Extending your tech team abroad has long been proven to have significant benefits for most businesses globally. Having access to highly qualified team extensions can be the perfect fit for both established companies and new startups. Cost is an influential factor for most companies when executing such a plan. However, even if cost saving is critical for a business, you must also consider a range of other essential elements such as the availability of the required IT specialists, corporate tax rates, time zones, infrastructure, human resource and general ease of operating business in that country. For enterprises that are interested in beginning or enhancing their current software development activities overseas, making a wise decision regarding the selection of the right destination is crucial. Below is a brief discussion on the top IT countries along with some pros and cons.
Photo by Amir Shamsipur
Having been working in IT services for over 20 years, this long-time experienced country has no doubt remained near the top of ideal destinations for technology projects in many reports. India is usually one of the first IT destinations for businesses to seek out services due to a large number of IT specialists and affordable costs. However, cultural compatibility and business process organization may still be noteworthy issues that they have not completely resolve yet.
Pros for India
India is not only the second most populated country in the world, but it also has a remarkably large population of people with IT qualifications. Hence, firms can hire plenty of tech specialists with the necessary skillsets here. As mentioned above, the level of costs involved is mostly inexpensive as well. Even though some may rightly say that English is not the first language in India, it is a language that is primarily used in the workforce. That means better communication in interactions between locals and the headquarters of the company, bringing along smoother workflows.
Cons for India
There are thousands of outsourcing companies and individuals available for engagement. However, that presents a challenge for companies looking to outsource or expand their tech team as only a few of these outsourcing firms and some of the individuals can deliver high quality results. Selecting the wrong option will no doubt waste much of your resource and time. The work culture in India is unique in that some companies can compromise on work quality to achieve their targets and time is not valued sufficiently which may result in delays. Ironically, language can be complicated here too as their writing skills often surpass their comprehension and speaking skills. When you have a telephone or video call, the message may be misinterpreted as a result of the variations in tonality and pronunciation.
Another popular IT destination in Asia is the Philippines. A compelling factor that helps companies venture in the country is the English language fluency, which is central for successful communication and cooperation. The nation is even listed among the top 30 nations in the world with high numbers of software specialists that can communicate fluently in English. However, despite the country making significant progress in various domains like software engineering, the volatile political situation hurts the economy.
Pros for Philippines
The citizens have adapted and embraced Western cultures in their daily lives. English is taught as one of the primary subjects within their education system and a large percentage of advertising, business and television are also done using English. The economy in the Philippines is not the strongest due to various reasons and that has resulted in low labor costs. Lastly, owing to significant investments and ongoing improvements, the Philippines boasts of similar world-class IT infrastructure as other Asian giants like South Korea and Japan. Numerous established ISPs are offering high-speed, dedicated fiber optic internet connections all over the country.
Cons for Philippines
The country experiences an average of twelve tropical typhoons per year that can cause floods and other disasters. There is a potential that works in specific areas could be affected by such weather, which could delay ongoing software projects. Next, with its earlier war on drugs and corruption being a constant cloud hanging over the government, the political situation is not the most stable to say the least.
With the government implementing attractive policies to attract IT entrepreneurs along with substantial investments in the STEM fields to create robust and qualified technical engineers, the technology industries in Vietnam and subsequent outsourcing services have experienced remarkable growth over the last few years. One of the key competitive factors making Vietnam such an appealing market and becoming a positive IT destination is a low-cost and skillful workforce. Additionally, Vietnam enjoys a safe and peaceful working environment with minimum conflicts in social politics, resulting in stability and a positive impact on the country’s ever-rising GDP.
Pros for Vietnam
Vietnam has plenty of tech-savvy, vibrant and young citizens that are exceedingly interested in pursuing IT-related careers. Additionally, the high literacy rate means that nearly all these people are well educated and skilled in their respective areas. The Vietnam government has tackled the issue of English communication by investing heavily and incentivizing its citizens to speak in English. There are numerous native English teachers hired across the country, and there has been a significant improvement in English proficiency in the country over the last decade. As for the working culture, many local people value loyalty, resulting in a lower turnover rate compared to other countries. Furthermore, they are very much into self-improvement and keeping up with trending technology. Importantly, developers in Vietnam are up to 30% more cost effective compared to India.
Cons for Vietnam
Despite all the extensive efforts to improve the Vietnam education system, the country still lags in overall soft skills. The educational teaching methods used in most schools, particularly in rural regions could impede students’ creativity and motivation. The result is that students are not entirely equipped with the necessary soft skills that will be essential in their future careers, such as negotiation and presentation skills.