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Top 10 Web Development Outsourcing Companies In Asia

Making a Website is pretty much the equivalent of putting on makeup. The more attractive your website looks, the more likely you will land a chance in the customer’s eyes. However, the services of each web development company vary in cost depending on the region.

If done right, IT Outsourcing streamlines your access to the best of the world’s undiscovered talents, reduces the time spent maintaining your digital presence, addresses capacity issues, and enhances the quality of operations.

And to help you save time, we have researched and summarized the best Website Development Companies in Asia.

Here Are Some Interesting Facts About Outsourcing In Asia:

  • The most popular outsourcing destinations are India, Vietnam, and the Philippines.
  • The primary benefits of web development in Asia are cost-effectiveness, quality, availability, and time management. The average expense per employee is projected to reach US$42.12 in 2021, which is on the high end, considerably lower than in the US or Western Europe, and corresponds to lower development prices.
  • The most common drawbacks are communication issues and legal matters.
  • By the end of 2021, revenue in the IT outsourcing segment is projected to reach US$77.9 billion, according to Statistics.

1. Savvycom

Savvycom is one of the top Vietnam-based companies that provide excellent Web Development Services, utilizing only the top 1% of specialists in the country’s labor market.

With offices in Vietnam, The US, and Australia, the company manages to develop and consult the most up-to-date products on time and with a 50 – 70% benefit compared to other leading agencies in both domestic and international markets.

The spectrum of our services is vast – ranging from website development solutions and mobile applications from scratch to complex platforms, custom CRM, ERP development, and more importantly, finding and integrating our team into a client’s running projects.

Savvycom has received more than 20 awards throughout the years since 2009. The company was noted among the best web development companies in nomination for the Custom Software Development Company, Best Web Development Company, and Best Mobile Development Company in the World, Asia, and Vietnam.

  • Industry Expertise: Medical & Healthcare, Media, On-demand Delivery, Fintech, eCommerce, Travel, Entertainment, Custom Enterprise Software Development.
  • Key Differentiator: Our experts work closely with the clients to identify problems or issues and to establish effective communication strategies as well as the most ideal way to combat these issues.
  • Why Would You Choose? The Savvycom team finds the best solution for every client under the market demands and business requirements and provides services in planning, discovery, development, and further application growth and ongoing support.
Savvycom Details
Services Custom Website Development, Web Application Development, Website Development, Dedicated Development Team, IT Staff Augmentation, Business Analysis, UI/UX Design, Software Testing & Quality Assurance, DevOps
Offices Vietnam, The US, Australia
Founded 2009
Size ~500 employees
Rates $25 – $40 / hr
Tech stack Swift, Kotlin, Ruby on Rails, Node.js, Go, HTML5, CSS3, Vue.js, AngularJS, React, MySQL, PostgreSQL, Redis, Flutter, React Native, GCP, AWS, Docker, Ansible, and more

Have a Project Idea in Mind?

Get in touch with Savvycom’s experts for a free consultation. We’ll help you decide on next steps, explain how the development process is organized, and provide you with a free project estimate.

2. EGO Creative Innovations

This is one of the web development companies that specialize in hybrid and native mobile and web-based app development. They claim remarkable delivery transparency and operational speed in their solutions. The company has 16 years of experience in numerous technologies such as Xamarin, Flutter, Swift, React Native,.NET, and many others.

  • Industry Expertise: Business services, healthcare, and eCommerce are all areas of specialization.
  • Key Differentiator: They present 16 bundles of unique discounts for new businesses.
  • Why Would You Choose? If you are a startup company, you should contact EGO Creative Innovations for convenient conditions and a quick response to your needs.

3. Orfeostory Pte

Orfeostory Pte is one of Singapore’s tiny but capable web development firms, focusing on web, app, and CRM development. With ten years of industry experience, the company operates with significant government assistance and ranks first on Cutch’s list of prominent developers in Singapore.

  • Industry Expertise: Wellness, Leonian, and Keenenergy. Hospitality and leisure, finance, government, and supply chain are all areas of expertise.
  • Key Differentiator: They charge fair fees and accept projects of any size.
  • Why Would You Choose? Orfeostory Pte is one of the web developers who can produce a high-quality mobile app on a low budget. They have a $5,000 minimum project size and only work with mid-size and small businesses. If you need a beautiful website and an app for your business but don’t want to spend a fortune on IT services, they are the finest company to contact.

4. Beansmile

Beansmile is one of China’s most skilled web development firms. They specialize in online development, but they have also accomplished countless mobile app development projects.

  • Industry Expertise: eCommerce
  • Key Differentiator: The company caters to small enterprises and start-ups. Unlike other website creation companies, they work with new businesses to develop their ideas and recruit investors.
  • Why Would You Choose? Beansmile is an excellent choice if you are a start-up looking for a high-quality website that takes advantage of Ruby technology.
Learn More On: Top 10 Reasons Why You Should Update Your Website Now

5. Digital Lantern

Top Web Development Outsourcing Companies Asia 1

This is a Chinese company that offers web design and development services in China and around the world. Their primary market is mid-sized and enterprise businesses, while 25% of their initiatives are for small businesses.

