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Why Vietnam for Software Outsourcing & Offshore Development Centers

Publising Date

Author Name

Cesc Nguyen



Vietnam is quickly becoming one of the most sought after locations for software outsourcing and offshore development centers. With a highly competitive cost structure, an effective software development company, an ideal software development infrastructure and access to highly talented resources, it is no surprise that businesses are turning to Vietnam for their software needs.

Vietnam is often associated with the image of a war-torn country, but in reality, the country has undergone a massive transformation and is now a rapidly-growing IT and software development hub. The economy is growing at a rate of 7% annually, and the software industry is growing even faster. Outsourcing software and establishing offshore development centers in Vietnam can be an incredibly cost-effective option, as well as being highly efficient. Vietnamese developers are highly talented and creative, and can help to speed up the process of software development, as well as providing a high quality product. Additionally, businesses don’t need to build and provide their own infrastructure to facilitate software development, as there are already ample resources in the country.

Software outsourcing and offshore development centers are also great for businesses looking to save time in hiring and managing resources. All in all, Vietnam is increasingly becoming one of the most sought-after locations for software development.

Vietnam is ideal for IT and Software Outsourcing, but before we see whys, here is a brief on Software Outsourcing and Offshore Development Centers.

Software Outsourcing Vs Offshore Development Centers


Software Outsourcing is when an organization hires a third-party company or programmer to build the software for them.

Offshore Development Centers are software development companies or extended teams located deep in a developing country but brimming with an exalted pool of talent.

Advantages of Software Outsourcing and Offshore Development Centers

Cost Structure of Software Outsourcing in Vietnam:

Software Outsourcing and Offshore Development Centers, both models are highly cost-efficient and are far better than in-house development. But Offshore Development Center tends to be economical in comparison.

Highly Effective Software Development Companies:

Offshore Development Centers in Vietnam go the extra mile to deliver what was promised. Further, a team of highly creative and talented Vietnamese developers builds your project; allowing more room for innovation and increasing quality.

The Software Development Companies also manage to complete the projects at an increased pace while retaining the superior and promised quality.

Ideal Software Development Infrastructure:

One of the main advantages of Outsourcing Software Development is that you don’t have to build and provide the infrastructure to facilitate project development.

With offshore IT Development Centers in Vietnam, you might forget the infrastructure and save yourself a fortune.

Hiring and Managing Resources:

To hire, organize, and manage project development, you need to spend a lot of time. It might require more resources just to manage the hired developers. But Software Outsourcing allows you to channel your energy into strategy and business development.

With dedicated Vietnamese Developers working as your extended hand in software development, you can rest assured of the software standard and delivery.

The global IT outsourcing market was valued at USD 318.5 billion in 2020, and it is expected to reach USD 425.19 billion by 2026, registering a CAGR of 4.5%, during the forecast period (2021 - 2026)

Software Development Outsourcing Models

If you have decided to outsource your software development, there are three major development models you should know about:

Fixed Price Model for Outsourcing IT Software Development

In the Fixed Price Model, you give your outsourcing partner the requirements of the software. That is, the programming languages to use to build the software, must-have functionalities, the timeline, budget and every aspect of the software and business.

If the software development company finds it suitable to work on the project, after the negotiation, they proceed to build the software.

The highlight of the model is that you have a fixed price to pay for the project, and you can plan your budget accordingly.

A fixed Price Model is ideal if you know what your end product will look like; changes during development may result in additional charges.

Time and Materials Model for Outsourcing IT Software Development

In Time and Materials Model, you give your outsourcing service provider a detailed description of the project and they proceed with the development. Unlike the Fixed Price Model where the structure is too rigid to bring changes to the initial agreement, the Time and Material Model gives you flexibility both in the project development and the cost.

The model is especially ideal if the specifications for the software are not completely determined. That is, if the market requirement changes when the software is being developed, you can request changes at any time during the development.

With Time and Materials Model, you are open to what was agreed upon and the project can go on as long as it has to. The cost structure is mostly monthly and based on the time spent on Software Development.

Dedicated Team Model for Outsourcing IT Software Development

In the dedicated Development Team Model, your outsourcing service provider puts together a team of developers and dedicates them to your software development.

The dedicated Development Team model allows you to manage the development without any intermediary.

This model is especially perfect if you want to control the course of development. You can directly communicate with the team, oversee the development, and determine the milestones. But this doesn’t mean you have to do everything either; you can also request your outsourcing service provider for a project manager.

The Dedicated Development Team Model is also flexible and allows you to make changes as required while giving you a predictable budget: team members’ salary + service provider’s fee.

