IT Outsourcing Destination: China, India Or Vietnam?

Author: An Pham
Publish date: 08/05/2024
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The IT Outsourcing market worldwide is projected to grow annually by 10.99%, reaching a market value of US$777.70 billion by 2028.

While India and China have long been the go-to nations for IT dedicated teams, new players like Vietnam are gaining ground. Companies have various choices based on language, cost, culture, and government support.

In this blog, SECOMM will explore the advantages and disadvantages of outsourcing IT functions to India, China, or Vietnam. This analysis will help companies make informed decisions about which country aligns best with their resources and strategic objectives.

1. Key Considerations for Choosing an IT Outsourcing PartnerKey Considerations for Choosing an IT Outsourcing Partner

Before going further into the main points of the three countries, there are some key points that companies should be aware of when choosing an IT outsourcing partner.

1.1 Balancing Cost And Value

Selecting a partner who can provide both quality and competitive pricing is vital for the company’s campaign success. When assessing cost benefits, look beyond immediate savings. Consider the long-term expenses of communication, travel, staff turnover, and management tasks. These factors can impact your financial outcomes over time. For example, a company outsourcing to a country with low English proficiency may lead to communication challenges. To address this, the company might need to employ a local translator to ensure smooth operations.

1.2 Evaluating The Experience And Expertise Of The Outsourcing Units

A Deloitte study reveals that 59% of companies outsource software development for specialized skills and expertise. It’s important to choose partners known for providing skilled IT professionals and delivering projects akin to yours. Experience in similar projects or industries is a plus, as partners with relevant domain knowledge can offer valuable insights and tailored solutions. For example, in Vietnam, SECOMM is one of many companies proud of its ability to handle big projects globally easily due to its past experiences of working with many big names in the eCommerce industry.

1.3 Communication & Cultural Alignment

Cultural alignment and good communication are important but often ignored in outsourcing partnerships. Your partner should have values, work ethics, and communication methods similar to your company’s. Communication should be transparent and frequent throughout the project. Choosing a partner with staff who speak a language that both parties understand is important to avoid language barriers that could slow down progress.

1.4 Quality Assurance & Security Measures

Quality control is vital for software that’s free of bugs. Your outsourcing partner should follow the best practices in data security and software development. Quality assurance tests should be part of the development process to catch and fix issues early. Security is equally important for outsourced DevOps services. Check their security measures, data protection policies, and compliance with industry standards. They must protect sensitive data according to industry regulations and have clear methods for protecting intellectual property and confidential information.

2. Deep Dive into Each Country 

2.1 China

Outsourcing to China is a strategic choice for many Western companies, largely due to the cost-effective services and access to a highly skilled workforce. China’s e-commerce market is the largest globally, and the country offers a stable economic environment, low corporate taxes, and numerous top-tier seaports. Moreover, China boasts one of the world’s largest and most proficient tech talent pools, adding to its appeal as an outsourcing hub.

A. Why Should You Choose China?China

Inexpensive Workforce

Outsourcing IT to China offers clear financial benefits. Chinese developers provide services at competitive rates, which can lead to significant cost savings for businesses. This affordability doesn’t come at the expense of talent, as China has a large pool of skilled developers. The salaries for these developers are generally lower than in the US where Chinese professionals often charge around $50 to $100 an hour, with an average of around $29,840 a year.

Skilled Workforce

Moreover, China is a leading tech hub with one of the largest and most skilled IT dedicated teams in the world. By 2024, the global number of developers is expected to reach 28.7 million, with China contributing significantly to this growth. The country’s developer population is growing at a rate of 6% to 8%. China also prioritizes high-quality education, with 24 of its universities ranked among the top 200 worldwide. The Chinese government is actively launching educational initiatives to enhance technical skills, preparing its citizens for the evolving digital world.

Supportive Government Policies

The government invests in projects and infrastructure to aid these companies and streamline outsourcing. In 2020, China announced a massive $1.4 trillion investment to enhance public digital infrastructure. This investment is a boon for companies considering China for digital outsourcing, as it simplifies the integration of local talent.

B. Issues When Outsourcing To China

Additionally, there are still some issues that companies need to be aware of when contacting the IT dedicated team in China. Firstly, language barriers are significant when outsourcing to China, as not all IT professionals are proficient in English, potentially causing miscommunications and project delays. Cultural variances can also affect how communication is perceived and managed.

Additionally, on the topic of intellectual property, China’s laws may vary from those in other nations, posing a risk to the security of your ideas. Moreover, stringent data privacy and security regulations by the Chinese government can pose operational challenges for foreign IT service providers.

2.2 India

India has consistently been a dominant force in the global IT outsourcing sector, attributed to its extensive talent pool of IT experts and a favorable business ecosystem. The industry is projected to witness a compound annual growth rate (CAGR) of 17.58% between 2024 and 2028, culminating in a projected market value of USD 20.09 billion by 2028.

Clients within India’s IT outsourcing market demand cost-effective, high-caliber services. They seek partnerships with firms that offer comprehensive services, including software development, maintenance, and support, and value providers with industry-specific experience who can deliver solutions tailored to their precise needs. Additionally, India is ideal for businesses seeking experienced developers with strong communication skills for complex projects.

A. Why Should You Choose India?India

Cost-Effective

Local outsourcing providers efficiently manage the entire process, including procurement, installation, and testing, ensuring a cost-effective and seamless experience. For example, establishing a website or developing a mobile application can be expensive, but outsourcing to India can reduce these costs by nearly 50%.

Furthermore, India’s lower living costs result in more affordable labor compared to countries like the United States. To illustrate, the average yearly salary for an IT employee based on Glassdoor in India is around $20,464, starkly contrasting the U.S. average of $109,829.

Large Labour Pool

The country’s diverse population contributes to a workforce that includes programmers, scientists, financial experts, MBAs, journalists, and virtual assistants with exceptional skills.

