{"id":16261,"date":"2024-05-20T08:39:47","date_gmt":"2024-05-20T01:39:47","guid":{"rendered":"https:\/\/secomm.vn\/?p=16261"},"modified":"2025-10-23T14:52:33","modified_gmt":"2025-10-23T07:52:33","slug":"it-outsourcing-in-vietnam","status":"publish","type":"post","link":"https:\/\/secomm.vn\/it-outsourcing-in-vietnam\/","title":{"rendered":"IT Outsourcing in Vietnam: Benefits and Challenges"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #2516c7;color:#2516c7\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #2516c7;color:#2516c7\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/secomm.vn\/it-outsourcing-in-vietnam\/#1_Overview_of_Vietnams_IT_Outsourcing_Sector\" >1. Overview of Vietnam\u2019s IT Outsourcing Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/secomm.vn\/it-outsourcing-in-vietnam\/#2_Evaluating_Opportunities_and_Challenges\" >2. Evaluating Opportunities and Challenges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/secomm.vn\/it-outsourcing-in-vietnam\/#A_Opportunities_in_Vietnams_IT_Outsourcing_Landscape\" >A. Opportunities in Vietnam&#8217;s IT Outsourcing Landscape<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/secomm.vn\/it-outsourcing-in-vietnam\/#B_The_Challenges_Coming_From_The_Workforce\" >B. The Challenges Coming From The Workforce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>IT outsourcing has become a prevalent strategy in today&#8217;s business landscape, offering several advantages such as cost savings, access to specialized expertise, and operational agility. For years, Vietnam has stood out as a prime destination for IT outsourcing due to its favorable business ecosystem, competitive labor costs, and government support.<\/p>\n<p>In this blog post, SECOMM explores why Vietnam is an ideal choice for businesses seeking to outsource their IT requirements. We\u2019ll delve into the country\u2019s strengths and potential drawbacks, providing valuable insights for decision-makers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_Overview_of_Vietnams_IT_Outsourcing_Sector\"><\/span><strong>1. Overview of Vietnam\u2019s IT Outsourcing Sector<a href=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-16263\" src=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector-1024x576.webp\" alt=\"Overview of Vietnam\u2019s IT Outsourcing Sector\" width=\"1020\" height=\"574\" srcset=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector-1024x576.webp 1024w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector-300x169.webp 300w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector-768x432.webp 768w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector-1536x864.webp 1536w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Overview-of-Vietnams-IT-Outsourcing-Sector.webp 1600w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/><\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Vietnam\u2019s dedication to advancing science and technology has led to a flourishing ICT market, valued at <a href=\"https:\/\/www.mordorintelligence.com\/industry-reports\/vietnam-ict-market\" target=\"_blank\" rel=\"noopener\">$7.7 billion<\/a> in 2021, with ongoing growth fueled by digital adoption in both the public and private sectors.<\/p>\n<p><strong>Macroeconomic Influence:<\/strong> Vietnam has emerged as one of the fastest-growing economies globally, buoyed by a stable political environment and government support for the IT industry. Furthermore, rising investments in cutting-edge technology and startup funding fuel the market&#8217;s expansion.<\/p>\n<p><strong>Strategic Focus:<\/strong> According to the <a href=\"https:\/\/www.trade.gov\/country-commercial-guides\/vietnam-information-and-communication-technologies\" target=\"_blank\" rel=\"noopener\">International Trade Administration<\/a>, the Vietnamese government recognizes Information and Communication Technology (ICT) as a pivotal industry and a driver of socio-economic progress. Additionally, Vietnam\u2019s commitment to core tech advancements is evident through significant investments in AI and cloud computing by the government and major companies.<\/p>\n<p>Due to the above elements, the IT outsourcing industry in Vietnam is growing rapidly with an impressive <a href=\"https:\/\/www.statista.com\/outlook\/tmo\/it-services\/it-outsourcing\/vietnam#key-players\" target=\"_blank\" rel=\"noopener\">annual growth rate of 16.38%<\/a> from 2024 to 2028, resulting in a substantial market volume of US$1,282.00 million by 2028.