VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING
Last updated: January 12, 2023 Read in fullscreen view
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Entrepreneurs have long seen outsourcing as a strategy reserved for big business, but technology has made it a more accessible tool for small businesses--and for some small firms, outsourcing has made a powerful impact on their growth, productivity.
Taking the first steps toward outsourcing can be time-consuming, but figuring out how to build your business with help from outside professionals can offer increased efficiencies and economies of scale.
"Most entrepreneurs have great talents but many times they think they can do it all, That can really stall the growth of the business. By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income."
Many years ago, Vietnam has been considered as a big attractive destination in the field of outsourcing, especially software development outsourcing. The good relationship between Vietnam and Japan shows the big potential of software industry in the coming years. Many Vietnam software companies are promoting their business in this market. Some US corporations also started to move to Vietnam with the advantages of cost, quality and skilled resource...
Vietnam, with its state–of–the–art technology can now handle complex turnkey projects, such as the maintenance of legacy systems, business intelligence, system integration, business process re–engineering or E–commerce.
The potential of software outsourcing
Although still very young, Vietnam enterprises in recent years there have been many attempts in the development of software export market. Vietnam is among the countries with high stability are less political and terrorist risks. This advantage, along with the geographical location within the Asian region, an area that is currently being evaluated as the most dynamic in the IT sector, Vietnam is a place scooped leading multinational corporations and foreign investment companies open branches and companies outsourcing manufacturing exports. Many tech companies are investing in Vietnam such as IBM, Intel, Microsoft. These companies help Vietnam not only in building up a strong IT infrastructure but also in training a great pool of talented and skillful software developers.
With about 34% of the population aged 15-34 ensure that Vietnam has a young labor force. The ability of logic and mathematics of students in Vietnam very well be a favorable condition for development. Compared to India, Vietnam’s labor costs cheaper from 30-50%. IT workers can improve their ability to quickly and easily adapt to working conditions with high intensity.
The Government of Vietnam is focusing on the development of the software industry. There are many preferential policies developed software industry, such as tax incentives, preferential policies on land rent, lease infrastructure, the financial support policies, training policies to support development HRD software etc.
Universities are investing in courses relating to information technology. Training centers opened to supply the quality software developers for the Vietnam outsourcing market and even the global market. This attracts a huge number of students who are interested and want to develop their career paths in this field. Every year, thousands of information technology students graduated. These students are not only good at the theory but also good at the practical problems via the internship period or even via their project. This can ensure that Vietnam can provide quality software developers for the best business outcomes.
Opportunities
IT Sector of the world are at the stage of recovery and rapid development. IT market in the world’s major like the US, Scandinavia and Japan trend of using manpower from foreign suppliers for outsourcing is growing strongly. Predicts that by 2005, the need to recruit IT professionals globally will be more than 1 million people, while the main suppliers such as India, Ireland also has the ability to provide a maximum of 70%. China is considered to be potentially competitive market, but in reality, domestic demand in China is very large, a large number of qualified staff in China will be drawn into the domestic market. In addition, human resource prices in the Indian market, Ireland is increasing while IT labor cost in Vietnam is very low. Such outsourcing market is very huge. The problem is how to seize the opportunity?
Terrorism and instability and political security in many regions of the world makes the multinational corporation and the largest IT companies in India, Korea, Taiwan, the Philippines, Indonesia etc. are trying to stretch down the software development centers to countries with better stability and political security to minimize the damage that may occur. Vietnam is considered as a country with high stability and political security, re-located close to the major powers about outsourcing such as India, China, Korea should be the ideal place to embrace this opportunity.
Vietnam has a large community overseas Vietnamese living and working in foreign countries, and many of them are senior professionals in the field of software development. If exploited, this force will be a great resource for software outsourcing exports Vietnam. Vietnam may call on the Vietnamese community in the developing countries, such as Silicon Valley, so they returned to invest in developing the domestic software industry.
Wrapping up
Entrepreneurs are getting familiar with the term software outsourcing services. And Vietnam is being considered as a promising destination for these services after India and China. By hiring software outsourcing in Vietnam, the company can not only save a mouth of money but also being provided the high-quality software developers who can ensure you the best business outcomes.
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