  • Industry Expertise: eCommerce, Education, Health-tech, Fintech, and Ho-Re-Ca competence.
  • Key Differentiator: As a graphic design firm, their core focus is on design.
  • Why Would You Choose? Lantern Digital is one of the top web development firms to call if you need a high-quality website with a customized design. The anticipated minimum budget for collaboration is $5,000.

6. AllianceTek

AllianceTek, founded in 2005, is one of the best web development businesses, offering web and app development services as well as creative blockchain solutions. In their 15 years on the market, they have established offices in over 15 countries, including India and the United States.

AllianceTek’s portfolio includes over 400 web and mobile projects. Pacific Life Global, Cox Communications, the Royal Bank of Canada, and Johnson & Johnson are among its most important clients.

  • Industry Expertise: Healthcare, Legal, Education, Ho-Re-Ca, and eCommerce are areas of specialization.
  • Key Differentiator: They specialize in creating one-of-a-kind functionality and a rich user experience.
  • Why Would You Choose? AllianceTek is an outstanding alternative among website development firms for enterprise and mid-market enterprises that do not want to spend a fortune on web development. Their hourly pricing ranges from $25 to $49, and the minimum project size with which they are prepared to begin working is $5,000.
Learn More On: How Much Does it Cost to Build a Website?

7. Multidots

Multidots is the world’s leading WordPress firm. They are among the web development firms that offer high-quality web stores and other e-commerce solutions. In over 11 years of existence, they have assisted in the migration of over 1,000,000 pages and have an 87% customer retention rate.

  • Industry Expertise: Media, Advertising & Marketing, Education, and eCommerce are areas of specialization.
  • Key Differentiator: Highly skilled team that specializes solely in WordPress web development.
  • Why Would You Choose? Multidots is the perfect company to approach if you need a technically demanding product (such a high-load website or aggregator) produced in this tech domain. Multidots targets mid-market and enterprise-level businesses, with a US$10,000 entry margin.

8. Unified Information Technology

Unified Infotech is a web development company that is dedicated to meeting the needs of its clients. To assure the best quality, they only work on a few things at a time. They have notable clients such as the United Nations and NBC Universal, and many of their clients are on the Fortune 500 list.

Unified Infotech’s clients include NBC Universal, Citi Bank, the United Nations, Sony, Colorcon, Bluesky Communications, Tetrasoft, CQ Fluency, Johnson Lambert, and others.

  • Industry Expertise: IT, Automotive, Education, Financial Services, and Legal are the key areas of competence.
  • Key Differentiator: A high precision focus helps the customer to feel at ease and secure throughout the development cycle.
  • Why Would You Choose? If you are a mid-market, small business, or start-up in need of a high-quality website to expand your business, you should contact Unified Infotech. As a boutique firm, they guarantee a quick turnaround and top quality because they pledge to focus solely on your project. This dedication, however, will cost you between $50 and $100 every hour.

9. QPSoftware

Top Web Development Outsourcing Companies Asia 2

QPSoftware is one of the most skilled Chinese web development firms, focusing in midmarket web development and e-commerce solutions. They have been on the market since 2007 and have formed relationships with firms such as Bosh and Air France. HuffPost, Digital Journal, TechNode, and other publications have covered the company’s accomplishments.

  • Industry Expertise: education, M-health, and eCommerce are areas of competence.
  • Key Differentiator: They provide marketing and SEO services in addition to web and app development.
  • Why Would You Choose? If you are a middle-market firm in need of an e-commerce solution for your organization, QPSoftware is one of the top web development companies to contact.

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10. IndiaNIC

IndiaNIC is one of India’s leading web development firms, with offices in the United States. Over 500 engineers work for the company, with a focus on web and mobile solutions, as well as gaming.

They provide staff augmentation services in addition to software development and apply agile operation approaches.

  • Industry Expertise: Gaming, manufacturing, healthcare, and transportation are all areas of expertise.
  • Key Differentiator: The fact that IndiaNIC is a master in design sets it apart from other website creation businesses.
  • Why Would You Choose? Contact IndiaNIC for an examination of your request and a quote if you require a product with exceptional design qualities.

Best Tips for Choosing Web Development Outsourcing Companies

It is critical to find a web development firm to begin a fruitful collaboration and ensure your project is completed on time. Your budget and other requirements should be met by the company.

1. Establish Your Project Objectives

There are several things to consider before selecting a web development company:

  • The type of website that you require

Will it be an e-commerce site where you can buy and sell items? Or a portfolio-sharing website for company presentations? Or, like Tripadvisor, will it be a restaurant and hotel aggregator?

  • Approach to web development and compatibility

If you already have a website platform that you want to improve, look into the tech stack it uses to ensure your needs are compatible with the vendor’s expertise.

  • Determine the level of assistance you require

You may need product development and onboarding, or you may want to hire a web development company to run regular updates and provide complete tech, business, and marketing support.

  • Pay close attention to details

When preparing your initial requirements, make sure not to overlook anything important, such as integrations, specific functionality, and so on. Even professional web development firms may have difficulty deciphering ambiguous requests.

  • Determine your budget and timetable.

Every task requires time. It’s difficult to create a super-powerful website with deep functionality in three months. Make sure you know exactly what your time and budget constraints are ahead of time.

