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Tech Odyssey 2024: Vietnam’s Offshore Development Centers as the Gateway to Global Software Excellence

Deloitte’s recent insights highlight a shift beyond traditional offshore technology hubs, with companies across diverse industries seeking globalized models to meet the demands of tech-savvy customers. As US technology companies face challenges accessing onshore talent and an accelerated demand for digital experiences, the trend of nearshoring is gaining momentum. In this dynamic landscape, we present Vietnam as a compelling destination for offshore development services.

Vietnam stands out as an attractive choice for offshore development services.

Vietnam stands out as an attractive choice for offshore development services.

The Talent Dilemma in the United States

The US has long grappled with the high cost of software engineering talent. The current median salary of a US software developer is twice as expensive as the global median for the same position. While layoffs have occurred in the tech sector, the workforce expansion continues, making cost-effective talent solutions imperative. The demand for cloud-native tech talent remains high, creating a bottleneck for companies striving to expand their modern software engineering and cloud environments.

Customer-Driven Digital Experiences

Digital experiences are no longer a luxury but a necessity across industries. The demand for enhanced digital experiences is pushing businesses to embrace technology at their core. From quick-service restaurants recording substantial sales increases through digital channels to the shift in the video surveillance industry from hardware-centered to cloud-centered solutions, the call for digital product teams is loud and clear.

Latin America as a Nearshoring Hub

Deloitte’s report suggests Latin America as an attractive nearshoring option. Latin America boasts a strong and growing base of well-educated software engineers experienced in cloud-native technologies. The region’s two largest markets, Brazil and Mexico, are home to over 2.2 million software engineering professionals, graduating more than 350,000 new engineering students annually. Major international employers are establishing engineering presence in Latin American markets, seeking cloud-native talent for diverse roles.

Unlocking Potential: Vietnam’s Strategic Alternative

While Latin America is a viable option, we propose considering Vietnam as a strategic alternative. As a Vietnam-based offshore development center service provider, we offer a unique blend of advantages that align with the evolving needs of US technology companies.

Advantages of Vietnam-based Offshore Development Centers

1. Cost-Effective Talent

Vietnam boasts a highly skilled and cost-effective talent pool. The lower median salaries compared to the United States enable businesses to achieve significant cost savings without compromising on the quality of work.

2. Growing Tech Talent Base

Vietnam’s commitment to education is evident in its growing base of tech talent. The country consistently produces a substantial number of engineering graduates each year, ensuring a steady supply of skilled professionals.

3. Real-Time Collaboration

Proximity matters in software development. Vietnam’s geographic location allows for real-time collaboration, a crucial factor for tasks requiring immediate interaction between onshore and offshore teams.

4. Cultural Affinity

Cultural alignment is a key factor in successful collaboration. Vietnam’s increasing exposure to Western culture, English proficiency, and a strong work ethic make it an ideal partner for US companies.

Navigating the Nearshoring Landscape

As companies consider nearshoring, the process involves selecting the right location, attracting local talent, and choosing the optimal operating model. In the case of Vietnam, the following factors should be considered:

  • Tech Talent Supply: Vietnam has a growing pool of tech talent with expertise in various domains.
  • English Language Capabilities: The country’s focus on education includes an emphasis on English proficiency.
  • Competitive Landscape: Vietnam’s tech ecosystem is competitive and rapidly evolving.
  • Infrastructure: With continuously improving physical infrastructure, Vietnam offers a conducive environment for business operations.

As US technology companies explore nearshoring options, Vietnam emerges as a strategic choice. With its cost-effective talent, growing tech ecosystem, and cultural affinity, Vietnam is poised to be a key player in the global software engineering landscape. The journey to unlocking your business’s full potential begins with embracing the opportunities that Vietnam’s offshore development centers present.


LARION JSC, one of the top Vietnam software outsourcing companies with 2 decades deep industry expertise. We are a 100% Vietnam-based technology company specializing in building highly skilled offshore development teams for healthcare, fintech, banking and trading businesses worldwide. Run by a team of successful entrepreneurs and dedicated technical experts – LARION is a unique symphony where we create a frictionless future for customers with passion, while maintaining full compliance with your needs and objectives.

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Contact us  now to explore how our Vietnam-based offshore development center services can be the catalyst for your company’s success in the ever-evolving world of software development.

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