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Top 12 IT Outsourcing Companies in Vietnam Updated 2024

Vietnam has become the silicon valley in Southeast Asia. According to a report from Gartner in 2016, Vietnam technology industry is in the top 5 destinations for IT Outsourcing due to the low labor cost and high IT skills. If you are looking for the top IT outsourcing companies in Vietnam, this article will be helpful to you.

Criteria for the list comprise:

  • Considerable years of experience (>5 years);
  • Prestigious industry awards and certification;
  • Verified client reviews;
  • Large-scale IT talent pool (From 100 employees);
  • Diverse domains and technology expertise.

Looking for a comprehensive guide to Vietnam’s IT service industry and outsourcing in Vietnam? Explore details in our Ebook Vietnam’s IT Services Industry: Landscape, Challenges, Opportunities.

 

 

List of Top IT Outsourcing Companies in Vietnam

Let’s take a quick look at the list before zooming into the top 12 trusted IT partners in Vietnam in 2023.

  • FPT Software Co., Ltd 
  • LTS Group
  • Lotus Quality Assurance (LQA)
  • TMA Solution
  • Harvey Nash Vietnam Co., Ltd. (NashTech Vietnam)
  • CMC Global
  • KMS Technology Vietnam Co.
  • AgileTech Vietnam
  • Fujinet Systems JSC.
  • Rikkeisoft Corporation
  • NTQ Solution
  • VNEXT Holdings JSC

You might concern: Pros and Cons of IT outsourcing in Vietnam

Detailed Review of Top IT Outsourcing Companies in Vietnam

Based on public information, here comes a comparison of the companies in the list by four criteria: Number of employees, Project Size, Average cost per hour, and service areas they provide. 

We hope that you can find the most suitable software outsourcing companies in Vietnam from this information:

  Number of employees Project Size Average cost per hour Services Areas
FPT Software Co., Ltd 25,000 $5,000+ From $25/hr – IT consultancy
– Digital transformation
– Product engineering
– IT management
– IT services
LTS Group 400+ $5,000+ < $25/hr – Custom software development
– Software quality assurance
– AI development and data training
– Business process solutions
– Robotic process automation (RPA)
Lotus Quality Assurance (LQA) 100+ $5,000+ < $25/hr

– Mobile app testing

– Web app testing

– Embedded testing

– Automotive testing

TMA Solution 4,000 $50,000+ Undisclosed

– Custom software development

– Software quality assurance

– Digital transformation

– Innovation as a service

MOR Software 400+ Undisclosed From $20/hr

– Web/mobile app development
– Salesforce Consulting & Development
– Automotive & Embedded
– AI & Blockchain Development

Harvey Nash Vietnam Co., Ltd. (NashTech Vietnam) 1900 $5,000+ $50 – $99/hr

– Custom software engineering

– Software quality assurance

– Business process solutions

– Data, analytics, and AI

– IT consultancy

CMC Global 1,500 $5,000+ < $25/hr

– IT outsourcing

– Digital transformation

– Technology solutions

KMS Technology Vietnam Co. 1,000 Undisclosed Undisclosed

– Custom software development

– Software quality assurance

– Enterprise app modernization

– Application management & support

– Data science

AgileTech Vietnam 50 – 249 Undisclosed $25 – $49/hr

– Website/ Mobile app development

– AI/Big Data Services

– Blockchain Services

– Testing Services

– Digital Transformation

– Dedicated Team

FUJINET Systems JSC. 800 Undisclosed Undisclosed

– Software development

– System integration 

– Research and development 

RIKKEISOFT Corporation 1,500 $10,000+ $25 – 49/hr

– Custom software development 

– Software quality assurance

– Business process management

– UI/UX design

– Digital solutions

NTQ Solution JSC. 1,000 $25,000+ < $25/hr

– Business technology consulting 

– Software development 

– Software maintenance

Now we will dig into the top 12 leading software outsourcing companies in Vietnam.

1. FPT Software

If you are seeking big tech companies in Vietnam, FPT Software is the first name to consider.

FPT Software is a leading IT outsourcing company in Vietnam. It is a member of FPT Corporation – one of the top Vietnamese ICT Groups in Asia. FPT Software is now a trusted technology, IT services, and digital transformation company with 1000+ clients, 71 offices worldwide, and 27,000+ skillful employees qualified with CMMI Level 5 & ISO 27001:2013. 