India’s government-funded higher education system is the third-largest globally, after the US and China. According to Statistica, India has over 6.5 million graduates each year, significantly more than the Philippines, which is a major competitor in the BPO and outsourcing sector.

B. Issues When Outsourcing To India

Communication

While Indians are proficient in English, the accent may sometimes lead to misunderstandings in verbal communication. It’s advisable to conduct most communication in writing, through emails and chats, to reduce miscommunication risks and maintain a written record for reference if needed.

Privacy And Security Legislation

In software development and IT, the risk of intellectual property (IP) being copied is significant. Without proper safeguards, there’s no guarantee of protection, as projects might be resold.

To protect your interests, it’s wise to sign an NDA with your outsourcing partner. Be careful with IP issues and consider getting legal advice for big projects with substantial financial stakes.

2.3 Vietnam 

Vietnam has gained prominence in the IT outsourcing industry over the last ten years. It’s now a significant force globally, with a focus on software development, digital content, and BPO. The growth of Vietnam’s IT outsourcing sector is attributed to its youthful, talented workforce, competitive labor costs, and supportive government policies. Plus, its strategic position in Southeast Asia adds to its appeal as an outsourcing hub for regional and international businesses.

A. Why Should You Choose Vietnam?Vietnam

Cost-Effectiveness

Outsourcing to Vietnam offers a key benefit: access to skilled tech talent at affordable rates. Vietnam, located in one of the world’s most cost-effective regions, has leveraged this to become the 6th top destination for software development. In 2022, Vietnam was rated 99.6/100 for low manufacturing costs by US NEWS and is among the lowest in Asia.

This results in significantly reduced IT outsourcing costs compared to other countries. For instance, the average annual income for a developer in Vietnam is approximately $7, 173, which is the lowest among the three. This represents a cost reduction of up to 94% compared to the US, 65% compared to India, and 76% compared to China.

Qualified IT Human Resources

Vietnam’s pool of highly educated and tech-savvy young professionals, many of whom have studied or worked abroad, makes it an attractive destination for outsourcing. Additionally, Vietnam offers technical training in various programming languages through its universities and technical schools, producing around 400,000 IT engineering graduates and 50,000 IT students annually.

Overall, Vietnam is well-equipped to meet the skilled workforce demands of employers seeking outsourcing opportunities, with a lower turnover rate compared to other countries in the field. Companies in Vietnam experience an IT-related turnover rate of less than 5%, making it an appealing choice for businesses.

Capable Of Working With The Giants

Major multinational companies and tech giants, including Intel and Microsoft, have established a strong presence in Vietnam by outsourcing software development and IT support services. Additionally, other firms like IBM, Cisco, and Bayer are also expanding their IT roles in Vietnam.

Comparison of IT Outsourcing in China, India and Vietnam
                                                                                Comparison of IT Outsourcing in China, India and Vietnam

The involvement of these esteemed organizations serves as a testament to Vietnam’s adeptness in managing substantial outsourced or offshore software development initiatives, despite its status as a relatively small emerging nation in contrast to larger, more developed counterparts such as India and China.

3. Choosing the Right Partner!

Overall, China’s large, albeit aging, labor force and developed infrastructure are offset by rising costs and regulatory concerns. While India shines with its vast, young talent pool, cost-effectiveness, and robust infrastructure, making it a strong contender for scalability and quality. Finally, Vietnam emerges as a compelling choice with its youthful, tech-savvy workforce, competitive costs, and rapidly improving infrastructure.

Read more: IT Outsourcing in Vietnam: Benefits and Challenges

SECOMM stands out with over a decade of experience for organizations seeking a reliable IT-dedicated team in Vietnam. Engaging with SECOMM means your IT projects are in the hands of exceptional talent, driving innovation and advancing your business objectives. To explore a partnership with SECOMM, reach out or dial the hotline at (+84) 28 7108 9908 for a collaboration that can elevate your IT capabilities.

Ready to Maximize Your eCommerce Potential? Let’s talk

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IT Outsourcing in Vietnam Benefits and Challenges
IT Outsourcing in Vietnam: Benefits and Challenges

IT outsourcing has become a prevalent strategy in today’s business landscape, offering several advantages such as cost savings, access to specialized expertise, and operational agility. For years, Vietnam has stood out as a prime destination for IT outsourcing due to its favorable business ecosystem, competitive labor costs, and government support.

In this blog post, SECOMM explores why Vietnam is an ideal choice for businesses seeking to outsource their IT requirements. We’ll delve into the country’s strengths and potential drawbacks, providing valuable insights for decision-makers.

1. Overview of Vietnam’s IT Outsourcing SectorOverview of Vietnam’s IT Outsourcing Sector

Vietnam’s dedication to advancing science and technology has led to a flourishing ICT market, valued at $7.7 billion in 2021, with ongoing growth fueled by digital adoption in both the public and private sectors.

Macroeconomic Influence: Vietnam has emerged as one of the fastest-growing economies globally, buoyed by a stable political environment and government support for the IT industry. Furthermore, rising investments in cutting-edge technology and startup funding fuel the market’s expansion.

Strategic Focus: According to the International Trade Administration, the Vietnamese government recognizes Information and Communication Technology (ICT) as a pivotal industry and a driver of socio-economic progress. Additionally, Vietnam’s commitment to core tech advancements is evident through significant investments in AI and cloud computing by the government and major companies.

Due to the above elements, the IT outsourcing industry in Vietnam is growing rapidly with an impressive annual growth rate of 16.38% from 2024 to 2028, resulting in a substantial market volume of US$1,282.00 million by 2028.

