Vietnam’s Information and Communications Technology (ICT) sector has an average yearly growth of 9.8% for the last five years with annual revenue of $110 billion in 2019, a 14% contribution to the country’s GDP. Thanks to its growing IT infrastructure, improving logistics and regulatory environment, and business-friendly economic reforms – it is now emerging as an outsourcing destination in the Asia-Pacific region. Therefore, outsourcing to Vietnam has become a strategic option for businesses wanting to cut cost on fixed headcount.
In this article, we are going to audit the state of outsourcing in Vietnam, as well as publishing a list of 10 best software development companies in Vietnam so that you have a full view of why and how you can hire software development services in this competitive market.
1. Why Would You Outsource To Software Development Companies?
During this pandemic, businesses across the world are cutting down on local staff. Some are deferring their planned IT projects until a more stable time, and some are canceling projects indefinitely. The savior for all such companies is IT outsourcing.
Outsourcing is a business practice in which certain company functions are assigned to outside service providers rather than performed in house. In other words, a company seeks external help or support to perform some of its business activities so it can stay focused on core business goals while saving time and money. In today’s tough scenario, businesses can survive through software outsourcing services – and some businesses might even be able to come out of this pandemic doing well.
The outsourcing industry has been an integral partner in companies’ crisis responses across sectors. Offshore software development to another country such as Vietnam is a smart decision that companies should consider to maximize their productivity in a cost-effective manner. This proven approach has led to many successful projects, as it allows a business to focus on its core competencies. It should be used as a strategy that can really boost a business.
- Cost savings: Outsourcing can often be a more cost-effective option than hiring and maintaining in-house staff. By outsourcing certain tasks, companies can reduce expenses associated with salaries, benefits, training, and infrastructure.
- Access to specialized expertise: This allows organizations to tap into specialized skills and knowledge that may not be available internally. By outsourcing to experts in a particular field or industry, companies can benefit from their experience and ensure high-quality work.
- Focus on core competencies: By outsourcing non-core functions enables companies to concentrate their resources and attention on their core competencies. By delegating peripheral tasks to external service providers, organizations can allocate more time and energy to strategic activities that directly contribute to their competitive advantage.
- Increased efficiency and flexibility: Outsourcing can provide greater flexibility in resource allocation. External vendors can often scale their operations up or down quickly to meet changing business demands. This agility can help organizations adapt to market fluctuations and manage workload fluctuations more effectively.
- Time savings: The benefits of having external helps allows businesses to offload time-consuming tasks to external providers, freeing up internal resources to focus on essential activities. This can lead to increased productivity and faster turnaround times.
- Risk management: Outsourcing can help mitigate certain risks associated with specific functions. For example, by outsourcing IT security to a specialized firm, organizations can enhance their data protection measures and reduce the risk of cyber threats.
2. Vietnam – Ideal Destination For Offshoring
2.1. Pandemic Stabilization
Recognizing that its medical system would soon become overwhelmed by even mild spread of the virus, Vietnam chose prevention early and on a massive scale. The country reported one of the least cases in Southeast Asia with minimal deaths. We are also featured in various reputable newspapers for our relentless efforts and successful pandemic countermeasures. This has given businesses based in Vietnam a head start over global competitors at this time.
- Over 80% of Vietnam’s population has been fully vaccinated.
- Vietnam has dropped the Covid-19 test requirement for foreign arrivals from May 15
- The recovery rate is 87.5%, while the Fatality rate is only 0.4%
According to Innotech, outsourcing software development in Vietnam costs 50% less than the rivals from India and China. Anderson Vietnam also estimates that outsourcing per person in Vietnam is only $20,000 per person a year compared to $40,000 per person in India. These figures are convincing enough to place Vietnam as the top future contender for offshore development projects.
As Indian companies enter the maturing cycle, the cost differential between India and Vietnam will increase even further. The outsourcing costs in India are most likely to increase in the coming years.
2.3. Potential Workforce
Human capital in Vietnam is witnessing positive trends. Some of the most notable highlights in Vietnam IT workforce in recent years are:
- Top 7 countries in Asia with the highest EF EPI Average.
- Top 5 countries in Asia with the fastest improvement in English skills.
- Top 10 countries in the world with the most engineering graduates.
- Top 10 countries of origin of international students in key study-abroad markets.
- Top 10 countries in Asia Pacific with the highest Human Capital Index.
- Top 10 in regional groups in global attraction and global knowledge skills.
- Top 30 countries in the world and top 2 in SEA countries for basic academic skills.
