In 2004 a prediction was made by Pete Peterson (the first US ambassador to Vietnam). He predicted that the country would be competing with India, and other leading outsource destinations within two years, He was proved correct and we now live in a world where the Vietnam software outsourcing industry is positioned within the top 5 countries for outsourcing.
Vietnam has invested heavily in education and is in the top ten countries in terms of the number of engineering graduates. Nearly 130,000 students from the country are studying abroad.
Vietnam offers expertise in software, web design, application testing, and a whole lot more.
Why Outsource to Vietnam?
The prestigious business publication CIO Magazine has announced that outsourcing software development to Vietnam is around 90% cheaper than if the same software was developed in the USA. It has been calculated that savings of between 14% and 33% can be made over work completed in India. Vietnam makes a lot of economic sense for companies seeking the best outsourcing destination.
Vietnam is a young country. The population of 97 million includes a massive 30% who are under 30 years of age. This new generation is ambitious and skilled in technology. Every year the country adds another 100,390 engineering graduates.
Better education has allowed this new generation of students to improve their English and overcome what had been a barrier to widespread outsourcing activity. The success of the educational program has allowed the country to jump up to 5th place in the global service location index in 2019. This is a massive jump of 6 spots since 2016.
Who Outsources to Vietnam?
You can tell a lot about the standard of outsourcing by taking a look at who is already taking advantage of what the country has to offer. Tech giants are already in the country, taking advantage of everything that is provided. These companies include.
Many other well-known countries are also outsourcing to Vietnam. You can be confident that if the state were not offering the best solution to these giants, then they would not be here.
What you need to be sure of
There are certain vital factors that you need to be sure about when selecting an outsourcing destination. It is not just about price. The Vietnam software outsourcing industry is positioned well in these areas.
Personal data protection is not just crucial in Vietnam; it is also enshrined in the constitution. There are strict rules which are set out in the civil code 2015, as well as in other legislation.
The country is working hard to improve standards of English in the country and has an ambitious program to ensure all university graduates reach a minimum CEFR B1 in English by 2020. English is mandatory in most schools in the country as proficiency in English is seen as an essential requisite for the Vietnam software outsourcing industry and other international employment.
It is vital to match the skill sets of the population with your individual needs. For example, to locate a call center, you would choose the Philippines because of their excellent English language skills/ If you were looking to set up a manufacturing plant, you would probably favor China, with its vast experience in this. Vietnam has directed its efforts at producing the kind of young people that are skilled in software outsource functions.
The value of the local currency has steadily been declining (which is suitable for outsourcing) but is now more stable than the currencies of its regional rivals.
The Giant in Vietnam’s Tech World
Some of the top technology companies in Vietnam have allied to promote the country as a technological hub. They have plans to develop infrastructure and service foundations for Vietnamese firms and society to go digital. It seems that the whole country is united in building this new future for their country.
The top software outsourcing company in Vietnam, Saigon Technology located in one of the areas of Vietnam with the highest English language proficiency, has become a significant player in this industry and is making a huge impact. It was awarded the title, Leading software outsourcing company in Vietnam, awarded by VINASA, the Vietnam Software Association.