What’s going on in the world of software outsourcing?

The software outsourcing scene is no longer a one-horse race; it's more like a tech rodeo! Recently, a lively debate kicked off on the "developersIndia" subreddit, asking: Who's this rising tech star in Southeast Asia? Spoiler alert: it's Vietnam!

The thread turned into a lively, free-for-all about the changing face of outsourcing, with participants practically salivating over the potential cost savings and the shiny new reputation of Vietnamese developers. Who better to weigh in than a Vietnamese pro working in a global outsourcing firm? I'll do my best to keep it balanced, though I may have a slight soft spot for my fellow countrymen!

• Full disclaimer: We got curious and decided to take a closer look, checking the facts against all the different things people were saying over this hot topic on a public forum. But we want to be upfront: we're just here to explore, not to take sides. This is all about looking at the evidence and letting you make your own judgment.

Balancing The Budget - Vietnam?

• Yes and No. Calling developers in Vietnam cheaper than in India would greatly generalize the answer. Looking at the market medium cost for developers, we believe Vietnam is at a slightly better rate than India.

While India has long been the go-to for competitive rates, Vietnam is stepping onto the stage with a charming smile and an attractive offer. Just take a peek at the pay scale for junior Indian software developers, which ranges from a modest $601 to $1.5K+ USD per month or making $29/hour. But beware! Hiring developers in bustling cities like Chennai, Pune, or Mumbai can feel like getting a ticket to a premium concert—prices can skyrocket!

Now, let’s turn our gaze to Vietnam. Here, average software developer salaries start at around $25 per hour. Monthly wages for junior and mid-level developers typically range from ≥ $400 to ≥ $1.4K+ USD. Even in tech hotspots like Hanoi, Ho Chi Minh City, or Da Nang, you’ll find salaries (and living costs) that won’t leave your wallet gasping for air.

Specifically, Vietnam's salary is approximately 29.82% of China's! So, why not get more bang for your buck without sacrificing quality?

Just How Skilled Are They?

• Both Indian and Vietnamese developers are incredibly talented, so it’s a win-win for both sides! As we explore the strengths and weaknesses of these two dynamic tech communities. While each has its unique flair, one thing stands out: both markets are filled with outstanding developers recognized and respected worldwide.

India and Vietnam boast brilliant developers, but each has its own strengths and quirks. India has built a tech empire thanks to its top-notch educational institutions and booming tech scene. According to NASSCOM (National Association of Software and Service Companies), India produces over 1.5 million engineering graduates.

Out of the global population of 28.7 million developers, 19% of software engineers reside in India today, all pros in Java, Python, and . NET. Indian developers offer the 2nd largest AI/ML BDA talent pool globally and stand 3rd in the installed supply of Cloud professionals. 

Meanwhile, Vietnam is also on the rise, fueled by a government keen on boosting STEM education and the emergence of vibrant tech hotspots. As of 2024, the country boasts approximately 530,000 software engineers, with around 57,000 IT professionals graduating annually from universities and private institutions.

According to the Pentalog Report 2022, developers from Hanoi are flexing their skills as the fifth-best globally, particularly in C/C++. This ranking puts them shoulder-to-shoulder with Moldova, Germany, and Ukraine.

These Vietnamese developers are also catching up with the latest tech trends, diving into mobile app development, cloud computing, and artificial intelligence like pros. They’re quick learners, too, mastering new programming languages and frameworks faster than you can say "outsourcing."

Putting English To The Test - Indians?

• English has emerged as a vital player in the race to identify the world’s next global talent pool. India and Vietnam are stepping up to the challenge, revamping their education systems and inspiring citizens to sharpen their English-speaking skills. Yet, despite these efforts, the competition remains neck and neck. It would be a stretch to say that Vietnamese speakers have a clear advantage over their Indian peers in mastering English. So, what’s really going on in this fascinating showdown?

In India, English feels more like that cool foreign cousin you admire rather than the family member you grew up with. On average, Indian English speakers enjoy moderate fluency, which places India at an impressive #60 on the 2023 English Proficiency Index, with a score of about 504 out of 800. Not too shabby, right? Yet, there’s still plenty of room for growth and refinement in their language skills! 

And here’s a fun fact: around 135 million people in India can speak English, making up about 9.71% of the population. The language landscape is vibrant and full of potential!

Over in Vietnam, the developer scene is buzzing with a mix of English proficiency levels. According to the same 2023 English Proficiency Index, Vietnam lands a little on top of India, at #58, with a 505 out of 800 score. Way to go! However, according to the Vietnam Total Workforce Index 2022, the proportion of Vietnamese workers proficient in English accounts for only 5% of the total workforce.

Developers Who Go All The Way

• Both cultures bring their unique flavor to the outsourcing table, making the experience quite an adventure! A Reddit thread recently poked fun at the "chalta hai" attitude often associated with Indian developers, raising eyebrows about deadlines and project management. While it’s not a universal truth, it underscores the need for a little cultural TLC in outsourcing.

Flashback to a Quora chat from four years ago, where the praises for Vietnamese work ethics still echo today! Vietnamese developers are like the superheroes of the coding world—committed to quality, eager to please, and with an eye for detail that would make a watchmaker jealous. In my experience, they consistently go above and beyond, turning client satisfaction into art. It’s no wonder many clients are looking for these dedicated partners who make high-quality work their mission!

Facts or “Cap”?

So, have the questions been answered?

Well, sort of! Both countries are like treasure troves of top-notch software developers known for their dazzling skills and innovative flair.

But hold your horses. Choosing the right country comes with a price: choosing the right local partner. A reliable collaborator can be your compass, guiding you through the local market's twists and turns while helping you dodge potential landmines. Without a trusty sidekick to manage the chaos, figuring out the best country for your outsourcing adventure can turn into a wild goose chase.