Recently, Southeast Asia in general, and Thailand in particular have become prime locations in the global IT outsourcing market. With reasonable costs, a skilled workforce, and a strategic location, IT outsourcing to Thailand offers businesses strong advantages along with unique challenges.

If you are considering the Thai market for IT sourcing services, read on to explore the benefits and limitations of partnering with Thai IT outsourcing companies.  In this article, we will highlight the top 5 quality IT outsourcing companies in Thailand that you can partner with for long-term success.

Benefits of IT Outsourcing to Thailand

Thailand’s IT sector is rapidly growing and attracting many foreign investors. IT outsourcing to Thailand is now considered among the highest quality in Southeast Asia. By partnering with IT outsourcing companies in Thailand, businesses can gain several notable benefits.

1. Cost savings

Competitive costs are one of the key factors that make IT outsourcing to Thailand stand out compared to other countries. These costs include labor, living, and service expenses. For example, a junior developer in Thailand with 1 to 4 years of experience will have a salary that is only 1/5 of a similar position in the United States.

In Thailand, lower labor and operational costs compared to many other countries allow businesses to develop software at more affordable rates. Companies can use these savings for other tasks, such as hiring experienced project managers, marketing, and further software development. However, lower costs do not mean a drop in quality. When using IT outsourcing services in Thailand, you can be confident in the quality provided by the outsourcing team you partner with.

2. Skilled workforce

Currently, the number of highly skilled software developers and engineers in Thailand is comparable to any other country in the region. These professionals are graduates from reputable universities and possess solid expertise, skills, and technical knowledge. By working with Thailand’s skilled workforce, the quality of your project will be assured.

3. Strategic location

Thailand’s strategic location makes it an ideal destination for businesses in the Asia-Pacific region as well as those in the Western Hemisphere seeking an ideal IT outsourcing team. For these countries, Thailand’s location is convenient for travel, and the time zone difference is relatively favorable.

4. Rapid and Stable Economic Growth

Thailand is currently considered one of the ideal Southeast Asian countries for investment and business expansion, thanks to its well-developed economy. In just 40 years, Thailand has transformed from a low-income country to a middle-income one. This achievement is due to the progressive economic policies of the Thai government. This economic environment allows Thailand to focus on economic development and create favorable conditions for investment and legal reforms.

5. Priority for technology and automation

Thailand views its future economy as being driven by automation and high technology. Consequently, the government has invested heavily in developing smart cities, training the workforce, and building modern logistics systems. This technological priority has contributed to the growth of IT outsourcing to Thailand, both in terms of quantity and quality.

6. Cultural compatibility

Thai culture is more compatible with Western business practices than many other Asian countries. This makes it easier for foreign businesses to establish working relationships and collaborate with IT outsourcing companies in Thailand.

Challenges in Implementing IT Outsourcing in Thailand

It’s undeniable that IT outsourcing to Thailand offers many competitive advantages, making it an ideal destination for foreign businesses seeking high-quality outsourcing teams. However, alongside these significant benefits, IT outsourcing in Thailand also presents several challenges for businesses. Among them, some major challenges include:

1. Language barrier

In the English proficiency index, Thailand ranks 89th out of 100 countries. While English is quite commonly used among the Thai population, it’s often not proficient enough for high-level professional conversations and tasks. There are still certain language barriers during work processes, especially when conveying project requirements. Therefore, if you plan to use IT outsourcing to Thailand, it’s important to establish clear communication channels and have a manager who can help overcome these language barriers to ensure effective collaboration and work.

2. Limited experience in complex projects

Thai IT outsourcing companies have extensive experience in project execution, but mostly in small and simple projects. They often face limitations when dealing with complex projects of larger scale that require advanced technical expertise.

3. Insufficient attention to intellectual property (IP) rights

Despite the Thai government’s efforts to strengthen IP laws and enforcement, intellectual property rights in the country are still not adequately prioritized. To protect their IP rights, businesses need to take necessary preventive measures when using the service of IT outsourcing Thailand.

4. Limited talent pool

It’s undeniable that the skilled workforce in Thailand’s IT sector is rapidly expanding. However, compared to larger software outsourcing destinations like India or China, the number of experienced professionals in Thailand remains relatively low. Therefore, businesses may encounter difficulties in finding suitable partners for outsourcing projects.