Learn More On: Project Estimation: The First & Foremost Step To Success

2. Outline Requirements for Web Development Companies

If you want to find the best website development company, here are a few questions to ask:

  • Experience

It is critical to specify two things: the team’s overall experience and specific domain experience. Inquire about the length of time the team has been working together. If the team is new, inquire about the members’ individual experiences. Have they created anything similar to what you’re looking for? Although time on the market does not always correlate with quality, it does matter.

  • Portfolio

Portfolios of web application development companies can sometimes reveal more than interviews. Is a team, for example, working on multiple migration projects at the same time? This would imply that they are successful in that regard and that clients refer to them in a chain.

  • Size of the team

Conduct research to determine the best team size for your needs. There are different workforce capacities for CRM creation and creating a mobile app, for example. Also, top web development outsourcing companies do not always have large teams.

  • Cost

Hourly rates and cost estimates are the first things that any professional agency will consider. However, it is important to remember that different world locations have different development costs.

  • References

Inquire with website development companies about references from clients with a similar product, industry, or budget.

  • Other factors to consider

Some web development companies never take on too many projects to ensure that each client receives a substantial amount of attention. It is acceptable to ask your prospective vendor how much time the team will devote to your project. You will have clear expectations this way.

Suppose you are a high-traffic news organization looking to develop an outstanding new product. In that case, you should first look for a company with experience in your industry.

3. Shortlist Website Development Outsourcing Companies

Shortlist potential website development vendors after a laborious interviewing process, calculations, and reference checks. You can compare these vendors based on various criteria, such as previous experience with similar products, time to market, team size, cost, loyalty, communication strategies, work hours, and even cultural similarities. Any of these elements could be game changers.

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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The companies make it to the Top 5 website development companies in Asia:

1. Savvycom 

Expertise: Medical & Healthcare, Media, On-demand Delivery, Fintech, eCommerce, Travel, Entertainment, Custom Enterprise Software Development

2. EGO Creative Innovations

Expertise: Business services, healthcare, and eCommerce.

3. Orfeostory Pte

Expertise: Wellness, Leonian, and Keenenergy. Hospitality and leisure, finance, government, and supply chain.

4. Beansmile

Expertise: eCommerce

5. Digital Lantern

Expertise: eCommerce, Education, Health-tech, Fintech, and Ho-Re-Ca competence.

Based on our experience as a leading outsourcing service provider, you need to think carefully about:

  • The web development team's expertise
  • The provided outsourcing models
  • Their hourly rates and costs
  • Their technologies
  • Language efficiency
  • Working culture and attitude
  • Offer for post-launch services

When looking at the costs of web development, they can be categorized into:

1. Flat costs

  • Domain costs
  • Hosting fees
  • SSL Certificate
  • Subscriptions for website-building tools (optional)

2. Variable costs

  • Paid/self-build/open-source platform
  • Frontend
  • Backend
  • Database technology
  • Quality assurance

Plus, there are some non-functional factors that impact the development costs:

  • Project requirements
  • Project timeline
  • Security features

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Top 10 Software Development Companies in Vietnam

Vietnam’s Information and Communications Technology (ICT) sector has an average yearly growth of 9.8% for the last five years with annual revenue of $110 billion in 2019, a 14% contribution to the country’s GDP. Thanks to its growing IT infrastructure, improving logistics and regulatory environment, and business-friendly economic reforms – it is now emerging as an outsourcing destination in the Asia-Pacific region. Therefore, outsourcing to Vietnam has become a strategic option for businesses wanting to cut cost on fixed headcount. 

In this article, we are going to audit the state of outsourcing in Vietnam, as well as publishing a list of 10 best software development companies in Vietnam so that you have a full view of why and how you can hire software development services in this competitive market.

1. Why Outsource To Software Development Companies?

Top Software Development Companies In Vietnam | Savvycom -1

During this pandemic, businesses across the world are cutting down on local staff. Some are deferring their planned IT projects until a more stable time, and some are canceling projects indefinitely. The savior for all such companies is IT outsourcing.

Outsourcing is a business practice in which certain company functions are assigned to outside service providers rather than performed in house. In other words, a company seeks external help or support to perform some of its business activities so it can stay focused on core business goals while saving time and money. In today’s tough scenario, businesses can survive through software outsourcing services – and some businesses might even be able to come out of this pandemic doing well.

The outsourcing industry has been an integral partner in companies’ crisis responses across sectors. Offshore software development to another country such as Vietnam is a smart decision that companies should consider to maximize their productivity in a cost-effective manner. This proven approach has led to many successful projects, as it allows a business to focus on its core competencies. It should be used as a strategy that can really boost a business.

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2. Vietnam – Ideal Destination For Offshoring

1. Pandemic Stabilization

Recognizing that its medical system would soon become overwhelmed by even mild spread of the virus, Vietnam chose prevention early and on a massive scale. The country reported one of the least cases in Southeast Asia with minimal deaths. We are also featured in various reputable newspapers for our relentless efforts and successful pandemic countermeasures. This has given businesses based in Vietnam a head start over global competitors at this time.