FPT Software as one of the top IT outsourcing companies in Vietnam

FPT Software as one of the top IT outsourcing companies in Vietnam

 

  • Headquarters: Vietnam
  • Global presence: 28 countries and territories
  • Founded year: 1999
  • Employees: 27,000+
  • Hourly rate: From $25/hr
  • Certificates: CMMI Level 5, ISO 27001:2013, ISO 9001:2015, ASPICE Level 3, etc.
  • Highlighted clients: Hitachi, Neopost, RWE, Schaeffler, AT&T, Airbus, Microsoft, Bayer, Panasonic.

Core services

  • IT strategic consultancy
  • Digital transformation
  • Product engineering
  • IT management
  • IT services

Focused market:  

  • Japan, the U.S., Europe (EU), Asia-pacific (APAC)

Outstanding achievements:

  • Top 10 digital infrastructure and information security companies in Vietnam (VINASA, 2021).
  • Being recognized in cloud migration and managed service partners (Forrester, 2022).
  • Awards for innovation in eCommerce and Construction (Asia-Pacific Stevie awards, 2022).
  • Awards for innovative information technology and cyber security providers (Information Technology World Awards, 2022)

2. LTS Group

Are you looking for a dedicated Vietnamese IT outsourcing partner with comprehensive service coverage? LTS Group will be the cream of the crop!

LTS Group is a global IT services & solutions provider headquartered in Vietnam – a rising tech hub of Asia – with two branches in Japan and the U.S. With a pool of 300 talented developers and testers owning experience in diverse domains, LTS Group delivers a full range of IT outsourcing services to clients in 11 countries at a customer satisfaction score of 96%. 

 

LTS Group

LTS Group – Dedicated IT outsourcing company in Vietnam

Company info:

  • Headquarters: Vietnam
  • Global presence: Japan, the U.S.
  • Founded year: 2016
  • Employees: 400+
  • Hourly rate: Less than $25/hr
  • Certificates: ISO 27001:2013, PMP, PSM, ISTQB (International Software Testing Qualifications Board), UI Path, Automation Anywhere, etc.
  • Highlighted clients: Qualcomm, Panasonic, SK Telecom, CJ Entertainment, LG Electronics, Toshiba.

Core services

  • Custom software development
  • Offshore development center
  • Web/mobile app development
  • Software quality assurance & testing
  • Business process solutions
  • Robotic process automation (RPA)
  • Enterprise resources planning (ERP) solutions

Focused market:  

  • Japan, South Korea, US, UK, APAC.

Outstanding achievements:

  • Sao Khue Award for excellent AI Data Annotation services (VINASA, 2021).
  • Top-reviewed web & mobile app developers in Vietnam (The Manifest, 2022).
  • Top IT outsourcing companies in Vietnam (Clutch, 2020 – 2021).
  • Top BPO companies (Goodfirms, 2020).
  • Top 3 software developers in Japan (Clutch, 2022).

 

Seeking a reliable Software Development partner in Vietnam? Choose LTS Group – One-stop ITO destination for worldwide businesses with a free 2-week pilot available.

Choose-LTS-Group

 

3. Lotus Quality Assurance (LQA)

In case you are seeking the top software testing company in Vietnam, LQA is definitely the leading provider.

LQA is the 1st independent software testing company in Vietnam with 7 years of hands-on experience in software testing. LQA offers a range of testing services and uses both manual and automated methods to identify and report any bugs or issues. In addition, their QA engineers also provide detailed feedback and recommendations to help you improve the overall quality of your products.

LQA - Leading software testing company in Vietnam

LQA – Leading software testing company in Vietnam

Company info:

  • Headquarters: Vietnam
  • Global presence: Japan
  • Founded year: 2016
  • Employees: 100+
  • Hourly rate: Less than $25/hr
  • Certificates: ISO 27001:2013, PMP, PSM, ISTQB Foundation & Advance.
  • Highlighted clients: Golden Gate, Bao Viet, Incubit, LG, Infiniq, SQC Inc.

Core services

  • Mobile app testing
  • Web app testing
  • Embedded testing
  • Automotive testing

Focused market:  

  • Japan, South Korea, US, APAC.

Outstanding achievements:

  • Sao Khue Award for excellent Software Testing services (VINASA, 2022). 
  • Top 3 software testing companies in Vietnam (Clutch, 2021-2022). 

4. TMA Solutions

Among the innovation and digital transformation companies in Vietnam, TMA Solutions stands out as the primary choice.

TMA Solutions was established in 1997 to provide quality software outsourcing services to companies worldwide. The company is now one of the best Vietnamese partners for innovation and digital transformation with 4,000 IT engineers. Their 4.0 technology capabilities include Big Data & Analytics, AI/ML, RPA, IoT, Cloud and DevOps. 