2. Evaluating Opportunities and Challenges

A. Opportunities in Vietnam’s IT Outsourcing LandscapeOpportunities in Vietnam's IT Outsourcing Landscape

The Majority Of Developers Are Young And Tech-Savvy

Around 56% of developers fall within the 20 – 29 years age group, this number is expected to form about one-third of Vietnam’s workforce by 2025.

There are approximately 50,000 to 57,000 students who graduate in university IT programs annually. Due to this, Vietnam was ranked among the top 10 globally for IT graduates and the top 6 for quality software services. TopDev’s 2023 report highlights that Vietnam’s robust community of around 530,000 tech professionals is well-suited to meet the varied demands of international businesses.

Moreover, the Ministry of Education and Training manages IT education in Vietnam. Recent changes have allowed more flexibility in higher education institutions to encourage innovation. For instance, separate entrance exams for each institution have been eliminated, resulting in improved admission rates.

Rising Cutting-Edge Technologies

Cloud computing in Vietnam has grown at a 30% CAGR recently, driven by robust IT infrastructure and data centers. This progress aligns with Vietnam’s digital transformation agenda. Moreover, with the aim of data security, many Vietnamese companies prefer “make in Vietnam” cloud computing services to foreign ones.

Vietnam has also made strides in artificial intelligence readiness, moving from 55th to 39th globally. It ranks 9th in East Asia and 5th in ASEAN, with an AI readiness score of 54.48.

Cost-Effectiveness

In 2023, the average monthly salary for developers with fresher-level salaries at $514 and for director-level salaries at $2,680. Overall, the annual salary of a Vietnamese IT developer is $7,173, which is incredibly low, it only amounts to nearly 25% of Chinese wages ($29.840) and around 35% of Indian wages ($20.464). These cost benefits, coupled with a commitment to high-quality workflows, are making Vietnam an increasingly popular choice for international organizations seeking dependable and affordable IT services.

B. The Challenges Coming From The WorkforceThe Challenges Coming From The Workforce

English Efficiency Level Is Not High Among Developers

The IT sector’s language requirements are becoming stricter, with over 9% of foreign companies seeking IT staff with professional English skills. The demand for English proficiency has shifted from a nice-to-have to a must-have. Although Vietnamese tech professionals have strong technical abilities and can communicate effectively, their English-speaking skills may not be as advanced as those in other ASEAN countries.

In 2022, only 5% of Vietnam’s workforce was fluent in English, which is less than the fluency rates in Indonesia (10%), Malaysia (21%), and Thailand (27%). This has caused a challenge in the recruitment process for IT outsourcing that many skilled developers are getting denied due to their English level.

The Lack Of Additional Skills Among Young Developers

Additionally, the new generation of developers, mainly Gen Z, is experiencing a growing skills gap because of the fast-paced technological changes. Yet, an impressive 72% of them are keen to learn digital skills, which is higher than the global average of 52%. This enthusiasm is a positive sign for the future, showing they understand the challenges and are ready to tackle them.

Upon engaging with SECOMM, you will gain access to a dedicated IT team that meets standards in English proficiency and technical competency. Book your FREE consultation with SECOMM’s experts today.

Explore SECOMM’s project: Assembling a Specialized Vietnamese IT Team for LandNow’s Website Development.

3. To Sum Up!

Vietnam’s IT outsourcing market has seen consistent growth, thanks to significant investments from both the government and foreign companies. If you’re seeking an IT team provider in Vietnam, consider SECOMM. Their exceptional talent can drive innovation and elevate your business objectives. Reach out to SECOMM at (+84) 28 7108 9908 to explore a partnership.

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Top 10 IT outsourcing countries
Top 10 IT Outsourcing Countries In 2024

With the economic challenges post-COVID-19, IT outsourcing has become a go-to solution for businesses aiming to use their budgets effectively. They’re partnering with outsourcing companies for IT tasks instead of solely depending on in-house teams.

Meanwhile, the IT sector is rapidly growing, fueled by ongoing tech advancements. Outsourcing is crucial to this growth, which is expected to soar to USD 525.2 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. This points to a sustained high demand for IT outsourcing well into the decade.

When considering outsourcing software tasks, it’s crucial to identify the best countries for the job. The ideal locations are those that excel in technological expertise, offer favorable business environments, lead in innovation, and have strong English language proficiency. The following list will highlight the top 10 countries with stand-out IT dedicated teams that could be considered prime choices for IT outsourcing services.

1. IndiaIndia

India has consistently been at the forefront of the outsourcing sector and is renowned for its extensive pool of IT and software development talent. The country’s cost-effective services, proficiency in English, and solid tech infrastructure have established it as a preferred choice for global businesses. With more than 1.5 million IT graduates each year, India ensures a continuous influx of skilled professionals to satisfy the increasing demands of the outsourcing market in Asia.

Moreover, India’s cost structure is generally more affordable than Western countries, making it an attractive option for companies looking to outsource development tasks. For instance, according to Upwork, software developers in India typically charge between $18 and $39 per hour, which is significantly lower than the $50 to $60 per hour rate in the United States or Germany, with the average rate from $150 to $250 per hour. This combination of a large, skilled workforce and competitive pricing positions India favorably against other leading IT outsourcing destinations.

2. ChinaChina

Just like India, China’s massive talent pool and diverse skill set make it one of the best countries for outsourcing, and it has emerged as an IT outsourcing power dominating the labor market. With an education system that promotes Math and Science, China provides some of the world’s best technology and IT services.

In terms of talent pool, China is one of the largest producers of IT graduates worldwide, boasting over 3 million IT graduates a year (this number is quite significant compared to India due to its large population). This vast number of highly educated and skilled individuals further solidifies China’s position as a desirable destination for outsourcing.

Additionally, the Chinese government actively supports IT development and invests in education to build a strong talent base. It focuses on advancing STEM (science, technology, engineering, and mathematics) education, which is essential for the IT sector. This approach improves learning in science and math, which is foundational for IT expertise.

