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A-Z Guide on Software Outsourcing in Vietnam — Plus Top 20+ Companies List

A-Z Guide on Software Outsourcing in Vietnam — Plus Top 20+ Companies List
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⭐️ Download Now: Top 20+ Software Outsourcing Companies in Vietnam [FREE]

If you’re reading this, chances are you are looking for ways to optimize software development efforts. Outsourcing to an offshore country seems like an attractive solution – you get to focus on the core business, with development tasks taken care of by an experienced team at a modest price.

In this article, explore with us why tech giants such as Apple, Samsung, Google, and Amazon are all choosing Vietnam as the next strategic destination, and the necessary steps to guarantee your success in software outsourcing in Vietnam.

Top 5 reasons for software outsourcing in Vietnam

1. Technical expertise

According to TopDev’s report, over 400,000 IT specialists are currently working at over 60,000 technology companies across Vietnam. And with 400 universities and educational institutions offering programming and software development courses, approximately 57,000 tech freshmen are graduating each year. Moreover, the nation does not fall behind in terms of developer skills, ranking #2 in Southeast Asia and #10 worldwide, as stated by Accelerance and Pentalog.

2. Young and educated workforce

Vietnam had a strong working population of approximately 75 million in 2021, with 40–45% of those under 35, according to Statista. The nation’s literacy rate also ranks the highest in the Asia Pacific with 95,4%. This means that the country is well suited to meet any outsourcing demands, regardless of size or complexity.

3. Reasonable pricing

Being one of the key benefits of software outsourcing in Vietnam, let’s look at how developers’ average hourly rates differ around the world. Be noted that the numbers can vary depending on specialization and seniority.

IT outsourcing hourly rates

If the development quality is guaranteed by a reliable firm, then Asia is, without a doubt, the most cost-efficient destination. Compared to other technology hubs in the region, Vietnam’s development cost is significantly less than Singapore, China, and India, and on par with the Philippines.

🔸 Learn more about web app development cost and saving tips

4. Socioeconomic stability

Vietnam has a relatively more stable socio-political environment when compared to other Southeast Asian countries. The nation is now ranked No. 44 in the Global Peace Index 2022, up from No. 50 in 2021. This indicates that there are minimal risks and conflicts for foreign businesses, backed by strong support initiatives from the government.

Additionally, the nation’s economy quickly rebounded from the Covid-19 pandemic, with an 8.2% GDP growth in 2022, the fastest pace ever since 1997.

🔸 Read more: Software Outsourcing amid Covid-19 pandemic

5. English proficiency

The EF English Proficiency Index 2022 placed Vietnam’s English proficiency 60th worldwide and 7th in Asia, a significant improvement compared to previous years. Vietnamese and English both use the Latin alphabet, making it relatively simple for Vietnamese speakers to learn English. And since English is a mandatory subject in Vietnamese education, graduates frequently have a high level of English proficiency.

Vietnam bears several disadvantages such as the major timezone different from the US and EU regions, and the lack of a national data protection law. However, it’s still considered one of the most attractive IT outsourcing destinations thanks to the aforementioned facts.

🔸 Read more: Why Choosing Vietnam Outsource Your Software Development

How to choose the right IT/software outsourcing partner

Once you’ve decided on a suitable country, which is Vietnam in this case, the next step is to establish selection criteria for your software outsourcing in Vietnam. There are more factors to consider than just price (cheaper is not always better!)

  • Technology & industry expertise: Pick an outsourcing vendor with a proven track record within the domain, preferably your business sector. You should be with a strategic advisor who can advance your project, not developers who only follow the guidance. Remember to check whether they are familiar with the software and hardware you already have in place.
  • Project scope: Depending on the business’s actual outsourcing needs, whether it’s development, design, or end-to-end service, you should pay more attention to vendors specializing in that area. Also, take into consideration your project size as well as future scaling plan, and make sure the vendor has adequate resources to facilitate them.
  • Pricing models: Based on the balance of responsibilities and ownership between the client and the provider, there are 3 main types of outsourcing: project-based, time & materials, and dedicated team.
MethodProject-basedTime and materialsDedicated team
ExplanationEstablished agreement on scope and pricingPay for actual time spent and required infrastructureHire a permanent team of external developers
FlexibilityLowHighHigh
Client managementMinimumModerateMaximum
BudgetFixedOutput-basedOutput-based
Suitable forSmall and medium projectsMedium and large projectsLarge projects

Several outsourcing firms, including Ekotek Technology, collaborate on all 3 models to give clients the freedom of choice. However, we advise that you carefully consider all the pros and cons, as well as your own preferences, to select the most appropriate method.

