Vietnam’s IT outsourcing sector to hit $881Mn by 2027

HO CHI MINH CITY, VIETNAM — Vietnam’s IT outsourcing market is showing signs of rapid growth, with projections indicating a value of US$881.90 million by 2027, according to tech consulting firm KMS Solutions. 

Fuelled by favorable socioeconomics, robust tech infrastructure, skilled talent, and competitive labor costs, the sector’s annual growth rate is pegged at 13.31%.

Vietnam’s escalating reputation draws tech-incentive finance firms to invest in IT operations. Kearny’s Global Service Location Index has also ranked the country among the top six global locations for IT outsourcing, noting its conducive business environment and potent technology ecosystem.

Significant strides in Vietnam’s tech infrastructure have seen the nation climb seven positions in the government’s AI readiness index, ranking 6th among ASEAN countries and 55th worldwide. 

The government’s commitment to technological advancement is underpinned by the creation of the National Innovation Center (NIC).

Vietnam’s tech talent, nurtured through early STEM education, ranks 22nd globally, with a thriving pool of 480,000 IT engineers. 

KMS said that the nation’s talent and competitive labor costs compared to other offshoring locations make the country an attractive option for businesses seeking to fuel innovation while maintaining cost efficiency.

Major financial institutions, including ANZ Bank and NAB, have already tapped into Vietnam’s potential, establishing digital hubs within the nation. 

With fintech disrupting traditional banking models, KMS expects Vietnam to offer an exceptional environment for strategic growth and digital innovation.