Why Outsource To Vietnam?

Jun 02, 2017

The goals of the paper are to describe the Vietnamese offshore software program outsourcing business and to analyze key success factors of the largest offshore software outsourcing firm in Vietnam, FPT Software program. Vietnam has taken ICT trade a strategic one for its financial improvement, and it has been exhibiting high development in that area. Especially, Vietnam has potential to achieve success in offshore software program outsourcing, however Vietnam won’t be sustainable in this competitive market unless it overcomes a number of weaknesses. FPT Software program as the most effective achiever thus far is a good mannequin for Vietnamese software corporations. The key success components of sustainable development in FPT Software are present in good managerial practices, software of worldwide quality requirements for software program improvement, and extremely motivated and skilled workforces. Based on the case research, we talk about the sustainability of Vietnam’s offshore software program outsourcing. Employers in Vietnam have a terrific status of paying effectively above the business common and a powerful status of constructing lengthy standing staff that keep for round for years. In consequence, you get people in your undertaking that are there for the lengthy haul. Much less turnover equals more productiveness and larger price financial savings. We often hear from firms replacing distributors in India that the constant turnover meant they have been at all times coaching and retraining, inflicting downtime on their challenge work and frustration from on-shore staff members.

 

outsourcing software vietnam

 

These software program companies have their own infrastructure which prevents you from organising entire new infrastructure and spending on pricey servers or software program required. Nicely, that could be a huge saving. Outsourcing can dramatically cut back your threat factors, as the software improvement providers vendor itself is liable to develop, take a look at and implement the mission and care for any threat management or change management requirement which will happen. You get common experiences of the mission progress and you may communicate with the software program developer using numerous communication modes resembling Phone, VoIP, Emails, On the spot messenger, and so forth. All you do is assign the project and see it implementing efficiently.

Based mostly on information from the White Paper, Forbes wrote that the digital content material industry of Vietnam and software value 2.3 billion dollars, rising at 20-25% per yr average since 2001. Forbes stated that as India becomes more developed and affluent, world companies begin searching for nations with the opportunity to outsource the expertise cheaply. In accordance with market research report by neoIT – to outsource research firm primarily based within the US, IT labor price in Vietnam forty% cheaper than in China and India. Global Services Location Index report by consulting agency A.T. Kearney and KPMG analysis firm additionally forecasts Vietnam will likely be one of many center’s next outsource software program improvement.

A latest article in Reuters magazine mentioned how Vietnam is changing into the tech hub for top expertise, citing it as the place to go when considering an offshore provider. Vietnam has the best-performing laptop science college students I’ve ever encountered,” said Neil Fraser, a software engineer at Google, who visited local schools. Vietnam additionally has an excellent college system that graduate high expertise firms can pull from.

The work of software growth firms can begin with any internet based easy utility as much as building of a social network. For some organizations, these groups of software program developers could have several hundred people in it whereas small organization might function on only one skilled. It’s considered to be more of a collaborated activity between a number of departments and isn’t the job of just one department. Crucial software outsourcing vietnam cause that triggered the phenomenon of the software improvement firms to get began in in search of outsourcing companies was the aggressive flip that markets the world over took. It has change into easy not solely to get, but additionally to deliver quality work, inside a stipulated period and at rates which had been extremely affordable.

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