TMA Solutions - A pioneering provider in Vietnam software outsourcing

TMA Solutions – A pioneering provider in Vietnam software outsourcing

Company info

  • Headquarters: Vietnam 
  • Global presence: Germany, Japan, USA, Canada, Singapore and Australia
  • Founded year: 1997 
  • Employees: 4,000 
  • Hourly rate: Undisclosed
  • Certificates: ISO/IEC 27001:2005, ISO 9000:2001, CMMi Level 5, TL 9000.
  • Highlighted clients: NTT Data Wave, Likewize, Ribbon Communications, Avaya.

Core services

  • Custom software development
  • Software testing
  • Digital transformation
  • Innovation as a service

Focused market: 

  • North America, Europe, Asia, Australia, Vietnam

Outstanding achievements:

  • Top 15 global companies with “Offshore Software Outsourcing Best Practices” (Aberdeen Group, 2002).
  • Gold medal for Software Export and Top ICT Companies (HCMC Computer Associations, 2004-2014).
  • Top 10 Software and IT Services Outsourcing companies in Vietnam (VINASA, 2022).

5. MOR

When looking for the top IT outsourcing companies in Vietnam, MOR Software is nominated.

MOR Software was founded in 2016 with the mission of bringing Vietnamese services worldwide. As an enterprise providing software development services with international standards, MOR Software quickly affirms its quality in both domestic and international markets. Currently, MOR presents as a platinum ISTQB partner, and Salesforce global strategic partner.

MOR logo

MOR Software – A top IT outsourcing company in Vietnam

Company info: 

  • Headquarters: Vietnam 
  • Global presence: US, Japan, Korea
  • Founded year: 2016
  • Employees: 400+ 
  • Hourly rate: From $20/hour 
  • Certificates: ISTQB Platinum partner, Salesforces Global Strategic partner, ISO 9001, ISO27001-2013, PMP, PSM, IELTS…
  • Highlighted clients: Dentsu Redder, Datt JP, Novalearn, TPL&D, Cydas…

Core services: 

  • Web/mobile app development
  • Salesforce Consulting & Development
  • Automotive & Embedded
  • AI & Blockchain Development

Focused market: 

  • USA, Europe, Japan, South Korea, Hong Kong, Vietnam and Southeast Asia.

Outstanding achievements:

  • Top 10 Vietnam ICT Companies (VINASA, 2021).
  • Sao Khue awards in software development services (VINASA, 2020).
  • Top-reviewed IT Company in Vietnam (The Manifest, 2022)

Thinking of software outsourcing in Vietnam? Check out our insightful ebook, Vietnam’s IT Services Industry: Landscape, Challenges, Opportunities.

 

6. NashTech Vietnam 

When looking for the top digital transformation companies in Vietnam, NashTech is another popular choice.

Harvey Nash Vietnam Co., Ltd. (NashTech Vietnam) is a notable digital transformation company in Vietnam. The company is  a member of Nash Squared with headquarters in the UK and has had  20 years of operating in Vietnam. NashTech provides bespoke software development, technology advisory services, and business process solutions to businesses around the world.

Nashtech Vietnam - A top digital transformation company in Vietnam

Nashtech Vietnam – A top digital transformation company in Vietnam

 

Company info

  • Headquarters: UK 
  • Global presence: UK, EU, APAC, North America 
  • Founded year: 1998 
  • Employees: 1900 
  • Hourly rate: $50 – $99/hr 
  • Certificates: Microsoft Gold Partner, ISO 9001, ISO27001-2013, CMMI-DEV V2.0 Maturity Level 5,  etc. 
  • Highlighted clients: Ford, Atlanta, CHI, LG, Hitachi Capital (UK), Honda (UK), T-Mobile. 

Core services

  • Custom software engineering
  • Quality assurance and testing
  • Business process solutions (BPS)
  • Data, analytics, and AI
  • Technology advisory

Focused market: 

  • UK, USA, Europe, Australia, Japan, Vietnam and Southeast Asia.

Outstanding achievements:

  • Top 10 digital transformation services and solutions companies in Vietnam (VINASA, 2022).
  • Sao Khue awards in software development services (VINASA, 2020).
  • One of the best employers of choice in Vietnam (Anphabe JSC, 2020).

7. CMC Global 

When looking for the top IT outsourcing companies in Vietnam, CMC Global emerges among the top choices. 

CMC Global, among the top IT outsourcing service providers in Vietnam outsourcing industry, is a major division of CMC Corporation – a Vietnamese high-tech conglomerate founded in 1993 with a current workforce of over 2,500 people. With more than 1,500 experienced employees, CMC Global provides a wide range of software development services that can be highly customized to customers’ needs. 

