China and India are two of popular country destinations for IT outsourcing, attracting many great investors over the world for many years. However, it has not stopped yet in these countries, because many of businessman looking to release their support overseas. Thus, Vietnam IT outsourcing is becoming the new and potential destination for IT outsourcing investors from all over the world.
There are more and more businesses choosing Vietnam to develop their outsource IT needs. You may question yourself why Vietnam is one of the attractive places for outsourcing development. Vietnamese government offers the strong commitment in growing IT industry. The second reason is that with the stable social system, Vietnam is providing policies to encourage foreign growth in IT.
Vietnam IT outsourcing potentials
Because of its location, Vietnam is the place where has convenient time zones. Thus, it is easy to communicate for hours. Additionally, from Vietnam, there is only a very short flight to other city centers. In spite of different time, there are still some countries in Europe still choose Vietnam for IT outsourcing.
Active growth of IT in Vietnam
According to a statistic from IT researchers, there are more than 100,000 developers and 75,000 content specialists in Vietnam at the moment. Especially, there are more than 40,000 IT students graduate every year. As the result, IT industry grows massively and rapidly in the whole country. Besides, the Vietnamese students have the strong interest in computer science and technology, they are all in young age than people from Western countries.
It is admitted that IT companies in Vietnam and foreign countries invest millions for developing Vietnamese talent. Because the young IT staff needs to be ensured the up to date skills, they have to learn every day from their real work. Receiving the higher education support from foreign companies is one of the best ways to develop Vietnamese people.
The advantage of Vietnam IT outsourcing companies
There are a variety of benefit for any IT outsourcing companies in Vietnam such as labor cost and resource, stability of economy and social status. However, there is also a lot of difficulties in Vietnam IT outsourcing industry.
Cost of labor
In Vietnam, labor cost is less than those in some European countries such as the US, France or Germany. Even compared to some country destinations such as India or China, Vietnamese labors are still very at an attractive cost. Ho Chi Minh is one of 50 outsourcing cities in the world, because of its lowest production cost.
Students graduates with high degree and good education increasing every year. It turns Vietnam into the exceptional country for outsourcing because of the highly educated population.
Economic and social stability
Vietnam is one of the most stable countries which creates the hospital and friendly business environment for outsourcing. Besides, Vietnam is also the second fastest GDP growth country in Asia, so it is also the country with the stable economy for developing any project. Additionally, there is more than 80% of Vietnamese people do not identify themselves in any specific religion, so it is largely free of ethnic conflict.
The challenges in Vietnam IT outsourcing industry
Although many benefits from IT outsourcing can be found in Vietnam, there are also thousands of difficulties and limitations in the IT industry there. The resource of labor is the biggest strength of Vietnam IT outsourcing companies, but it is also a limitation. The reason is that Vietnamese labor has a high education but low real experience skills. It takes a long time for them to get used to in the work environment. Besides, they are not well equipped with the soft skills needed for their career.
The security of the IT system is lower than the other countries in the same area. Therefore, it is needed to invest more in improving the system of security for better and further development. Besides, Language is also one of the challenging for those who want to invest in outsourcing in Vietnam. Apart from language, the difference of time is also one thing being concerned.
To sum up, Vietnam IT outsourcing has been developing every moment, Vietnam will be the next hotspot for outsourcing in the near future. It is undeniable that Vietnam is presenting attractive benefits in the outsourcing market where China and India have taken the proper position. It is probably believable that thank to young and active skilled resources, political and economic growth stability, Vietnam will soon become the head of IT outsourcing country in the world.