How to outsource software development to Vietnam
how to outsource to vietnam

How to successfully outsource  software development and IT projects to Vietnam is the question that is very topical now. With changes in world, more businesses than ever are asking the question of whether they should try outsourcing in any of its flavours – onshore, offshore, nearshore ,or hybrid. Hence senior management, CIO, CTO or team leaders are being asked questions on how to make it work. 

Basic Facts on Vietnam

Vietnam is in East ASIA and a time zone of UTC+7 hours with no adjustment for DST. It has transformed over the last 30 years into a dynamic part of the region. It has a population of 96.5 million and expected to grow to 120 million by 2050 according to  Worldbank. Health and living standards have improved with life expectancy up by 6.3 years since 1990 to 70.5 years.

vietnam

Education and Proficiency In English

As the Latin alphabet is used then Vietnamese people find it straight forward to learn English. English is now mandatory in most schools in Vietnam with students reaching B1 level on the CEFR standard. 

Skilled Engineers

There are over 160 public and private universities in Vietnam. 60% of the population are under the age of 30 and over 25,000 engineers graduate each year from University.

Outsourcing to Vietnam

Ho Chi Minh city has been named one of the best cities in the world for software outsourcing due to cost. 

VINASA is the Vietnam Software Association.Software and IT Services Association established in 2002 and based in Hanoi. It has grown to more than 360 member enterprises by 2018 mainly based in Hanoi and Ho Chi Minh City.

Costs

A 2019 report on labour costs shows that Vietnam is slightly cheaper than India and almost half the cost of China.

Comparison of the hourly cost of a programmer in 2019 was:

  • Vietnam $25-$35
  • India $28-$42
  • China $37-$60

 

The rate for a mid-level developer across the world regions by comparison was:

  • USA $132-$140
  • Europe $35-$56
  • Latin America $30-$52
  • Asia $24-$35

 

How to outsource to Vietnam

Start by scoping the project and a description of the goals and objectives, follow a guide on how to do this if this is your first time outsourcing. It is easier to use a specialised supplier directory than a generic search engine to create a short list of candidate companies. Then contact the business with an outline of your proposed project and start to get further details on their business. It is important to check technical capability, availability of staff and equipment and processes for development and communication. Also try to find a business that has a similar way of working and culture to make it easier to interact. Take the time to discover a long term partner you can keep working with on future projects that bring a range of benefits as well as cost savings.

Further Reading

How to successfully outsource software development and IT projects – covers an explanation of all the engagement models, charging schemes and types of work that can be outsourced.

Development Businesses in Vietnam

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