Important points in IT Outsourcing Vietnam

Software outsourcing in Vietnam has become one of the top destinations for international businesses seeking IT outsourcing services. With the rapid development of the IT sector, Vietnam is steadily asserting its position on the global software outsourcing map. So, what are the key factors that make Vietnam an ideal software outsourcing hub? Let’s explore them in this article.

1. Overview of IT outsourcing Vietnam 

The software outsourcing in Vietnam is growing rapidly, becoming one of the most attractive markets in Southeast Asia. With an average annual growth rate of around 13-15%, Vietnam has attracted the attention of major tech corporations such as IBM, Microsoft, Samsung and Intel. Additionally, Vietnamese IT companies are expanding their markets to the U.S., Japan, and Europe, demonstrating their competitive capabilities on the global stage.

Moreover, the boom in the digital economy and digital transformation has enabled Vietnam to not only provide services but also become a hub for technological innovation. Vietnamese companies are increasingly involved in large projects, including custom software development, AI, blockchain, and enterprise management systems, further strengthening their position in the global tech supply chain.

2. Benefits and Challenges of IT Outsourcing in Vietnam

2.1. Benefits

• Competitive costs

IT labor costs in Vietnam are 30-50% lower compared to countries like India or China. Additionally, operational costs, office rent, and corporate taxes are also lower than in many other countries. The average salary of a programmer in Vietnam ranges from $1,000 to $3,000 per month, significantly lower than in Western countries (where salaries typically range from $5,000 to $8,000 per month in the U.S. and $3,500 to $6,000 per month in European countries).

• High-quality human resources

Vietnam has over 500,000 software engineers, with more than 50,000 IT graduates every year, who are skilled, proficient in English, and capable of working effectively with international clients. The country is home to many top universities like the University of Danang - University of Science and Technology, University of Information Technology, and FPT University, which provide a highly skilled IT workforce.

• Favorable business environment

The Vietnamese government encourages technological development with many tax and investment incentives. Meanwhile, the expanding internet network facilitates convenient remote working. The technology infrastructure continues to improve with support from investment funds and large corporations.

2.2. Challenges

• Data security
  Sharing data with external partners always involves security risks, requiring companies to have strict data protection policies. Software outsourcing companies need to comply with security standards like ISO 27001 and GDPR to ensure data safety.

• Time zone and cultural differences
  For companies from the U.S. or Europe, the time zone difference and different working cultures can create communication challenges. Therefore, clear working processes are necessary to ensure efficiency. Businesses need to develop flexible work plans and use project management tools like Jira and Trello to optimize workflows.

• Quality control
  When working remotely, businesses need to have strict monitoring processes to ensure product quality. Regular code reviews, the use of CI/CD tools, and automated testing are essential solutions for maintaining software quality.

3. Popular software outsourcing models

3.1. Project-based model

This model is suitable for businesses that need to develop products within a set timeframe. However, contracts and the scope of work must be clearly defined to avoid disputes regarding requirements and deadlines, which may lead to quality issues.

>>> See more: Top 10 IT outsourcing companies in Vietnam (update 2025)

3.2. Dedicated team model

The Dedicated Team model allows businesses to hire a long-term team of engineers as an extended part of their company. This is a good choice for businesses that need continuous development but don’t want to recruit in-house employees, as it helps control processes and build a cohesive team.

3.3. Staff augmentation

Staff Augmentation allows businesses to supplement their teams with individual experts without hiring a full team. This is a suitable solution when short-term specialists are needed for specific projects but requires effective management planning to ensure coordination with the in-house team.

4. How to choose a reliable IT outsourcing Vietnam company

4.1. Criteria for choosing a IT outsourcing firm 

• Experience and reputation: Research the company's completed projects and customer reviews.

• Technical expertise: Does the company have skills in the programming languages and platforms suitable for the project?

• Security and working processes: Does the company comply with data security standards? Their work processes should also be clear, logical, and systematic.

• Collaboration model: Does the company offer the exact outsourcing model that the business needs?

>>> Read more: Why should you choose a software development company in Vietnam?

4.2. List of top IT outsourcing companies in Vietnam

Here is a list of leading software outsourcing companies in Vietnam, known for their reputation and service quality over many years of operation, meeting the needs of international markets, from large corporations to small and medium-sized businesses:

• FPT Software

FPT Software is one of the largest software outsourcing companies in Vietnam, with offices in multiple countries. The company specializes in bringing software solutions for industries such as finance, healthcare, telecommunications, and more, delivering flexibility and high efficiency for clients worldwide.

• TMA Solutions

TMA Solutions has over 20 years of experience in software outsourcing. The company mainly provides services to markets in North America, Europe, and Japan, aiming to offer high-quality and optimized software solutions to international clients as well.

• BeetechSoft

BeetechSoft offers multi-platform software solutions, including mobile app development, e-commerce websites, and online education systems. With a team of experienced engineers, the company focuses on creativity and personal development to deliver innovative tech products.

• Saigon Technology

Saigon Technology stands out for its work in developing mobile apps and web apps. With a focus on the U.S. and Australian markets, the company provides high-quality software solutions that meet the growing demands of international clients.

• CMC Global

CMC Global specializes in digital transformation and custom software development, serving businesses worldwide. As a strategic partner of major corporations like Samsung and Toshiba, the company is committed to delivering cutting-edge technological solutions to clients.

Conclusion

IT outsourcing in Vietnam is demonstrating its outstanding potential due to competitive costs, a high-quality workforce, and a favorable business environment. With the strong growth of the tech industry and government support, Vietnam is increasingly attracting international business attention, making it an ideal destination for software outsourcing services.

However, in addition to the advantages, businesses should be mindful of challenges such as data security, cultural differences, and quality control to ensure effective collaboration. By selecting a reputable and suitable software outsourcing company, businesses can fully leverage the benefits that software outsourcing Vietnam industry offers.