CMC Global makes it to the list of top IT outsourcing companies in Vietnam

CMC Global makes it to the list of top IT outsourcing companies in Vietnam

Company info

  • Headquarters: Vietnam 
  • Global presence: Singapore, Japan
  • Founded year: 2016 
  • Employees: 1500 
  • Hourly rate: < $25/hr 
  • Certificates: ISO 27001:2013, ISO 9001:2015, CMMi Level 3, AWS Cloud.
  • Highlighted clients: Samsung SDS, Panasonic, Honda, Bosch, TIME.com, Approxima. 

Core services

  • IT services
  • Digital transformation
  • Technology solutions

Focused market: 

  • EU, Korea, Japan, Singapore

Outstanding achievements:

  • The Best Company to Work for in Asia 2020 (HR Asia Magazine, 2020).
  • Sao Khue Awards for excellence in the IT Outsourcing Service category (VINASA, 2019-2022).

8. KMS Technology Vietnam Co. 

For those in search of prominent HealthTech vendors in Vietnam, KSM Technology should be the initial company to examine. 

KMS Technology is a US and Vietnam-based technology service company with software development, testing and IT consultancy as their focus. In 2021, KMS Technology expands its business direction to focus on providing software services in the Healthcare industry. The company employs a customer-centric approach, meaning that their process, their work and their operation are aligned with those of their clients. 

 

KMS Technology - Experienced Healthcare software services provider in Vietnam

KMS Technology – Experienced Healthcare software services provider in Vietnam

Company info

  • Headquarters: US
  • Global presence: US, Vietnam
  • Founded year: 2009
  • Employees: 1000 
  • Hourly rate: Undisclosed
  • Certificates: ISO 27001
  • Highlighted clients: Sandata, Ceterus, ERT, Resicap, ThermoFisher.

Core services

  • Custom software development
  • Software quality assurance
  • Enterprise app modernization
  • Application management & support
  • Data science

Focused market: 

  • US and North America

Outstanding achievements

  • Sao Khue Award (VINASA, 2011-2014, 2016-2021) 
  • Top 10 Software and IT Services Outsourcing companies in Vietnam (VINASA, 2020) 
  • Vietnam 100 Best Places to Work (Anphabe and Nielsen Vietnam) 

9. AgileTech

Are you looking for a quality IT outsourcing provider in Vietnam with a strong focus on serving small businesses? AgileTech will be a no-brainer choice.

AgileTech is an IT outsourcing company specializing in website/mobile apps, blockchain services, AI – big data services. Since founded in 2015, they have accomplished more than 300 projects for customers from more than 10 countries. The company has experience across a wide range of industries, spanning IT, Medical, Real estate, eCommerce, etc. with a strong focus on startups and small-sized business clients.

 

AgileTech - Your reliable technology partner

AgileTech – Your reliable technology partner

Company info

  • Headquarters: Vietnam
  • Global presence: none
  • Founded year: 2015
  • Employees: 50 – 249
  • Hourly rate: $25 – $49/hr
  • Certificates: 1st Prize Startup Weekend Hanoi 2013, Product Owner Certificate
  • Highlighted clients: Be, Jupviec, Luxstay, MCBooks, Clingme, AI News, AloSong.

Core services

  • Website/ Mobile app development
  • AI/Big Data Services
  • Blockchain Services
  • Testing Services
  • Digital Transformation
  • Dedicated Team

Focused market:

  • US, UK, Australia, Singapore, Germany, APAC

Outstanding achievements:

  • Top software development company (Goodfirms, 2020)
  • Top mobile app developers (Clutch, 2020)
  • Top app development company in Vietnam (AppFutura, 2020)
  • Top-rated software development company (Softwareworld, 2020)

10. FUJINET Systems JSC.

Talking about Vietnamese IT vendors with a significant focus on the Japanese market, Fujinet Systems is another worth-noticed company. 

FUJINET Systems JSC. builds its reputation in the Vietnam offshoring industry based on high quality, delivery compliance, competitive price and many more. By gathering a team of elite IT engineers, plus the world standard CMMI Level 3 software development process, they can deliver top-notch services with the help of diligent and expert staff. After 20 years of operation, they have delivered more than 2500 projects to the Japanese market. 

Fujinet Systems - top IT Outsourcing company in Vietnam

Fujinet Systems – top IT Outsourcing company in Vietnam

Company info

  • Headquarters: Vietnam
  • Global presence: Japan
  • Founded year: 2000
  • Employees: 800
  • Hourly rate: Undisclosed
  • Certificates: ISO 27001:2013, CMMI level 3
  • Highlighted clients: Uchida, Hitachi, DNP, VINX, Mitsubishi Electric.