Update 16/5/2022:

  • Over 80% of Vietnam’s population has been fully vaccinated.
  • Vietnam has dropped the Covid-19 test requirement for foreign arrivals from May 15
  • The recovery rate is 87.5%, while the Fatality rate is only 0.4%

2. Cost-Effectiveness

Top Software Development Companies In Vietnam | Savvycom -2

According to Innotech, outsourcing software development in Vietnam costs 50% less than the rivals from India and China. Anderson Vietnam also estimates that outsourcing per person in Vietnam is only $20,000 per person a year compared to $40,000 per person in India. These figures are convincing enough to place Vietnam as the top future contender for offshore development projects. 

As Indian companies enter the maturing cycle, the cost differential between India and Vietnam will increase even further. The outsourcing costs in India are most likely to increase in the coming years.

3. Potential Workforce

Human capital in Vietnam is witnessing positive trends. Some of the most notable highlights in Vietnam IT workforce in recent years are:

  • Top 7 countries in Asia with the highest EF EPI Average.
  • Top 5 countries in Asia with the fastest improvement in English skills.
  • Top 10 countries in the world with the most engineering graduates.
  • Top 10 countries of origin of international students in key study-abroad markets.
  • Top 10 countries in Asia Pacific with the highest Human Capital Index.
  • Top 10 in regional groups in global attraction and global knowledge skills.
  • Top 30 countries in the world and top 2 in SEA countries for basic academic skills.

Moreover, Vietnam has a population of over 90 million people and over 60% of the population is under 30 years of age. With that being one of the countries with a young population, the Vietnamese – or Vietnamese workforce specifically – are perceived to be fast learners, dynamic, innovative, tech-savvy and flexible to changes. 

4. Knowledge & Skills

Top Software Development Companies In Vietnam | Savvycom -3

As the surge of technology is making a significant impact on every generation, more and more STEM majors, schools and academies are opened to encourage the young to invest their talents in technology and relevant sectors and hone their skills. The rapid development in both quantity and quality of IT education in Vietnam provides an extensive supply of software developers for Vietnam outsourcing companies in the years to come. 

On the other hand, Vietnam students are often appraised for their fast absorption of knowledge, most of them have good to excellent academic background as certified by standardized exams, endorsements from global recruiters, honours and awards. 

5. Vietnam’s Developers Ranking

Skillvalue 29th

worldwide in developer skills charts of skillvalue’s report 2018

Topcoder Top 6

worldwide in developer skills charts of topcoder report 2016

Hackerrank 23rd

worldwide in developer skills charts of hackerrank’s report 2016

AI Development

The first two scientific researches at neurips – top 1 conference in the world about artificial intelligence in canada from artificial intelligence research lab vinai research

Workers in Vietnam have extensive English language training. Because the majority of the software engineers you’ll be hiring are college graduates, they’ll have attended English classes throughout the years and will most likely be fluent in English already.

With that said, it is considerably easier to outsource to other countries when you have solid English communication abilities. If you want to work in software engineering or business process outsourcing, you should have excellent communication skills.

Learn More On: Why Vietnam a Top IT Outsourcing Destination!!

3. Top 10 Software Development Companies In Vietnam

A glance back at 2021 from Savvycom Team

Many organizations would be unable to increase their efficiency and achieve the desired level of satisfaction without software development companies’ assistance and technological expertise. With the ever-increasing technical demands, it’s critical to choose the right company to guide you through the process and help you find the best solutions. Here are some of the top software development companies in Vietnam in 2021 that will find the most cost-effective ways to achieve their objectives:

1. Savvycom

Savvycom is one of the leading Information Technology companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in finance, healthcare, and retail for domestic and international businesses. Headquartered in Hanoi and with three representative offices located in Ho Chi Minh City, USA, and Australia, the company’s mission is to leverage engineering resources in Vietnam and empower businesses worldwide by utilizing the power of technology, becoming a leading IT company in the ASEAN region and beyond.

The company’s successes are reflected in its 100+ endorsements from clients, including Fortune 500 companies, in its receipt of more than 20 international honors and awards, and in its strategic partnerships with technology brands such as Apple, AWS, and Microsoft.

Learn More About Savvycom On:
Savvycom Website

Clutch:

The Manifest:

Dribbble
Behance

2. KMS Technology

KMS Technology is a U.S.-based engineering and services firm with development centers in Vietnam, founded in 2009. International clients rely on KMS Technology because of the high quality of its products and the expertise of its Vietnamese engineers.

KMS is dedicated to making a long-term social impact by partnering with non-profit organizations that provide fair and better employment opportunities for disadvantaged students. In Vietnam, the company collaborates with universities regularly, participates in IT training activities and specialized events, and sponsors scholarship programs.

Learn More About KMS Technology On:

3. Rikkeisoft

Rikkeisoft provides software services and solutions for clients worldwide, ranging from Web/Cloud Systems, Mobile Applications, Games, and Blockchain to AI, IoT, Business Processing, and Embedded Systems. Eight years after being founded in 2012, they have successfully established three branches around Vietnam and three affiliated companies. They take pride in our mission of building better lives through advanced technology for people. Their vision is to have 10,000 employees by 2025 and become one of the top Vietnamese software development companies in Southeast Asia.

Learn More About Rikkeisoft On:

4. Positive Thinking Vietnam

Positive Thinking Company is a global independent tech consultancy group with a team of more than 3,500 talented tech specialists on the ground in over 35 cities across Europe, the USA, Asia, Australia, and Africa, they serve clients of all sizes. They believe collaboration betters our world. Their unique open ecosystem model allows us to deliver end-to-end tech solutions. Their services draw on a wide array of expertise, including apps & platforms, security, cloud, data & analytics, hyper-automation, and digital workplace.

