Jun 6, 2023

about 6 min read

Cracking the Southeast Asia Market: Why Outsourcing is the Key to Entry

Cracking the Southeast Asia market presents an unparalleled opportunity for businesses looking to expand their global footprint. With a population of over 660 million people and a rapidly growing middle class, the region offers a vast consumer base hungry for products and services. 


Moreover, the rapid urbanization, digital transformation, and favorable demographic factors in Southeast Asia create a fertile ground for business growth. In this blog, we will delve into why outsourcing is the key to entering the Southeast Asia market, enabling businesses to tap into its immense potential, unlock new avenues of growth, and establish a strong presence in this thriving economic landscape.

An overview of the Southeast Asia market

In the last 10 years, Southeast Asia has witnessed remarkable economic growth, fueled by a combination of domestic demand, exports, and favorable demographics. The region has achieved an average annual GDP growth rate of around 5%, positioning itself as a thriving economic powerhouse. 

This growth is exemplified by the rapid expansion of the Internet economy, which has surpassed $100 billion, more than tripling in size within the past four years. Industries such as e-commerce and ride-hailing have exceeded even the most optimistic predictions, capitalizing on the region's digital transformation and increasing consumer adoption of online services.

As Southeast Asia continues to experience robust economic growth, it becomes imperative to address these challenges and work towards inclusive growth and sustainable development. By leveraging the opportunities presented by the region's economic expansion and utilizing strategic approaches such as outsourcing, businesses can contribute to the region's growth while addressing these persistent challenges, fostering a more prosperous and sustainable future for Southeast Asia.

What businesses may gain and lose when entering the Southeast Asian market

Southeast Asia is emerging as a rising star in the IT outsourcing industry due to several key factors and the vast opportunities it presents for businesses.

  • Opportunities

Global growth shifts from China

Thanks to the global growth shifts from China to the region, Southeast Asia has the advantage of rapid urbanization, industrialization, and a young demographic. Combined with sweeping digitization, growing access to education, and rising female empowerment, the region is poised to acquire a new standing in the world. This presents a unique opportunity for businesses looking to tap into the region's expanding market and leverage its potential.

A Large and Growing market

The large and rapidly growing market in Southeast Asia is another compelling factor. With a population of over 660 million people, the region is projected to see 350 million people joining the middle class by 2022. This creates a massive customer base for businesses to expand their reach and increase sales, making Southeast Asia an attractive destination for growth-oriented companies.

A rising digital economy

The digital economy is thriving in Southeast Asia, driven by a young and digitally savvy consumer base. The region has witnessed rapid adoption of digital solutions, and its ecosystem of partners provides tech entrepreneurs with vast opportunities. With millions of people joining the mobile age every year, Southeast Asia is among the fastest-growing regions globally. This presents a fertile ground for both local and international fintech scale-ups to thrive and innovate. 

Manufacturing and Industry 4.0

Southeast Asia's strong manufacturing sector and the advent of Industry 4.0 technologies further solidify its position in the IT outsourcing industry. Different countries in the region possess unique strengths and capabilities in manufacturing, such as Singapore's leadership in pharmaceuticals and biotech, Vietnam's strength in electronics, and Thailand's expertise in automobiles. The introduction of advanced manufacturing technologies and the expansion of the digital economy through initiatives like Indonesia's Making Indonesia 4.0 provide a significant boost to the region's economies. 

Read more: 5 Best IT Outsourcing Companies In Vietnam

  • Challenges

Entering the Southeast Asia market presents businesses with a multitude of challenges that need to be carefully addressed in order to succeed. One of the most significant challenges companies may face when entering Southeast Asia is the region's diversity, which manifests in different rules and regulations across countries and industries. The region's population is also significant, with South-Eastern Asia alone accounting for 8.58% of the total world population, amounting to 686,872,077 people. Such a diverse range of cultures and customs can pose difficulties for companies attempting to navigate the nuances of doing business in the region, including variations in communication styles, business practices, and etiquette.  Adapting to and complying with these regulations may require substantial investment in terms of time and resources. 

