Software Testing Outsourcing to Vietnam for Business Growth

28 Apr 2023

Today’s users expect nothing less than high-quality software solutions with exceptional performance, as many businesses worldwide are adopting digital technologies, and more people use cutting-edge technology. Therefore, software testing outsourcing is no more an optional component of the software development life cycle but rather an intrinsic part. In this article, we will discuss perspectives on software testing outsourcing to Vietnam, its role in enhancing the quality of IT products and business processes, and why business executives are increasingly opting for this cooperation approach.

What Is Software Testing Outsourcing?

When you think of countries renowned for software outsourcing, you consider the specific elements that contributed to their leadership. Traditionally, if you want to do Software Testing Outsourcing and decide between numerous outsourcing destinations, you must analyze whether they fit particular criteria. Technical expertise comes first and foremost. Simply put, the country must be able to offer the necessary tech talents in abundance. If you’re searching for unusual tech stacks, sometimes only a select few countries have the technical abilities to complete your project. Their English-language proficiency also has a significant impact. If you cannot easily interact with your coworkers, it is challenging to complete a project together. 

Additionally, outsourcing makes no sense if the price is not reasonable. If you’re looking for software testing outsourcing, Vietnam is a great option to keep an eye on. The country has experienced significant growth in software testing outsourcing in recent years. Those are the first three factors that come to mind: geographical proximity (and the time difference between you and your team), cultural factors, and many others.

Carefully evaluate the outsourcing unit before hiring them
Carefully evaluate the outsourcing unit before hiring them

Fortunately, many software testing outsourcing companies offer a variety of possibilities nowadays, and you may choose between major enterprises and relatively more minor vendors, experienced but costly local developers, or offshore options that are more cost-effective. In this post, we’d like to draw your attention to Vietnam as a country with excellent software engineering potential. This article is about software testing outsourcing to Vietnam growth and the benefits and aspects to consider when considering outsourcing your software to this country. In developing countries, the outsourcing industry is an enormous economic force. 

With the strength of the global market, firms can outsource to emerging nations, and both parties can benefit from mutually advantageous contracts. It provides foreign investors access to trained individuals; in exchange, emerging countries receive ongoing projects to sustain their employees and economy. Recent years have witnessed an increase in the cost of outsourcing in a number of the nations that were once the most popular options for software outsourcing. In the meantime, software outsourcing in Vietnam has remained a more cost-effective alternative and experienced a digital transition, and a new wave of skilled workers has joined the talent pool. This fresh influx of talent has made software development outsourcing to Vietnam a significant priority for businesses.

What Are The Fundamentals Of Software Testing Outsourcing To Vietnam?

Software development outsourcing is commonly referred to by various interchangeable words, including software outsourcing, IT project outsourcing, and IT outsourcing, as well as more specialized terminology such as offshore software development. This is the act of transferring to an external third-party software outsourcing company the responsibility for developing, coding, testing, and maintaining software products on the business’s behalf. The choice to outsource software development is typically taken by companies that lack the in-house knowledge or resources to accomplish a particular project. 

Outsourcing software development is no longer novel in this IT industry; on the contrary, it has become far too familiar in the modern IT industry, mainly due to the Covid-19 pandemic and globalization. 

Statista forecasts show that the fast-growing IT outsourcing services market will be valued at $1.2 trillion worldwide by 2022

Previously, India and China were well-known as two giants dominating the ITO industry; however, their positions are now being steadily supplanted by the presence of more new promising outsourcing destinations, such as Thailand, Cambodia, the Philippines, etc., with Vietnam typically being the most favorable. What are the possible explanations?

Vietnam has all the conditions for software testing outsourcing to vietnam growth
Vietnam is new promising outsourcing destinations

Vietnam Emerge As Asia’s Newest Software Testing Outsourcing Powerhouse

Vietnam has become the new IT outsourcing hotspot in the Asia-Pacific region and on the global IT map, as it is included in most of the top countries for software testing outsourcing operations. The nation was ranked number one in 2015 as a global outsourcing destination. 

According to the 2015 comprehensive global study by Cushman & Wakefield, Vietnam is becoming the world’s leading outsourcing destination for business processes. (By C&W), fifth in the A.T. Kearney Global Services Location Index in 2019, thirteenth in the Top 50 Digital Nations in 2019 (Tholons Services Globalization COUNTRY INDEX), and a host of other accomplishments. 