Core services

  • Software development
  • System integration 
  • Research and development 

Focused market: 

  • Japan

Outstanding achievements:

  • Top 50 IT Outsourcing companies in Vietnam (VINASA, 2018).
  • Top 10 Software and IT Services Outsourcing companies in Vietnam (VINASA, 2022).

Also check out: Ultimate Guide for Managing IT Outsourcing Projects

11. Rikkeisoft Corporation

Rikkeisoft Corporation is another name among the top IT outsourcing services company in Vietnam in 2023. 

In the 11 years since its foundation in 2012, Rikkeisoft Corporation has successfully delivered numerous projects for global clients. As for 4.0 technology embracement, the company focuses on researching and developing AI, IoT, VR/AR, Blockchain, Cloud, etc. They are committed to becoming a leading enterprise within the region and reaching the milestone of 10,000 employees by 2025. 

Rikkeisoft - Trusted IT software outsourcing company in Vietnam

Rikkeisoft – Trusted IT software outsourcing company in Vietnam

Company info

 

 

  • Headquarters: Vietnam
  • Global presence: Japan, US
  • Founded year: 2012
  • Employees: 1,500+
  • Hourly rate: $25 – 49/hr
  • Certificate: ISO 9001:2008; ISO/IEC 27001:2013.
  • Highlighted clients: Viettel, VNPT, Vingroup, Masan Consumer, AEON Mall.

Core services

  • Custom software development 
  • Software quality assurance
  • Business process management
  • UI/UX design
  • Digital solutions

Focused market: 

  • Vietnam, Japan, Europe, US

Outstanding achievements:

  • Top IT consultants in Vietnam (Clutch, 2022)
  • Top IT consultants in Japan (Clutch, 2022)
  • Top 10 Software and IT Services Outsourcing companies in Vietnam (VINASA, 2022).

12. NTQ Solution JSC.

One more option for digital transformation partner consideration when outsourcing to Vietnam –  NTQ Solution.

Founded in 2011, NTQ Solution has made great strides from a team of 5 founder members to nearly 850 employees in 2022. As an outstanding player among Vietnam IT companies,  NTQ Solution focuses on researching and applying the most advanced technologies, namely Blockchain, AI, Machine Learning, Big Data, Cloud, VR/AR, Low code, and Agile to help customers realize digital transformation faster and more efficiently. 

NTQ Solution - Notable digital transformation partner in Vietnam

NTQ Solution – Notable digital transformation partner in Vietnam

Company info

  • Headquarters: Vietnam
  • Global presence: Japan, South Korea, Hong Kong
  • Founded year: 2011
  • Employees: 1,000 
  • Hourly rate: Less than $25/hr
  • Certificate: PMP, CCBA, AWS, ISTQB, OCA, etc.
  • Highlighted clients: Softbank, Nojima, Fujisoft, Systena, Uniadex.

Core services

  • Business technology consulting 
  • Software development 
  • Software maintenance

Focused market: 

  • Japan, Korea, Hong Kong, EU, US 

Outstanding achievements

  • Top 10 Software and IT Services Outsourcing companies in Vietnam (VINASA, 2022). 
  • Sao Khue award for Software Outsourcing service (VINASA, 2021). 

    How to Choose the Best-suited IT Outsourcing Company in Vietnam?

    As of August 2023, Vietnam has nearly 10,000 IT service companies serving domestic and global markets. So, how to choose the right one? Below is LQA’s recommended vendor selection process for you.

     

    Prepare Upfront

    • Your project’s ideas, long-term vision, and long-term goals (must-have)
    • Your budget and timeframe (should-have)
    • Your technical requirements (optional)

    Source Vendor

    • Listing directories: Clutch, Goodfirms, etc.
    • Industry reference: Your friends, partners, or official industry associations like VINASA and VNITO Alliance, etc.
    • Industry publications: Vietnam’s Top 10 ICT Companies, Vietnam’s Sao Khue Awarded Companies, etc.
    • Online search: Top software vendor in Vietnam, etc.

    Assess Vendor’s Suitability

    • Credibility: Company history and environment; Client testimonials and reviews; etc.
    • Ability: Relevant development portfolio; Consulting capability; Technology stacks; Software development methodology; etc.
    • Compatibility: Understanding your requirements; Responsiveness; Communication & reporting methods; Budget & Timeline guarantee; Adherence to QA & security standards.