In 2024, China remains a competitive choice for outsourcing, with an average IT outsourcing salary of about $20-$45 an hour, striking a balance between cost-effectiveness and quality output. This affordable rate and the country’s commitment to technological advancement make China an appealing choice for businesses worldwide.

3. PhilippinesPhilippines

The Philippines is a sought-after hub for software development outsourcing and BPO is favored for its cost-effective labor and proficient workforce. English is the official language, simplifying communication and aligning with the country’s strong cultural connections to the US. This understanding of Western work culture is a significant advantage, especially since 94% of the population speaks English.

With around 190,000 developers stationed in key BPO centres like Manila, Cebu, Davao, and Bacolod, the Philippines is recognized as a leading IT outsourcing hub, especially in the healthcare and fintech sectors.

The educational system in the Philippines annually produces approximately 200,000 IT graduates, emphasizing IT and technical skills to create an adaptable and globally competitive workforce. In 2024, the average IT outsourcing salary stood at around $20-$60 an hour, affirming the Philippines’ position as one of the most economical offshore outsourcing destinations.

4. BrazilBrazil

Similar to the Philippines, Brazil shares cultural affinities with the US, which translates into high-quality IT services at competitive rates. This cultural resonance, coupled with its strategic location, makes Brazil a preferred partner for North American IT firms.

Brazil’s commitment to building a skilled tech workforce is reflected in the production of about 150,000 IT graduates each year. The government’s efforts to perfect the technological education infrastructure set Brazil apart as a top destination for offshore software development.

Although Brazil’s outsourcing costs are slightly high, with the average IT outsourcing salary at approximately $20-$50 an hour and an annual software engineer salary of around $12,000, it remains a competitive market. The country’s youthful population, 38% of which are young, positions Brazil as an ideal locale for hiring junior developers, underlining its robust and skilled tech workforce.

5. VietnamVietnam

Vietnam is advancing as a notable destination for IT outsourcing, backed by a vast pool of skilled IT professionals. The country’s educational system, with over 300 IT-focused universities and centres, produces around 57,000 IT graduates each year. The Vietnamese government’s dedication to the IT sector is evident through supportive policies and incentives, contributing to Vietnam’s ranking within the top 50 digital nations.

The IT outsourcing market in Vietnam is forecasted to reach $698.90 million in revenue in 2024, with an anticipated annual growth rate of 16.38%, leading to a market volume of $1,282.00 million by 2028. The enterprise software segment is expected to achieve a market size of $247.3 million by the end of 2024. Moreover, the average spend per IT outsourcing employee is projected to be $11.80 an hour in 2024. These figures highlight a dynamic IT outsourcing market with an outstanding IT dedicated team in Vietnam, with growing employment and increasing value per employee, reflecting the nation’s investment in education and technological infrastructure.

6. PolandPoland

Poland is a standout choice for IT outsourcing within Europe. Its central position in Europe and EU membership and a strong pool of software engineering talent make it an attractive base for businesses looking to grow in the European market.

The country’s IT industry is well-developed and supported by numerous universities that provide computer science education. Recent reports indicate that there are between 63,000 and 78,000 students enrolled in IT and ICT degree programs, with an annual graduation rate of about 10,500 to 13,500.

A significant draw for the IT Outsourcing market in Poland is the cost-effective yet highly skilled workforce, which is more affordable than in many other European nations. The cost for offshore software development services in Poland typically ranges from $40 to $56 per hour, depending on the project. This positions Poland as one of the leading Eastern European countries for cost-efficient programming expertise.

7. MalaysiaMalaysia

Malaysia is gaining traction in the IT outsourcing industry due to its cost-effective solutions and skilled workforce. Over 60% of Malaysians speak English, which, along with strong government support, makes the country an appealing outsourcing destination.

Annually, Malaysia produces around 100,000 IT graduates, reflecting its commitment to digital skills development. The government bolsters this with initiatives like tax incentives and funding for R&D.

In Malaysia’s tech sector, the average monthly salary is about $3,500, with an hourly rate of $14. These rates are lower than in the US or Western Europe. Moreover, a key development in Malaysia’s IT outsourcing is the growth of cloud computing and mobile app development. IT firms are investing in these technologies to offer better and more cost-effective services.

8. ArgentinaArgentina

Argentina’s IT industry is attractive to US and European clients due to English proficiency, cultural similarities, and time zone alignment. Competitive pricing and a highly skilled workforce add to its appeal. Web developers’ costs vary from $20 to $60 per hour, or around $14,100 yearly, based on experience.

With over 115,000 developers, many from top universities, Argentina’s education quality is evident. The country’s 2023 QS World University Rankings featured over 40 renowned computer science programs, 14 of which are in Buenos Aires, ensuring well-educated IT professionals.

9. EgyptEgypt

Egypt’s rise in the IT outsourcing market is attributed to its skilled workforce and cost-competitive services. The country’s low labor costs, combined with a large pool of engineering and development talent, make it a lucrative option for companies seeking IT outsourcing services.

The average hourly rate for IT outsourcing in Egypt in 2024 was between $25 and $50, presenting a budget-friendly choice for businesses. The ITIDA reports that an IT professional’s average annual salary in Egypt is about $10,000, significantly below the global average of $45,000.

Egypt’s educational system contributes around 50,000 IT graduates each year to the industry, ensuring a steady supply of technically skilled professionals. The Egyptian government is proactively enhancing the IT sector by offering incentives and training to expand the talent pool. This initiative is expected to grow the industry significantly.

10. MexicoMexico

Mexico’s IT Outsourcing market is attractive for several reasons, including cost savings, access to a pool of skilled talent, and the ability to quickly scale operations.

In 2024, the average hourly rate for IT outsourcing in Mexico was estimated to be between $20 and $40. While this rate is slightly higher than some other outsourcing destinations, it is balanced by the advantages of geographical closeness, time zone compatibility with the US, and a deep understanding of Western business practices.

