In today’s world, IT Staff Augmentation has been considered as one of the most effective strategies for accomplishing the business goals more rapidly and cost-effectively. And with top-notch quality at a much lower price, Vietnam indeed ranks among the top global outsourcing destinations. In this article, Kyanon Digital will show you the top 5 benefits of IT staff augmentation and why you should choose Vietnam as your next stop.
1. What is IT Staff Augmentation?
IT staff augmentation is the strategy to outsource IT professionals to satisfy the project’s requirements within your company. This service allows you to hire high quality experts without undergoing any additional costs. Hence, it is not demanded to invest in IT setups or resources to create a workforce for the project.
2. The General Situation of Vietnam IT Industry
According to the Vietnam IT Market Report by TopDev in 2022, the revenue of the IT sector reached about 77 billion USD, up 17% over the same period last year. Profit is estimated at $5.9 billion, and increased 13% based on a report published on July 18.
ICT Revenue in Vietnam 2016 -2022
Regarding the IT landscape, the ministry informed about 3,400 digital technology businesses were established in the first half of the year. This number shows the possibility of acquiring the ministry’s target of 70,000 companies working in the industry in 2022. In 2021, there were 64,000 companies working in the field, up from 58,000 in 2020 and 45,600 in 2019.
Digital Technology Companies in Vietnam by 2030
3. Top 5 Benefits Of IT Staff Augmentation in Vietnam
Top 5 benefits of IT staff augmentation in Vietnam
3.1 Lower Labor Cost
Among all the benefits, it is not uncommon that cost-effectiveness is the most attractive one of staff augmentation in Vietnam. In fact, depending on the developer’s skillset and years of experience, it is shown that hourly rates for Vietnam developers range from $14 to $40. Furthermore, using the country’s top software outsourcing services can save 90% of the cost of operation compared to outsourcing in the US, the savings would be 50% compared to China. This is one of the significant reasons why so many global businesses have been switching their software & IT outsourcing to Vietnam.
3.2 Direct Access to A Sizable Talent Pool
IT staff augmentation services in Vietnam provided a more potential access to a larger talent pool. A research by TopDev indicated that currently, the number of young developers accounted for 53.97% in the age group of 20 to 29 years old, represents the majority in the industry; and seniors developers make up to 30% of the workforce, while the juniors have their share of 52,1%. Therefore, it increases the chances of hiring the most suitable professionals based on your requirements. In addition, with numerous resources as well as advanced strategies, your development team will achieve better efficiency and gain more value in your projects.
3.3 The Upper Level of Flexibility
Flexibility is another benefit of IT staff augmentation, as it enables you to quickly scale your workforce up or down, and address urgent needs according to the demands. You have the choice to decide the number of IT experts hired based on your needs, whether it is one person to cover a specific need or numerous people for a project. Your business can be greatly benefited from having a wide range of professionals and additional skills gained from the temporary staff. When utilizing staff outsourcing services in Vietnam, all the benefits of staff augmentation can be gained just like in any other developed countries, but with more economical costs and assured qualified workforce.
3.4 High Quality Services
Being in the top 10 best countries for software outsourcing, Vietnam has made a significant impact in building a reputation for provisioning quality services in the IT industry. A report by TopDev showed that in 2021, Vietnam was ranked 5th in the best global service locations, 13th in the top 50 digital countries, and 18th in the top 100 IT outsourcing destinations in the world. In 2022 report, Vietnam was the only one in Southeast Asia where developer skill made it to top 30, and the country was also in top 10 for having the best developers by SkillValue, and in terms of general technical skills, Vietnam was placed 2nd Asia Pacific and 22th globally according to Global Skills Index (GSI).
Vietnamese developers’ competency
3.5 Potential Business Development Environment
The government of Vietnam has been incentivizing local IT businesses with tax cuts, preferential credit terms, exemptions from land rental, and other benefits under its effort to promote Vietnam as a leading destination in the high-tech market. Thereby, businesses in the industry have been encouraged to invest into R&D and infrastructure development, which result in providing top-notch service and handling demanding requirements from their clients. In addition to developing new policies that appealed to tech businesses, the government had also invested heavily in STEM education, and the outcome was a workforce rich in skilled technologists. Not to mention, Vietnam is among the Asian countries with the most socio-economic stability, as they have been a politically stable nation for more than 30 years.
IT Staff Augmentation can be seen as an effective way to strengthen your software development team, and Kyanon Digital has shown you that Vietnam is a reliable destination providing many benefits with high quality developers, as a suitable outsourcing partner plays a vital role in the project’s success. And if you have any questions related to this matter, do not hesitate to contact us for specific consultation.