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Vietnam in the Global Indexes of Software Development Outsourcing


When it comes to global outsourcing services, there are some popular places to look at, like Asia/Pacific, EMEA, and Latin America. Of course, the dominant positions for the best offshore software development belong to India and China. However, according to several pieces of research from Gartner, Inc., the investments in these traditional outsourcing countries have declined and shifted to emerging alternative countries to diversify the sourcing strategies which meet the needs of multinational corporations. The IT buyers, for now, go beyond the cost reduction but also focus more on local-language skills, cultural compatibility, travel-time decrease, and same-working-day communications. With diverse choices for qualified offshore service providers, businesses could support their broader geographic footprints and establish their global delivery services wherever they are.

Among different offshore outsourcing choices, Vietnam is proven as a dynamic and productive environment for offshore software development in the APAC region. This country is where IT buyers look for a qualified and cost-effective talent pool. Let’s discover some quick facts about Vietnam's rankings in different reports of global software outsourcing:


Vietnam's Rankings in Global Software Outsourcing Reports

  • Vietnam is ranked #5th in the 2019 Kearney Global Services Location Index

2019 Kearney Global Services Location Index


  • Vietnam is one of the nascent countries for digital maturity and high levels of cybersecurity protection (according to Kearney's 2019 report)


cybersecurity protection - Kearney's 2019 report


  • Vietnam is ranked #13th in TSGI Top 50 Digital Nations all over the world, according to Tholons Services Globalization Index 2019


TSGI Top 50 Digital Nations


  • Vietnam ranked #18th in the Tholons Top 100 Outsourcing Destinations 2016


Tholons Top 100 Outsourcing Destination 2016

Vietnam as a Potential Offshore Software Development Hub

  • According to the Vietnam Software and IT Services Association, Vietnam software outsourcing has gained traction over the last decade, with a revenue of US$8.8 billion in 2018, turning Vietnam into an emerging competitor of India and China.
  • Annually, more than 40,000 technical engineers graduate from universities entering the job market (2014 Vietnam Information and Communication Whitebook).
  • Several continuous investments in tech education, like US$55 million for Vietnam’s education technology (Edtech) in 2018 or US$4 million investment from a Hong Kong-based equity firm, were given to Vietnamese startup Everest Education.
  • Some tech giants have outsourced to Vietnam, both in manufacturing and R&D: Intel, Samsung, Microsoft, Fujitsu, Foxconn, Panasonic, Bosch, Alcatel-Lucent, Amdocs, Avaya, Cisco, Juniper Networks NEC, Toshiba, Hitachi, LG, HP, etc.
  • Ha Noi and Ho Chi Minh are always at the Top of outsourcing Tholons indexes, but Da Nang city, which is located in the centre of Vietnam, also appears to be an ideal and potential hub for ICT in general. The city was ranked first in the Vietnam ICT Index 2016 (from the Ministry of Information and Communications of Vietnam).


Final Thoughts,

As tech firms worldwide continue to use IT outsourcing as a part of cost optimization practices, you could choose Vietnam as a reliable nation for extending your technology capability with the most effective cost while mitigating the risk of sophisticated cyber threats.


CTA Enlab Software



About the author

Nhu Nguyen

The intersection of marketing and technology has created the sweet spot to discover my Ikigai, either in my professional or personal life. Spending much of my career in tech, my passion is building elegant brands and data-driven marketing techniques tailored for the tech community.
Frequently Asked Questions (FAQs)
Why is Vietnam emerging as a popular destination for offshore software development?

Vietnam is gaining prominence as an offshore software development destination due to its dynamic and productive environment in the APAC region. The country offers a qualified and cost-effective talent pool, with a strong emphasis on digital maturity and cybersecurity. Vietnam’s strategic focus on tech education and continuous investment in the IT sector has positioned it as a competitive alternative to traditional outsourcing locations like India and China.

What advantages do major cities in Vietnam offer for offshore software development?

Major cities in Vietnam, such as Ha Noi, Ho Chi Minh, and Da Nang, offer significant advantages for offshore software development. These cities are recognized in various Tholons indexes for their robust ICT infrastructure, skilled talent pool, and favorable business environment. Da Nang, in particular, is emerging as an ideal hub for ICT due to its strategic location, modern amenities, and government support for the IT sector.

How has Vietnam's education system contributed to its success in offshore software development?

Vietnam’s education system plays a pivotal role in its success in offshore software development. Annually, over 40,000 technical engineers graduate from Vietnamese universities, enriching the local talent pool. The government’s continuous investments in tech education, along with private investments in educational technology, ensure a steady supply of skilled professionals to meet the growing demands of the IT industry.

What makes Vietnam a reliable choice for tech firms looking for offshore software development solutions?

Tech firms worldwide consider Vietnam a reliable choice for offshore software development due to its cost-effective services, skilled workforce, and strong focus on cybersecurity and digital transformation. The country’s commitment to improving its IT infrastructure and the presence of global tech giants outsourcing their operations to Vietnam further reinforce its position as a dependable and competitive player in the global outsourcing market.

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