Illustration of IT outsourcing in Thailand: an orange figure between two groups of people
The Thai software market, seen from our Bangkok office.

What IT outsourcing in Thailand covers

The phrase covers three kinds of work. Thai enterprises outsource IT operations, support and systems integration to local providers. Regional groups run delivery centres in Thailand for clients across Asia. And a growing number of international companies use Thai teams to build and run their software products.

The third group is where the market has changed most. Not long ago, most outsourced work in Thailand was operations and support. Today Thai engineers build cloud platforms, mobile apps, data pipelines and AI products for clients in Europe, Australia and beyond, working in English, in the client’s tools and sprints.

Bangkok and Chiang Mai: where the engineers work

Bangkok holds most of the country’s engineering employment, across banking, enterprise IT, e-commerce and a maturing startup scene. Large technology employers have built their regional bases here. Agoda, the travel platform, opened a technology hub at One Bangkok built for nearly 4,000 people, according to iTBrief Asia.

Chiang Mai has a character of its own: a strong community of developers and designers, two large universities, a calmer pace and excellent retention, because people who move there are building a life. It’s where Azendo was founded in 2010 and where our headquarters is today.

From our side, the two cities complement each other. Bangkok gives depth in enterprise and fintech experience. Chiang Mai gives continuity: our specialists stay with Azendo for 3.3 years on average.

Three kinds of IT outsourcing provider in Thailand

  1. Local IT services firms serving Thai enterprises, mostly in Thai and often on project contracts.
  2. Regional outsourcing groups that treat Thailand as one delivery location among several, with management based elsewhere.
  3. Foreign-founded companies built to serve clients abroad, working in English with international standards and management. This is where Azendo sits.

For an international company, the third group is usually the natural fit: the teams work in English, in your tools and across your working day, with a management layer that understands how you work.

Why international companies choose IT outsourcing in Thailand

A growing engineering pipeline. Thailand’s national AI targets include 50,000 AI developers and 90,000 AI professionals. THAI Academy, run by the government with Microsoft, trained 1.58 million people in AI in Microsoft’s 2025 financial year, against a target of one million, and the Super AI Engineer programme of the Artificial Intelligence Association of Thailand has drawn more than 45,800 registrations across five seasons. Our article on AI in Thailand covers the programmes in detail.

Global cloud infrastructure on the doorstep. AWS opened its Thailand region in January 2025 with a planned investment of more than US$5 billion. Google’s Bangkok cloud region is live, and Microsoft has announced its first datacenter region in the country. Teams here build on the same platforms as their counterparts anywhere.

A clear framework for foreign companies. The Thailand Board of Investment promotes software and digital businesses, which makes foreign-owned technology companies straightforward to run. The Digital Economy Promotion Agency supports the sector’s growth and funds digital skills training, from coding to AI.

Teams that stay. In our experience, engineers in Thailand build long careers with one employer when the work and the workplace are good. For a client, that continuity is worth more than any rate difference, because knowledge of your codebase is the expensive part.

A workable time zone. Thailand is on UTC+7: five hours ahead of Northern Europe in summer and six in winter, and three to four hours behind Sydney. Every working day shares several hours with Europe and Australia.

IT outsourcing in Thailand compared with India, Vietnam and the Philippines

Scroll the table sideways to see every column.

CountryScaleCostRetentionShared hours with Australia and Europe
IndiaVery largeLowVariableGood
VietnamLarge and growingLowModerateGood
PhilippinesLargeLowModerateModerate
ThailandGrowing fastCompetitiveStrongGood

This is our own assessment from working here since 2010. Retention is where Thailand stands out for us: our specialists stay with Azendo for 3.3 years on average. Retention figures are rarely published, so ask any provider for theirs and how it’s calculated. For a closer look at Thailand’s nearest rival for offshore work, see Thailand vs the Philippines.

How to set up IT outsourcing in Thailand

  1. Choose the provider type. For product work, look at foreign-founded providers that work in English and manage delivery.
  2. Check the basics. BOI registration and the provider’s own offices and equipment.
  3. Ask about people. How specialists are selected, how long they stay and who manages them day to day.
  4. Meet the team. A good provider introduces the proposed specialists before anyone is assigned to your product.
  5. Agree the rhythm. Tools, sprint cadence, reporting and the hours you’ll share each day.

With a provider that already has the offices and the people, IT outsourcing in Thailand moves quickly: a team usually starts four to six weeks after signing.

Where IT outsourcing in Thailand is heading

The shift of the last five years, from support work to product engineering, is accelerating. AI and cloud work is growing fastest, helped by local cloud regions, Thai language models built in the country and a new generation of engineers trained on real projects. For international companies, the practical route in is a dedicated team built through software development outsourcing, managed from offices in Thailand and working in your tools from the first sprint.

Azendo works at the managed end of the market: our own developers, our own offices in Chiang Mai and Bangkok, training through our Talent Success and Academy programme, HR and payroll, and a service delivery manager on every team. The full case for the country is in why we deliver from Thailand.

Questions about outsourcing in Thailand.

Is IT outsourcing common in Thailand?

Yes, and the international side is growing quickly. Much of the market has traditionally served Thai enterprises, and a growing group of providers, Azendo among them, builds dedicated teams for clients abroad. Cloud regions from AWS and Google and large AI training programmes are widening the talent pool every year.

Where are software companies in Thailand based?

Mostly in Bangkok, which holds the largest share of engineering jobs across banking, enterprise IT and product companies, with a strong and growing cluster in Chiang Mai. Chiang Mai's universities, lower living costs and quality of life keep experienced developers there for years, which is why Azendo has its headquarters in the city.

Can a foreign company own a software business in Thailand?

Yes. The Thailand Board of Investment promotes software and digital businesses, and BOI promotion allows foreign ownership along with other incentives. That is how a number of foreign-founded companies operate, including Azendo, which was founded in Chiang Mai in 2010 by Danish founder Mikkel Schmidt and is BOI-registered.

How quickly can an outsourced team in Thailand start?

With a provider that already employs its engineers and runs its own offices, a team usually starts four to six weeks after signing. That covers selecting specialists for your stack, meeting them before anyone is assigned, and agreeing the working rhythm. Setting up your own entity in Thailand takes considerably longer.

Thinking about delivering from Thailand.

Loading the form…

We reply within one business day.