Why Singaporean Tech Companies Should Choose Vietnam as a Software Development Outsourcing Destination
Singapore as a Tech Destination
Singapore has been famously known for being a bustling global finance center, which was greatly contributed to by the tech industry. Many sectors, such as banking, technology, energy and infrastructure, and real estate, are a part of the 397 billion USD GDP as of 2021. It is considered 1st in Asia for innovation and the world for doing business. The country’s business landscape is booming with a diverse business ecosystem and quick business setup.
The IT industry takes up about 17% of the pie and has been growing steadily throughout the years. The growing industry translates to growing demand, so more Singaporean IT companies are looking outward for their software development solution. Some unicorns include Klook, Grab, SHEIN, and Traveloka. Other big tech companies that operate or have tech teams in Singapore include FAANG (Facebook, Amazon, Apple, Netflix, and Google - Alphabet) and other global companies like IBM, Binance, PayPal, Indeed, Visa, and Zoom.
Software Development in Neighboring ASEAN Countries
Finding reputable software development firms that can ensure a quality product on a timely delivery seems like a hard task for Singaporean businesses. One factor that is highly considered in choosing a software development company is location. Singapore is in the middle of many developing countries with a large pool of talent and an affordable price. Malaysia is in the same time zone as Singapore. Thus the country is a good fit for a software development destination.
Thailand and Vietnam are in the same time zone and only one hour apart from Singapore, so there are many potential offshore firms too. Outsourcing to these countries brings undeniable advantages, such as good technical skills and high affordability. Malaysia and Vietnam always rank on top for the English proficiency, so communication with Singaporean IT businesses will be extremely efficient.
Another country to consider in the Southeast Asia region is the Philippines, which is ranked to have good English proficiency. Still, its technical skills are not on par with neighboring countries. Singaporean tech companies have many software development outsourcing destinations, but we believe the best fit would be in Vietnam.
Why Vietnam for Singaporean Businesses?
Vietnam is leaving its infancy in the software development outsourcing industry. In 2002, Vietnam was considered a newcomer with little experience, but two decades later, the country is consistently ranked at the top of its outsourcing market. There are many reasons why companies worldwide choose Vietnam.
Vietnam’s economic growth and hard-working culture have garnered much attention from international companies. The small country off the coast of Asia is no longer a junior player but a global competitor. More investment is placed in education, which guarantees the technical skills of software engineers. Firms that outsource to Vietnam enjoy a reasonable software development cost. There are infinitely more reasons for choosing Vietnam, but specifically, Singapore would benefit from developing its next tech product here.
First of all, the time zone in Singapore is GMT +8, only an hour apart from Vietnam at GMT +7. Two parties will find communication and collaboration easily if they choose to work remotely. If a Singaporean company wants to send someone to overlook the whole process, there are cheap plane tickets all year round that can make this happen. More types of accommodation are also cheap and available to business people for any desired amount of time. Ho Chi Minh City is an urban city with a rising technology industry of its own, with talents on every corner of the streets. Many IT companies from Singapore easily overlook their projects directly, as Vietnam allows Singaporeans to visit for up to 30 days visa-free. But that’s not the only reason to come to Vietnam; the small S-shaped country also offers a pleasant surprise: its untapped potential market.
Vietnam: Not Only an Outsourcing Destination
The Vietnamese people are becoming more lavish, modern, and connected as the technological wave floods the country. The growing economy allows more comfortable spending on technology products. Whether selling directly to end-users or making a foreign direct investment in the market, Singaporean IT companies have a great chance to profit from this market. The economic tie between these two countries speeds up and facilitates the procedure, which means faster and better results.
Why Dirox for Singaporean IT Companies?
If you are already considering Vietnam as your software development destination, choosing a firm that fits your company perfectly would be another round of research. We have a great suggestion: Dirox! Our software development company is located in Ho Chi Minh City, close to the airport and the city center - District 1. Staying near the company will give you access to local and international restaurants, a variety of stores, shops, and more. Moreover, Dirox is a mixture of Western culture and Vietnamese talents that has partnered with many global companies as well as Singaporean ones.
We offer a flexible collaboration model: fixed price, time & material, and a special focus on BOT (Build - Operate - Transfer). The best pricing model for software development products could be a “fixed price model” or “time & material model,” depending on the work scope and what you need to outsource. With “build - operate - transfer,” just as the name suggests, we can create full IT departments here and transfer them to your company later. This way, you don’t have to worry about training or going through the lengthy procedure of setting up a department.
Started in 2003 in Ho Chi Minh City Vietnam, our Development Company operates on a Global Scale in Asia, Europe, and America. Dirox’s team of technology consultants, business gurus, software & apps coders, and design visionaries bring you innovative solutions on time, on budget, and on quality. We strive to bring you the best IT outsourcing & offshore services.