Top Countries For Outsourcing Software Development Projects In Asia

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Top Countries For Outsourcing Software Development Projects In Asia

For the past five years, the global market for software outsourcing has been rising from $88.9 billion in 2015 to the predicted 98 billion in 2024. In brief, outsourcing software development projects in the process of hiring a third-party company to complete all or part of a software development project on behalf of your company. As businesses strive to become more efficient and productive, the popularity of outsourcing software development projects is on the rise. By outsourcing software projects, companies can focus on their core competencies and leave the software development process to a third party. This allows for faster time-to-market, improved quality, and reduced costs. In addition, outsourcing offers access to a global talent pool of experienced developers. Outsourcing, therefore, presents an attractive option for many businesses seeking to develop custom software applications. 

Why Outsource Software Development Projects In Asia?

The global outsourcing market is growing rapidly. In Asia, the outsourcing industry has been booming for the past decade and is predicted to continue its upward trend. As mentioned in a recent study by NASSCOM, the Indian software outsourcing industry is expected to sharply increase at a compound annual growth rate (CAGR) of 9.5% between 2018 and 2023. This is in line with the global outsourcing market, which is projected to grow at a CAGR of 5.3% during the same period. 

There are several reasons why businesses choose to outsource software development projects in Asia. Firstly, Asian countries offer a large pool of talented and experienced software developers. Secondly, labor costs in Asian countries are relatively lower than in developed countries such as the United States and Europe. This makes outsourcing an attractive option for businesses seeking to reduce costs. Thirdly, many Asian countries have well-developed infrastructure and communication networks. This is easier for businesses to connect with remote teams and manage projects effectively. Finally, the cultural similarities between Asian countries and Western countries make it easier for businesses to establish trust and collaboration with their outsourced team.

5 Best Asian Countries To Outsource Software Development Projects

The Asia-Pacific region is home to a lot of the world’s most populous countries and is one of the fastest-growing regions for outsourcing software development projects. The region’s vast population, the large pool of tech talent, and favorable cost of living make it an attractive destination for software development projects. In addition, many Asian countries have established themselves as global leaders in the technology industry, with world-class infrastructure and robust support ecosystems. Here are our top countries for outsourcing software development projects in Asia:


India is the most popular software outsourcing country in Asia, with over 1.3 billion people. Also, it is one of the world’s fastest-growing economies, with an annual GDP growth rate of 7.5%. The country has a large IT talent pool of highly educated and semi-skilled tech talent, with over 4 million software developers and new 120,000 IT professionals each year. Also, India is the second-largest English-speaking nation, giving businesses earn a lot of advantages associated with communication when outsourcing to the country.

In addition, the cost of living and wages are relatively low when compared to other major outsourcing destinations. In detail, the average rate of an Indian software developer is $10 – $15, which is much lower than in the U.S. Moreover, India also offers a number of tax incentives for businesses that outsource their software development projects. In a few years of the future, India is expected to maintain its position as the leading country for software outsourcing in Asia.


China is the second-largest country in Asia, offering some of the best tech and IT outsourcing services across the globe. This country has been investing heavily in its tech industry and is now home to some of the world’s leading tech companies, including Huawei, Alibaba, and Tencent. In addition, China has a huge pool of highly skilled tech talent, with 30,000 professionals per year with excellent skill sets and various expertise, such as UI, full-stack, mobile, enterprise, and game software. The average cost of living and wages are relatively low, leading to an affordable average rate of a Chinese software developer being $20-$50 per hour. It is much more competitive in comparison with a lot of major nearshore or onshore outsourcing destinations in the U.S and other regions outside Asia.  

However, there are some challenges associated with outsourcing to China. The language barrier is a major issue, as not many Chinese developers speak English fluently. In addition, the Chinese government imposes strict controls on internet access, which can limit your ability to communicate with your development team. Moreover, since a great number of global businesses outsource to China, the nation has possessed an emerging role in the global outsourcing market, making it more and more competitive in both price and talent.



The shortage of qualified developers caused by the extensive competition in Asian outsourcing destinations turned a lot of global companies to Vietnam – a hidden gem in the IT outsourcing industry. The number of IT graduates in Vietnam is increasing rapidly, with over 40,000 students per year. Also, the majority of Vietnamese developers speak English fluently, which eliminates the language barrier issue. In addition, the country has a lower cost of living than other major outsourcing destinations such as China and India, leading to an affordable average rate of $15-$40 per hour depending on the expertise of the professional Vietnamese software developer. Despite being a rapidly-growing outsourcing destination in Asia, Vietnam still offers a lot of opportunities for businesses to get access to high-quality and cost-effective software development services. That’s why Vietnam is the new outsourcing hotspot for IT businesses around the globe.

The Philippines 

Next on this list is the Philippines – one of the most popular outsourcing destinations in Asia. The nation has a large talent pool of English-speaking tech talent, with over 30,000 graduates in the IT and technical fields each year. The Philipines are known for providing high-quality services at a lower cost. The average rate of a Filipino software developer is $10 to $50 per hour per hour, which is much advantageous for software companies that seek high-quality services at a lower cost. In addition, when outsourcing to the Philippines, businesses can avoid the language barrier issue as most of the population speaks English fluently as a second language. The country is also known for its strong work ethic and culture of excellence, which are some of the key factors that contribute to the success of IT outsourcing in the Philippines. 


Last but not least, Thailand is another popular outsourcing destination in Asia due to its large pool of English-speaking IT talent and its competitive rates in the outsourcing market. Thanks to a robust university and college system and the concentration on IT and technical education, the number of IT graduates in Thailand is increasing rapidly. When outsourcing to Thailand, you should be paying $15 to $40 per hour for a very decent Thai developer, which is quite competitive, in exchange for good quality services. 

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