5 IT services that can be outsourced in Vietnam

The IT outsourcing market is projected to reach $541.10 billion in revenue by 2024. The market is expected to grow at an annual rate of 8.48% from 2024 to 2029, reaching a volume of $812.70 billion by 2029. According to Statista, most revenue will be generated from the US.

But what IT services can be outsourced and why do organizations prefer to outsource them instead of investing in-house, this blog will show you why.

1. Why should you outsource services to Vietnam?

1.1 Cost Savings

Vietnam offers significant cost savings for companies looking to outsource IT services. Living costs and wages are lower in Vietnam compared to Western countries, which means you can get high-quality work at a much lower price. The average hourly wage in the US ($20-25) can sometimes equal the whole day’s wage in big cities, like Ho Chi Minh. In 2023, Vietnam minimum wages reach nearly 5 million VND, around $200/a month.

That’s why hiring a software developer in Vietnam can cost a fraction of what it would in the US or Europe. For example, while a senior software developer in the US might command an annual salary of $120,000, their counterpart in Vietnam might only cost around $30,000 per year. Not to mention, office space, utilities, and other operational costs are also much cheaper.

1.2 Young Workforce

Vietnam has a young, educated, and talented workforce, making this country ideal for outsourcing IT services. The current ITmarket is dominated by people aged 20 to 34 years old. The largest group is 20 to 24 years old, making up 29.8%, followed by the 25 to 29 age group at 26.2%. Right now, most developers in Vietnam are young, with 56% being between 20 and 29 years old.

Read More:   Onshore vs Nearshore vs Offshore Outsourcing Models (+Case studies)

Most developers come from universities (48%) and colleges (26%), majoring in IT-related fields and computer science. Other methods of learning coding are also becoming more popular due to the high demand for tech talent in the market.

Vietnam IT workforce educational background

1.3 Supportive Business Environment

The Vietnamese government actively supports foreign investment and outsourcing through various policies and incentive. Particularly, Vietnam offers a standard corporate income tax (CIT) rate of 20%, lower than many other countries.

 

Additionally, there are significant tax incentives for businesses in certain sectors or regions. For instance, companies can benefit from preferential tax rates as low as 10% for the lifetime of the project or for a fixed period such as 15 years. Tax holidays include complete tax exemptions for the first 4 years, followed by a 50% reduction for the next 9 years

2. Top 5 IT services that can be outsourced 

2.1. Mobile application development services

Smartphones have revolutionized the way we do business at a faster rate than we anticipated. Mobile applications help us do the task conveniently and efficiently. Subsequently, the popularity of mobile apps is increasing at a swift pace. There are currently over 7.2 billion smartphone users in the world (Source: Statista). And this figure is growing at a stable rate.

Part of the reason for this growth is the affordability of technology. Over the past decade, the cost of smartphones has dropped significantly. This is largely due to manufacturers like Xiaomi and Samsung innovating to produce high-quality devices at lower prices.

Also, smartphones are incredibly versatile devices. They combine multiple functions into one gadget—communication, entertainment, productivity, and more. For example, smartphones serve as cameras, GPS devices, music players, and even portable gaming consoles. The vast array of apps available on platforms like the Google Play Store and Apple App Store cater to almost every need, from social networking and banking to health and fitness.

Startups should outsource mobile application development because, apart from costs savings, outsourcing provides access to a global talent pool with expertise in the latest technologies. Some startups may not have people who know what they’re doing in-house, so getting the help from trusted outsourcing company with years of experience makes perfect sense. Moreover, outsourcing helps speed up time-to-market. This is because outsourcing firms often have streamlined processes and dedicated teams that can detect bugs fast. They know how to develop and deploy efficiently and some even assign people to rotate shifts, so support and service are 24/7.

2.2. Web application development services

The modern web is not just for static websites and content consumption. It’s the most open, flexible, and immediately accessible application runtime available today, both via mobile and desktop browsers. Modern web applications use architectures that make them more like their native app counterparts.