5. Data security concerns

Cybercrime is a significant issue in Thailand, with a considerable percentage of software installations being unlicensed, according to the 2018 Global Software Survey by BSA. This contributes to concerns among foreign businesses expanding into Thailand or utilizing IT outsourcing services there.

Currently, the Thai government is prioritizing the introduction of data protection laws, which is a positive signal for the future of the IT sector in Thailand.

6. Infrastructure and connectivity issues

Despite significant progress in improving infrastructure and internet connectivity, Thailand still faces challenges with internet speed. This issue can potentially impact communication and project implementation processes.

>> Related: IT Outsourcing in Indonesia

Top 5 IT Outsourcing Companies in Thailand

Although there are still many challenges, it cannot be denied that the market for IT outsourcing to Thailand has potential for development, with several reliable companies earning trust from clients worldwide. Here are the top 5 IT outsourcing companies in Thailand that are currently highly rated:

1. Suzaku Productions Co., Ltd.

Founded in 2014, Suzaku Productions is a company specializing in providing web design solutions with approximately 100 employees. Despite being a French company, Suzaku Productions is headquartered in Bangkok, Thailand, making it one of the prominent IT outsourcing firms in Thailand.

They excel in maintaining excellent communication with clients, always listening and supporting to ensure the highest satisfaction from projects. This IT outsourcing Thailand company boasts a team of specialists fluent in multiple languages, such as English, French, Italian, and Thai, facilitating easy communication, exchange of ideas, and finding suitable solutions for clients.

2. Hire Quality Software Co., Ltd.

Hire Quality Software specializes in IT outsourcing to Thailand for numerous foreign corporations. Established in 2020 with 50 employees, the company helps clients assess challenges and find the most suitable solutions for their needs.

The target market of Hire Quality Software includes the Asia-Pacific region, ASEAN, and Southeast Asia. With competitively priced services such as software design, software maintenance, automated testing, and custom software development, Hire Quality Software confidently aims to meet the needs of businesses better than any other competitor in the market.

3. Outsourcify

Based in Bangkok, Outsourcify is one of the most reputable companies in IT outsourcing Thailand, with extensive experience serving clients across various industries such as tourism, hospitality, and e-commerce. They specialize in web development, mobile application development, and e-commerce solutions. 

The company boasts an international team of over 30 members from countries worldwide including France, Germany, Finland, Thailand, and Myanmar, among others. This diversity enables Outsourcify to excel globally and maintain seamless communication with international clients.

4. FOURDIGIT Inc.

FOURDIGIT owns a team of 50 to 250 high-level IT professionals ready to support your business throughout your entire project. Established in 2001, the company has continuously provided advanced technology and digital solutions to clients worldwide, with Thailand being just one of its many global offices.

With excellent communication skills and experience across diverse projects, this company in IT outsourcing Thailand consistently aims to deliver the highest results for clients. Currently, the company offers various services, focusing primarily on digital design and marketing.

4. Luvina Software

Luvina, despite being headquartered in Vietnam, offers dedicated support to clients from the Asia-Pacific region (including Thailand). Over the past 20 years, Luvina has provided advanced technical solutions for numerous enterprises. The company continues to innovate daily to deliver the most cost-effective solutions and the utmost clients’ satisfaction.

Currently, Luvina provides IT outsourcing services encompassing a wide range of solutions such as software development, software maintenance, UX/UI design, mobile app development, and more. With a team of over 800 skilled IT professionals, Luvina has successfully supported thousands of projects. Clients can expect the highest service quality, validated by ISO 9001 and CMMI Level 3 certifications. 

Particularly, Luvina boasts robust infrastructure ensuring data security and has proficient English and Japanese-speaking specialists available 24/7 to maintain seamless communication with clients. If you are seeking a partner in IT outsourcing to Thailand, Luvina stands out as a name not to be overlooked.

>> Related: Top 7 IT Outsourcing Companies in Vietnam

Final thoughts

With a booming software outsourcing industry, Thailand is becoming an ideal destination for businesses seeking high-quality solutions at cost-effective rates. Understanding the advantages and disadvantages of using IT outsourcing services in Thailand, along with the top 5 quality IT outsourcing companies mentioned here, we hope you now understand the benefits you can achieve and the challenges you may face when using outsourcing services in this country. 

By carefully weighing the benefits and limitations, your business can leverage the unique advantages of this market and build strong relationships with the companies in IT outsourcing to Thailand. If you have any questions regarding IT outsourcing services, please feel free to contact us for further clarification.