Over the past decade, the global demand for IT Outsourcing has transformed the way businesses scale, innovate, and compete. Companies are no longer restricted to hiring talent locally; instead, they can extend their teams worldwide, tapping into specialized skills at competitive costs. Among the destinations rising in prominence, Vietnam has emerged as one of the most attractive choices for IT Outsourcing.
While countries such as India, China, and the Philippines have long dominated the outsourcing market, Vietnam is now carving out its own niche on the global stage. With steady economic growth, a large pool of skilled engineers, cost advantages, and supportive government policies, Vietnam has become a strategic option for enterprises seeking to outsource IT services.
In this article, we will examine the factors driving this shift, the numbers behind Vietnam’s IT sector growth, and why companies worldwide are selecting Vietnamese partners like GITS to support their digital transformation journeys.
The global rise of IT Outsourcing
To understand why Vietnam is gaining attention, it is important to look at the broader context of IT outsourcing worldwide. Outsourcing has evolved from being a simple cost-saving strategy into a critical business model for companies aiming to remain agile and competitive.
Enterprises in sectors such as finance, healthcare, logistics, and e-commerce rely on outsourcing not only to reduce expenses but also to access innovation faster. Tasks that range from software development and mobile app creation to cloud management, AI integration, and quality assurance are now routinely outsourced to trusted partners.
According to industry reports, the global IT Outsourcing market is projected to exceed USD 700 billion by 2027, growing steadily as businesses continue to expand digitally. Within this context, Vietnam is rising as a new force, standing alongside established outsourcing leaders.
Vietnam’s position in the global IT Outsourcing market
Vietnam’s role in the outsourcing landscape is no longer emerging—it is firmly established. The Kearney Global Services Location Index ranked Vietnam #7 worldwide as a preferred destination for outsourcing. This ranking reflects a balance of financial attractiveness, skilled workforce availability, and a stable business environment.
The growth numbers are equally impressive. In 2024, Vietnam’s digital technology industry generated nearly USD 158 billion in revenue, reflecting a 10.2% year-on-year increase. This industry now employs approximately 1.26 million professionals across more than 73,800 companies. This scale demonstrates that Vietnam is not only producing a significant number of engineers but also fostering a thriving ecosystem of IT enterprises.
Another key indicator is the growth in international business. Vietnam’s IT service revenue from international markets reached USD 11.5 billion in 2024, marking a 54% surge compared to 2023. Exports of software and IT services alone contributed USD 7 billion to the economy. These figures show that global clients are increasingly relying on Vietnam for mission-critical IT services.
Why Vietnam attracts global businesses for IT Outsourcing
Skilled workforce with strong technical expertise
One of Vietnam’s greatest strengths lies in its human capital. Each year, Vietnamese universities graduate tens of thousands of students in computer science, information technology, and engineering disciplines. These graduates are known for their strong technical foundations, problem-solving skills, and eagerness to adapt to new technologies.
Beyond technical knowledge, many Vietnamese engineers possess strong English communication skills, and an increasing number are fluent in Japanese and Korean. This linguistic capability allows them to work effectively with global clients, especially in markets like Japan, which values precision and attention to detail.
Cost efficiency without sacrificing quality
Cost has always been a driving factor behind outsourcing, but today’s businesses demand more than just lower expenses—they want quality at scale. Vietnam provides exactly that balance. Development costs in Vietnam are significantly lower compared to North America, Europe, or even some parts of East Asia. Yet the quality of output, measured through project delivery standards, security compliance, and long-term maintainability, has earned Vietnam international recognition.
Agility and speed of delivery
Vietnamese IT teams are known for their flexibility and willingness to adapt to different project methodologies. Agile and Scrum practices are widely adopted, enabling teams to respond quickly to client requirements, provide regular updates, and ensure faster time-to-market. This agility makes Vietnam particularly attractive for startups and enterprises seeking rapid prototyping, product development, and scalable solutions.
Government support and digital transformation policies
Vietnam’s government has actively promoted the development of its IT sector through initiatives like the “Make in Vietnam” strategy, which emphasizes research, innovation, and the creation of homegrown technology solutions. This supportive policy environment encourages investment, enhances trust from global businesses, and builds a sustainable future for the industry.
Case study: Vietnam’s success in the Japanese market
The Japanese market provides one of the clearest examples of Vietnam’s growing IT Outsourcing credibility. Between 2020 and 2024, the combined revenue of 20 Vietnamese enterprises operating in Japan doubled from USD 672 million to USD 1.345 billion.
This growth highlights two important points: Japanese businesses—renowned for their strict quality standards—trust Vietnamese partners, and Vietnamese companies are capable of meeting those expectations consistently. This success story is replicating in other global markets, from the United States to Europe.
Why GITS is the right partner for IT Outsourcing
For businesses considering outsourcing to Vietnam, choosing the right partner is crucial. Based in Hanoi, GITS is a reliable partner for companies worldwide seeking to expand their technology capabilities.
Our services cover:
– Web and mobile development
– Cloud solutions
– Enterprise products – GITS WMS
– Quality assurance and testing
What sets GITS apart is not just technical expertise but also a commitment to understanding client goals, maintaining transparent communication, and delivering measurable results. We combine global quality standards with local cost advantages, enabling companies to innovate efficiently.
The future of IT Outsourcing in Vietnam
Vietnam’s growth trajectory suggests that its role in IT Outsourcing will only strengthen in the coming years. With investments in STEM education, government support for innovation, and increasing integration into global supply chains, Vietnam is poised to compete head-to-head with long-established outsourcing hubs.
For international businesses, this presents a unique opportunity. By outsourcing to Vietnam, companies can gain access to skilled talent, reduce operational costs, and accelerate digital transformation—all while building long-term, sustainable partnerships.
Conclusion
Vietnam has transformed from a rising player into a top choice for IT Outsourcing. The country’s combination of skilled engineers, cost advantages, agile delivery models, and strong government backing positions it as a reliable destination for businesses seeking to scale their technology capabilities.
Looking to scale with IT Outsourcing? Vietnam offers both cost-efficiency and innovation. Partner with GITS to gain the expertise, speed, and reliability your business needs to thrive in the digital era.