Vietnam is currently the IT hub of choice for numerous major technology businesses, including Intel, IBM, Samsung Display, Nokia, and Microsoft. These businesses are utilizing a variety of Vietnam software outsourcing solutions, such as offshore software development services, custom software development, web application development, mobile application development, business process outsourcing, IT staff augmentation, quality assurance (QA), and other digital transformation services, to drive rapid business growth and achieve their strategic business objectives.

software testing outsourcing to vietnam growth
MOR Software has skilled and experienced staff

In addition, the software development business in Vietnam is getting foreign direct investment (FDI) from several foreign nations. 

According to a recent research report by the Vietnam Software Association (VINASA), more than 1,600 foreign companies with a total registered capital of over $13 billion have recently invested in the Vietnamese IT industry.

The United States continues to be the foremost investor, followed by Japan, South Korea, Singapore, and China. According to research by NTT, 45 percent of global firms intended to outsource more work during the pandemic. This affords Vietnam – a rising IT software testing outsourcing hub – more excellent options to attract foreign direct investment from various places worldwide, especially during the “darkest hour” of business. Even though the epidemic practically shut down all commercial sectors globally, it does not appear to have had a significant impact on the ITO industry worldwide or in Vietnam. The breakout of Covid-19 provides even more prospects for the unstoppable expansion of the ITO sector during the pandemic’s peak and in the future. Consequently, some of this eye-opening data and observations help us answer the question, ‘Is software testing outsourcing to Vietnam a good decision for rapid business growth?’ And the answer is yes. However, if you are still not convinced, let’s examine the benefits of implementing software development outsourcing in Vietnam.

Why Is Software Testing Outsourcing To Vietnam For Business Growth?

Robust Technical Expertise and Extensive Engineering Pool

Vietnam recognized long ago that job training and technical skills were in high demand. Thus the country today boasts more than 1,900 vocational institutions where prospective employees can acquire the skills necessary to obtain employment. This has resulted in an abundance of applicants trained in the programming languages and protocols required for your project. When searching for software outsourcing firms overseas, it is a no-brainer that you must choose a company capable of utilizing the technology you require for your unique software. 

Vietnam software companies have rapidly caught up to the rest of the global market regarding the technologies they employ and their proficiency in them. There are already engineers employed by outsourcing businesses in Vietnam who work with upcoming technologies such as Blockchain, cloud computing, IoT, and Machine Learning, in addition to all other regularly used software development technologies.

MOR Software has skilled and experienced staff
MOR Software has skilled and experienced staff

In Vietnam, specific technology stacks are significantly more prevalent than others. .NET, JS, and Quality Assurance engineers are considerably easier to locate in Vietnam than Ruby and Scala programmers. That is not to suggest that there are no skilled developers available to hire; instead, there is less institutional training in individual stacks. Hence, the hiring process may take longer unless you’re working with an established vendor who already has those capabilities on staff. 

The software development department’s annual growth has increased by 10% for consecutive years. In 2019, revenue growth reached 24.4 percent. As a result of a mix of more trained workers entering the job market and a boom in international corporations recruiting and investing in the country, the growth rate is expected to increase. Respectively, software testing outsourcing to Vietnam can provide business partners with any type of software outsourcing services.

Costs of production and services that are competitively

The standard costs of software development solutions and outsourcing services in Vietnam are significantly lower than in most other countries, including India, China, and Southeast Asia. This is among the most important advantages of software testing outsourcing to companies in Vietnam and is considered the first and most important benefit of outsourcing to companies in Vietnam. In particular, CIO magazine stated that the costs of outsourcing software development to Vietnamese companies are 90% lower than those in the United States, 50% cheaper than those in China, and 30% more reasonable than those in India. These figures compared the costs of outsourcing software development in China and India.

Labor cost in Vietnam is low but skilled
Labor cost in Vietnam is low but skilled

This indicates that businesses can save a fortune if they outsource their operations to Vietnam, regardless of where your company is based or even if they are located on the other side of the planet. The difference in prices that may be expected between outsourcing to Vietnam and other locations is mainly attributable to the lower costs of living and working in Vietnam. These reduced costs include renting office space, staff pay, and other associated business costs. These factors combine to make Vietnam a more cost-effective location for enterprises to explore as a potential location for software testing outsourcing to Vietnam growth operations and make Vietnam a more cost-efficient destination overall.

An Abundance of Skilled IT Professionals Available

Language is a frequent obstacle to outsourcing software success. If your business is an English-speaking corporation seeking outsourcing services in a foreign nation, the notion of stumbling through a language barrier may deter you from outsourcing altogether. In contrast to other offshore software companies, software testing outsourcing operations to Vietnam has less difficulty. Vietnamese with a higher level of education will likely have an exceptional command of English. Business partners may expect college graduates, regardless of their degree, to have exposure to and proficiency in English. This indicates that software engineers providing outsourcing services would have years of English training. Vietnam is English-ready for offshore software development, so your communication concerns can rest easy.