Mexico’s higher education system is on par with that of the United States and Europe, contributing to the supply of skilled IT professionals, with approximately 120,000 IT graduates produced annually.

The Mexican IT Outsourcing industry has seen steady growth over the past decade and is currently ranked as the fourth-largest IT outsourcing destination in Latin America. The industry’s expansion is expected to continue, driven by increasing demand for services such as software development, data analytics, and cloud computing.

To Sum Up!

The IT outsourcing market in 2024 is a strategic asset for businesses aiming to innovate and grow. It offers cost-effective access to skilled talent, driving operational efficiency and competitive advantage. Outsourcing is no longer just an option; it’s a strategic necessity that allows companies to focus on core competencies while outsourcing non-core activities to experts worldwide.

At Secomm, we can provide you with the best of our IT dedicated team, who have more than 10 years of experience in the IT sector. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to ensure that your IT operations are handled by top-tier talent, fostering innovation and propelling your business forward.

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Notable IaaS providers include Amazon AWS, Microsoft Azure, and Digital Ocean. IaaS is suitable for businesses wanting full control over the system without the complexity of on-premise eCommerce.

PaaS eCommerce

Platform as a Service (PaaS) is similar to IaaS but requires less infrastructure management, allowing more time to build eCommerce applications using predefined infrastructure with pre-defined operating systems and processes to handle resources, planning, and error correction.

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SaaS eCommerce

Software as a Service (SaaS) provides ready-made eCommerce services, including complete eCommerce solutions or individual eCommerce applications like Product Information Management (PIM) software, Order Management System (OMS), etc. SaaS eCommerce providers are responsible for managing both the infrastructure and software and businesses only need to configure the desired software. Additionally, SaaS eCommerce developers can work outside the user interface with APIs to develop custom solutions without the need for custom software development.

SaaS eCommerce is suitable for businesses that want to quickly deploy eCommerce solutions without significant involvement in infrastructure and software management.

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Typically, when fashion businesses start, they may not initially focus on scalability. However, from a strategic perspective, investing in technologies with scalability capabilities, such as Cloud eCommerce, can help businesses expand system functionality in each stage of eCommerce website development to foster business growth.

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According to Think with Google, if a website takes up to 6 seconds to load, the probability of users bouncing increases by 106%. That’s why businesses need to focus on page load speed.

When an eCommerce website leverages Cloud eCommerce with data stored on a cloud platform, the speed of processing queries and API calls is significantly faster.

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In the current era of the 4.0 technological revolution, the concern for data loss is a major focus for business leaders. As a response to this, numerous new technologies have emerged to address this goal.

According to PC Magazine, Cloud eCommerce provides control over data and storage locations, along with options such as physical backups and file synchronization to ensure data safety. Additionally, Cloud eCommerce supports businesses in obtaining PCI-DSS (Payment Card Industry Data Security Standard) certification, enhancing the credibility of their website.

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Typically, businesses struggle to optimize storage capacity on their websites, especially when facing a massive surge in traffic during peak seasons, such as the “sale hunting” period. This sudden increase in workload poses a significant challenge to storage operations.

Cloud eCommerce offers a flexible solution to meet the demands of unpredictable spikes in traffic, whether seasonal or even hourly. It can dynamically scale up or down to support the real-time needs of a business. Overall, Cloud eCommerce is becoming a widely adopted technology in the digital transformation journey, helping businesses expand their functionality, improve page loading speeds, and enhance the security and stability of their websites.

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With over 9 years of experience designing complex eCommerce systems for companies like An Nam Gourmet, Laybyland, Jasnor, etc., SECOMM understands the challenges that businesses face when exploring new eCommerce technologies. 

Contact SECOMM today for a free consultation on detailed eCommerce system development solutions!

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Additionally, the business model often requires features such as order confirmation, complex payment processes, batch ordering, and wholesale pricing. For B2B enterprises, choosing a suitable eCommerce platform is crucial to ensuring business efficiency and delivering the best user experience for their partners and customers.

What is Magento?

Magento is a powerful and flexible eCommerce platform developed by Magento Inc., a subsidiary of Adobe. Launched in 2008, it quickly became one of the top choices for you looking to build and operate professional online stores.

It allows you to create custom eCommerce websites. This platform provides a range of features, including product management, order management, payment integration, customer management, and many others, enabling you to easily manage and operate your online stores efficiently.

It is built on open-source code, meaning that you can access and customize the platform’s source code based on specific technical requirements.

Ten reasons why you should choose Magento for B2B Commerce

Reason 1: Customization and scalability

Top 10 Reasons to Choose Magento for B2B Commerce
Customization & Scalability

Magento’s open-source platform characteristic enables businesses to easily and effectively expand their business scale. This is particularly important as businesses grow and must enhance the system’s scalability.

Additionally, the platform provides high customization capabilities, allowing businesses to adjust to their specific business needs flexibly. This also means that the shopping experience can be customized to become unique and tailored to the target customers.

Reason 2: The Comprehensive B2B platform

TOP 10 REASONS TO CHOOSE MAGENTO FOR B2B COMMERCE
Reason 2

In addition to offering built-in Magento B2B features, the platform allows businesses to seamlessly and quickly integrate with many third-party applications and systems, thereby creating a comprehensive and automated eCommerce system. Some integrated systems may include:

  • Enterprise Resource Planning (ERP) systems
  • Customer Relationship Management (CRM) systems
  • Product Information Management (PIM) systems
  • Point of Sale (POS) systems, and so on.

Reason 3: Order management

Top 10 Reasons to Choose Magento for B2B Commerce
Order management

Magento B2B provides a variety of order management features, from creating and editing orders to tracking and processing orders efficiently. This helps B2B businesses easily monitor and manage their orders accurately and consistently.

