A complete overview of software outsourcing costs in Vietnam

In the context of the increasingly strong digital transformation, software outsourcing has become an optimal solution that helps businesses save costs and utilize high-tech human resources. Vietnam has emerged as an ideal destination for this service thanks to its reasonable costs, skilled engineers, and favorable business environment. However, to have an overview of software outsourcing costs, businesses need to consider several different factors. This article will help you understand the cost levels as well as how to optimize your budget when outsourcing software development in Vietnam.

1. What is software outsourcing and why is Vietnam an ideal destination?

Software outsourcing is the practice of hiring an external company to develop, maintain, or upgrade software according to the business’s requirements. This helps businesses save time, labor, and resources compared to developing in-house.

There are reasons to choose Vietnam for software outsourcing:

• Competitive costs: The salary of developers in Vietnam is significantly lower than in Western countries and some other Asian nations.

• Abundant, highly skilled workforce: Vietnam has over 400,000 IT engineers with around 50,000 graduates every year.

• Government support policies: Many tax incentives and policies encourage investment in the IT sector.

• Service quality: In the context of independent economic development and a diversified IT market, software outsourcing services are continuously improving their capabilities, with many companies achieving international certifications like CMMI, ISO.

2. Factors affecting software outsourcing costs

Software outsourcing costs in Vietnam are not fixed but depend on several factors. One of the key factors is the complexity of the project. For example, simple applications like basic web or mobile apps will be much cheaper compared to complex enterprise software like ERP, CRM, or AI systems. Complex projects require advanced technologies and skilled engineers, so the costs will naturally be higher.

In addition to complexity, the technology used also greatly influences the cost. Popular technologies like React, Node.js, and Python have standard costs, while advanced technologies like Blockchain, AI, or IoT tend to have higher costs due to the need for specialized skills and significant investment in infrastructure.

The pricing model is also a crucial factor when assessing software outsourcing costs. There are several pricing models to consider:

• Hourly rate: Typically ranges from $15–50/hour, depending on the developer's skill level.

• Project-based pricing: Typically ranges from $5,000 to $100,000, depending on the project scale.

• Long-term team model: Businesses hire a team of engineers on a monthly basis, with prices ranging from $3,000 to $10,000/month (depending on the team size and skill level).

3. Details of software outsourcing costs in Vietnam

3.1. Average developer salaries in Vietnam

According to the latest surveys, developer salaries in Vietnam are briefly categorized as follows:

These salaries directly affect outsourcing costs, as companies will charge based on the skill level and experience of the developers working on the project.

3.2. Costs by project type

With recent software projects in Vietnam, each project type has different costs, depending on the scope and complexity:

• Simple mobile app: $5,000 - $20,000

• Medium-sized web app: $15,000 - $50,000

• Enterprise software: $50,000 - $200,000

• AI, Blockchain projects: $100,000 - $500,000

3.3. How to optimize software outsourcing costs

Optimizing the cost of software outsourcing services is not just about finding the cheapest price, but also ensuring a balance between cost and project quality. Below are some strategies that can help businesses save their budget when outsourcing software development services in Vietnam:

• Choose the right partner: Select a company with experience in similar projects to avoid unexpected costs due to lack of expertise.
  

• Set clear requirements: Avoid changing the project scope midway, as this can significantly increase costs.
  

• Prioritize long-term engagement models: For long-term projects, hiring a dedicated team of developers will help reduce costs compared to hourly rates.

4. Top software outsourcing companies in Vietnam

• BeetechSoft

BeetechSoft focuses on software outsourcing in e-commerce, artificial intelligence, and enterprise management. The company is committed to delivering quality software solutions with optimized costs, helping clients save on their budget while maintaining high performance.

• Savvycom

Savvycom is known for its mobile app development and enterprise software systems. The company specializes in advanced technologies like AI, Blockchain, and IoT, helping businesses optimize operations and enhance customer experience.

• FPT Software

One of the largest software companies in Vietnam, FPT Software has more than 20,000 employees and provides software solutions across various fields such as finance, healthcare, and telecommunications. With over 30 years of experience, this company is a trusted technology partner for many international corporations.

• Rikkeisoft

With experience serving clients in Japan, the US, and many other countries, Rikkeisoft stands out for providing software that meets international quality standards. The company specializes in offering software outsourcing services across platforms from web to mobile and enterprise systems.

5. Software outsourcing trends in 2025

Forecasts for 2025 show that the global software outsourcing market will reach approximately $400 billion, presenting significant opportunities for outsourcing Vietnamese companies. 

Vietnam continues to maintain its competitive advantage in terms of cost, with developer salaries ranging from $500 to $6,000 per month, depending on experience level. Additionally, a 2% reduction in VAT for IT products through 2026 is expected to stimulate consumption and ease production cost pressures for businesses.

However, companies also face challenges in managing technology investment costs, especially when implementing AI projects that require substantial and continuous funding. To achieve a return on investment (ROI), businesses need strategies to balance innovation with cost control.

These trends realistically reflect the transformation and challenges in the software outsourcing industry in Vietnam while offering deep insights into costs and opportunities this year.

Conclusion

Software outsourcing costs in Vietnam remain reasonable compared to many other countries, but businesses need to have a clear strategy when selecting a partner and defining project requirements. To optimize costs, choosing the right cooperation model, setting clear requirements, and seeking experienced partners are key factors. Vietnam continues to be an attractive destination for global companies looking to develop software effectively and cost-efficiently. Don't wait to innovate! Connect with BeetechSoft today for a detailed consultation and cost-effective solutions tailored to your software needs.