Moreover, Vietnam has a population of over 90 million people and over 60% of the population is under 30 years of age. With that being one of the countries with a young population, the Vietnamese – or Vietnamese workforce specifically – are perceived to be fast learners, dynamic, innovative, tech-savvy and flexible to changes.
2.4. Knowledge & Skills
As the surge of technology is making a significant impact on every generation, more and more STEM majors, schools and academies are opened to encourage the young to invest their talents in technology and relevant sectors and hone their skills. The rapid development in both quantity and quality of IT education in Vietnam provides an extensive supply of software developers for Vietnam outsourcing companies in the years to come.
On the other hand, Vietnam students are often appraised for their fast absorption of knowledge, most of them have good to excellent academic background as certified by standardized exams, endorsements from global recruiters, honours and awards.
2.5. Vietnam’s Developers Ranking
worldwide in developer skills charts of skillvalue’s report 2018
|Topcoder Top 6
worldwide in developer skills charts of topcoder report 2016
worldwide in developer skills charts of hackerrank’s report 2016
The first two scientific researches at neurips – top 1 conference in the world about artificial intelligence in canada from artificial intelligence research lab vinai research
Workers in Vietnam have extensive English language training. Because the majority of the software engineers you’ll be hiring are college graduates, they’ll have attended English classes throughout the years and will most likely be fluent in English already.
With that said, it is considerably easier to outsource to other countries when you have solid English communication abilities. If you want to work in software engineering or business process outsourcing, you should have excellent communication skills.
3. Top 10 Software Development Companies In Vietnam
Many organizations would be unable to increase their efficiency and achieve the desired level of satisfaction without software development companies’ assistance and technological expertise. With the ever-increasing technical demands, it’s critical to choose the right company to guide you through the process and help you find the best solutions. Here are some of the top software development companies in Vietnam in 2021 that will find the most cost-effective ways to achieve their objectives:
3.1. FPT Software
FPT Software is a leading company within the FPT technology group in the country, founded in 1999. Over more than 20 years of construction and development, FPT Software has consistently pioneered and achieved commendable accomplishments in the field of information technology services and software outsourcing.
Among the foreign software companies in Vietnam, FPT Software stands at the forefront as one of the top software outsourcing companies in Vietnam. Up to now, FPT Software has established 58 branches abroad in countries like Germany, Australia, Malaysia, the United States, Japan, etc., with the aim of ensuring progress and quality, providing 24/7 services to English-speaking customers globally.
Currently, FPT Software serves as a technology service provider for over 100 customers, including companies belonging to the Top 500 leading global corporations. In the near future, the company will continue to focus on building capabilities in consulting, solutions, and digital transformation services in technology trends such as AI, Big Data, Blockchain, Cloud, and more.
3.2. CMC Corporation
CMC is one of the leading technology conglomerates in Vietnam, ranking second in the country’s information technology and telecommunications sector. With nearly 30 years of construction and development, the CMC Corporation has created jobs for over 3,000 employees.
Among the top software companies in Vietnam, CMC is widely trusted by numerous partners in software outsourcing. CMC is also known as a highly specialized and trusted partner in medium and large-scale information technology projects in various sectors such as government, education, taxation, treasury, customs, insurance, power, banking, finance, etc.
3.3. TMA Solutions
Founded in 1997, TMA Solutions has undergone nearly 25 years of formation and development, and today has become one of the most trusted software outsourcing companies in Vietnam.
TMA Solutions is entrusted for collaboration not only by local enterprise customers but also from abroad. Particularly, clients approach TMA Solutions seeking software solutions in industries such as telecommunications, finance, e-commerce, logistics, and more.
The company currently boasts over 3,000 employees, including highly skilled engineers, and maintains numerous branches both within and outside the country, including in Canada, Japan, the United States, Europe, and Australia.
3.4. Tinh Van Group
Tinh Vân Group commenced its operations in 1997 and gradually solidified its position as one of the leading software outsourcing companies in Vietnam.
As of now, the company has a core team of over 500 employees, primarily consisting of young, passionate individuals with high levels of creativity and technical expertise. Alongside this, there’s been an expansion with six branches spread across the country and internationally in locations such as Ho Chi Minh City, Da Nang, and Japan.
3.5. Groove Technology
Groove Technology is a leading software outsourcing company based in Australia and officially established its headquarters in Vietnam in 2016. With a strong foundation, the company quickly became a trusted partner for hundreds of businesses.
As a software outsourcing company, Groove Technology has achieved numerous accomplishments in the field. With a highly skilled and experienced workforce, the company has excelled in providing comprehensive IT services and software development across various industries such as education, human resources, real estate, import-export, and more.