    Interview Vendor

    • Discuss and evaluate their solutions and estimations for your project
    • Interview team members

    With the above streamlined 4-step process of Vietnamese software vendor selection, you can select the best suitable and trustworthy partner for your next outsourced project.

    If you are complete novice in outsourcing, checkout the full checklist to optimize cost and take full advantage of external teams. 

    Frequently Asked Questions about IT Outsourcing Companies in Vietnam

    1. Is Vietnam a tech hub?

    Yes, Vietnam is a tech hub located in Southeast Asia. 

    Vietnam’s tech scene has been facilitated by a well-invested tech educational system, over 67,000 IT companies, over 1 million ICT workers, and regional digital resonance from Southeast Asia and Asia-Pacific – two hot markets for tech startups. In 2022, the revenue of Vietnam’s ICT sector hit US$148 billion, showing an increase of 8.7% year on year.

    2. How many IT companies are there in Vietnam?

    As of August 2023, there are 67,365 IT companies in Vietnam, including 9,822 IT services companies. 

    Data source: Vietnam’s Ministry of Information and Communication (MIC).

    3. Is Vietnam good for outsourcing?

    Yes, Vietnam is an exceptional country for outsourcing. With a large IT talent pool, competitive IT services costs, well-invested IT infrastructure, and a favorable business environment, Vietnam helps businesses to outsource effectively. 

    Here are some highlighted recognitions that Vietnam has gained: 

    • Top 6 countries by Global Services Location Index (Kearney, 2021).
    • Top 29 countries by Open For Business (U.S. News, 2023)
    • Top 1 Digital Riser in East Asia and the Pacific region (European Center for Digital Competitiveness, 2021)

    4. What companies outsource to Vietnam?

    The most highlighted companies outsourcing to Vietnam include: 

      • US: Qualcomm, Microsoft, Google, Intel, etc.
      • EU: Airbus, Discovery, Unilever Networks Europe, Continental, etc.
    • South Korea: LG, Samsung, Shinhan Bank, SmileGate, LG Electronics, Ricoh, etc.
    • Japan: Uchida, Hitachi, DNP, VINX, Mitsubishi Electric, NTT Data, Toshiba, etc.
    • Southeast Asia: URC, Central Group, Friso, etc.

    5. What is the tech city in Vietnam?

    As of 2023, 3 major tech cities are driving Vietnam’s IT Sector including:

    • Ho Chi Minh City (28,000 ICT companies)
    • Hanoi (17,900 ICT companies)
    • Da Nang (2,500 ICT companies).

    Final Notes

    Vietnam has the potential to maintain its position as an exceptional outsourcing destination in Asia. Although the aforementioned top 12 IT outsourcing companies in Vietnam have their benefits and limits, they still have an outstanding portfolio and can be your trusted partner. 

    Need to outsource an IT project? Contact Lotus Quality Assurance’s expert and let us know what we can help you with!


     

     

     

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    Top 5 Test Case Design Techniques for Better Software Testing

    In software engineering, test case design techniques are structured methods used to create effective test cases after a software development process. Applying the right techniques can significantly improve test coverage, reduce defect rates, and enhance product quality. Without a proper test design approach, businesses may not detect bugs and issues, potentially leading to costly project failures.

    This guide explores the most popular test case design techniques in software testing, complete with practical examples to help teams build a strong QA foundation and streamline testing efforts.

    Categories of Software Testing Techniques 

    Software testing techniques are typically classified into 3 main categories: black-box testing, white-box testing, and experience-based testing.

    • Black-box testing focuses on evaluating the software based solely on its inputs and outputs, without knowledge of its internal code structure. Test cases are derived from functional specifications, making it ideal for validating user-facing behavior.
    • White-box testing, also known as structural testing, requires insight into the application’s internal design and logic. Testers design cases based on code paths, control structures, and data flow, often to verify coverage or security.
    • Experience-based testing relies on the tester’s own intuition, domain knowledge, and past experiences. Unlike structured methods, this approach embraces exploratory tactics like error guessing and ad-hoc session work to uncover hidden issues.

    In this article, we will focus on the black-box testing with 5 major test case design techniques:

    • Boundary value analysis (BVA)
    • Equivalence class partitioning
    • Decision table testing
    • State transition
    • Error guessing

    5 Important Test Case Design Techniques

    1. Boundary value analysis (BVA)

    Boundary value analysis (BVA) is a black-box testing technique focused on evaluating the edges of input ranges rather than values from the middle. This is because many defects are typically found at the boundary points of input domains. BVA is often considered an extension of equivalence class partitioning, as it tests the limits of each partition.