Additionally, it offers tools and features that allow tracking and analysing their orders’ performance. From generating overview reports to tracking order history and purchasing trends, the eCommerce model deployed, you can better understand your activities and make informed strategic decisions.

Reason 4: Payment and shipping options

Top 10 Reasons to Choose Magento for B2B Commerce
Payment & shipping options

Implementing Magento B2B allows you to offer more payment methods to customers, from online payments through electronic payment gateways to cash on delivery (COD).

Additionally, you can integrate various payment gateways through Magento, such as PayPal, Stripe, Authorize.Net, and many more. This ensures security and convenience in the payment process for both businesses and customers.

Reason 5: Segmentation

Top 10 Reasons to Choose Magento for B2B Commerce
Segmentation

Magento B2B provides features and tools to implement customer segmentation strategies effectively. Among these, the most notable is the Advanced Reporting feature, which provides a dashboard for tracking and analyzing sales data.

With this feature, businesses can segment customers and customize experiences based on web browsing behavior, purchase history, and various other criteria.

Reason 6: Custom user roles and permissions

Top 10 Reasons to Choose Magento for B2B Commerce
Custom user roles

Customizing user roles and permissions is an important part of optimizing the B2B purchasing process. This feature allows B2B customers to create multiple accounts with different contact details for purchasing, ordering, quoting, negotiating, and payment. Additionally, Magento B2B allows sellers to create and assign admin accounts to manage specific customers.

Reason 7: Manage pricing through shared catalogs

Top 10 Reasons to Choose Magento for B2B Commerce
Manage pricing

In B2B Commerce, Magento helps manage quotations through shared catalogs, which effectively provides product information and prices to B2B partners and customers. These catalogs can be created based on criteria such as product type, product group, or other suitable business needs.

Within each shared catalog, administrators can define prices and special conditions for each product or product group. This helps create customized quotations that meet the specific requirements of each customer.

Reason 8: Advanced inventory management

Top 10 Reasons to Choose Magento for B2B Commerce
Advanced inventory management

Inventory management is a challenging task for businesses implementing B2B Commerce. The eCommerce platform provides advanced features to effectively manage and control your inventory levels. These features allow administrators to track inventory quantities and forecast future inventory needs.

Additionally, Magento B2B helps manage special types of inventory such as damaged goods, special inventory items, or batch inventory.

Reason 9: Enhanced security

Top 10 Reasons to Choose Magento for B2B Commerce
Enhanced security

Security is an important issue when building and developing online stores in general. Magento provides many advanced features to help B2B businesses to secure their eCommerce systems. Among these, PCI Compliance, 2FA, WAF, DDoS protection, and preventing CSRF and XSS attacks are notable.

Reason 10: Technical support

Top 10 Reasons to Choose Magento for B2B Commerce
Technical support

Technical support plays a crucial role in maintaining and operating an efficient online store. Magento B2B provides tools and support services to help users address technical issues and optimize the performance of their eCommerce websites.

This includes expert support via phone, email, or online. Additionally, Magento has a large and vibrant community of developers, experts, and end-users. You can search and ask questions on the forum to receive assistance from the community.

Build your first Magento B2B site today!

In the context of the increasingly developing and fiercely competitive eCommerce market, using a powerful eCommerce platform is extremely important to ensure the success. With its unique features and superior flexibility, Magento has proven to be a top choice for building and developing B2B stores.

Need more deep advice? Contact SECOMM or call (+84)28 7108 9908 now!

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The 6 Crucial Steps To Upgrade to Shopify Plus Effectively
THE 6 CRUCIAL STEPS TO UPGRADE TO SHOPIFY PLUS EFFECTIVELY

Upgrading to Shopify Plus is a strategic decision for growing ecommerce enterprises. Many merchants have encountered the challenges and opportunities this upgrade brings along their journey.

From optimizing business performance to expanding operations globally, upgrading to Shopify Plus isn’t just a technical step but also an opportunity to transform ecommerce activities into a springboard for market breakthroughs.

In this article, let’s explore the steps to upgrade to Shopify Plus and some critical considerations.

What is Shopify Plus?

This is the premium version of the Shopify platform, specially designed to meet the needs of large and rapidly growing ecommerce businesses. With Shopify Plus, you can experience many powerful features and services that help optimize operations, expand scale, and enhance customer experiences.

One notable aspect of Shopify Plus is its flexibility and ease of customization. You can leverage features such as multi-store management, integration with ERP and CRM systems, creating multilingual and multi-channel websites, as well as adjusting interfaces and features according to your specific needs.

In particular, Shopify Plus provides a secure and easily scalable infrastructure that is capable of handling large volumes of traffic and online transactions robustly. With Plus, you can ensure that your website operates smoothly and seamlessly, even during peak shopping seasons.

Why upgrade to the Shopify Plus plan?

Upgrading from the standard versions of the Shopify platform to the Plus version is a significant milestone in the transformation of ecommerce businesses. Below are eight benefits and also eight main reasons driving businesses to undergo the transition:

The 6 Crucial Steps To Upgrade to Shopify Plus Effectively
Why upgrade to Shopify Plus?

Enhanced customization & scalability

Shopify Plus offers a range of powerful features and tools to customize and expand ecommerce websites flexibly and efficiently. These include customizing checkout pages, personalizing customer experiences, and customizing product displays.

Additionally, you can utilize some exclusive solutions, such as LaunchPad, Shopify Scripts, and Shopify Functions, to customize shopping experiences and automate sales processes.

Increased bandwidth and staff accounts

High traffic volumes will require a large amount of bandwidth to maintain a stable website. Shopify Plus allows you to access unlimited bandwidth, 200TB of storage, and unlimited staff accounts to handle large transaction volumes efficiently.

