25 Jan Vietnam IT outsourcing – Opportunity or Challenge?
Vietnam IT outsourcing – Opportunity or Challenge?
India and China have been the two most well-known hotspots for any foreign technology company to get outsourcing IT support. Besides, Vietnam has managed to catch up and draw comparative numbers of businesses’ attention looking to their needs in recent years. Nowadays, more and more businesses notice Vietnam IT outsource for its groundbreaking growing IT infrastructure.
Challenges of Vietnam IT Outsourcing
Also, there are fewer vendors which mean fewer options for your business. Substantial focus on key business practices and operating norms is one thing you want to notice while using IT outsourcing services in Vietnam.
However, with the aim to reach 1,000,000 software engineers in 2020, the Vietnamese Government has adjusted a lot of laws and issued many circulars to support the development of technology. Therefore, a number of organisations and companies which are looking for exporting IT projects to Vietnam are supported to find real estate and connected with local HR organisations or the telecom vendors.
PROMISING FUTURE IN VIETNAM IT OUTSOURCE
Vietnam IT Outsourcing – how is cost reduced?
Reducing cost is one main factor for Vietnam IT outsourcing’s appeal. To hire labour here, it doesn’t cost you much. The cost of labour is just about one-third of the cost of labour in India.
People are young, enthusiastic about the work they are assigned. educated talent pool. About two-thirds of the population is under the age of 30.
Vietnam seems to be an attractive destination to invest if you introspect other factors like wage inflation, salaries, real estate costs, etc. Moreover, with 30-50% less in terms of cost of operations than India, many companies now are seeing Vietnam as a great potential outsourcing place.
Workplace loyalty in IT field in Vietnam
If labour cost is what attract foreign businesses outsource to Vietnam, workplace loyalty is a crucial thing they want to invest in the long term. It seems to be a characteristic of Vietnamese culture, influencing attrition rates. According to remoteresources.com, this rate in Vietnam is just between 6 and 8%, compared to this rate in India at about 20%.
Moreover, Vietnamese talent in the software development industry is prestigiously valued for their hard-working spirit, flexibility and adaptability to the fast-changing environment.
The large talent pool for the software industry
- According to the World Economic Forum, Vietnam is listed in the top 10 countries with most software engineering graduates.
- The Information technology industry always has the highest recruitment demand in Vietnam in the last 10 years with attractive offers such as high salary and creative workplace.
- “Vietnam has the highest-performing computer science students I’ve ever encountered.”, Neil Fraser, Alphabet Inc’s Google.
- As 60 percent of the population is under 30 years old, Vietnam has broad of profuse young, fast learning and hard-working resources.
- High English proficiency is also an advantage that Vietnamese software engineers meet a global standard, compared to China or Japan where communication is still a language barrier issue.
Growing IT Infrastructure
Although IT outsourcing in Vietnam is quite new, its significant growth proved that this country is a promising potential market. With a fast-growing GDP, high technical talent, modern technological infrastructure and high retention rates, Vietnam is making their way to attract global companies, also further develop its already-strong IT infrastructure.
Where can you find trustworthy Software Outsourcing Companies in Vietnam?