Since the Covid-19 pandemic hit the earth and completely changed how we run business across the globe, IT outsourcing seems to be boosted to develop by storm. In the new normal, countries that stand well against the pandemic definitely gain a competitive edge over others to rise and dominate the market, and Vietnam is one of them. Among the top IT outsourcing destinations, Vietnam makes a great candidate. Let's figure out whether Vietnam is the optimal option for outsourcing IT needs or not.

What is IT outsourcing?

IT outsourcing is the practice of hiring external vendors to manage and implement IT services. Organizations outsource software development to reduce expenses, boost efficiency, and increase their competitive edge. Common examples include software development, cloud computing, hardware installation and maintenance, network security, database management, and mobile app development. By offloading these tasks to skilled professionals abroad, companies are able to gain access to world-class technology and talent at a fraction of the cost. In recent years, IT outsourcing has become increasingly popular due to its numerous benefits, such as access to innovative technology, cost savings, scalability, flexible working arrangements, and more. As such, countries like Vietnam have become attractive destinations for IT outsourcing.

Different types of IT outsourcing services can be grouped together in order to meet specific organizational needs. For example, managed IT services allow businesses to outsource the management and maintenance of their infrastructure and applications. This option is good for organizations that need ongoing support but lack the internal resources or expertise to provide it. Managed service providers can also manage aspects such as network security, patch management, data backup, and disaster recovery. Cloud services are another form of IT outsourcing in which companies rely on third-party providers to host their applications and store their data in the cloud. This option allows organizations to access their software and data from any device with an internet connection. It also eliminates the need for costly in-house hardware and software investments. Finally, organizations can outsource software development and programming tasks to specialized IT service providers. These providers have the expertise and resources to create custom applications that are tailored to a client's unique needs. By leveraging these types of services, businesses can ensure they remain competitive in an ever-changing IT landscape. 

Top 10 reasons why Vietnam becomes one of the best destinations for IT outsourcing

Obviously, there are good reasons why Vietnam has become the IT hotspot in Asia-Pacific, and here they are:

(Photo : Top 10 reasons why Vietnam becomes one of the best destinations for IT outsourcing)

• Cost Advantage: Vietnam offers significant cost advantages when compared to other outsourcing destinations. The country's comparatively low wages, access to high-quality resources, and efficient working methods make it a compelling destination for IT Outsourcing. Additionally, there are no taxes on foreign-sourced profits, which makes the total cost of IT services significantly lower than in other countries.

• Quality of Services: Vietnamese IT professionals are known for their strong technical skills and ability to deliver high-quality outsourcing services. With a well-educated workforce, Vietnam has been successful in attracting global clients who require reliable IT services. The country is also quickly adapting to new technologies and trends, which adds more value to the services available.

• Government Support: The Vietnamese government is actively encouraging the growth of IT outsourcing in the country by providing incentives for companies and individuals to invest in the industry. This has resulted in an abundance of support from the public sector, making it easier for companies and entrepreneurs to take advantage of Vietnam's potential as an IT services hub. Additionally, the government provides various tax benefits, which further add to the cost-effectiveness of outsourcing in Vietnam. 

• Young and dynamic IT workforce: Vietnam has a young and dynamic IT workforce that is highly skilled but also eager to learn new technologies. Their enthusiasm for learning new skills has made them attractive to foreign companies looking to outsource their IT services.

• Flexible Working Arrangements: Vietnam offers various working arrangements, such as full-time, part-time, or contract-based outsourcing. This flexibility makes it easier for customers to find the best arrangement for their needs without having to compromise on cost or quality of service. 

• Modern Infrastructure: Vietnam's infrastructure is modern and well-developed, providing access to high-speed internet and other communication facilities essential for successful outsourcing.

• English Competency: The English proficiency of Vietnamese IT professionals is quite high compared to other countries in the region. This makes it easier for companies to communicate with their offshore teams and collaborate on projects in a timely manner.

• Cultural Compatibility: Vietnam is culturally compatible with many Western countries, making it easy for customers to establish trust and confidence in their outsourcing partners. This helps ensure successful collaborations and smooth communication between different parties involved in the process.

• Time Zone Difference: The time zone difference between Vietnam and other popular outsourcing destinations makes it easier for clients to manage their resources. By taking advantage of this difference, clients can have access to services 24/7, which aids in improving efficiency and productivity. 

• Robust Legal Framework: Vietnam has a robust legal framework that protects all parties involved in IT outsourcing from any potential risks associated with the transactions. This helps to ensure that the agreements between customers and service providers are honored and upheld.

• Strong Market Position: With a growing number of global companies outsourcing their IT requirements to Vietnam, the country is quickly establishing itself as one of the most attractive destinations for IT services. This has resulted in increased competition among local service providers, which leads to improved quality at lower costs. 

• Social stability: Vietnam is a relatively stable country with low levels of corruption, making it an attractive destination for outsourcing services. This stability provides companies with a greater degree of assurance that their investments will be secure and successful. 

Overall, Vietnam offers numerous advantages that make it a prime destination for IT outsourcing. It offers cost-effective solutions with high-quality services, government incentives, and a culturally compatible environment that encourages successful collaborations between clients and service providers. Additionally, its modern infrastructure, English proficiency levels, time zone difference, legal framework, and growing market position add further value to this attractive outsourcing destination. Therefore, companies looking to outsource their IT services should consider Vietnam as a viable option.