IT Outsourcing in Vietnam: Everything you need to know

Tek Experts -

3 min read

During the Fourth Industrial Revolution, many organizations are looking beyond their own teams to support their transition to predominantly digital business practices. The ever more pressing need to innovate is accelerating these transformations.

Combined with the growing digital skills gap, leaders in both government and private enterprises are increasingly looking to outsourced IT services and support to efficiently address their pressing needs. However, finding the right location combining geography, the digital skills you need, and an attractive business environment is difficult. 

Hanoi, Vietnam, has all of these key factors. Let’s explore why IT Outsourcing in Vietnam could be right for you.

Why Outsource IT Services to Vietnam?

A world map highlighting Vietnam

1.   Dynamic and Growing Economy

Vietnam is ideally located to serve some of the fastest-growing digital economies in the world including China, The Philippines, and Malaysia. 

A Young Population and High Literacy Rates

With a population of just under 98 million people and a median age of 32.5, the country is rich with young workers hungry to develop their digital expertise. Moreover, Vietnam enjoys one of the highest adult literacy rates in the world at 95.8% which speaks to its robust and modern education system. 

The Rich Education and IT Sector in Hanoi

Hanoi houses over 30 universities and educational institutes and Vietnam is home to over 14,000 IT businesses including hardware, software, and digital content.

Statistics on the Vietnam population, adult literacy rate and median age.

2.   Highly Skilled Talent Pool

Alongside excellent opportunities for higher learning, students and workers in Vietnam have access to widespread technical infrastructure. As of January 2022, internet penetration had reached 73% of the population, making the digital landscape accessible to over 72 million people. 

Higher Education

There were over 2.7 million students in upper secondary education in Vietnam in 2021 and the country is expected to rank in the top 3 globally for the number of engineers by 2024. 

Proficiency in the English Language

Finally, more than 50% of the population can speak English to a high degree of proficiency meaning that domestic support markets have the flexibility to service American and European companies. Compared to other popular outsourcing locations like India and Poland, of which 12% and 37% speak English respectively, this ensures that the majority of talent will possess a key advantage in providing these services.

Infographic showing the percentage of english speakers in the top outsourcing locations

3.   Commitment to IT 

Vietnam’s IT market is among the fastest growing in the world, already valued at over $20 billion in 2019 and expected to grow at a rate of 10-15% between 2021 and 2025

This explosion of IT investment is largely thanks to the Vietnamese government’s vocal support of a digital future in the country. The National Digital Transformation Program has been particularly instrumental in this endeavor, having set the following digital objectives for Vietnam by 2025: 

  • Vietnam will be among the top 50 countries in information technology
  • The digital economy will account for 20% of GDP
  • 50% of inspection activities of state management agencies will be conducted digitally 

These are just a taste of the program’s widespread vision for Vietnam in the next decade and indicate a united effort to turn the country into a digital leader in the region.

Why choose Tek Experts for IT Outsourcing in Vietnam?

Our Experience

Based on the country-wide digital objectives and impressive talent pools, Tek Experts established a presence in Hanoi in 2013. Our state-of-the-art office space is situated in the iconic Lotte Building where over 500 engineers provide technical support and services in both English and Vietnamese to Fortune 500 companies based around the world. 

Our Global Footprint

Our state-of-the-art office space is situated in the iconic Lotte Building where over 500 engineers provide technical support and services in both English and Vietnamese to Fortune 500 companies based around the world. Moreover, we have a total of 12 tech hubs in 10 countries, supporting the development of businesses in several locations.

Questions to consider when choosing the right outsourcing company in Vietnam (FAQs)

What are the advantages of outsourcing to Vietnam compared to other countries?

Vietnam offers a range of competitive advantages compared to other countries, such as one of the highest English speaking populations compared to other popular outsourcing locations, favorable time zone differences for collaboration, a growing tech ecosystem and government support for the IT industry.

What success stories are there from companies outsourcing IT projects to Vietnam?

There are many success stories of companies that have outsourced IT projects to Vietnam. Some of the most notable brands are Intel, Samsung and LG, who have had success in the research, development and testing of their products and services through outsourcing IT services.

What types of IT services can be outsourced to Vietnam?

A wide range of IT services can be outsourced to Vietnam, including software development, cloud computing, IT support, and more. For example, Tek Experts specialise in Customer Success, Escalation management and many other key areas in tech support.

Are there cost advantages of outsourcing IT projects to Vietnam?

Vietnam offers cost advantages compared to many other outsourcing destinations. The main reasoning behind this is the lowered labor costs in Vietnam, competitive pricing within the industry and increased Government support and funding for IT businesses, which helps to reduce overall costs.

A consideration for the future: Develop your outsourcing in several locations

We’re working to develop the skills and talent to further grow our presence in Hanoi and are excited about our potential to expand. Ultimately, however, a truly robust IT support outsourcing strategy should be equipped to serve customers around the world. That’s why it’s so important to develop operations in several locations. Discover 7 great locations IT services and support have proven to be successful to help you choose your ideal partner.

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