WHY CHOOSE VIETNAM FOR IT OUTSOURCING?

Software outsourcing has become an economic catalyst for many developing countries. While India and China lead the industry with their abundant workforce and extensive experience, Vietnam is emerging as a fresh destination for software outsourcing, capturing the attention of global corporations.

The IT Workforce Shortage in Japan

The shortage of IT talent in Japan has become a pressing concern for many businesses, impacting the nation’s technology sector development.

• Aging Population: Japan has the fastest-aging population in the world, with a high elderly ratio and declining birth rate. This trend is reducing the workforce and limiting the number of young people entering the IT sector. Reports suggest the shortage could reach hundreds of thousands in the coming decade.
• Rising Demand for IT Talent: Japan’s IT sector is rapidly growing due to digital transformation needs across various industries, from manufacturing and finance to public services. This growth demands an ever-increasing number of IT engineers, but the current workforce cannot keep up.
• Preference for Large Corporations: Younger IT engineers often choose to work at major domestic corporations like Toyota and Sony or international firms that offer better benefits. This preference makes it challenging for small and medium-sized enterprises (SMEs) to attract and retain talent.
• High Recruitment and Training Costs: The expense of hiring and training IT engineers in Japan is particularly high, especially given the shortage of local talent. As a result, many companies are considering alternatives, including offshore resources.

According to the Ministry of Economy, Trade, and Industry of Japan, Japan could face a shortfall of around 789,000 IT personnel by 2030 if the issue is not addressed in time. Given these challenges, offshore staffing is an optimal solution for Japanese businesses. Not only does this model address the talent gap, but it also offers economic advantages, cutting down recruitment and training costs. With offshore teams, Japanese businesses can access experienced IT engineers at a reasonable cost, strengthening their development capacity and competitiveness in the tech market.

Benefits of Software Outsourcing in Vietnam

Software outsourcing in Vietnam offers high-quality software development solutions at some of Asia’s most competitive prices. According to CIO Magazine, businesses can save up to 90% by outsourcing to Vietnam compared to software development in the United States. Notably, software development costs in Vietnam are one-third to one-seventh lower than in India, an attractive figure for businesses considering investment in Vietnam.

Why Should Global Businesses Choose Vietnam for IT Outsourcing?

First-time outsourcing companies may have concerns about work quality, communication, and on-time delivery with remote partners. However, Vietnam’s workforce is highly skilled, experienced in international business standards, and proficient in English communication. In addition, Vietnamese software companies are committed to delivering top-quality solutions, on time, and tailored to meet each customer’s specific needs.

Vietnam's Advantages in IT Outsourcing

1. Competitive Costs

In Vietnam, labor costs are 90% lower than in the U.S., 50% lower than in China, and 30% lower than in India. This cost advantage enables businesses to save budgets and invest more in development.

2. Highly Skilled Workforce

The Vietnamese government places a strong emphasis on education and training, with a literacy rate of 96% and 80% of university graduates specializing in science and technology fields. The younger Vietnamese generation is increasingly present at prestigious global universities, actively contributing to the growth of the nation’s IT industry.

3. Economic and Social Stability

Compared to many Asian countries, Vietnam stands out for its economic and social stability. Despite the Covid-19 pandemic, Vietnam’s economy has maintained growth and continues to attract increasing foreign direct investment, creating a favorable business environment for outsourcing.

4. Political Stability

With over 30 years of political stability, Vietnam has become a secure destination for foreign enterprises. According to the Global Peace Index, Vietnam ranks high in safety and stability within the Asia-Pacific region.

5. Vietnam – A Smart Choice for International Software Development Projects

With low costs, a high-quality workforce, and a stable economic and political environment, Vietnam has become an ideal destination for companies seeking offshore software development. In addition to Intel, major corporations such as Nortel Networks, Bayer, Sony, and Cisco have also chosen Vietnam for their software development needs. In 2018, Vietnam’s software exports reached $3.5 billion, placing it among the top five countries globally in software outsourcing, as reported by the Ministry of Information and Communications. With strong growth potential, Vietnam is poised to continue as an attractive destination for global enterprises.

Viettel Software – A Trusted and Innovative Leader in IT Outsourcing

As a core component of Viettel Group's technology ecosystem, Viettel Software continuously asserts its pioneering position in software development. In addition to internal projects like telecom network management systems, e-wallets, enterprise management software, CRM, and production management, Viettel Software has made a significant impact through its software solutions and IT outsourcing services for major clients across sectors such as Aviation, Insurance, Banking, and Lottery, among others.

With a team of over 1,500 IT experts, Viettel Software is committed to delivering high-quality software outsourcing services and providing skilled external resources to meet the most demanding customer requirements.

For consultation on our services, please contact us at contact@viettelsoftware.com or via Hotline (+84) 988 889 446.