  • Development process: Agile and Waterfall are two main but vastly different processes, and it’s crucial that your outsourcing partner excels in the chosen method. If you have clear project outcomes from the beginning, Waterfall is the best fit as it requires specific deliverables for each phase before moving on to the next one. Alternatively, Agile is faster-paced and suitable for a collaborative team who are experimenting with ideas and shaping the final product.

software outsourcing in Vietnam - development process

At Ekotek, we take pride in being an experienced firm in agile development, fuelled by a competent team and a diverse stack of ready-made solutions. Get your Proof of Concept in under 2 weeks, and your project delivery in just half the usual time and resources – by putting in a request with us today.

  • Security protocols: Learn about the privacy policies and data practices of the outsourcing providers you’re considering. You must be confident that the chosen vendor can handle the business’ sensitive information as it is required for development, testing, and other tasks. And it’s always a good idea to sign nondisclosure agreements (NDAs)!

Top 20+ companies software outsourcing in Vietnam

For your convenience, we’ve put together a list of top software outsourcing providers in Vietnam, based on data from various awards, ranking authorities, and company websites.

CompanyService focusIndustry focus
FPT Software it outsourcing in Vietnam logo
1. FPT Software

  • Project size: Undisclosed
  • Rates: Undisclosed
  • Application Services
  • Digital Processing Service
  • Managed Services
  • Legacy Migration
  • IC Design
  • Building Information Modeling
  • CAD/CAE
  • Embedded System
  • Manufacturing and automotive
  • Utilities and energy
  • Finance & Banking
  • Telecommunication and media
  • Logistics and transportation
  • Healthcare
  • CMC Global outsourcing software in Vietnam logo
    2. CMC Global

  • Project size: $5,000+
  • Hourly rates: $25-$49 /hr
  • Custom Software Development
  • Cloud Migration
  • Cloud Managed services
  • RPA Implementation
  • Information technology
  • Finance & Banking
  • Medical
  • Media & Entertainment
  • Ekotek Technology outsourcing software in Vietnam logo
    3. Ekotek Technology

  • Project size: $10,000+
  • Hourly rates: $25-$49 /hr
  • Custom Software Development
  • Blockchain
  • AI & Machine Learning
  • ERP & CRM
  • Cloud solutions
  • Blockchain
  • Finance & Banking
  • Real estate
  • Retail
  • Gaming
  • Sotatek outsourcing software company in Vietnam logo
    4. Sotatek

  • Project size: $10,000+
  • Hourly rates: $25-$49 /hr
  • Startup Pack
  • Software Development
  • Mobile App Development
  • Finance & Banking
  • Healthcare
  • Retail
  • Real Estate
  • Logistics
  • Manufacturing
  • Education
  • Media & Entertainment
  • powergate software outsourcing in Vietnam logo
    5. Powergate

  • Project size: $10,000+
  • Hourly rates: Undisclosed
  • Software & Platform Development
  • E-Commerce Development
  • Mobile App Development
  • Data & Analytics
  • Machine Learning & Artifical Intelligence
  • Finance & Banking
  • Information technology
  • Retail
  • eCommerce
  • Kyanon Digital it outsourcing in Vietnam logo
    6. Kyanon Digital

  • Project size: $10,000+
  • Hourly rates: $25-$49 /hr
  • Custom Software Development
  • Consulting And Professional Services
  • Data & Business Intelligence
  • Education Technology
  • E-Commerce
  • Mobile Application Development
  • Retail
  • FMCG
  • Manufacturing
  • BFSI
  • Logistics
  • Groove Technology it outsourcing company in Vietnam logo
    7. Groove Technology

  • Project size: $25,000+
  • Hourly rates: $25-$49 /hr
  • Software Development
  • Web Development
  • Mobile App Development
  • Business Process Management
  • CAD
  • UX/UI Design
  • Managed Services
  • Education
  • eCommerce
  • Supply Chain, Logistics, and Transport
  • Rikkeisoft software outsourcing company in Vietnam logo
    8. Rikkeisoft

