Sri Lanka vs Vietnam for software development and outsourcing
Vietnam is the bigger market, with about 530,000 programmers and a top ten place in Kearney's 2023 services location index. Sri Lanka is smaller, with about 175,000 IT and business process professionals, but has a longer record of core product R&D for Western software companies: IFS, Sysco, Synopsys and the London Stock Exchange Group all build there. Choose Vietnam for scale and hardware adjacent work. Choose Sri Lanka for long running product teams, enterprise software and business in English.
Last reviewed 10 October 2026. We publish from Sri Lanka, so we have tried to be hard on our own side. Every figure names its source.
| Sri Lanka | Vietnam | |
|---|---|---|
| Time zone | UTC+5:30, no daylight saving | UTC+7, no daylight saving |
| English, EF index 2025 | 73rd of 123, score 486 (low band) | 64th of 123, score 500 (moderate band) |
| Workforce | About 175,000 IT and BPM professionals (SLASSCOM, 2026) | About 530,000 programmers (TopDev, 2023) |
| Typical rates | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | Senior USD 22 to 50 an hour (Uvik index 2026, vendor data) |
| Global Innovation Index 2025 | 93rd of 139 | 44th of 139 |
| Kearney services location index | 23rd of 60 (2021 edition) | 7th of 78 (2023 edition) |
Sources: EF English Proficiency Index 2025, Uvik rate index 2026, Accelerance 2026 rates guide, WIPO Global Innovation Index 2025, Kearney Global Services Location Index. Workforce figures count different things in each country and are not directly comparable.
Where Vietnam is stronger
- Scale: roughly three times the technical workforce, with more than 50,000 people entering IT study each year.
- Higher placings in Kearney's index (7th) and the Global Innovation Index (44th against 93rd).
- A large electronics and hardware industry, and new chip design centres such as Qualcomm's in Hanoi.
- Two more hours of overlap with East Asia and Australia.
Where Sri Lanka is stronger
- English is the working language of the export sector, a legacy of the education system and decades serving UK, US and Nordic clients.
- Depth in enterprise software and ERP: IFS runs most of its global R&D from Colombo.
- Product companies built and sold from Colombo, including WSO2 for USD 600 million.
- Two more hours of overlap with Europe and the Gulf.
- A strong accounting and finance talent base alongside engineering.
What to watch in each
- Vietnam: Industry reports project a shortage of 150,000 to 200,000 programmers a year, and say only about 30% of graduates meet employers' practical requirements. Source
- Sri Lanka: A smaller pool, so teams of several hundred take planning. The country is in an IMF programme that runs to March 2027 after its 2022 crisis. Source
Considering Sri Lanka alongside Vietnam?
Many companies run two locations. Tell us what you need and we will give you a straight view of whether Sri Lanka fits, and introduce people if it does.
Common questions
Is Sri Lanka or Vietnam better for software outsourcing?
Vietnam is the bigger market, with about 530,000 programmers and a top ten place in Kearney's 2023 services location index. Sri Lanka is smaller, with about 175,000 IT and business process professionals, but has a longer record of core product R&D for Western software companies: IFS, Sysco, Synopsys and the London Stock Exchange Group all build there. Choose Vietnam for scale and hardware adjacent work. Choose Sri Lanka for long running product teams, enterprise software and business in English.
Is Sri Lanka cheaper than Vietnam for software development?
Published rates for Sri Lanka are about USD 25 to 40 an hour according to the Export Development Board. For Vietnam: Senior USD 22 to 50 an hour (Uvik index 2026, vendor data). The sources use different methods, so treat the comparison as indicative and ask for quotes.
How does English in Sri Lanka compare with Vietnam?
On the EF English Proficiency Index 2025 Sri Lanka ranks 73rd of 123 countries. Vietnam: 64th of 123, score 500 (moderate band). The index tests the general adult population. Sri Lanka's export technology sector works in English.