Learn More Positive Thinking Vietnam On:

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5. CMC Global

CMC Global is a subsidiary of CMC Corporation with the goal of bringing Vietnamese ICT products, solutions, and services to the international market. We are proud to be the leading company in Vietnam in providing a wide variety of comprehensive IT Solutions & Services, ranging from traditional services to Digital Transformation, as well as Consultancy, to organizations worldwide, having been established in March 2017 as a strategic move by the Corporation to enter the global stage.

Learn More About CMC Global On:

6. Tpp Technology

In Viet Nam, TP&P is one of the leading, highly diversified, and pioneering IT service providers and investment management firms. TP&P applies its extensive experience and specialized knowledge to various technology startup investment and service provision strategies, including software development, development and cloud management, and business consulting.

Learn More About Tpp Technology On:

7. Smart OSC

SmartOSC is a full-service e-commerce agency that was founded in 2006. Lotte, Courts, PayPal, Boozt, SpaceX, Smartbox, eWAY, Priceline Pharmacy, Club 21, Delta Apparel are among the company’s more than 500 global clients. SmartOSC has a global presence with 500+ employees and offices in Vietnam, Australia, Singapore, the United States, and the United Kingdom as of January 2017.

SmartOSC provides consulting, UI/UX design, development, and managed services, among other things. The technical and business expertise of the company is based on a few platforms: Magento, Sitecore, Adobe, Hybris, and Kentico.

Learn More About Smart OSC On:

8. NashTech Vietnam

NashTech strives to create a nurturing environment that facilitates the growth of our employees, professionally and personally. They put effort, determination and ambition into creating a second home for their employees, where everyone is encouraged to be their most authentic self.

Learn More About NashTech Vietnam On:

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9. Orient Software

Orient Software began operations in 2005. Orient is currently one of the leading software development companies in Vietnam. Orient’s strong team of 315 skilled and experienced IT experts collaborate to provide software development solutions to clients with small to corporate-sized businesses worldwide after more than 15 years of providing professional IT solutions.

Learn More About Orient Software On:

10. Saigon Technology

Saigon Technology Solutions is Vietnam software development outsourcing company focused on delivering cost-effective solutions to its clients. Its customers are located in the US, the UK, Australia, Germany, and the Netherlands. Their services include custom application development, web application development, and mobile application development. It is listed among the top software development companies around the world. Additionally, Saigon Technology Team also provides .NET Core, Java, PHP, ReactJS, Angular, Azure, AWS, microservices, and machine learning. Some of its impressive clientele include Kaercher, Abbott, Panasonic, Topicus, and DMI Inc.

Learn More About Saigon Technology On:

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From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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IT Outsourcing Vietnam – Ideal Destination For Growth Hacking

We live in the globalization age when nothing is constrained to a single nation. Many businesses have people working on the same product and project in multiple places worldwide. Top companies have widely adopted this tactic, especially during the lockdowns caused by Covid-19. And it didn’t take long for everyone to realize how effective remote working can be as some companies have already let their staff work from home permanently.

  • Dropbox will let all employees work from home permanently. Existing office space will become Dropbox Studios, where people can work in person.
  • Atlassian employees can work from home permanently.
  • Quora has adopted a remote-first policy, allowing nearly all employees to work remotely and relocate anywhere the company can legally employ them.

IT Outsourcing and Software Development Companies can easily accomplish this since it is unnecessary for all programmers working on the same project to be located in the same area. They can easily update the code and share their progress with the rest of the development team. In 2022, IT Outsourcing to Vietnam is gaining recognition as a cost-effective, high-quality software development solution in Asia.

1. Why Would Business Choose To Outsource?

Provide access to skill not available in-house 46%
Saves money 36%
Free up resources to focus on core business 35%
Adds scale to my IT organization 33%
Improve flexibility in use of resources 29%
Improve ability to innovate 10%

Top reasons why companies outsource information technology (IT) services worldwide in 2018. Provided by Statista

Compared to onsite jobs, those new to outsourcing will be worried that overseas companies cannot deliver high-quality work, collaborate with onsite teams, or reach defined milestones and objectives with the same aptitude and excellence. In addition, language barriers, difficulty establishing and maintaining communication, and other issues can make outsourcing seem too risky.

However, many outsourcing firms concentrate not only on providing low-cost solutions to their customers but also on ensuring that these solutions are of the highest standard, adhere to strict specifications, deliver utmost commitment, and meet all deadlines.

Savvycom Web CTA 12. Why Would Business Choose Vietnam for IT Outsourcing?

Asia, Eastern Europe, Latin America, and North America are common destinations for offshore software production. In terms of Asia outsourcing, India and China, to many, still hold the top two spots as the world’s most dominant outsourcing destinations. However, among Asian-Pacific countries, Vietnam, an emerging powerful IT outsourcing and offshore development center, is getting noticed day by day.

Despite Vietnam’s relatively short history of IT outsourcing (roughly 20 years), the country has risen to prominence in the sector, becoming the natural extension of global clients due to many inherent capabilities and transformations. According to the 2019 Tholons Services Globalization Index, Vietnam is ranked 13th among the world’s top 50 digital nations.

