Why Vietnam is the best place to outsource your software development

Developing your software can give you a strategic advantage in your business. For many, it is the most crucial element of their business model. So why not outsource software development?

Finding the right software developer is not an easy process. For many companies, they start the immediate search within their own country, thinking it will be easier to work with someone who knows the language and culture.

But for developed countries like Australia, that means you are paying a premium cost to have a project done that could easily be replicated offshore, for up to a fraction of the price.

Seeking talented software developers around the world gives you the chance to discover countries like Vietnam, where labour costs are 90% cheaper than the US, 50% less than China and even 30% lower than India, which means more funds for software development.

In fact, MarketsInsider placed Vietnam as the fifth best country to outsource to just a few years back.

Vietnam’s rapidly growing tech industry, fuelled by a young, educated workforce and government support, makes it an attractive destination for software outsourcing.


outsource software development


Cost effective labour

 According to Forbes, Vietnam has overtaken other popular BPO locations, primarily China, to become the next IT hotspot in Asia-Pacific. Notably, compared to Chinese developers, who charge about $20 to $50 per hour, Vietnamese developers provide more affordable hourly rates ranging from $14 to $40. These figures are convincing enough to place Vietnam as the top future contender to outsource software development.


outsource software development


The Australian comparison

It was only last year that the National Skills Commission added 10 more IT-related occupations to its list of skills facing national shortages, once again highlighting the need to train more technology talent in Australia.

Most of the IT-related Australian and New Zealand Standard Classification of Occupations (ANZSCO) jobs now have either recognised national shortages or are expected to see strong future demand with cyber security professionals and software engineers especially in-demand.

A shrinking talent pool in Australia means that wages and salaries will only escalate and that combined with an inevitable delay in your project, means options such as Vietnam become more viable by the day.

Candidates in Australia will show little company loyalty when they are in demand as they can get bigger salaries and hourly rates with ease meaning your IT software project may not even get finished or you will have to deal with many different personnel changes along the way, causing frustration and potentially mixed messaging.


outsource software development


Vietnam Government investment

Furthermore, Vietnam is only three hours behind the eastern states of Australia in winter, no different to dealing with Western Australia through six months of daylight saving. This makes it easy to do business.

The Vietnamese Government has implemented policies to attract foreign investment and support the development of the tech industry, including tax incentives, streamlined business registration, and the establishment of high-tech parks.

Vietnam’s software development industry is home to a large pool of talented developers with expertise in a wide range of programming languages and technologies, offering a diverse set of skills to clients seeking to outsource software development services.


If you’re interested in learning more then download “Your guide to integrating an outsourced Software development team into your business” now.



6 Issues to consider before outsourcing your software development

Just how good are Vietnamese software developers?

Frequently Asked Questions(FAQ)

Given the cost-effectiveness of outsourcing software development to countries like Vietnam, what specific advantages does Vietnam offer in terms of labor costs compared to other popular outsourcing destinations such as China and India?

Vietnam offers significant advantages in labor costs compared to other popular outsourcing destinations. For example, Vietnamese developers typically charge hourly rates ranging from $14 to $40, which is notably lower than rates in China and India. This cost-effectiveness allows businesses to allocate more funds towards software development while still receiving high-quality services.

With the increasing demand for IT-related skills and the shortage of technology talent in Australia, how does outsourcing software development to Vietnam address the challenges of talent scarcity and escalating wages in the Australian market?

Outsourcing software development to Vietnam addresses the challenges of talent scarcity and escalating wages in the Australian market in several ways. Firstly, it provides access to a large pool of talented developers at competitive rates, mitigating the impact of talent shortages in Australia. Additionally, outsourcing to Vietnam offers a solution to the issue of employee turnover and instability in the workforce, which can be prevalent in markets with high demand for IT professionals.

In what ways do the Vietnamese government's policies and incentives for foreign investment contribute to making Vietnam an attractive destination for outsourcing software development, and how do these measures support the growth and development of the tech industry in Vietnam?

The Vietnamese government’s policies and incentives play a crucial role in making Vietnam an attractive destination for outsourcing software development. These measures include tax incentives, streamlined business registration processes, and the establishment of high-tech parks. By implementing these initiatives, the government aims to attract foreign investment and support the growth of the tech industry, fostering an environment conducive to outsourcing partnerships and innovation.

Scroll to Top