The company’s long-term vision is to become a top software outsourcing provider in Vietnam, offering sustainable and long-lasting success solutions for its clients. Through this, Groove Technology aims to earn trust and foster long-term collaborations in the future.
3.6. Glass Egg Digital Media
Officially established in 2012, Glass Egg Digital Media is a subsidiary of Glass Egg – a long-standing entity in the graphic design field, known for producing and publishing various world-renowned games.
The company’s partners come from diverse industries with demands for both 2D and 3D graphic design for business, marketing, or training purposes. Notable partners include Marvel, Krafton, Sony, Ubisoft, XBox Game Studios, and more.
3.7. Tinasoft Vietnam
Established in 2018, Tinasoft quickly defines its stand as one of the leading Software Development and Digital Transformation Consultant in Vietnam. Our experience, expertise, best-equipped facility, professional management, and commitment have been bringing our customers utmost satisfaction and in return rewarded us with rapid and sustainable growths over the past 6 years.
To be the one-stop destination for all software needs, Tinasoft is organized as a group of different syster companies covering related domains of expertise, namely Digital Transformation Consulting, Software Development, I.T. Staffing & Sourcing. With its 6 years of market presence, Tinasoft has built a large network of partners and experts, who are joining hand in hand with Tinasoft to provide exceptional on-demand, sophisticated, effective software solution, and development services to customers all around the world. To date, we have been assisting clients in more than 300 successful software projects.
Whilst the primary focus of Tinasoft is Outsourcing services & Digital Transformation, we also deliver the comprehensive technology solutions such as: ERP, EAM, SCE, d/EPM, WMS… Tinasoft has chosen to become the official partner of the world’s leading technology as AWS, INFOR (USA), CityXsys, Fast React… Helps enterprises achieve competitive advantages in the market with speed and ability to extract information, automate tedious manual work, support creative, intelligent work.
Tinasoft offers various cooperation models like: IT staff augmentation (Cover resource or skill gaps of your in-house IT team with our experts managed by you directly.), Self-managed team (Get a self-managed team led by Tinasoft’s PM or Team Lead to carry out your IT initiative.), Full outsourcing (We take care of your specific IT function(s) with full responsibility for their quality and related risks).
3.8. Mona Media
Mona Media traces its origins back to a team specializing in website design. After nearly 10 years of building and developing, the company has expanded its scope to encompass various areas:
- Designing website interfaces tailored to the needs of diverse customer groups.
- Developing mobile applications and professional management software to address business challenges.
- Consulting and implementing SEO, Digital Marketing, and more strategies for projects across various industries such as business, education, beauty, etc.
- Researching and developing effective enterprise management software in line with modern trends, featuring multi-layered security, optimized interfaces across devices, and more.
The company’s operational ethos is centered around customer satisfaction, aiming to establish long-lasting and sustainable success. To date, Mona Media has become a reliable partner for over 740 clients, working on nearly 1400 projects across a wide range of domains.
3.9. Global CyberSoft
Global CyberSoft was established in 2000 as part of the Hitachi Consulting Group based in the United States. In 2020, the company was renamed Hitachi Vantara Vietnam. The work environment is characterized by professionalism, dynamism, innovation, and a focus on human values.
As one of the leading software companies in Vietnam, Global CyberSoft has a highly skilled young team. With over 1000 employees and engineers with advanced skills, Global CyberSoft has become a top software outsourcing company in Vietnam. The company focuses on providing products and services such as:
- Offering IT solutions, software integration, and services.
- Ensuring software quality assurance.
- Developing enterprise management software systems incorporating new technologies like Big Data, Internet of Things, and more.
3.10. Harvey Nash Company
With over 20 years of activity, Harvey Nash has firmly established itself in the information technology market in general and software outsourcing in particular. The company provides products and services to both domestic businesses in Vietnam and numerous other countries around the world.
The name of Harvey Nash has left its mark in various industries, including smart applications in housing and parking systems, blockchain technology in financial management, artificial intelligence for educational development, and more.
In conclusion, these top 10 software companies have undoubtedly shaped the technological landscape with their innovation, expertise, and dedication. With a collective history spanning decades, these companies have earned their positions through consistent excellence in software development, IT solutions, and cutting-edge technologies.
Each company brings its unique strengths to the table, catering to diverse industries and providing solutions that drive progress and efficiency. As we continue to move forward in the digital age, these companies stand as beacons of inspiration, showcasing what’s possible when technology meets vision. Whether it’s through software outsourcing, digital transformation, or groundbreaking advancements, these companies have left an indelible mark on the world of software, leaving us excited to see what they’ll achieve in the future.