Successfully entering the Southeast Asia market requires a comprehensive understanding of the challenges at hand. Collaboration with knowledgeable consultants can offer valuable insights and support, enabling businesses to navigate the complexities of the Southeast Asia market and achieve their growth objectives.

The role of outsourcing in addressing these challenges

When it comes to entering the Southeast Asia market, one of the first steps towards expanding your presence is engaging a consultant who can provide invaluable insights into the region. Consultants play a vital role in helping businesses gain a deeper understanding of the diverse cultures, politics, and economies that define Southeast Asia.

  • Cost saving

Outsourcing emerges as a strategic solution to address the challenges faced by companies entering the Southeast Asia market. According to teamstage.io, 59% of companies outsource to cut costs. The top five areas that companies outsource include IT services, digital marketing, development, and HR. 

By partnering with outsourcing companies, businesses can not only save costs but also ensure timely completion of work. Outsourcing providers in Southeast Asia are well-equipped to navigate the complex regulatory environment, offering expertise in legal and compliance matters. They can assist with licensing and permits, ensuring that all operations comply with local regulations.

  • Professional team

The trend of outsourcing is on the rise, with 65% of companies that have previously outsourced planning to increase their outsourcing activities. Outsourcing provides businesses with access to a large pool of skilled workers who possess specialized expertise in areas such as IT and finance. Moreover, outsourcing providers prioritize data security, protecting companies' intellectual property through the implementation of strict protocols, non-disclosure agreements, and compliance with local intellectual property laws.

  • Efficiency and effectiveness

By partnering with outsourcing providers in Southeast Asia, businesses can leverage the region's strengths while mitigating challenges. This strategic collaboration allows companies to achieve their business goals more efficiently and effectively while reducing costs and risks associated with market entry. Outsourcing becomes a catalyst for success, enabling companies to tap into Southeast Asia's vast potential and establish a strong foothold in this dynamic and promising market.

How does Golden Owl itself help bridge these opportunities?

In today's dynamic business landscape, outsourcing has become a key strategy for organizations to stay competitive. Deloitte reports that 65% of successful organizations include outsourcers in their delivery model, with IT services being the most commonly outsourced area. Golden Owl, as one of the leading IT outsourcing companies in Southeast Asia, plays a crucial role in bridging the opportunities available in the region.

  • Strong and Skilled team

With a young, dynamic, and highly skilled team, Golden Owl excels in developing and delivering a wide range of products, from websites to mobile applications. This addresses the challenge faced by businesses, as 53% of them struggle to recruit developers with the right skills. 

  • Rich experience

With over 8 years of experience in the field and a diverse client base of over 200 customers, Golden Owl is well-positioned to cater to the specific needs of businesses operating in Southeast Asia.

  • Thoughtful understand

Golden Owl goes beyond software development by offering market research and analysis services. By leveraging their expertise in the Southeast Asian market, Golden Owl helps companies identify opportunities, assess demand, and understand the competitive landscape. This ensures that businesses can make informed decisions and align their strategies to the unique characteristics of the Southeast Asian market.

  • Searching talents and saving costs

One of the key advantages of partnering with Golden Owl is their ability to identify and recruit top technology talent in Southeast Asia, all while saving costs. With their extensive networks and industry knowledge, Golden Owl assists businesses in finding the right talent, negotiating salaries and benefits, and successfully onboarding new employees. This not only streamlines the recruitment process but also ensures that businesses can access the required expertise to thrive in the Southeast Asian market.

  • Reliable partner

By collaborating with Golden Owl and leveraging their IT consulting services, businesses can tap into the company's expertise and experience in navigating the challenges and opportunities of the Southeast Asian market. This strategic partnership enables companies to achieve their business goals efficiently and effectively, while also minimizing costs and risks associated with market entry. Golden Owl serves as a trusted ally, helping businesses bridge the gap between their aspirations and the vast opportunities available in the thriving Southeast Asia market.


Southeast Asia is a potential market. With their extensive and growing demand, and rising technology and quality, all of these are overcoming their challenges of regional diversity thanks to outsourcing. This would bring effective and efficient solutions for businesses to save costs while still meeting quality demand. If you are willing to embark on cracking the Southeast Asia market, please do not hesitate to contact Golden Owl and let we rock your business

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