Optimized transaction costs

Upgrading to Shopify Plus can help optimize transaction costs. If you use Shopify Payments, transaction fees are the lowest in all Shopify pricing plans but will be customized based on geographical regions. Conversely, Plus merchants must pay 0.2% per transaction for security and compliance costs.

Deploy Headless Commerce

In the Plus version, you’ll be provided with tools and solutions to build a Headless ecommerce website. Through the Hydrogen + Oxygen solution, you can leverage the power of Headless architecture to create more customized and flexible customer experiences.

Deploy B2B Commerce

Shopify Plus provides features and tools to expand your B2B operations. The recent Shopify Editions Winter ’24 update introduced new features to optimize B2B Commerce activities.

From Headless B2B and advanced order management to integrated payment systems and unique features for B2B customers, Shopify Plus helps you streamline your operations and enhance customer relationships.

Expand international sales

With Shopify Plus’s multilingual and multi-channel capabilities, you can efficiently expand your operations to international markets. Shopify Plus provides tools and features to customize websites according to each market’s needs, from handling currencies to managing orders and shipping.

Ultilize POS Pro

The Plus merchants can utilize the exclusive POS Pro system for free. With advanced features, POS Pro allows seamless integration of multi-channel sales operations into the website, enables unlimited staff account access, and provides professional retail reports. This helps enhance customers’ shopping experience and optimize your offline and online sales activities.

Advanced customer support

When upgrading, you can expect more in-depth customer support services, especially in terms of consultation and technical support by a team of experts. Through hotlines, emails, and live chat, you can access the 24/7 support team.

Additionally, to help clients better understand this platform, Shopify offers a free learning program called Shopify Plus Academy. There, you can access detailed tutorials on setting up stores, customizing store interfaces, and much more.

When to upgrade to the Shopify Plus plan?

You currently on one of Shopify’s standard pricing plans may consider upgrading to Shopify Plus under the following circumstances:

  • Monthly revenue exceeds $800,000 with over 100 transactions per minute. In such cases, a more robust system is needed to handle high traffic volumes without compromising user experience, and to effectively manage and optimize business performance.
  • Expanding sales to international markets requires flexibility in managing multilingual, multi-currency, and region-specific inventory.
  • Desire to harness the advantages of Headless Commerce architecture to enhance user experience and achieve deeper customization of user interface and technical infrastructure.

What to prepare before upgrading to Shopify Plus?

Before deciding to upgrade to Shopify Plus, there are four important steps that businesses need to take to ensure a smooth and effective upgrade process:

The 6 Crucial Steps To Upgrade to Shopify Plus Effectively
What to prepare before upgrading?

Define business goals

Firstly, you have to clarify your needs and wants. This includes evaluating the current and future growth of the business, as well as the necessary features to meet specific needs.

Prepare the data and Infrastructure

Next, you’ll need to prepare data and technical infrastructure for the transition process. This may involve backing up current data, checking the compatibility of current applications and features, as well as ensuring that the technical infrastructure is robust enough to satisfy your requirements.

Define features and tools in need

Finally, you’ll identify the specific features and services you desire from Plus. This may include considering features such as multi-store management, integration with ERP and CRM systems, multi-language and multi-currency support, as well as special features like deploying Headless Commerce and accessing POS Pro systems.

Set up a Shopify Plus store

Setting up a Plus store will differ from deploying previous standard pricing plans. Plus usage fees start from $2,300 per month, and this price isn’t fixed but customized based on each case’s specific needs. Therefore, you’ll need to contact the Shopify Plus team for advice. When collaborating with a Shopify Plus agency, the developer will work with the platform to provide a specific pricing quote.

The six-step process to upgrade to Shopify Plus

Below are six specific steps for the entire process of upgrading your ecommerce website system from a lower version to Shopify Plus:

The 6 Crucial Steps To Upgrade to Shopify Plus Effectively
The six-steps process to upgrade to Shopify Plus

Step 1: Partner with a professional Shopify Plus agency

The first and most important step is collaborating with experienced teams specialising in Shopify Plus to optimize the upgrade process and post-operation, especially concerning costs.

To select a suitable Shopify Plus development partner, you should consider previous Shopify Plus projects they have completed, how they identify and solve problems in each project, and feedback from previous clients regarding those projects.

Step 2: Evaluate and plan

The next step is equally important as it determines the effectiveness of the conversion and future operations. You and your development partners need to clarify business goals, identify necessary features and data to be transferred, and develop a specific deployment schedule based on these goals.

You’ll also need to ensure data backup and updates are safely conducted to avoid data loss during the conversion process.

Step 3: Execute deployment

After assessment and planning, proceed with upgrading to Shopify Plus. The development partner will set up and configure new features, migrate data from the old platform to the new one, and test compatibility to ensure the website operates smoothly.

Step 4: Test and adjust

After deployment, test and adjust the Shopify Plus website to ensure all features and functions work correctly. The development partner’s QA/QC team will collaborate with you to check the quality of the website experience as actual end-users and correct any issues that arise.

Step 5: Golive

Once testing is complete, the new ecommerce website will be launched into the market, and promotional campaigns will be deployed to attract initial traffic and orders.

Step 6: Train staff

Finally, employees should be trained to use and manage the new website on the Shopify Plus platform. You’ll provide detailed instructions on new features and how to use them to optimize the performance. Additionally, since Plus has unlimited staff accounts, personnel allocation should be reasonable and planned accordingly.

The Final Words

While upgrading to Shopify Plus can be complex, it significantly benefits business growth. From high flexibility and customization to scalability and deep customer service, Shopify Plus is the perfect choice for expansion.

Various insights and a systematic 6-step deployment process make the upgrade process more manageable. However, to increase efficiency and maintain the stability of the new website, businesses need a professional development partner to accompany them.

Contact SECOMM or call us at (+84)28 7108 9908 to plan your deployment today!

