As the world becomes increasingly digital, software development outsourcing has become a popular way for businesses to access top talent and reduce costs. In this article, we’ll take a look at the best countries for software development in Asia including India, China, Vietnam, the Philippines, Malaysia, and Thailand, providing information on software developer rates, the number of developers, and the strengths of each country.

India

India is a powerhouse in the software development outsourcing industry, with a large pool of skilled software developers and a thriving IT ecosystem. The country is home to many large IT service companies, including Tata Consultancy Services, Wipro, and Infosys. With a population of over 1.3 billion, India has a vast talent pool that is well-versed in a variety of programming languages such as Java, Python, and C++.

The average monthly salary for a software developer in India is around $1,500 to $3,000, which is relatively low compared to the salaries in western countries. This makes India an attractive destination for companies looking to outsource software development projects. However, it is important to note that the cost of living in India is also lower than in many other countries, which accounts for the lower salaries.

One of the strengths of India’s software development outsourcing industry is its robust IT infrastructure. The country has well-established technology parks and innovation centers, which provide a conducive environment for software developers to work and collaborate. India also has a large pool of English-speaking developers, making it easier for companies from English-speaking countries to communicate with their outsourced teams.

Strengths:

1. Large pool of skilled developers with a deep understanding of programming languages and development platforms.
2. English proficiency is high, making communication easy for clients from English-speaking countries.
3. Cost of labor is relatively low compared to Western countries, making outsourcing development work to India cost-effective.
4. Availability of a robust IT infrastructure and a range of outsourcing vendors.

Weaknesses:

1. Quality of work can vary widely, with some companies delivering subpar products.
2. Time zone differences can be a challenge for clients in Western countries.
3. Cultural differences can sometimes cause misunderstandings or difficulties in communication.

China

China has a rapidly growing software development outsourcing industry, with a large number of software development companies and a thriving tech ecosystem. The country has a population of over 1.4 billion, and the number of software developers is growing rapidly. China is particularly strong in the fields of mobile app development and gaming, with companies such as Tencent and NetEase leading the way.

The average monthly salary for a software developer in China is around $1,500 to $3,000, which is higher than the salaries in Vietnam. However, the cost of living in China is also higher than in many other countries, which accounts for the higher salaries. One of the strengths of China’s software development outsourcing industry is its large domestic market, which provides many opportunities for local software development companies to grow and expand.

Another strength of China’s software development outsourcing industry is its strong government support. The Chinese government has invested heavily in building a robust tech ecosystem, with initiatives such as the Made in China 2025 program, which aims to transform China into a high-tech manufacturing powerhouse. The government has also established several technology parks and innovation centers to support the growth of the tech industry.

Strengths:

1. Large pool of skilled developers, with a focus on emerging technologies such as AI and blockchain.
2. Low cost of labor compared to Western countries, making outsourcing development work to China cost-effective.
3. Government support for the IT industry, including investment in infrastructure and development parks.
4. Growing emphasis on innovation and research and development.

Weaknesses:

1. There’s no proof, but there is some online speculation about Intellectual property protection.
2. Language barriers and cultural differences can create communication challenges.
3. Quality of work can be inconsistent, with some companies delivering subpar products.

Vietnam

Vietnam is a rapidly growing player in the software development outsourcing industry, with a large pool of skilled software developers and a thriving tech ecosystem. The country has a young population, with over 60% of the population under the age of 35. This has led to a large pool of tech-savvy young professionals who are well-versed in programming languages such as COBOL, Java, .NET, Python, NodeJS, and PHP (as of 2022, Vietnam has about 550,000 software developers and 40,000 software companies).

The average monthly salary for a software developer in Vietnam is around $800 to $1,500, which is lower than the salaries in China and India. Vietnam has a relatively low cost of living, which makes it an attractive destination for companies looking to outsource software development projects.

One of the strengths of Vietnam’s software development outsourcing industry is its strong government support. The Vietnamese government has implemented several initiatives to support the growth of the tech industry, including tax incentives and investment in technology parks and innovation centers. The country also has a strong focus on education, with many universities offering STEM and computer science programs that produce a steady stream of skilled software developers. (Vietnam’s mathematics community ranks 35-40th in the world and the first in ASEAN, based on the number of published research work in international journals. In 2022, Team Vietnam ranked 4th out of 104 participating countries and territories, after China, South Korea, and the US at International Mathematical Olympiad).

Strengths:

1. Highly skilled developers with a deep understanding of programming languages and development platforms.
2. Cost of labor is relatively low compared to Western countries, making outsourcing development work to Vietnam cost-effective.
3. Government support for the IT industry, including investment in infrastructure and development parks. Recently on February 23, 2023, the Ministry of Information and Communication kicked off a program called “Vietnamese digital companies going global” to support Vietnamese Digital Enterprises bring their technology to solve digital transformation problems in other countries, thus contributing to the building of a digital world (more detail: https://english.mic.gov.vn/Pages/TinTuc/157597/Conference-seeks-ways-for-Vietnamese-digital-companies-to-go-global.html)
4. Growing emphasis on innovation and entrepreneurship.

Weaknesses:

1. Time zone differences can be a challenge for clients in Western countries.
2. English proficiency can be a concern for some clients.
3. Quality of work can vary widely, with some companies delivering subpar products.

Read more:

• Top 7 Software Outsourcing Companies in Vietnam

Philippines

The Philippines is another popular outsourcing destination for software development, with a growing number of multinational companies establishing offices in the country. One of the main advantages of outsourcing to the Philippines is the availability of highly skilled English-speaking developers at a much lower cost than in Western countries. The country has a large pool of IT professionals, with around 200,000 graduates in the field of IT and engineering each year.