2.1. Young Population & Education Level

Junior 42%
Middle 33%
Senior 17%
Lead 8%

Vietnam Level of Qualification

The primary benefit of outsourcing to Vietnam is the country’s youthful population. In Vietnam, approximately 70% of the population is under 35, and roughly 45 percent is between 15 and 35. This advantage in terms of age suggests that about half of the population is ready to work.

According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

  • Vietnam ranks 29th in terms of Skillvalue Worldwide in Developer Skills Chart Of Skill Value Report in 2018.
  • Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
  • Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016.

Soon, Vietnam will be the destination for many significant technology corporations in the world. For example, apple’s supply chain Vice President Rory Sexton said Apple is ready to meet up and find opportunities for future cooperation with Vietnam ICT enterprises wishing to join Apple’s supply chain. Besides Samsung – one of the foreign capital corporations that help accelerate Vietnam’s economy, the participation of Apple in the future probably will continue to strengthen Vietnam’s wave of foreign investment in 2020. Notably, in 2020, Samsung said they would invest an additional $300 million in R&D in Hanoi and needs 4,000 more IT employees in the near future.

Learn More On: Full Guide Of IT Outsourcing Models

2.2. IT Specialized Schools

MoU Signing Ceremony between Savvycom & RMIT University Vietnam

Savvycom Phenikaa University 1

MoU Signing Ceremony between Savvycom & Phenikaa University – On providing training & higher education for IT Graduated Students

Passion for technology, programming & computer 78%
Attractive salary 63%
Good logic & computer background 54%
Prospective career development 42%

Why Would Vietnamese Students Choose To Follow IT Career

Companies looking to outsource software development want graduates with a specialization in information and communication technology. In the field of information and technology, there are over 250 colleges and universities that offer courses. In addition, 187 technical schools deliver courses in Information and Technology.

Thus, students can learn about subjects that will aid them in pursuing a career in software development. As a result, as more businesses outsource to Vietnam, more students will choose to pursue a career as a software developer.

Most candidates choose to follow the programming industry because of their interest and passion for it. What makes them feel most satisfied is that they can be trained and have the opportunity to develop their skills. Career path and salary are also two key factors fulfilling candidates’ satisfaction.

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2.3. Low Development Cost

According to MarketsInsider, Vietnam is ranked 5th in the “Best countries to outsource to in the World in 2019” list. Depending on the developer’s skillset, hourly rates for Vietnam developers range from $20 to $40. Compared to the $100 hourly rate in developed countries, this represents significant cost savings for US and Western European businesses.

Furthermore, many Vietnamese IT & Solution Providers are now open to potential innovations such as AI, machine learning, and blockchain… As a result, Vietnam is the ideal location for companies seeking cost-effective solutions that are also technologically advanced.

2.4. Vietnam’s Stability During Covid-19

Vietnam is by far one of the best countries in the world to handle the Covid-19 situations thanks to the swift actions taken by the Vietnamese Government. As a result, heading into 2021, most Vietnamese Tech Companies don’t have to resort to work from home anymore, which significantly boosts work enthusiasm and communication.

Additionally, Vietnam does not have any instability politically for more than 30 years with the same party in power. The country still retains steady economic growth even during Covid-19 (2.9%).

Learn More On: IT Outsourcing Costs

2.5. Big Investors

According to the World Bank, Vietnam is now one of the most thriving emerging economies in East Asia. Vietnam has achieved sustainable and inclusive economic growth thanks to comprehensive market-oriented and outward-looking economic policies. On the human capital index (HCI), this country ranks 48th out of 157 countries, second only to Singapore in ASEAN.

Many foreigners fear the communist political system’s rigidity, but it is the firm foundation for this fast-growing economy, as well as a stable and safe nation. The Vietnamese government is working to make the economy more modern and business-friendly. Foreign investment is welcomed, making it simple for foreign businesses to set up shops in the country.

2.6. Cutting-Edge Technology

Vietnam – one of Asia’s fastest-growing economies – is making its mark on a global stage in terms of technology. The country is leading with several cutting-edge technologies, such as Blockchain, IoT, AI & Machine Learning, Cloud Computing, etc. Vietnamese IT Outsourcing Companies can adopt whatever technology your businesses want to apply. This can be achieved thanks to the technical expertise through studying and the hands-on experience working on complex, large-scale projects accessed by millions of users worldwide.

2.7. Highly Proficient in English

Unlike other countries in Asia, such as Thailand, India, China, Korea, Japan,etc. Vietnamese uses the Latin alphabet, just as English does, making it relatively easy for Vietnamese speakers to learn English. As such, English is the second most popular language in the country, and most of Vietnam’s college graduates have high proficiency in English. Consequently, most IT workers in Vietnam can communicate easily in English when working on outsourcing projects.