    How to design BVA test cases:

    Choose input values at:

    • The minimum boundary

    • The maximum boundary

    • Just below the minimum

    • Just above the maximum

    • A nominal (average) value (optional)

     

    Boundary value analysis test case design technique

    Boundary value analysis test case design technique

     

    For example, assume that the valid age values are between 20 and 50.

    • The minimum boundary value is 20
    • The maximum boundary value is 50
    • Take: 19, 20, 21, 49, 50, 51
    • Valid inputs: 20, 21, 49, 50
    • Invalid inputs: 19, 51

    So, the test cases will look like:

    • Case 1: Enter number 19 → Invalid
    • Case 2: Enter number 20 → Valid
    • Case 3: Enter number 50 → Valid
    • Case 4: Enter number 51 → Invalid

    Boundary value analysis test case design example Boundary value analysis test case design example

    Learn more: How to choose the right test automation framework?

    2. Equivalence class partitioning

    Equivalence class partitioning (or equivalence partitioning) is a test case design method that divides input data into distinct partitions or classes, where each member of a class is expected to be treated similarly by the system. The idea is that if one input in a class passes or fails, other inputs in the same class will likely yield the same result – so only one representative value needs to be tested per class.

    This method helps reduce the number of test cases while maintaining effective coverage of functional scenarios.

    To design an equivalent partitioning test case:

    • Define the equivalence classes
    • Define the test cases for each class

    For instance, the valid usernames must be from 5 to 20 text-only characters.

    Equivalence Class Partitioning example test cases

    Equivalence class partitioning test cases design example

     

    So, test cases will look like:

    • Case 1: Enter within 5 – 20 text characters → Pass
    • Case 2: Input <3 characters → Display error message “Username must be from 5 to 20 characters”
    • Case 3: Enter >20 characters → Display error message “Username must be from 5 to 20 characters”
    • Case 4: Leave input blank or enter non-text characters → Display error message “Invalid username”.

    3. Decision table

    Decision table is a software testing technique based on cause-effect relationships, used to test system behavior in which multiple input conditions determine the output. For instance, navigate a user to the homepage if all blanks/specific blanks in the log-in section are filled in.

    First and foremost, we need to identify the functionalities where the output responds to different input combinations. Then, for each function, divide the input set into possible smaller subsets that correspond to various outputs.

    For every function, we will create a decision table. A table consists of 3 main parts:

    • A list of all possible input combinations
    • A list of corresponding system behavior (output)
    • T (True) and F (False) stand for the correctness of input conditions.

    For example:

    • Function: A user will be navigated to the homepage if successfully log in.
    • Conditions for success log in: correct username, password, captcha.
    • In the Input section: T & F stands for the correctness of input information.
    • In the Output section: T stands for the result when the homepage is displayed, F stands for the result when an error message is shown.

    Look at the image below for more details.

     

    Decision table test case design example

    Decision table test cases design example

     

    So, test cases will look like:

    • Enter correct username, password, captcha → Pass
    • Enter wrong username, password, captcha → Display error message.
    • Enter correct username, wrong password and captcha → Display error message.
    • Enter correct username, password and wrong captcha → Display error message.

    4. State transition 

    State transition is another way to design test cases in black-box testing, in which the system’s behavior is tested based on changes in its internal states, triggered by various input events. In this technique, testers execute valid and invalid cases belonging to a sequence of events to evaluate the system behavior.

    For example, when a user tries to log into a mobile e-banking app, entering the wrong password three times in a row will result in the account being blocked. If the user enters the correct password on the first, second, or third attempt, the system will transition to the Access accepted state.

    Take a look at the diagram below to visualize the flow of this process.

     

    State transition diagram for test case design

    State transition diagram example

     

    The state transition technique is often used to test the functions of the Application Under Test (AUT) when the change to the input makes up changes in the state of the system and produces distinct outputs.

    5. Error guessing

    Error guessing is a technique in which testers use their experience and intuition to anticipate where defects might occur. Unlike other testing methods that rely on predefined criteria or rules, error guessing involves making educated guesses. Hence, the test designers must be skilled and experienced testers.

    When designing test cases through error guessing, testers typically consider:

    • Previous experience testing related/similar software products.
    • Understanding of the system to be tested.
    • Knowledge of common errors in such applications.
    • Prioritized functions in the requirement specification documents (to not miss them).

    How to Choose The Best-Suited Test Case Design Techniques

    Selecting the right test design technique depends on several factors, such as the complexity of the system, testing goals, team capacity, and industry requirements. Here’s how to decide what works best:

    Match the technique to the system’s complexity

    Businesses can start with considering the complexity of the system and the level of detail required in testing.

