Why Vietnam for Software Outsourcing?
Every business would like to minimize its own operating cost to boost its gains. This is the area where outsourcing comes into play. Outsourcing gives businesses access to more affordable and more varied talent. Software outsourcing assists the parties involved. It generates more jobs in developing nations while benefiting the businesses that outsource by creating enormous profits. The benefits of outsourcing is only going to become possible by outsourcing to the ideal nation. Though India was eternally referred to as the outsourcing place, the Indian economy reached saturation point causing businesses to consider other South-East Asian nations such as Vietnam. Vietnam is on the road to getting another India. There are a lot of reasons why outsourcing to Vietnam is beneficial.
1. Population
The most important benefit of outsourcing to Vietnam is the youthful people. Approximately 70 percent of the populace in Vietnam is below 35, and approximately 45 percent are between the ages of 15 and 35. This implies approximately half of the populace is appropriate for connecting the workforce. So the absolute amount of individuals searching for great employment is large. Vietnam also has a literacy rate of 97 percent that means that nearly all the population prepared for employment can also be educated.
2. Education Level
Along with the simple fact that Vietnam has a reasonably large literacy rate, also, it has approximately 280,000 university or college graduates each year. Each year, the schooling system sends out 280,000 pupils that are prepared and looking for a job. From those 280,000 graduates, 30,000 to 40,000 have graduated within the sphere of Communication and Information technologies. They’re prime candidates for applications outsourcing firms searching for new talent.
3. IT Specialized Schools
Firms seeking software development outsourcing firms want graduates that are exceptionally educated in Information and Communication Technology. There are over 250 universities or colleges offering classes within the subject of Information and Tech. Along with this besides, 187 vocational colleges provide Technology and Information related classes. The pupils can obtain instruction in areas that will aid them in working in software creation. More pupils will opt to select the career route turning into a software programmer if more firms outsource to Vietnam.
4. Hard-Working People
Every business wants a workforce that’s hardworking and excited to be with the corporation. Hardworking workers make the business progress quicker. They could help complete jobs faster. This may, consequently, allow businesses to pursue more complex projects in a broader timeline. This also enables organizations to survive in the present competitive world. From the world we live in, it has become vital for organizations to churn out new technology quicker than their opponents. Hardworking and keen labor also boosts the general morale of the provider. Additionally, it ensures they inspire one another and work with every other.
5. Low Cost
The expense of choosing a programmer in Vietnam compared to hiring a single in America is considerably lesser. You can seek a Vietnamese programmer’s services for 90 percent of the expense of a digital programmer. Since the chief purpose of outsourcing is cost reduction and the top place for outsourcing until today continues to be India, the prices should also be contrasted to that of an Indian programmer. A Vietnamese programmer costs 30 percent less compared to an Indian programmer. Vietnam has a greater literacy rate compared to almost all of the other developing nations, but it also costs less to outsource Vietnam than many nations. This really can be a magical combination for businesses seeking to outsource better ability and reduced price.
6. Stability
Egypt has been a prime place for outsourcing a couple of decades ago, but the nation’s unstable political climate places it back. Sri Lanka also has many inner struggles. Vietnam doesn’t have some uncertainty. It’s had a stable political climate for the previous 30 years with the identical party in power. Additionally, it has had steady financial growth. Vietnam’s GDP growth rate is approximately 7.4 percent. This is high for its geographical site. Approximately 90 percent of the populace is Vietnamese, and they likewise don’t comply with any religion. This implies there are nearly hardly any causes of any cultural or religious conflicts in the nation. Considering that the area is stable, economically, religiously, and ethnically, it’s also much safer to your American counterparts to go to Vietnam for coaching or some other similar office-related intent.
7. Big Investors
There are lots of prominent players in the technology sector who’ve invested in Vietnam. Intel, IBM, Fujitsu, Foxconn, and Canon are still only a couple of these names. When more firms invest in outsourcing into a nation, the infrastructure of the nation also grows accordingly. This makes it better for more businesses to outsource to Vietnam. This can be a cycle in which more firms outsourcing to a nation also makes it much easier for more companies to outsource into the nation. Since some considerable players such as Intel and IBM have started outsourcing to Vietnam, they’ve set the groundwork to install the fundamental infrastructure. They also have piqued the attention of their taxpayers for functioning in an IT business. Any brand new company which wishes to outsource to Vietnam must exploit this mature circumstance.
New destination for software outsourcing
- Vietnam is an Asia Tier 1 emerging-market place and best five places for outsourcing (Gartner’s Top Global Places for Offshore Services, 2016)
- Ho Chi Minh City at Top Outsourcing Cities in 8 consecutive years (Tholons, 2009-2016)
- Vietnam is 3 in global hotspot and #1 at the aggressive price (Tower Watson, Services Offshoring Ranking 2013)
- Vietnam is rated 1 in pioneering place and price surroundings (Cushman & Wakefield business process outsourcing and also formed service place indicator, 2016-2017)
- Vietnam is six at 2017 Global Services Location Index (A.T. Kerney, 2017)
- Vietnam is an offshoring destination most preferred by Japanese firms (Resort Co., Ltd, 2016)
Large talent pool for software industry
- Vietnam is at top 10 nations with most technology graduates — study World Economic Forum at 2015 on 128 nations (Forbes)
- Supply will continue to surpass demand for Several Years.
- Almost 130,000 Vietnamese pupils are studying overseas: 6th in the USA, 5rd in Australia, 2nd in Japan (Australian Embassy Vietnam, University World News, Japan Student Services Organization（JASSO), 2017)
Vietnam Software Outsourcing Whitepapers
- “Competitiveness of Vietnam’s Engineering Workforce“: Facts and statistics from international research associations concerning the optimistic landscape of Vietnam’s technology workforce, regarding the both educational background and skilled performance.
- “Checklist for Choosing a Vietnam Software Outsourcing Vendor“: This contains the standards you might want to take into consideration when analyzing Vietnam as a possible outsourcing destination.
- “The technology giants have transferred into Vietnam. Why & are you going to follow suit?” : Analyze why Fortune 500 tech companies have transferred their outsourcing processes to Vietnam.