The average monthly rate for a software developer in the Philippines ranges from $1,200 to $2,500, depending on their level of experience and skills. The country has a strong focus on mobile app development, web development, and e-commerce development. The Philippine software development industry is expected to grow at a CAGR of 9.8% from 2021 to 2026.

Strengths of the Philippines for software development outsourcing:

• Highly skilled English-speaking developers
• Favorable government policies and incentives for foreign investors
• Competitive labor costs
• Strong focus on mobile app development, web development, and e-commerce development

Weaknesses of the Philippines for software development outsourcing:

• Limited talent pool compared to larger countries like India and China
• Challenges with infrastructure and connectivity in some areas
• Less established outsourcing industry compared to other countries on the list

Malaysia

Malaysia is an emerging outsourcing destination for software development, with a growing number of multinational companies establishing offices in the country. The Malaysian government has been actively promoting the development of the country’s IT sector, offering tax incentives and grants to attract foreign investment.

The average monthly rate for a software developer in Malaysia ranges from $1,500 to $3,500, depending on their level of experience and skills. The country has a strong focus on software development for the financial services industry, as well as mobile app development and web development.

Strengths of Malaysia for software development outsourcing:

• Favorable government policies and incentives for foreign investors
• Skilled workforce with a strong focus on software development for the financial services industry
• Competitive labor costs compared to developed countries

Weaknesses of Malaysia for software development outsourcing:

• Limited talent pool compared to larger countries like India and China
• Less established outsourcing industry compared to other countries on the list
• Less developed infrastructure in some areas

Thailand

Thailand is a growing outsourcing destination for software development, with a focus on mobile app development and e-commerce development. The country has a relatively low cost of living and labor costs, making it an attractive option for outsourcing.

The average monthly rate for a software developer in Thailand ranges from $1,500 to $3,000, depending on their level of experience and skills. The Thai government has been actively promoting the development of the country’s IT sector, offering tax incentives and grants to attract foreign investment.

Strengths of Thailand for software development outsourcing:

• Competitive labor costs
• Growing talent pool with a focus on mobile app development and e-commerce development
• Favorable government policies and incentives for foreign investors

Weaknesses of Thailand for software development outsourcing:

• Limited talent pool compared to larger countries like India and China
• Less established outsourcing industry compared to other countries on the list
• Challenges with language barriers and cultural differences

Conclusion

Each of these six countries has its strengths and weaknesses when it comes to outsourcing software development. Factors such as economical and political stabilization, the availability of skilled labor, labor costs, government policies, and infrastructure should all be considered when deciding on outsourcing. India remains the top outsourcing destination for software development due to its large talent pool, competitive labor costs, and established outsourcing industry. However, other countries on this list, such as China, Vietnam, and the Philippines, offer competitive advantages in certain areas and should also be considered as potential outsourcing destinations.

Country	Strengths	Weaknesses	Number of Developers	Average Monthly Developer Rate	Top Software Development Companies
India	– Large pool of skilled developers – English proficiency – Cost-effective	– Quality can vary – Time zone differences – Cultural differences	2.75 million (estimated)	$1,000 – $4,000	+ Tata Consultancy Services + Infosys + Wipro + HCL Technologies + Tech Mahindra + Cognizant Technology Solutions + Mindtree + L&T Infotech + Mphasis + Hexaware Technologies
China	– Large pool of skilled developers – Emphasis on emerging technologies – Cost-effective	– Language barriers – Quality can vary	2.7 million (estimated)	$1,000 – $3,500	+ Huawei Technologies Co., Ltd. + Neusoft Corporation + Pactera Technology International Ltd. + Beyondsoft Corporation + Kingsoft Corporation Limited + Shinetech Software Inc. + VanceInfo Technologies Inc. + Longtop Group Co. Ltd. + HiSoft Technology International Limited + Chinasoft International Ltd.
Vietnam	– Highly skilled developers – Cost-effective – Government support	– Time zone differences – English proficiency – Quality can vary	550,000 (estimated)	$800 – $2,500	+ FPT Software + TMA Solutions + NashTech + Luvina Software JSC + KMS Technology + Savvycom + Axon Active + LogiGear + Vietsoft + S3 Corp
Philippines	– Strong English proficiency – Cost-effective – Good cultural fit with Western clients	– Limited pool of highly skilled developers – Infrastructure can be a challenge – Political instability	210,000 (estimated)	$1,200 – $2,500	+ Accenture Philippines + Exist Global + Pointwest Technologies + Diversify Offshore Staffing Solutions + Arcanys + MicroSourcing + Eastvantage + Cloud Employee + On-Off Group + Full Scale
Malaysia	– Good infrastructure – Strong government support – Good cultural fit with Western clients	– Smaller pool of developers – Higher labor costs than some other countries – Limited focus on emerging technologies	120,000 (estimated)	$1,500 – $3,500	+ Ewands Sdn Bhd + VYROX International Sdn Bhd + 21st Century Software Solution Sdn Bhd + LK Software Solutions Enterprise + P.A.R.I Technologies (M) Sdn Bhd + Quad Ventures Sdn Bhd + TechnoSoftwares + GR Tech + Snappymob + Lizard Global
Thailand	– Good infrastructure – Good cultural fit with Western clients – Government support	– Limited pool of highly skilled developers – English proficiency can be a concern – Quality can vary	65,000 (estimated)	$1500 – $3,000	+ Hyperlink InfoSystem + Lockstep Labs + Purple Voice + Skuberg + SC Spark Solution + Appworks Technologies + Oozou + HIRUN Technology Company Limited + Innovation Punks