English is the second most spoken language in Vietnam
English is the second most spoken language in Vietnam

We’ll explain its dynamic if you’ve never been to Vietnam and don’t know much about the country. And the secret ingredient that makes every nation great is its people. Vietnam has a relatively young population and many recent graduates entering the labor force. The country’s labor force consists of 74 million individuals, and half of these workers are between the ages of 15 and 39; this results in a very young working population.

Vietnam has a young working population
Vietnam has a young working population

Vietnam’s burgeoning skilled worker population is another aspect that contributes to the country’s emergence as a thriving outsourcing destination. Vietnam’s labor force possesses scientific aptitude. The country’s government and higher education system have understood the need to equip students with in-demand skills and prioritized engineering and the natural sciences. Approximately 280,000 Vietnamese college and university graduates enter the work market annually. This results in a large pool of potential candidates for software outsourcing services compared to other economies. In recent years, there has been a notable growth in software testing outsourcing to Vietnam. This trend is expected to continue as more companies recognize the cost-effective and high-quality services available in the country.

Modern Business Hubs

In contrast to the United States, most skilled workers and software testing outsourcing companies in Vietnam are located in a relatively small number of cities. This is true across the country. In Vietnam, there is no need to go far and wide for potential candidates because they are all concentrated in a small number of different regions. When looking for a company specializing in software outsourcing, business partners should look in Ho Chi Minh City, the capital city of Hanoi, and the city of Da Nang. Each town has advantages that come with outsourcing, and some of those advantages may be more appealing than others.

Outsourcing units often gather in Ho Chi Minh City, Hanoi and Da Nang
Outsourcing units often gather in Ho Chi Minh City, Hanoi and Da Nang

For instance, Ho Chi Minh City is the country’s economic center, while Hanoi is the country’s political center. If businesses are seeking recent graduates, Hanoi has a more significant number of students graduating from that city than Ho Chi Minh City, but Ho Chi Minh City is where most professionals with years of experience will stay. The ecosystem for software development in Vietnam will undoubtedly continue to expand.

Favorable Investment Environment

Vietnam is one of the economies in Southeast Asia that is growing at one of the fastest rates, and it is quickly becoming a popular choice for FDI (foreign direct investment). This is because Vietnam has a stable economy focused on production for export, and it provides jobs for most of the working class. 

According to the World Bank, the country received 16.12 billion dollars in 2019 (equivalent to 58.7%25 of total acquisitions). – every single one comes from outside investments in various businesses, projects, and infrastructure. 

In the same year, the government of Vietnam proposed Resolution 55, a plan called the “Project to Bring in Foreign Investments Totaling 50 Billion USD by the Year 2030.” This plan was presented to the public in the same year. Businesses worldwide are realizing that outsourcing their software development work to Vietnam gives a once-in-a-lifetime chance for the company. Vietnam is attracting a growing number of businesses and projects from multinational corporations since it is an attractive location for making sound financial investments. 

The nation’s long-term investment opportunities are readily available because of its vital political and cultural status. Because it has just undergone a digital transition and is now home to a substantial pool of IT professionals, it is a good location for bringing offshore software development business initiatives. The growth of software testing outsourcing to Vietnam is a significant trend that is contributing to the country’s overall growth. As more companies outsource their software development work to Vietnam, the need for software testing services is also increasing. This growth is a testament to the quality of Vietnam’s IT professionals and the country’s ability to provide cost-effective solutions for businesses around the world.

Vietnam is attracting a growing number of businesses and projects from multinational corporations
Vietnam is attracting a growing number of businesses and projects from multinational corporations

Socioeconomic and Political Stability

According to Minority Rights, more than eighty percent of Vietnamese do not identify with any particular religious community. The number has shown that there is no religious strife in Vietnam, as the figure has proved. 

In addition, the Vietnamese are known for their unwavering sense of community. One concrete example is how they defeated the COVID-19 epidemic by rigidly following the government’s instruction that everyone either stays home or wears facial masks while going out. Consequently, Vietnam was placed in the top five nations by TopDev’s Report in terms of having the best Covid reactions. In addition, the Global Peace Index 2020 placed Vietnam as the 12th safest nation in the Asia-Pacific area. In light of this, Vietnam is a secure nation concerning its socioeconomic and political systems. Not least, but certainly not least, its strategic position in the Asia-Pacific region may make the corporate environment more conducive to operations related to outsourcing.

