Why is Vietnam an ideal destination for IT outsourcing?

NAPA Insights
| 06/12/2022
Offshore Development
Software Outsourcing
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Vietnam has been considered a destination for information technology development for nearly 20 years. In fact, outsourcing in Vietnam is being recognized as a cost-effective and high-quality IT solution in Asia.

Vietnam has been considered a destination for information technology development for nearly 20 years. In fact, outsourcing in Vietnam is being recognized as a cost-effective and high-quality IT solution in Asia.

In the face of the great development of technology and the need for digital transformation in Industry 4.0, outsourcing is becoming an effective strategy for businesses to accelerate. And recently, it has exploded as a global trend.

Throughout the years, Vietnam has put a lot of work into fostering the growth of the high-tech sector and attracting international service businesses. In fact, in the past 20 years, IT outsourcing activities have made Vietnam's information technology more well-known, giving domestic IT businesses the chance to keep up with cutting-edge technological trends.

The reason that businesses all around the world are using outsourcing as one of their ultimate answers is that they all want to lower operational expenses and boost profits from their operations. Also, the outsourcing industry is less impacted by economic downturns and societal problems like the most recent COVID-19 outbreak than other industries.

Vietnam is being recognized as a cost-effective and high-quality IT solution in Asia

Vietnam is being recognized as a cost-effective and high-quality IT solution in Asia

Outsourcing also helps businesses reduce other unnecessary costs and project quality management is more assured. Software development companies do not need all the programmers working on the same project to be in the same location as they can easily share their progress and update through the internet.

While outsourcing benefits corporations by generating enormous profits, it also helps to increase employment in developing nations. It can be said that software outsourcing is a strategic industry for many IT companies in Vietnam today.

What are the advantages that Vietnam possesses?

The IT sector in Vietnam has advanced significantly in recent years, emerging as a crucial sector of the nation's infrastructure for socioeconomic growth and as a cutting-edge approach to boosting competitiveness on a global scale. In both Asia and the rest of the globe, Vietnam is currently regarded as a growing technology hub with around 1 million people working in the IT sector, including about 250,000 programmers.

From its agricultural roots, Vietnam's economy has undergone a significant transformation. Vietnam entered the World Trade Organization (WTO) in 2007 as a nation without political unrest and with a stable & expanding economy. Since then, the government has worked hard to attract foreign investment, which has boosted economic growth.

Vietnam is currently regarded as a growing technology hub with around 1 million people working in the IT sector

Vietnam is currently regarded as a growing technology hub with around 1 million people working in the IT sector

Vietnam is seen by Forbes as a rising star in the IT outsourcing industry. A highly adaptable approach toward work and technology is what global corporations observe when they visit Vietnam.

Most of those firms agree that Vietnamese technologists are able to challenge the status quo and develop novel ideas while feeling at ease working with a worldwide network of clients. As a result, Vietnamese engineers are likely to be hired by multinational technology organizations. 

That’s why the Vietnam IT sector is consistently rated as one of the most labor-intensive industries. The development of these human resources is a top goal in the Government of Vietnam's digital transformation plan.

Vietnamese workers are frequently seen as being highly devoted to the companies they work for

Vietnamese workers are frequently seen as being highly devoted to the companies they work for

From the angle of education, English instruction has received a lot of attention in the past 20 years from Vietnamese educational institutions because it is currently the language for worldwide communication. There are around 40,000 fresh graduates – from nearly 300 IT Institutions in Vietnam – who start working in the field of information and communication technology every year.

One factor that is said to be favorable for IT development in that stage is that Vietnamese workers are frequently seen as being extremely devoted to the companies they work for. They frequently prefer to work locally and show loyalty to the businesses in which they are employed. Additionally, hiring a developer in Vietnam is substantially less expensive than hiring one in the US, Europe, or another region like India or China.

Since cutting costs is the primary objective of outsourcing, and since Vietnamese IT talent has been recognized, this is a winning combination for businesses looking to outsource with superior personnel and at a reduced cost.

NAPA - One of the Leading Offshore Software Development Companies in Vietnam

NAPA is one of the companies in Da Nang of Vietnam that specializes in the development of software products and IT solutions. Dedicated to delivering outstanding offshore software development, IT outsourcing, and consulting services, we have a mission of providing top-quality services and bridging the gap in technologies and IT staff shortages for software projects worldwide.

Offshore Software Development is the process of hiring a company or a team to build software outside of your home country

Offshore Software Development is the process of hiring a company or a team to build software outside of your home country

At NAPA, we provide complete offshore software development lifecycle services that are tailored to your company's requirements. Our top-notch specialists cover the whole process of software development from analysis of customer requirements to design, implementation testing, successful deployment, and maintenance as follows:

Analysis and Planning

This stage is critical in ensuring the project development is in the right direction to achieve the set goals and requirements of stakeholders. Our skilled business analysts will assist you in identifying business challenges through in-depth investigation and gathering both technical and non-technical information.

When the requirements have been clearly defined, NAPA’s professional business analysts, technical architects, software engineers, and project managers work with the business stakeholders and domain experts for the detailed specifications and planning of the projects so that the project goals can be achieved in a timely manner.

Software Design

Based on the requirements and specifications, we prepare the system and software design to define the whole IT system architecture. This phase specifies the architectural design, system requirements as well as configurations, data structure, etc. allowing the team to follow throughout the entire development process.

It also involves the creation of design details like the functional logic, interface details, or a prototype before development begins. At this phase, NAPA's UX/UI designs are involved in creating intuitive layouts, improving customer engagement, and ensuring a smooth workflow throughout the entire development process.

Development

This phase usually takes most of the time and resources of the entire development process. Our front-end developers build the end-user interface and back-end developers work on the server-side programming and handle database requirements.

NAPA is proud to be a one-stop shop for offshore software development and outsourcing services from Web & Mobile Application Development to AI Solutions, Blockchain Solutions, and Embedded Systems, ranging in complexity levels across various industries and tailored to your business's needs.

Quality Assurance and Testing

In different phases of the project, QA and testing processes vary in size, type, and complexity: manual testing checks user-friendliness and customer experience, automated testing improves integration and continuous delivery, and end-to-end testing maintains product consistency.

All implemented features will be thoroughly tested, particularly the integration of third-party services such as payment gateways, reporting tools, saving platforms, cloud storage, and so on. Our QA and testing ensure that there is no omission in the client's specifications and no bugs for seamless operation and user experience.

Integration & Deployment

We integrate the software with customers' databases and environments, allowing the system to exchange and synchronize data to support seamless communication and connection between two or more software applications.

After being thoroughly tested, the software will be deployed onto the production environment and delivered to the customers. Beta testing can be done to gain feedback from end-users, ensuring the software perform smoothly on a large scale.

Maintenance and Update

Once the applications go live, we constantly maintain performance, provide new updates, and enhance functionalities for products throughout their lifecycle to guarantee their long-term sustainability.

As your business evolves, we keep supporting you and adapting the software to new business requirements quickly and effectively. Working with the latest technologies, our experts support you in reaching your business goals and keeping your companies stay on the competitive edge.

In short, business cost savings are the main advantage of outsourcing services. In order for firms to better concentrate on their company objectives, using external IT personnel will assist save a significant amount of money and resources.

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