    For straightforward applications, such as those with basic input validation or standard form fields, companies may opt for techniques like BVA or equivalence partitioning.

    But if the system involves layered business logic, multiple input combinations, more sophisticated test case design methods like decision tables or state transition testing are better suited.

    Align with testing objectives

    Clearly define the test objectives, including what aspects of the system companies want to verify or focus on.

    If the focus is on validating specific business rules, input-output relationships, or event sequences, then structured techniques such as decision tables or state transitions would be a better fit.

    For systems with frequent updates or high-risk areas, error guessing – based on tester intuition and past experience – can also reveal hidden issues that structured methods might miss.

    Consider available resources

    Not all techniques are created equal in terms of implementation effort. Some are quick to set up and can be executed by testers with limited technical expertise, while others demand more time and collaboration, especially between testers and business analysts.

    Follow the industry best practices

    Consider industry best practices and standards.

    Certain industries come with their own standards and expectations for software testing techniques. Companies can research to understand the best practices relevant to the industry or domain they are working in.

    Leverage team strengths and experience

    Don’t underestimate the previous experience and knowledge of the testing team. Testers with experience in a certain technique may be more proficient and efficient in using it

    When internal capacity is stretched or experience is limited, working with an external testing firm can help businesses guarantee the right techniques are selected and applied effectively.

    Combine techniques for broader coverage

    Most projects benefit from using a mix of approaches. For example, enterprises can apply boundary value analysis and equivalence partitioning for form inputs, decision tables for business logic, and error guessing for critical or unstable areas.

    Combining multiple test design techniques helps businesses achieve better coverage and address different aspects of testing.

    Advantages of Test Case Design Techniques in Software Testing

    Implementing structured test case design techniques is essential to delivering high-quality software. Here’s why they matter:

    Broader test coverage

    Well-crafted test cases ensure comprehensive coverage across different scenarios, inputs, and edge cases. By methodically validating functionality, user interactions, and boundary conditions, businesses reduce the risk of missed defects and build greater confidence in the software’s reliability.

    Lower testing and post-release costs

    Defects identified during the later stages of development – or worse, after release – can be costly to fix.  According to the Systems Sciences Institute at IBM, the cost to resolve a defect post-release is 4-5 times higher than during design, and up to 100 times more than if caught in the maintenance phase.

    With test cases designed effective early, teams can catch issues sooner, reduce expensive rework, ease the burden on customer support, and avoid damage to the brand’s reputation. In short, good test design pays off in long-term cost savings.

    Early defect detection

    Test techniques like state transition and decision tables help uncover defects that only surface in specific sequences or logic paths – bugs that typical ad-hoc testing may overlook.

    When simulating real-world flows and conditions early in the testing phase, companies can significantly reduce the number of bugs that reach production.

    Reusable test cases

    When test cases are thoughtfully structured and documented, they can be reused across multiple development cycles or similar features. This consistency helps reduce duplicated effort, maintain quality over time, and accelerate future testing, especially during regression or maintenance phases.

    FAQs about Test Case Design Techniques

    1. What are test case design techniques, and why are they important?

    Test case design techniques are systematic methods used to create test cases that effectively validate software functionality. These techniques help ensure comprehensive testing coverage and the detection of potential defects. They are important because they guide testers in designing tests that target specific aspects of the software, thereby increasing the likelihood of identifying hidden issues before the software is released.

    1. What are some common test case design techniques?

    Universal test case design techniques are boundary value analysis, equivalence class partitioning, decision table testing, state transition, and error guessing.

    1. How do companies choose the right test case design techniques?

    The choice of test case design technique depends on factors such as the complexity of the software, the project’s requirements, available resources, and the specific types of defects that are likely to occur. It’s often beneficial to use a combination of techniques to ensure comprehensive coverage. The technique chosen should align with the goals of testing, the critical functionalities of the software, and potential risks involved.

    Final Thoughts On Test Case Design Techniques

    Effective test case design techniques are essential for achieving comprehensive testing and improving the chances of identifying defects before the application is deployed.

    While no single technique can cover all scenarios, a thoughtful combination can greatly enhance test coverage, reduce overlooked defects, and accelerate the QA process. Whether you’re developing a simple form or a complex transactional system, investing time in proper test design will save you from costly fixes later.

    Looking to improve your software quality with strategic test design?

    LQA’s experienced testing experts are ready to help you build effective test strategies, execute them at scale, and guarantee that the final product meets the highest quality standards. Learn more about our software testing services or get in touch for a free consultation.