Learn More On: Software Project Estimation: The First Step To Success

3. How To Choose The Right Vietnam IT Outsourcing Provider?

Savvycom presents – The Art of Coding – Meet The Artist Behind The Code

With the growing number of software outsourcing companies in Vietnam, finding the right one for your company could be difficult. Therefore, it’s essential to have a clear picture of your software development priorities, performance indicators, and growth expectations before deciding on potential outsourcing vendors in Vietnam. Some of the most important factors to remember are:

  • Sufficient/Fluent English and communication skills
  • Knowledge and industry experience
  • Developers’ expertise in the required technologies
  • Quality standards
  • QA and testing
  • Pricing model and software development methodology (e.g. Agile)

Overall, it’s preferable to work with a firm that already has an established software development framework in place and clarity and flexibility in terms of project changes.

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4. Final Thought

IT Outsourcing is the best option for those who want to balance high-quality service and a reasonable price. If you’re a startup or a well-established business, the global outsourcing industry will help you transform your ideas into reality. You could find Vietnam as an emerging and trusted hotspot for offshore software growth, taking advantage of the geography, the nature of the talent pool, and the cost-effective rate.

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Savvycom – Your Trusted Tech Partner

From Tech Consulting, End-to-End Product Development to IT Outsourcing Services! Since 2009, Savvycom has been harnessing the power of Digital Technologies that support business’ growth across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

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  • Google: Google started as a simple search engine but has since become a massive organization offering hardware and software services in addition to its advertising services with employees distributed around the world. Today Google is almost a proverb for the internet itself. Its name has become a verb used by everyone when talking about searching online.
  • Alibaba: When talking about online eCommerce firms, several names come to mind. You have Amazon and eBay, of course, but a company that has quickly come to the fore is Alibaba. Alibaba is another example of companies that outsources. Still, unlike Amazon and eBay, Alibaba is based in China, which makes the challenges of outsourcing somewhat different.
  • WhatsApp: When thinking about companies that outsource, WhatsApp is an excellent example of outsourcing as it has been doing it from the very beginning. As early as 2012, WhatsApp was a small organization with only 30 full-time employees and five part-timers. Based out of Mountain View, California, they understood that they needed to keep costs down if they wanted to grow.
  • Apple: However, while Apple designs excellent products, it does not make or manufacture them all by itself. Apple is another example of a company that outsources. It depends on multiple partners in the US, Asia, and the Far East to produce hardware and services. In some cases, these relationships go back decades. By outsourcing its supply chain and manufacturing facilities, Apple can focus on its core strength – designing great products that people like to use.

At Savvycom, we recommend mapping out your Outsourcing strategy before reaching out to vendors. Currently, these are the 03 most popular IT Outsourcing Models: Full Process Outsourcing, Dedicated Teams, and Staff Augmentation.

Opportunities and Challenges in Vietnam Mobile App Industry

Life is all about fulfilling the needs and creating things to fulfil the needs. Even after years of civilisation, that primitive rule remains the same – the only difference shall be what our demands change into.

With the now-going penetration of smartphones to every corner of the world, including Vietnam, the basics then shift from eating, sleeping and drinking to clicking, surfing and scrolling.

Within the national border, many endeavours have been given on fertilising the Vietnam mobile app industry to satisfy this need-of-a-time. However, the development always goes with adversities, therefore, poses many “Whats” on those opportunities and challenges.

opportunities and challenges in Vietnam mobile app industry by savvycom

Vietnam mobile app industry finds both opportunities and challenges.

Overview

Industry introduction

With the rocketing consumption of smartphones in this 4.0 generation, mobile app production has escalated to a million-dollar industry. Complex as it may sound, the success of the mobile app industry is actually very easy to reason: its core competency to fill in what customers lack.

Mobile apps are outstandingly convenient, user-friendly (light-weight, portable, simple and having transparent interfaces that are optimised from other PC or laptop apps). They also make our smartphones more entertaining, more “edgy”, more multitasking, therefore, more valuable.

In short, they meet every criterion of the so-called 3F, the ultimate expectations of customers: fast, fun, fabulous. No wonder why the mobile app business rocks!

Vietnam mobile app industry in a nutshell

mobile app industry in a nut shell by savvycom

Demographic landscape

The latest report from Appota shows the demographic profile as 97 million of population, therein 70% are the working-age, 24% are millennials, 40% are under 25 years old. These figures show that Vietnam population are quite young and dynamic, thus are likely to be open-minded, tech-savvy and willing to try the new.

Moreover, the report indicates that the percentage of internet users in Vietnam exceeds 57%, with 45% of which are using mobile internet and 70% of mobile internet users subscribe to 3G/4G.

Economic and technological situation

Vietnam, for better or for worse, is still a developing country. As a result, it’s pretty open to forces from various industries in order to boost its pace.

Moreover, because Vietnam is still in progress, its resources are highly focused and flexible to be seeded, to change and nurture. Some indicators might be:

  • The number of technology companies is exploding (14,000 companies as reported in 2016. It shall be a lot higher lately).
  • Aggressive investment in telecommunication, therefore, quickly put the population under the 3G/4G coverage as calculated above.
  • The dramatic rise of smartphone penetration (smartphone sale accounts for about 90% of the mobile market in Vietnam).
  • The focus on technological ecosystems that uniform every user action.

Political environment

The political environment in Vietnam is sort of expansive in this matter, such as the government’s encouragement upon technology development. However, in Vietnam, there are lots of legal loopholes when it comes to companies’ intellectual property – the bloodline of every business, especially technology companies.

