives North American companies the reassurance they need to feel confident when expanding their outsourcing operations to Vietnam.
Thriving Tech Ecosystem
Vietnam is a rapidly growing tech hub and cities like Ho Chi Minh City and Hanoi are the new tech footprints>()) People there organize a lot of tech events, conferences, hackathons and – as a good representative of the tech industry – love for innovation and collaboration. There is no form of business more synonymous with Vietnam than the startup and coupled with the popularity of tech incubators in Vietnam it is a country with a huge amount of entrepreneurial spirit.
Vietnam is home to many global tech giants such as IBM, Intel, Microsoft, … when they have found the potential for this country to build a strong technology army. The presence of these global companies will not only help attract money to the market, but also force local companies to compete at a very high level, raising the benchmark for the entire IT sector of Vietnam.
Successful Outsourcing to Vietnam Case Studies
In the past years, many companies from North American have outsourced their battle-tested software projects to Vietnam with great success. To highlight this with a concrete example, consider the case of the Australian software company Atlassian which has a significant market in North America but has been leveraging Vietnamese development teams to speed up its product development and innovation.
Absolute Software (another known company from Canada) that did an entry to Endpoint Security and Data risk management, is one more fine live sample. Working with the Vietnamese extremes, Absolute Software has attracted the best resources in order to bring a full set of product offerings from concept to launch, fast moving the needle on time-to-market and showing the power of remote team in Vietnam for outsourcing.
Challenges and Solutions
There are plenty of opportunities when outsourcing to Vietnam however, one must also be careful of the pitfalls and how you should overcome them. These include:
1. Public Infrastructure – Certain regions of the country do not have proper infrastructure to support connectivity. This risk can be minimised by partnering with established firms depending upon tech hubs such as Ho Chi Minh City, Hanoi.
2. Legal and Regulatory Environment: The legal and regulatory environment in Vietnam is pretty tricky. By seeking aid from local legal experts and also discussing with your outsourcing partners there, it is possible to secure complete compliance and thereby ensure uninterrupted business.
3. Cultural Differences: A high degree of cultural compatibility can exist but there may also be differences in doing business and work culture. To fill in the gaps-channels of regular communication, cultural training, and clear expectations to name a few-can facilitate the bridging of structural implications.
Conclusion
Vietnam has become a preferred destination for North American companies when it comes to outsourcing, as it cost-effective and houses a skilled talent pool, high-quality work, cultural compatibility, favorable time zone, favorable government policies, and a ripening tech ecosystem. Thinking of the potential benefits for North American businesses, it is no wonder why they should consider Vietnam when thinking of outsourcing software developing; can Vietnam be a part of their innovation efforts, cost savings, and meeting business objectives?
In the changing tech scene today, Vietnam is fast becoming a key player in helping to meet the outsourcing requirements of businesses across North-America, offering ease, access to good quality and consistent, quality and cost.
Sources
1. Daxx. (2023). Average Salary of Software Developer in Vietnam
2. Vietnam Ministry of Education & Training. (2022). Annual Report IT Graduates.
3. FPT Software. (2023). About Us: Certifications.
4. EF English Proficiency Index. (2023). Country Rankings.
5. Vietnam Ministry of Information and Communication (2023). Digital Transformation Projects
6. Vietnam Investment Review. (2023). Aglobal View of Tech Companies in Vietnam.
7. Atlassian. (2023). Our Global Presence.
8. Absolute Software. (2023). Case Studies: Outsourcing Vietnam