Why Vietnam for Software Outsourcing?

Outsourcing Software Development Companies Vietnam

  1. Cost-Effective

  2. Access to Qualified Talent

  3. Proximity to Major Markets

  4. Government Support

  5. Infrastructure

Vietnam is a growing IT hub and has just crossed its nascent stage. The country has more room for growth and tremendous potential to make that happen. One of the major advantages of outsourcing Software Development to Vietnamese Companies is the cost.

Software Development Companies in Vietnam, although brimming with exceptional talent, probably have the lowest prices compared to countries like the US, Canada, Australia, UAE, Sweden, Switzerland, and Europe countries.

Vietnamese Software developers are also highly enthusiastic about technology and innovation. Vietnam is still a fresh region with a lot of innovative capabilities and much of it is yet to come out.

Contrary to the popular belief that anything of low cost is of low quality, Vietnam Software Development Companies ensure that their products are top-notch when they come out of development.

Software Outsourcing Cost: Vietnam offers a competitive cost advantage in software outsourcing services. The cost of designers and app developers in Vietnam is lower than in US, Europe and Australia, which makes it an attractive option for businesses looking to outsource software development projects.

Why Vietnam is the Right Choice for Offshore Development Centers?

One of the major setbacks in choosing offshore Development Centers for your project is that companies working in remote regions cannot communicate effectively with their clients.

But that’s not the case for offshore Development Centers in Vietnam. 60% of the population in Vietnam is below 30 years old and more than 25000 eligible engineers graduate from college every year.

Not to mention, the government of Vietnam is highly supportive of technological growth and promotes its economy for foreign investments.

But not all of the technical advantages and monetary benefits of Vietnam Offshore Development Centers are leveraged for business advancements. In fact, for potential Vietnamese developers, it is quite underused and now might be the right time to analyze the country’s Software Development Companies and Centers.

Mistakes to Avoid When Outsourcing Software Development

Research the Software Development Outsourcing Companies

The only way to know is to identify a capable software Development Company for Outsourcingby by their portfolio and previous projects. Ensure that the companies understand your domain and that their portfolio should speak for them. Know what they specialize in, what makes them stand out, and what they can give to improve your business.

You can look into the feedback and ratings to know the authenticity and ingenuity of the company. It will also help you understand the approach of the company and how good they are at delivering what they promise.

Communicate and Convey Everything That Your Business Needs

The most crucial aspect for software Development Outsourcing and ODCs to succeed effective communication.

Don’t leave anything for judgment and eliminate the ambiguity in your requirement. Speak out for what you want so that you can also understand the company better and know if they can deliver the software for you.

Staying Updated with New Technology and Trends

The Software Development Company should stays updated with the current development of technologies. Choosing proven but archaic technologies for software development may sound promising at the moment, but in the long term, you will not be able to upgrade your software with new functionalities and it may cost you a fortune to migrate.

TheOutsourcing Company should also is well versed in advanced data science trends like blockchain, Artificial Intelligence (AI), Machine Learning (ML), and Bot Development Solutions to to create an application that will boost your business even in the future.

How to Find the Best Offshore Development Services Provider in Vietnam?

How to Find the Best Offshore Development Services Provider in Vietnam?

The information age has no shortage of information. You can find the best Offshore IT Development Services Provider with a simple search on the search engines.

There are a good number of listings that detail and rate the software Development Companies and Offshore Development Services Providers in Vietnam.

And there are websites dedicated to summarising the functionalities and the domain of the companies to help people to identify suitable companies for them.

Ex: Top Outsourcing Development Company

How Relia Software is Helping Its Clients with ODCs?

Relia Software has incorporated app developers, UX design specialists, and experts of various domains to equip its clients with power-packed solutions to boost their businesses. Relia Software’s developers have complete mastery over the following tech stack:

Mobile: iOS, Android, ReactNative, Flutter

Backend: Python, Java, DotNet, Go, Nodejs, Ruby on Rails, Golang, .NET, PHP, AWS

Frontend: ReactJS, Angular, Vue.js, Next.js, ExpressJS

It doesn’t end there. Relia Software completely understands and delivers uniquely tailored solutions involving advanced data science technologies like blockchain, Machine Learning, and Bot Development.

Wrapping Up

Software Development Outsourcing and Offshore IT Development Centers offer a cost-effective yet standard alternative for businesses to thrive in the industry. It levels the field and allows startups, SMBs and Enterprises to compete with the likes of industrial leaders.

But before deciding on the Outsourcing Software Development Company, we urge you to analyze the service provider and their portfolio for the right development that will help your business grow.



  • outsourcing

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