Businesses with limited resources in web development should partner with outsourcing companies. This goes on for several reasons and here are the main ones. First, web development agencies often have teams proficient in the latest technologies and frameworks like React, Angular, or Node.js, which can be crucial for building modern, scalable web applications.

The second point is quite similar to mobile app development. Outsourcing web app development can significantly reduce time-to-market. Web development firms have established workflows and experience managing similar projects, which helps in speeding up the development process. For instance, many successful startups like Slack and WhatsApp outsourced their development in the early stages to save costs and focus on their core business strategies. This approach not only helped them scale efficiently but also ensured they had high-quality, reliable web applications from the get-go. Read their outsourcing success stories.

If companies don’t see the long-term investment in IT staff, then outsourcing is a prominent choice. They can avoid the expenses related to infrastructure, hiring, training, and maintaining an in-house development team.

2.3. UI/UX design services 

Another it services that can be outsourced is UI/UX design. User Experience (UX) and User Interface (UI) design & development services are provided to maximize user experience and satisfaction for a particular application or website.

Outsourcing UI/UX design to professional design agencies offers several perks. And that’s why Airbnb outsourced its logo design to DesignStudio, a London-based design agency, in 2014. 

Let’s dive into the first why. Professional design agencies have teams dedicated to understanding user behavior and the latest design trends. They can create intuitive and engaging interfaces that improve user experience and satisfaction. In contrast, if your in-house teams design UI manually based on personal interests from your business POV, the end users may not find your UI user-friendly and satisfying. 

Unlike what some people think, designing a great UI/UX is not a drag-and-drop project. It is a complex process that requires extensive research, prototyping, and testing.  By outsourcing to a trusted outsourcing agency, startups can leverage the established processes and tools of experienced designers.

Lastly, if you’re open to fresh perspectives, outsourcing is a must. External designers can offer new ideas and solutions that internal teams might overlook. This can lead to innovative designs that set the startup apart from competitors. 

2.4. Cloud computing services

Outsourcing cloud computing services can help businesses scale their IT infrastructure efficiently and cost-effectively. Providers like AWS, Microsoft Azure, and Google Cloud offer robust cloud solutions that can be tailored to specific business needs.

Companies can scale their operations up or down based on demand without significant capital investment in hardware. Startups and large enterprises alike use cloud services to handle varying workloads and data storage needs.

2.5 Application Maintenance and Support

Maintaining and supporting applications can be resource-intensive. You have to hire a few developers to support your websites when there’s issues. The problem is sometimes there’s not enough work to keep them occupied, so they may feel lagged behind and not challenged to grow. They may leave the company as a consequence.

Outsourcing app maintenance to specialized firms ensures that businesses can maintain high uptime and performance standards for their applications without diverting internal resources. So whenever there’s a bug in the system or an update you want to install, outsource these tasks to them and you and your in-house can focus on your core tasks.

3. Outsource IT Services To InApps Technology 

There are many software development companies in Vietnam offering IT outsourcing services and InApps Technology is proud to rank:

Here are some reasons why clients choose InApps Technology as their offshore software development company in Vietnam:

• Competitive Hourly Cost
• Clear delivery management and visibility to service metrics
• Transparency and Predictability. 
• Close Collaboration. 
• Flexible Team Structure.
• Latest Development Methodologies: Agile, Scrum, Extreme Programming (XP) and Test-Driven Development (TDD)

Here are some of the top reasons to hire InApps Technology developers:

• English communication— 80% can read and understand spoken English.
• Cost-efficiency — You can find excellent developers for $17-$21 per hour.
• Good Communication Skills — They are good communicators and aren’t afraid to speak up or challenge you. They want to do a good job and succeed.
• Talented workforce — Young developers who studied and worked abroad in the US, Australia, Northern Europe or Japan.
• High-level of Tech skills — Excellent at analysis, troubleshooting and tech solution brainstorming. They are passionate developers who love what they do and desire for self-development.