Over the past few years, Asia has emerged as the most dynamic region in the world. Along with the breathtaking economic growth rate, the access to technological advancements of Asian people has reached a new high. Many companies from highly-developed countries come to Asia to seek software outsourcing solutions. And here are the top 3 countries for software outsourcing in Asia.
Vietnam is continuously growing to be one of the most prominent countries in the software development industry, especially in the outsourcing business. Vietnam has become one of the front runners in the Asia software outsourcing race thanks to two factors: socio-economic conditions and outstanding IT resources.
Favorable conditions for software outsourcing
Over the past years, Vietnam has continuously improved its socio-economic standing in the world. Vietnam’s government has issued many policies that boost economic growth, encourage education, favor IT development, and make favorable conditions for foreign companies and investors. Vietnam is definitely an ideal option for any company seeking IT outsourcing teams.
According to Gartner, a US technological research and consulting firm, Vietnam is an Asia Tier 1 emerging market, among the top 5 Global locations for Offshore outsourcing services.
Vietnam ranks 3 in global offshoring hotspots and ranks 1 in competitive cost in Tower Watson’s Services Offshoring Ranking.
Vietnam ranked 1 in pioneering location and cost environment (Cushman & Wakefield business process outsourcing and shaped service location index, 2016-2017).
Vietnam is an offshoring destination most preferred by Japanese companies (Resorz Co., Ltd, 2016).
Vietnam also ranked 9 out of 50 Top Digital Nations all over the world which increased four ranks compared to 2019, according to Tholons Services Globalization Index 2020.
You are probably surprised to hear that Vietnam is one of the most connected countries in the world (According to World Bank, 2021), where fixed broadband internet service speed reached 68.50Mbps..
Large IT talent pool for the software industry
Vietnam is in the top 10 countries with the most engineering graduates (Research of World Economic Forum on 128 countries (Forbes).
Nearly 130,000 Vietnamese students are studying abroad: 6th in the USA, 5rd in Australia, and 2nd in Japan.
The technology skills of Vietnam ranked second in the Asia Pacific and 22nd globally (Coursera’s Global Skills Index 2020).
If you are seeking an IT outsourcing company in Vietnam, here are some brand names for you to consider: Luvina Software (nearly 800 IT talents with over 17 years of experience), CMC global, NashTech.
India – The Godfather of the Software Outsourcing Game
According to various organizations such as Deloitte, Nasscom, etc., India remains the top choice for software outsourcing in Asia. 59 out of 100 companies asked by Deloitte have said that they are outsourcing or had the experience of working with an Indian software development vendor. Furthermore, 22% of the participants said they are considering developing their product in this country.
India is a top destination for offshore software development. According to OurStockPick, In 2018, India’s high market share in the global services sourcing industry stood at 56%. This was the highest in the world.
The Indian IT industry aims to touch USD 350 Billion in revenue by 2025 compared to USD 150+Billion currently. Also, India still leads in terms of software developer base and has the fastest growing concentration of software developers worldwide.
Recent statistics show India has become one of the top investment destinations in the IT industry, with a 55% share in outsourcing.
With the cut-throat competition within the country and overseas, the top software development firms in India consistently provide high-quality software solutions.
India also has high ISO-certified firms. So if you are interested in the best price and the highest quality, India is not the wrong choice.
The low development costs arise from the fact that wages in India are much lower than that of the US or Europe. This can somewhat be attributed to blended development, in which there are hierarchical layers of developers based on their skills and experience.
Thailand – The Hidden Dragon
This Southeast Asian country is considered one of the top locations for various IT-related industries, and it’s a stable economy with a well-organized infrastructure.
It is worth noticing that most large corporations and SMEs are struggling to increase their design and engineering capability. The workforce is young, productive, and abundant. According to a Springer report, Thai firms have developed without a long-term focus on their technical abilities. Their technological learning has been prolonged and passive compared to other countries.
But don’t worry about that! Thailand still offers affordable costs when it comes to software outsourcing in Asia. The salary for an intermediate developer in Thailand is only one-fifth of what their US counterparts earn. And the salary for an experienced project manager is only one-third of that in the US. Furthermore, the talent pool in this country is unique, there are also expats from every corner of the Globe working with the locals for a living. So you can combine Thai and foreign talents for your outsourcing projects.