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Evaluating_Opportunities_and_Challenges\"><\/span><strong>2. Evaluating Opportunities and Challenges<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"A_Opportunities_in_Vietnams_IT_Outsourcing_Landscape\"><\/span><strong>A. Opportunities in Vietnam&#8217;s IT Outsourcing Landscape<a href=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-16264\" src=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape-1024x576.webp\" alt=\"Opportunities in Vietnam's IT Outsourcing Landscape\" width=\"1020\" height=\"574\" srcset=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape-1024x576.webp 1024w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape-300x169.webp 300w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape-768x432.webp 768w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape-1536x864.webp 1536w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/Opportunities-in-Vietnams-IT-Outsourcing-Landscape.webp 1600w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/><\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><strong>The Majority Of Developers Are Young And Tech-Savvy<\/strong><\/h4>\n<p>Around <a href=\"https:\/\/topdev.vn\/bao-cao-thi-truong-it-viet-nam-topdev-2023\" target=\"_blank\" rel=\"noopener\">56% of developers<\/a> fall within the 20 &#8211; 29 years age group, this number is expected to form about one-third of Vietnam\u2019s workforce by 2025.<\/p>\n<p>There are approximately 50,000 to 57,000 students who graduate in university IT programs annually. Due to this, Vietnam was ranked among the top 10 globally for IT graduates and the top 6 for quality software services. TopDev\u2019s 2023 report highlights that Vietnam\u2019s robust community of around <a href=\"https:\/\/topdev.vn\/bao-cao-thi-truong-it-viet-nam-topdev-2023\" target=\"_blank\" rel=\"noopener\">530,000 tech professionals<\/a> is well-suited to meet the varied demands of international businesses.<\/p>\n<p>Moreover, the Ministry of Education and Training manages IT education in Vietnam. Recent changes have allowed more flexibility in higher education institutions to encourage innovation. For instance, separate entrance exams for each institution have been eliminated, resulting in improved admission rates.<\/p>\n<h4><strong>Rising Cutting-Edge Technologies<\/strong><\/h4>\n<p>Cloud computing in Vietnam has grown at a <a href=\"https:\/\/www.vietnam-briefing.com\/news\/cloud-services-market-in-vietnam-opportunities-and-challenges.html\/\" target=\"_blank\" rel=\"noopener\">30% CAGR<\/a> recently, driven by robust IT infrastructure and data centers. This progress aligns with Vietnam\u2019s digital transformation agenda. Moreover, with the aim of data security, many Vietnamese companies prefer \u201cmake in Vietnam\u201d cloud computing services to foreign ones.<\/p>\n<p>Vietnam has also made strides in artificial intelligence readiness, moving from 55th to 39th globally. It ranks 9th in East Asia and 5th in ASEAN, with an <a href=\"https:\/\/opengovasia.com\/2024\/02\/15\/charting-vietnams-ai-trajectory-progress-and-ambitions\/\" target=\"_blank\" rel=\"noopener\">AI readiness score of 54.48<\/a>.<\/p>\n<h4><strong>Cost-Effectiveness<\/strong><\/h4>\n<p>In 2023, the average <a href=\"https:\/\/topdev.vn\/bao-cao-thi-truong-it-viet-nam-topdev-2023\" target=\"_blank\" rel=\"noopener\">monthly salary for developers<\/a> with fresher-level salaries at $514 and for director-level salaries at $2,680. Overall, the annual salary of a Vietnamese IT developer is <a href=\"https:\/\/www.glassdoor.com\/Salaries\/vietnam-it-salary-SRCH_IL.0,7_IN251_KO8,10.htm\" target=\"_blank\" rel=\"noopener\">$7,173<\/a>, which is incredibly low, it only amounts to nearly 25% of Chinese wages ($29.840) and around 35% of Indian wages ($20.464). These cost benefits, coupled with a commitment to high-quality workflows, are making Vietnam an increasingly popular choice for international organizations seeking dependable and affordable IT services.