Top 3 outsourcing countries in Asia: India, Philipines, and Vietnam

outsourcing countries

For years, Chinese and Indian tech giants have held a dominant position in the outsourcing sector. However, Southeast Asia now boasts an unparalleled pool of skilled offshore workers, making it a standout global contender. The trend extends beyond just information technology and customer service. Other sectors like automation, digital business processes, healthcare, and manufacturing are also contributing to the burgeoning popularity of outsourcing countries in Southeast Asia.

1. India


India stands out as a premier destination for software developers worldwide, primarily due to its highly competitive pricing. Additionally, it boasts the largest developer community globally, with over 4 million skilled professionals, ensuring a surplus of talent, and making it an ideal choice for outsourcing country.

Indian software developers are renowned for offering their services at a minimum annual salary of $8,800.

Typical outsourced positions include:

  • IT Services

  • Business Process Outsourcing (BPO)

  • Finance and Accounting

  • Engineering Services

  • Legal Process Outsourcing (LPO)

Below are some factors you should consider when outsourcing to India:

  • Flexible legacy: In the realm of international contracts, India's regulatory framework is comparatively more flexible than many other nations. 

  • English proficiency: As per the EF EPI (English Proficiency Index), India holds the sixth position in Asia for English proficiency, displaying a generally moderate proficiency level on the global scale. Despite not being an exclusively English-speaking nation, India designates English as one of its official languages. 

  • Cost-Efficient Labor: Hiring professionals in India is notably more economical than in North American or European counterparts. To illustrate, the expense of engaging software developers in Poland stands at $1,610 per month. In contrast, India offers developers with equivalent skills and experience for approximately $401 per month

  • Large IT talent pool: India boasts a staggering population of 1.4 billion individuals, with nearly half in the prime working age bracket. Additionally, approximately 6.5 million students with undergraduate degrees enter the workforce annually. This translates into an extensive and qualified talent pool from which to select when considering outsourcing activities to India.

2. Philipines


Hosting numerous outsourcing firms, the Business Process Outsourcing (BPO) sector stands as one of the rapidly expanding industries in the Philippines. It anticipates an annual growth rate of 7% to 9%, surpassing the projected global growth rate.

A society accustomed to outsourcing countries tends to possess a more amicable and receptive approach to your business.

Typical outsourced positions include:

  • IT Support

  • Web development and design

  • Customer service

  • Data entry

  • Content creation

  • Human Resources

  • Finance and Accounting

  • Marketing/advertising

  • Virtual assistance

Below are some factors you should consider when outsourcing to the Philippines:

  • Cultural resonance: Organizations seeking optimal productivity through outsourcing frequently turn to the Philippines due to the striking similarity between Filipinos and Westerners. This familiarity with culture and terminology expedites Filipinos' acclimation to Western business practices.

  • Exceptional English proficiency: Following Singapore, the Philippines claims the second-highest English language competency in Asia. This commendable proficiency renders them an appealing outsourcing choice for Western countries.

  • Robust data security: The Philippines enforces rigorous regulations pertaining to data privacy, effectively deterring cyber threats. Through the Philippine Data Privacy Act of 2012, which safeguards personal information, businesses can confidently engage in outsourcing without concerns about legal consequences.

  • Economical outsourcing expenditure: Within the realm of Southeast Asian nations, the Philippines stands as a cost-effective alternative. Web development initiatives commence at $18 per hour, while graphic design services span from $5 to $20 per hour, contingent on skill levels, experience, and project intricacies.

3. Vietnam


Vietnam emerges as a swiftly advancing nation boasting a strong economy and significant capabilities for outsourcing. In contrast to pricier outsourcing hubs like the US and India, Vietnam offers cost-effective solutions.

Vietnam sustains a steady economy and demonstrates exceptional resilience globally, achieving a growth rate of 2.9% in 2020 despite the worldwide pandemic.

The allure of Vietnam lies in its affordable rates, economic expansion, and committed workforce, making it a prime choice for numerous enterprises venturing into outsourcing countries.

Typical outsourced positions include:

  • IT support services

  • Software development

  • Application development

  • Finance and Accounting

  • Payroll outsourcing

  • Human Resources

Below are some factors you should consider when outsourcing to Vietnam:

  1. Education excellence: Vietnam boasts a robust educational system, with over 280,000 students graduating from high schools and colleges annually. The literacy rate among citizens aged 15-35 surpasses the global average, standing at approximately 95%.

  2. Youthful demographic advantage: Over 50% of Vietnam's population falls below the age of 35, and a significant 45% lies within the prime working age range of 15 to 35. This youthful and skilled labor force positions Vietnam as an ideal outsourcing destination, especially in the realm of IT.

  3. Global corporate presence: Vietnam has attracted the attention of international corporate giants in the field of IT and beyond. Companies like Canon, IBM, and Fujitsu have expanded their involvement in Vietnam's burgeoning IT industry.

  4. Productive workforce: The Vietnamese labor force stands out on the global stage due to its exceptional quality and unwavering work ethic. Young professionals are celebrated for their motivation, innovative spirit, and resilience, with a staggering 74.4% labor participation rate, one of the highest globally.


Outsourcing countries in Asia, especially South East Asian (SEA) nations offers numerous benefits. Leading performers in this region possess expertise and experience, facilitating business growth, often with supportive government initiatives.

Presently, they are not just cost-efficient but also possess a competitive edge against prominent outsourcing destinations. This advantage stems from their continuous economic development, digital prowess, and innovative strategies.

Ánh Nguyễn

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