Nowadays, a lot of businesses are in a tight race to gain a competitive advantage of minimizing cost, enhancing customer service, and maximizing efficiency. Let’s explore what makes the software outsourcing market more bouncing and the most destinations that are emerging as the most suitable countries to outsource for software development services.
What factors make an IT outsourcing market more bouncing?
A forest starts with one tree, a software outsourcing market bouncing must have a dynamically growing IT market, and companies that provide outsourced quality services. Competitive outsourcing cost combined with a highly skilled IT workforce is also an attractive factor for companies that are looking to outsource their software and mobile application development projects. So what factors make an IT outsourcing company become attractive.
Best Value. For a business, minimizing expenses is one of the fastest ways of enhancing growth. But every business owner or project manager knows that outsourcing isn’t just about choosing the lowest priced alternative. What matters is the value that a business can get for the money invested. In the end, clients are sure to choose an outsourcing partner who can deliver their project on time and expect high-quality work.
Cutting-edge technologies. Known as leading-edge technology or state-of-the-art technology that can create high benefits for businesses that are willing to be early adopters. In the IT industry, technology is having a huge impact on productivity and streamlining workflows. In addition, technology is always evolving, with new software constantly emerging to solve problems and inefficiencies. Thus, keeping up to date with the newest technology for instance Blockchain, Internet of Things (IoT), Machine Learning, Cloud Computing is very important.
English Proficiency. Communication is the key whether working with an outsourced team. So, English proficiency is one of the entry requirements to make sure businesses have the very best chance of success in outsourced projects. Outsourcing providers should be able to clearly understand requirements, handle queries, promptly reply and can address any issue that may crop up. Communication skills need to be spot on without any space for cultural or other communication barriers.
Stable & Healthy Economy. All businesses operate according to the economic systems of their home countries. An outsourcing provider’s success partly depends in part on the economic systems of the countries where it is located. So, by choosing to work with an outsourcing provider that is located in a country that has high economic, ethnic/religious, and political stability, a business can greatly reduce the risk of outsourcing. If the outsourcing provider is located in a country with significant instability and conflict, the project may proceed more slowly or come to a complete halt.
IT outsourcing trends 2020: New outsourcing target countries for small businesses
The ongoing growth in digitized industries leads to a local IT skills shortage, so that more and more companies are trying out alternative approaches in the procurement of developers – outsourcing. Statistics from Clutch indicate that more than one-third of small businesses (SMEs) use outsourcing services in 2019 and 52% plan to outsource business processes in 2020.
According to Clutch, IT services is one of the most commonly outsourced because they are highly technical and require specific skills such as understanding how to operate accounting software or how to develop in a programming language.
Because of digitization, technology trends have a huge impact on each of traditional industries such as healthcare, education , finance, banking,… For large companies, India and China remain the most popular target countries for outsourcing their IT and business processes. In the meantime, small and medium-sized companies are increasingly looking for technical talent in the emerging IT outsourcing market in Asia, Latin America, and Eastern Europe.
Asian countries include some of the world’s current top outsourcing locations such as India, China, Vietnam, Malaysia, The Philippines, Indonesia.
Some interesting statistics about the software outsourcing in Vietnam
According to the Vietnam Software and IT Services Association (VINASA), the growth of the IT outsourcing industry is at the exponential rate (20-35% rate annually over the recent 10 years period).
Currently, Vietnam’s population is over 97 million people, and 69.3% is still in the labour force. It means that this country has a very high potential to provide a skilful IT labour force for the booming market. In addition, the Vietnam government is investing and supporting a lot to the technology industry with the aim to reach over 1 million ICT workers in 2020.
Competitive outsourcing cost is another significant reason that makes Vietnam special. According to the CIO Magazine, Vietnam is approximately 90% cheaper compared to developing software in the USA. This factor attracts many global giants to rely on Vietnam to meet their software outsourcing requirements.
As a result of control on the pandemic, on July 12, 2020, there have been 370 confirmed cases of coronavirus (COVID-19) in Vietnam. At the moment, zero deaths and 350 patients have recovered from COVID-19. Vietnam has gone 87 days without new COVID-19 infection cases in the community as of April 16, 2020. Now, Vietnam’s economy is on the road to recovery after the pandemic COVID-19 contained.
The unique combination of high-quality services, cheap prices, and support from the government easily makes Vietnam one of the best destinations in the world. The Vietnam software outsourcing industry has the best answers and solutions to all your technology-related outsourcing needs.
ICTS is a Vietnam-based software development boutique that focuses on cutting-edge technologies. Our 30- engineer team specializes in custom CRM/ERP software for businesses who wish to optimize their productivity or develop their e-commerce division. We also build applications for SMEs (small-medium enterprises) and Startups, helping them boost their revenues or visualize their idea into minimum viable and scalable products.
As a tech startup ourselves, we understand the struggles and challenges that each entrepreneur faces everyday, so we always try to consult and propose the most suitable solutions in terms of cost/outcome effectiveness. Contact us today to find out more or how we can help with meeting your business’s development needs.
*Reference:
- https://clutch.co/bpo/virtual-assistants/resources/small-business-outsourcing-statistics
- https://www.techopedia.com/definition/26589/cutting-edge-technology
- https://fr.scribd.com/document/411430980/18-00566-DATA61-REPORT-VietnamsFutureDigitalEconomy2040-V2-ENGLISH-WEB-1
- https://www.kearney.com/digital-transformation/gsli/2019-full-report
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