Software Outsourcing to Vietnam: Guide to Costs, Talent & B.O.T. Model (2025 Update)

As businesses globally adapt to remote work and seek operational efficiencies, software outsourcing to Vietnam emerges as a compelling strategy. Whether you aim to scale projects or build a dedicated offshore development team, understanding Vietnam’s offerings, including the Build-Operate-Transfer (B.O.T.) model, is key to success. This guide explores why Vietnam is a top IT outsourcing destination.

Why Choose Vietnam for Software Outsourcing?

Vietnam consistently ranks as a leading global hub for IT outsourcing. Its position, highlighted by Kearney’s Global Services Location Index (7th in 2023), stems from significant advantages:

Highly Competitive Costs

A major benefit of outsourcing software development to Vietnam is cost-efficiency. With average hourly rates for developers between $20-$65, businesses can significantly reduce operational expenses compared to Western markets – potentially saving up to 90% compared to US costs – while maintaining high quality.

Abundant & Skilled Vietnam Tech Talent

Vietnam boasts a large, dynamic pool of over 500,000 software developers and more than a million ICT professionals. Annually, 69,000-80,000 IT graduates join the workforce. This young, tech-savvy talent pool shows improving English proficiency and is recognized globally for its software development capabilities.

Stable & Supportive Business Environment

Vietnam offers political and economic stability, crucial for long-term partnerships. The government actively supports the IT sector with favorable policies, attracting major tech investments and fostering a thriving tech ecosystem.

Scaling Your Offshore Development Team in Vietnam

How you scale your Vietnam software development efforts depends on your goals:

Partnering with Local Suppliers

For quick setup, easier management, and lower initial risk, collaborating with a Vietnam IT outsourcing company is effective. This is often cost-effective for teams under ~25 people.

Building Your Own Entity

Establishing your own company offers direct control but involves navigating local regulations, cultural integration, and potential management overhead.

The Build-Operate-Transfer (B.O.T.) Model

For long-term offshore software development centers with minimized risk, the B.O.T. model is ideal. A service provider builds the facility and team, operates it according to your needs for a set period, and then transfers full ownership to you. This strategic approach combines the benefits of outsourcing with eventual full control.

Making Your Vietnam Outsourcing Project a Success

Choosing Vietnam for software development outsourcing provides access to cost benefits and skilled professionals. By carefully selecting your scaling strategy – whether partnering locally or utilizing the Build-Operate-Transfer model – you can effectively leverage Vietnam’s advantages for your development needs.

Since 2016, ekino Vietnam has been building dedicated teams for:

Ready to leverage Vietnam’s potential for your software development? Contact us today to explore building your dedicated offshore team or utilizing our B.O.T. model.