Vietnam is the safest country in Asia-Pacific area
Vietnam is the safest country in Asia-Pacific area

It is a mostly ethnically homogenous country, and most of the population does not practice any overt form of religion; these factors contribute to the nation’s stable socio-political environment, which is favorable for economic development and expansion. When compared to some of the other countries in Asia and Southeast Asia, business partners can anticipate that Vietnam will not be experiencing any significant wars or civil upheaval. Vietnam has all the ingredients necessary to become a prosperous nation, including an educated and aspirational populace, backing from other countries, and a politically stable terrain. 

During the global epidemic of COVID-19, Vietnam displayed a method that was both disciplined and efficient, which allowed the government to rapidly deploy resources and reduce the associated dangers. Furthermore, Vietnam is seeing significant growth in the field of software testing outsourcing, which is expected to continue in the coming years. This presents a unique opportunity for businesses looking to outsource their software testing and development needs to Vietnam for hacking growth.

Cities Eager for Investment

The degree to which individual cities compete with one another is a crucial aspect that plays a role in attracting investment. The local governments can function freely. Ho Chi Minh City is a flourishing, contemporary metropolitan city that was at the center of the early growth of the information technology industry. It was ripe for investment because of its significant population and well-developed infrastructure, which ensured a stable supply of educated and eager labor. Danang, located farther to the north, is now working to develop the infrastructure required to compete with Ho Chi Minh City. 

There has been a considerable building boom during the past decade due to the availability of expansion opportunities. Bloomberg Business has stated that the city of Danang had spent $4.5 billion on infrastructure over the last five years, citing the city’s statistics office as their source. A brand new airport terminal cost around US$60 million to build, and a highway overpass cost approximately US$93 million; both expenditures were made to facilitate travel into and within the city. 

Vietnam is distinct from many other emerging countries in terms of its culture. The workers there have a tremendous sense of ownership of their projects and are not reluctant to voice their concerns if they believe the work may be improved. When workers participate actively in projects, they behave more like employees than independent contractors do, which is helpful for the firms that hire them.

The government creates all conditions for software testing outsourcing to vietnam growth
Cities in Vietnam are always eager for foreign investment

Promoting a cutting-edge testing curriculum

A significant contributing aspect is the priority placed on education nationwide. Even though it is highly improbable that all of the repetitive and challenging aspects of software testing will be eradicated, the nature of testing is evolving as a direct result of the ever-increasing complexity of software. Testing software is moving away from an emphasis on merely having cost-effective labor. During this time, the business also worked on developing TestArchitect, an automation platform for large-scale testing. 

The integration of highly skilled test automation experts and cutting-edge technology results in an unparalleled automation solution for use in agile situations. The practices used in modern software development are dependent upon a significant amount of automated testing. If business partners want to achieve remarkable growth, they need the appropriate technology and people with the right abilities. When combined, the knowledge of the individuals graduating from colleges, specialized training, and technological advancements make it possible for businesses to automate testing cost-effectively. This is especially true for software testing outsourcing to Vietnam growth, where there is a highly educated workforce and cost-effective labor.

Key Considerations Before Outsourcing Software Testing To Vietnam

Now that you know the abundance of available expertise, choosing the right outsourcing business to complete your project is the most challenging aspect of opting to undertake development in Vietnam. Given that over 300 software companies are in Vietnam, selecting one may appear daunting. Keeping the following outsourcing best practices in mind while choosing an outsourcing company is essential:

  • Possessing proficient English skills, can you effectively converse with them?
  • Industry experience(history of expertise) — Are they a well-established outsourcing firm in Vietnam, or are they new to the scene?
  • Engineers understand technology; do they comprehend the technologies you wish to implement?
  • Protocols for quality assurance and testing: how exact is their quality assurance procedure?
  • Pricing policy- Is the Vietnam software testing outsourcing firm affordable and not suspiciously low-priced?
  • Methodology of development – do your business methodologies align and concur?
Thoroughly evaluate the outsourcing unit before hiring them
Thoroughly evaluate the outsourcing unit before hiring them

The most important of the outsourcing best practices to adhere to is to locate a software outsourcing firm that has already established and produced results in the industry. Hiring a new software outsourcing business with meager rates can be tempting, but it may be a waste of time and money if they lack a track record of quality work.

In conclusion, software testing outsourcing to Vietnam growth affords firms of various sizes and shapes benefits they may not be able to obtain while outsourcing on-site or employing offshore software companies in other nations. As you can observe, many of the leading software development firms in the Asia-Pacific region are Vietnamese or situated in Vietnam, so business partners can have numerous possibilities. Hence, Vietnam is unquestionably a potential place for IT outsourcing services due to its abundance of service providers. Consult with MOR Software to choose the most appropriate choice!

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