The national law poorly covers the deep-rooted aspects of the patent right, copyright, etc, the political forces perform unfavourable management and the majority of the population often ignores the originality of products consumed as well as carry out the low level of law compliance.

Cultural shape

As Vietnam is striving to become one of the leading countries in South-East Asia, the hustle bustle lifestyle is becoming part of common sense. Therefore, the Vietnamese now want things to be simple, time-saving and effortless.

Besides, Vietnam is currently in an “ape generation”, where people are being trend-washed and unselectively chasing after trend. This is a double-edged knife, which poses both chances and threats.

Other factors of the culture might be Vietnamese cash-consuming society, i.e, mainly use cash for purchases rather than credit; or the growing digital, tech-savvy aspect among Vietnamese people nowadays.

Vietnam mobile app industry in a nutshell by savvycom

Opportunities for Vietnam Mobile App Industry

Enterprise solution apps

The characteristics in Vietnam technological and cultural landscape are suitable for various types of mobile apps, including enterprise solution ones. With enterprise solution apps’ tendency to build technological ecosystems, i.e, a common platform to connect everything from TVs, PCs, laptops, tablets, smartwatches to smartphones, the efficiency will be maximised.

Users can now keep track of their documents, locations, and all other information whenever and wherever they wish to without using the same device as when they save the information into. It’s fast, convenient and very time-efficient, which totally fits the busy lifestyle in Vietnam.

Moreover, as mentioned in the overview, Vietnam is highly encouraging manufacturers to develop the whole ecosystem so there might be lots of support from the government and stakeholders on the resources needed.

E-commerce apps

During primitive times, humans’ needs can only be met in physical ways: to book a hotel room in person, to arrange a date in person, to shop in person. However, these days, those demands can be satisfied in just a click with you staying at your post or lying in your bed through e-commerce apps.

Vietnam has lots of internet users and is currently under good accessibility to 3G, 4G thanks to its concentration to telecommunication. This is a chance for e-commerce app developers to build and utilised online platforms to serve customers’ needs.

On the other hand, since Vietnamese are junkies to smartphones and are inclined to trend – they ceaselessly look for the latest items, the most up-to-date vogue – they’d probably like to use an e-commerce app to keep track of what’s hot. That’s another reason making Vietnam the ideal market for mobile online trading, e.g, e-commerce apps.

Trendsetters

Vietnam, a country of trend-wash, is likely to follow every new thing setting out there. They are driven by changes and would open up their heart for whatever pops up first on the trending bars. From the social aspect, it might pose a crucial cognitive problem.

However, from the managerial point of view, it’s one hell of a chance for innovation and creativity: there would be less pressure on customer reception. Also, the innovation level in Vietnam is not so high and yet to be saturated, so there are still lots of space for mobile app developers to showcase.

All of those make Vietnam an easier-to-breathe market when it comes to “trend-making”. If you are able to present something new, chances are you will win in an easier way than that in other countries.

Vietnam has not only a prosperous market for trendsetters but also great developers to come up with new trends.

Let’s take a look at Savvycom, an agile development team from Vietnam. Recognising the rising cost in health care services and the poor accessibility to medical professionals that are in sharp contrast with the rising demand from patients, Savvycom’s engineering team gave birth to Jio Health, a cost-effective, smart-engaging telemedicine and telehealth solution helping patients access to medical professionals in no time.

This project has not only breathed new, innovative, healthy air in the Vietnamese community but also shed light on a new era for mobile app in Vietnam – the time of telehealth. Thanks to those “wow” factor Savvycom embedded into Jio Health, it has become a real pioneer and succeeded in the Northern region of Vietnam, evidencing for Vietnamese developers’ capacity to be ‘real’ trendsetters.

Challenges for Vietnam Mobile App Industry

Besides those many perks, there are some restrictions and challenges you might face when joining the mobile app game in Vietnam.

In-app purchases

Vietnam once mentioned above, is a cash society. According to Appota’s research, nearly half of the population (46%) say they don’t want to use mobile payment because they don’t have a bank account, and concerns about losing banking information. They prioritise the power of cash rather than any type of credit and are often hesitated to make online payments. This poses a problem to in-app purchases as manufacturers must not only promote the product but also educate users on using e-banking for purchases as well as gain trust from the users.

That’s being said there will be a larger budget, heavier marketing and HR pressure to look for quality marketing specialists. Lots to concern!

Retention rate

Vietnamese are willing to try the new and follow the trend, which means there is a high likelihood that they leave. To keep them stay, manufacturers must simultaneously give out new ideas and changes in business activities as well as new product premiers.

If you are not sure about your level of innovation, you would have to think twice about your decision to enter the mobile app industry in Vietnam. The probability that you lose because of poor innovation in Vietnam is higher than in many other countries in the world.

Intellectual property protection

The legal wall in Vietnam is not well-built and well-protected by the government, moreover, intellectual protection is often ignored by the majority, so in case there is any violation of patent or copyright, chances are you have to fight by your own feet.

Overcome Challenges

There are various ways you can do to tackle those challenges, such as building an effective and collaborative R&D team to understand the market and prepare for the product line or outsourcing a proficient, well-trained native team who understands the domestic landscape well.

In case you need any further consultation and cooperation on the Vietnam mobile app industry, we – Savvycom are very happy to give you a hand.

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