IT Outsourcing: Advantages and Disadvantages

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Understand the advantages and potential twists of relying on IT outsourcing.

Understand the advantages and potential twists of relying on IT outsourcing.

When the demand of people about researching technology is gradually increasing in recent years, most businesses have started focusing on expanding the IT outsourcing field, their main purpose is to keep up with the development of other countries in the world. Therefore, Vietnam is becoming a potential area and is recognized as one of the leading markets in IT outsourcing, and many International enterprises want to invest in Vietnam. But, to have this position, developers must overcome many issues, because not always the outsourcing market and favorable development. Let’s find out the advantages and disadvantages of this field.


Cost savings – large revenue

Nowadays, outsourcing companies account for 80% in Vietnam and we provide a lot of jobs to workers with an attractive salary. Most technology businesses will be willing to spend a lot of money to look for many different projects, they think that if having more projects, they will earn a lot of money. But this opinion is only right in some cases. Because if you only focus on finding and investing too many things, this will affect to company’s budget, and results are not what you expect.

For IT outsourcing, you only need to pay attention to train and recruit a strong developer team. Knowledge and experience are always the first important things for a start-up enterprise. If you have a good team, full of knowledge and experience, all you need to do is just find some of these business projects abroad and cooperate with them. That’s enough to bring a huge revenue source for the company.

Typically, you will take 5 to 10 years to invest and get profits from a project, but for IT outsourcing, just good employees, you immediately get a stable source of revenue. So, an IT outsourcing job will help you save money but you still earn a lot of money every month, training, and trying to make a condition for employees are exposed to modern techniques, your company will have a stable position on IT outsourcing market.


Effective quickly- limited risk

When you invest in too many projects at once, it is hard to finish in the best way and observe all, and you must wait for a long time to get revenue. Even if you can’t complete on time and this will affect your brand. Otherwise, you will get better and faster results when starting doing IT outsourcing jobs. Staff with the in-depth background will help you obtain high profits with just one or two projects from abroad.

Because you can use less capital investment and several projects you work with is not so much, so if there is any mistake, then your risk ratio is also significantly reduced.



 Although IT outsourcing can help you earn much money than other jobs, if you decide on doing this work, you must accept that you have to complete your tasks over time. In emergencies, the OT is something you will face regularly every day, you can be in the office to 8 to 9 p.m and continue to work on weekends. And this will impact your health, your daily routine and you will not have enough time to take care of your family.

Moreover, every business, every country will have different rules about OT staff. Even if OT is an obligate term on the contract when recruiting new employees. You can receive overtime costs that are higher or lower depending on the profitability of the company. Therefore, when starting participating in IT outsourcing, you have to accept trade-offs and a lot of things even though your salary will be very high.



No differentiated products

In general, most IT outsourcing companies in Vietnam always look for and follow new and unique products from abroad because their main goal is to earn a lot of money. Products that are produced by Vietnam’s developers will have some features like applications in the world. Although we are successful our products will not specific characteristics to assert the brand of our country such as zing me, Coccoc browser.

In the future, we need to create something different for a rebranding of the country, advanced technology software development of Vietnam. IT outsourcing market will become a prerequisite for us to improve and develop their skills, in addition to income, we would have been good for the future direction of theirs.