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IT Outsourcing in Australia: Top 10 Prominent Companies
IT Outsourcing In Australia: Top 10 Companies

IT outsourcing in Australia is emerging as one of the most rapidly growing and attractive fields in the information technology market. As technology projects become increasingly complex and diverse, Australian businesses are increasingly serious about finding highly skilled outsourcing partners to address technical challenges and product development. 

In this article, let’s explore the top 10 IT outsourcing firms in Australia, what makes them stand out in this field, and the key criteria for selecting a potential partner.

The growth of the Australian IT outsourcing industry

In recent years, the Australian IT outsourcing sector has undergone remarkable development, reflecting the boom of the information technology field in the country’s economy.

According to Statista, the projected market revenue for IT outsourcing in Australia in 2024 is expected to reach $14.49 billion, with a CAGR of 10.99% from 2024 to 2028. This indicates substantial prospects and expansion potential.

One crucial factor driving this growth is the emphasis on quality and efficiency. Australian IT outsourcing firms have heavily invested in workforce development and infrastructure to ensure they can deliver high-performance services and meet their clients’ increasingly complex technical requirements.

Furthermore, technological innovation has significantly contributed to this impressive growth. Adopting new technologies such as artificial intelligence, machine learning, and blockchain has opened up numerous opportunities for IT outsourcing firms to provide breakthrough and effective solutions for their clients.

4 Criteria to choose the right Australian IT outsourcing firms

When deciding on a partner to use IT outsourcing services in Australia, you must consider various criteria to ensure the partner can provide services that meet their needs. Below are four key criteria for choosing the right Australian IT service provider.

Professional and expertise

You need to ensure that the Australian IT company has experience and expertise in the field they are interested in. For example, shopping applications can be developed on the iOS operating system using the Kotlin language. The experience and deep knowledge of the IT outsourcing firms in a specific technology and industry will determine whether they are a potential partner.

Service quality

This is the next important factor to consider. You need to check whether the IT outsourcing firm has high-quality standards and whether they have good experience in providing solutions and services to similar clients. Reviewing portfolios and engaging in direct consultations will help businesses evaluate more easily.

Client testimonials and feedback

Social Proof is quite useful in this case. Before making a final decision, you can check reviews, feedback, and gather opinions from customers.

Pricing and efficient

Finally, you need to consider the issue of pricing that the IT outsourcing firm offers, as well as the overall project costs for collaboration. Ensure that the price they offer is suitable for the business budget and that they can provide optimal solutions to meet the project’s requirements.

Top 10 IT outsourcing firms in Australia

The companies listed below are all top names in the IT outsourcing field, with extensive experience and knowledge. They provide the highest-quality services and solutions to meet customers’ diverse needs in complex business environments.

SECOMM

Over the past ten years, SECOMM has become a leading provider of eCommerce solutions in Vietnam for its clients’ general and specific information technology projects. SECOMM is committed to providing clients with a team of skilled professionals capable of quickly adapting to the technological advancements of the era.

IT Outsourcing in Australia: Top 10 Prominent Companies
SECOMM

Seasia Infotech

Seasia Infotech is a leading software development company in Australia. It provides custom software solutions and mobile application development. The company also offers IT outsourcing services, including developing a dedicated IT team for a specific project.

IT Outsourcing in Australia: Top 10 Prominent Companies
Seasia Infotech

OpenXcell

OpenXcell is one of the leading companies in the field of mobile application and software development in Australia. Its personnel and IT team are professional and outstanding. OpenXcell also ensures experience, skills, and knowledge to meet the specific requirements of the project.

IT Outsourcing in Australia: Top 10 Prominent Companies
OpenXcell

Offshore Business Processing

Offshore Business Processing specialises in IT outsourcing services, including data processing, digitalization, and human resource management. Over the years in the market, the company has become a reliable partner of many leading businesses in Australia

IT Outsourcing in Australia: Top 10 Prominent Companies
Offshore Business Processing

KMS Solutions

KMS Solutions is a well-known name in the Australian IT outsourcing industry. This company offers various information technology services, from software development to IT infrastructure management.

IT Outsourcing in Australia: Top 10 Prominent Companies
KMS Solutions

Ontik Technology

Ontik Technology is a pioneering company providing information technology solutions and custom software for Australian businesses. As IT outsourcing is becoming increasingly popular in Australia and Asian countries, Ontik Technology expands its services with a high-quality team of professionals.

IT Outsourcing in Australia: Top 10 Prominent Companies
Ontik Technology

AIS Technolabs

In addition to providing professional IT outsourcing teams, AIS Technolabs also offers Australian businesses custom software solutions, mobile applications, and web development services.

IT Outsourcing in Australia: Top 10 Prominent Companies
AIS Technolabs

pwrteams

pwrteams possesses a highly skilled IT team in various aspects such as app development, software, website building, SaaS application deployment, QA, and Testing. With reasonable pricing, pwrteams has assisted Australian businesses with over 200 professional IT teams for many years.

IT Outsourcing in Australia: Top 10 Prominent Companies
pwrteams

Intogreat Solutions

Intogreat Solutions is a renowned provider of IT consulting services and software outsourcing in Australia. Additionally, you can seek professional IT outsourcing solutions at Intogreat Solutions.

IT Outsourcing in Australia: Top 10 Prominent Companies
Intogreat Solutions

All IT Services

Similar to its brand name, this company provides outsourcing services for all IT-related services. All IT Services has offered reasonable and customized pricing based on the project scale and specific needs of businesses.

The Final Words

In an increasingly competitive and evolving information technology market like Australia, choosing the right IT outsourcing partner is key to achieving success and sustainable development for businesses. The above list has provided a diverse set of reputable and reliable partners, from software development companies to security services and IT infrastructure management providers.

Need advice or help building a professional IT team? Contact SECOM or call (+84)28 7108 9908 now!

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