The term “software development outsourcing” is no longer new over the years; on the contrary, it has become the favorite solution for IT businesses of all sizes and shapes to handle their IT needs. Although software development outsourcing does boast both pros and cons, the benefits this IT solution offers outweigh the disadvantages. With software outsourcing booming around the globe, service buyers have a variety of choices when it comes to IT outsourcing destinations.

Choosing the right outsourcing country for your business and project is vital to the success of your business. It can be a make-or-break decision that affects your company’s budget, quality, and timelines. Before you can make a decision on the best country to outsource software development, it’s important to be well aware of some critical factors to consider in an outsourcing destination. Let’s begin.

What to consider in a country before deciding to outsource to

Outsource Software Development

To ensure that you are outsourcing to the right place and then able to choose and work with the right IT outsourcing company, you need to make up your mind with a destination first. These are the top 5 key considerations when outsourcing software development to a nation:

The country’s political stability

When it comes to business, political stability is one of the key success factors. A country that is politically unstable is often characterized by high crime rates, which in turn can lead to unrest and ultimately affect business operations. To minimize business risks, business owners should consider outsourcing software development to countries that have a stable political landscape.

The country’s infrastructure

A country’s infrastructure plays a significant role in the efficiency of its businesses. Good infrastructure means better communication and transport facilities, eventually improving productivity. When it comes to software development, having good infrastructure in place is essential for companies to be able to operate smoothly and efficiently.

The availability of skilled labor

One of the most important factors to consider when outsourcing software development is the availability of skilled labor in the destination country. It’s important to make sure that the country you choose has a pool of talented and experienced software developers who can meet the specific requirements of your project.

The cost of living

The cost of living is another important factor to consider when outsourcing software development. This is because the cost of labor is often directly proportional to the cost of living in a particular country. To reap the most out of it, you should choose a destination country where the expenditures are relatively low compared to yours, including development costs, developer salaries, and others.

Software bill

The time zone difference

When outsourcing software development, it’s important to consider the time zone difference between your company and the destination country. This is because a large time difference can impact communication and collaboration between you and your outsourcing partner. It is best to choose a destination country that is in the same time zone as your company in order to avoid any potential difficulties regarding communication.

By keeping these factors in mind, you can be sure to choose the best country to outsource software development for your specific needs and requirements.

Top 3 best countries in Asia to outsource software development – Updated 2023

As software development outsourcing has changed the way we do business, more and more companies and corporations have been heading to Asian countries and reaping the benefits from the best local IT services providers. The Asia-Pacific region is currently home to some of the world’s fastest-growing economies and is quickly becoming a hotbed for software development outsourcing. With a sizable pool of talented and experienced software developers, as well as a favorable cost-benefit ratio, it’s no wonder that so many companies are choosing to outsource their software development to countries in Asia. Here are the top 3 potential options you should stick to your choice:

#1 India

Being well-known for its large population and low cost of living, India is one of the most popular outsourcing destinations in Asia. With the notable cost disparity between India and developed nations, such as the U.S or Canada, it’s no wonder that so many companies are looking to India as a viable option for their software development needs.

What’s more, India is also home to a large pool of highly-skilled and experienced software developers. With the vast majority of developers in India being proficient in English, communication is rarely an issue when outsourcing to this country. Additionally, the time zone difference between India and most Western countries is just a few hours, making it simple to stay in touch and collaborate on projects.

#2 China

Together with India, China has become the two IT outsourcing giants dominating the IT labor market in Asia, and they are the destinations a great number of IT businesses head to in order to deal with the IT talent shortage. Like India, outsourcing to China has a lot of advantages that make it an attractive option for businesses. First and foremost, the cost of labor in China is significantly lower than in developed Western nations. This makes China an ideal destination for companies looking to cut down on costs without sacrificing quality. Moreover, a vast pool of IT professionals and experts also makes China a great choice for businesses that require specialized skills and knowledge. However, the language barrier is one of the hurdles that bother many business decision-makers when they consider outsourcing to China.

Despite the fact the Chinese government is trying to improve the English-speaking ability of its citizens, a great majority of people in China still don’t speak English fluently. This can make communication and collaboration between you and your outsourcing partner quite difficult.


#3 Vietnam

In recent years, Vietnam has become the new IT powerhouse in the Asia-Pacific, and the nation is surpassing India and China in the global outsourcing race. When collaborating with an outsourcing company in Vietnam, you can enjoy a wide range of benefits. First of all, Vietnam has a large and, more importantly, sustainable pool of developers and IT talent. The country is also home to a number of world-class universities that produce high-quality software engineers every year. Moreover, the cost of living and doing business in Vietnam is quite low when compared to other popular outsourcing destinations in Asia. In particular, the development costs and salary for developers in Vietnam are 60% and 30% lower than in India and China, respectively,

As for the language barrier, it’s worth noting that a great majority of people in Vietnam speak English quite fluently. Moreover, the open-minded attitude and international working culture of Vietnamese developers make it easy for them to work with clients from all across the globe.

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