Vietnam vs India - Offshore Development Destination Comparison

As Asia continues proving its worth as a leading destination for offshore software development and IT solutions, India and Vietnam have gradually positioned themselves among the top choices in this area.

How India and Vietnam prove its worth in offshore development

The landscape of offshore software development in Asia has witnessed a significant shift in recent years. Traditionally, India has been a global leader, but today, Vietnam is emerging as a formidable contender.

A vast talent pool

India has a large labor force that includes both young and seasoned professionals. A sizable proportion of the population is under the age of 25 and working. According to recent data, India has approximately 5 million tech workers of diverse skill levels, ranging from entry-level programmers to experienced architects and project managers.

Vietnam, too, has a relatively young population. Over 60% of its population is under 35, providing a rich source of tech talent. In recent years, Vietnam has been experiencing robust growth in its IT sector, with a growing number of tech workers, estimated to reach 1.2 million by 2023, according to VINASA.

High level of expertise

India has the largest English-speaking IT talent pool in the world. Over 120,000 trained IT professionals are being added to the Indian talent pool yearly compared to 25,000 in the US.

According to a study by Deloitte, more than 59% of participating countries had their Offshore Development Centers or were using outsourcing services from Indian Developers.

62% of this Indian technical workforce has more than four years of experience and over 70% have an engineering degree. Additionally, a significant portion of the Indian workforce is proficient in English, making communication more accessible for international clients.

However, Vietnam is also rapidly gaining worldwide recognition for its skilled and adaptable workforce. The nation has highly skilled software developers with a proven track record. The most common programming languages in Vietnam are Java, PHP, .NET, and many other languages relating to AI, Machine learning, E-commerce, etc.

Cost-effective development solution

While cost should not be the only factor when choosing a destination, it is hard to ignore both India and Vietnam’s affordable yet valuable solutions.

With hourly rates ranging from $18 to $40, Indian software developers are a popular choice. Despite being a relatively young player in IT outsourcing, Vietnam, with 20+ years of experience, has established itself as a top destination. Offering competitive rates at $18-$32, it provides affordability without compromising on top-quality engineering services.

Hiring a top software offshore development company in Vietnam can save 90% of the cost of operation compared to outsourcing in the US. Compared to China, the savings would be 50%, and 30% if to India.

Guaranteed government support

India has a long history of political stability and government support for the IT industry. In 2017, the government invested over 100 billion dollars in building infrastructure and strengthening the IT sector to give companies better opportunities and strengths.

The Vietnamese government has recognized the importance of technology and innovation in driving economic growth. Policies and initiatives have been put in place to foster these sectors

• over US$15 billion in FDI attracted to the IT sector in 2022
• over US$1 billion invested in IT education and training programs
• 50% corporate income tax reduction for enterprises operating in IT parks and industrial zones

Moreover, the country was recently ranked among the most attractive destinations for countries in the GSLI 2017 report. That favorable data shows that more businesses are choosing to use offshore software development in Vietnam over other competitors, such as India.

Wrapping up

In the epic battle of IT outsourcing, India and Vietnam emerge as formidable contenders, each with its unique strengths. India stands as a titan, ideal for large-scale, intricate projects, while Vietnam, the agile newcomer, excels in smaller to medium-sized ventures, offering flexibility and cost-efficiency.

As businesses navigate the ever-evolving landscape, they are presented with a tantalizing choice between the seasoned expertise of India and the vibrant potential of Vietnam, making the Asian IT industry a captivating arena of endless possibilities.

Ready to explore the boundless potential of IT outsourcing in Vietnam? Contact us today to unlock a world of offshore development opportunities.