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"B_The_Challenges_Coming_From_The_Workforce\"><\/span><strong>B. The Challenges Coming From The Workforce<a href=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-16265\" src=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce-1024x576.webp\" alt=\"The Challenges Coming From The Workforce\" width=\"1020\" height=\"574\" srcset=\"https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce-1024x576.webp 1024w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce-300x169.webp 300w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce-768x432.webp 768w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce-1536x864.webp 1536w, https:\/\/secomm.vn\/wp-content\/uploads\/2024\/05\/The-Challenges-Coming-From-The-Workforce.webp 1600w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/><\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><strong>English Efficiency Level Is Not High Among Developers<\/strong><\/h4>\n<p>The IT sector\u2019s language requirements are becoming stricter, with over 9% of foreign companies seeking IT staff with professional English skills. The demand for English proficiency has shifted from a nice-to-have to a must-have. Although Vietnamese tech professionals have strong technical abilities and can communicate effectively, their English-speaking skills may not be as advanced as those in other ASEAN countries.<\/p>\n<p>In 2022, only <a href=\"https:\/\/topdev.vn\/bao-cao-thi-truong-it-viet-nam-topdev-2023\" target=\"_blank\" rel=\"noopener\">5% of Vietnam\u2019s workforce<\/a> was fluent in English, which is less than the fluency rates in Indonesia (10%), Malaysia (21%), and Thailand (27%). This has caused a challenge in the recruitment process for IT outsourcing that many skilled developers are getting denied due to their English level.<\/p>\n<h4><strong>The Lack Of Additional Skills Among Young Developers<\/strong><\/h4>\n<p>Additionally, the new generation of developers, mainly Gen Z, is experiencing a growing skills gap because of the fast-paced technological changes. Yet, an impressive <a href=\"https:\/\/www.pwc.com\/vn\/en\/publications\/2021\/pwc-vietnam-digital-readiness-genz-en.pdf\" target=\"_blank\" rel=\"noopener\">72% of them<\/a> are keen to learn digital skills, which is higher than the global average of 52%. This enthusiasm is a positive sign for the future, showing they understand the challenges and are ready to tackle them.<\/p>\n<p>Upon engaging with SECOMM, you will gain access to a dedicated IT team that meets standards in English proficiency and technical competency. Book your <a href=\"https:\/\/secomm.vn\/contact\/\"><strong>FREE consultation<\/strong><\/a> with SECOMM\u2019s experts today.<\/p>\n<p>Explore SECOMM\u2019s project: <strong>Assembling a Specialized Vietnamese IT Team for LandNow\u2019s Website Development<\/strong>.<\/p>\n<p><span style=\"font-size: 170%;\"><strong>3. To Sum Up!<\/strong><\/span><\/p>\n<p>Vietnam\u2019s IT outsourcing market has seen consistent growth, thanks to significant investments from both the government and foreign companies. If you\u2019re seeking an IT team provider in Vietnam, consider SECOMM. Their exceptional talent can drive innovation and elevate your business objectives. Reach out to <a href=\"https:\/\/secomm.vn\/contact\/\">SECOMM<\/a> at (+84) 28 7108 9908 to explore a partnership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IT outsourcing has become a prevalent strategy in today&#8217;s business landscape, offering several advantages such as cost savings, access to specialized expertise, and operational agility. For years, Vietnam has stood out as a prime destination for IT outsourcing due to its favorable business ecosystem, competitive labor costs, and government support. In this blog post, SECOMM&#8230;<\/p>\n","protected":false},"author":3,"featured_media":19851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[2678,2699,2656,2680],"class_list":["post-16261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-transformation","tag-it","tag-it-dedicated-team","tag-it-outsourcing","tag-outsourcing"],"acf":[],"_links":{"self":[{"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/posts\/16261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/comments?post=16261"}],"version-history":[{"count":2,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/posts\/16261\/revisions"}],"predecessor-version":[{"id":16272,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/posts\/16261\/revisions\/16272"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/media\/19851"}],"wp:attachment":[{"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/media?parent=16261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/categories?post=16261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/secomm.vn\/wp-json\/wp\/v2\/tags?post=16261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}