  • Project size: $10,000+
  • Hourly rates: $25-$49 /hr
  • Software Development
  • Web Development
  • Mobile App Development
  • Business Process Management
  • CAD
  • UX/UI Design
  • Managed Services
  • Retails & eCommerce
  • Finance & Banking
  • Media & Entertainment
  • Logistics
  • Automotive
  • Public Sector
  • AgileTech software outsourcing company in Vietnam logo
    9. AgileTech

  • Project size: $25,000+
  • Hourly rates: $25-$49 /hr
  • Website/ Mobile app Development
  • Digital Transformation
  • AI/Big Data Service
  • Testing Services
  • Blockchain Services
  • FinTech
  • Healthcare
  • Travel & Hospitality
  • E-Commerce
  • Education
  • Transportation
  • KMS software development company in Vietnam logo
    10. KMS Technology

  • Project size: Undisclosed
  • Hourly rates: Undisclosed
  • Software development
  • Mobile App Development
  • Application modernization
  • AI & Machine Learning
  • Data Analytics
  • Managed Services
  • Healthcare
  • Finance & Banking
  • Synodus outsourcing software company in Vietnam logo
    11. Synodus

  • Project size: $5,000+
  • Hourly rates: $25-$49 /hr
  • Software Development
  • AI & Data Analytics
  • Web Development Service
  • Mobile App Development
  • Finance & Banking
  • Information technology
  • Real estate
  • Retail
  • Other mentions:

    11. Elinext17. Enlab Software
    12. Savvycom18. InApps Technology
    13. Enouvo19. Beetsoft
    14. NCC20. Xenia Tech
    15. Newwave Solutions21. Oivan
    16. Adamo Software
    📌 Full List of 20+ Top Software Outsourcing Companies in Vietnam
    Download the full version to get a complete picture of Vietnam’s IT outsourcing landscape including detailed information such as key competencies, office locations, and service offerings.

    Download

    Best practices for effective software outsourcing

    Drawing on our own experience working with global clients of all sizes and industries, here are Ekotek’ top tips for ensuring project success for both you – the client and us – the software outsourcing in Vietnam service provider.

    • Allocate a dedicated PIC: Both the outsourcing team and the client team must commit to a project for it to be successful. Your team’s PIC needs to provide the initial training, technical access, issue resolution, and throughout testing for the outsourcing team. The project’s quality and timeline will be impacted if questions cannot be answered promptly.
    • Define your goals & deliverables: Knowing your ultimate objectives—whether they’re an MVP, an upgrade, an integration, or anything else—is crucial. Before getting started, both parties should have a clear understanding of the objective and a plan for getting there.
    • Clear communication & documentation process: Establish the protocol, platform, and person in charge for different types of communication, as well as different stages of the development process. Set up regular meetings to discuss project progress and any rising issues. Update the plan continuously and keep all stakeholders informed.
    • Foster a long-term partnership: Having a strategic partner for all development needs holds much more advantages than a one-time transaction. When you find a suitable vendor, try to form a strategic partnership with benefits for both sides. Respect and treat the offshore developers as your own, and you’ll find the favor soon returned.
    • Be strict on quality & confidentiality: Never skimp on testing to ensure your product is thoroughly functional and secured. It can cost 4-5 times more to fix software bugs after deployment than during development. Additionally, a high-quality product translates to satisfied customers who return for more business.

    📌 Read more about Software outsourcing models using in Vietnam

    best practices for software outsourcing

    Final thoughts

    Software plays an irreplaceable role in any modern business operations. And for businesses without competent resources or crucial needs to develop an in-house team, outsourcing is the optimal option. Among all destinations, Vietnam is highly sought-after due to the nation’s abundant resources, highly skilled workforce, and reasonable costs. However, to maximize the benefits of software outsourcing in Vietnam, you will require a trusted partner, strategic planning, and effective management.

    Take the first step on this journey by talking with an Ekotek specialist. We would be glad to give our input on your project, and help you ideate on the most suitable technology or development process, with over 20 years of experience building innovation solutions ourselves.

    As we have reached the end of the article, here’s sincere good luck on your digital transformation journey!

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