why outsourcing to vietnam

Offshore Development

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Atomic Web Solutions - United Kingdom

Home » Offshore Development » Why Outsourcing To Vietnam

Why Outsourcing To Vietnam

  • One of the most stable and secure countries
  • Average annual GDP growth of 7-8% during the last 15 years
  • Young and well-educated population
    • 70% of 87M population under 30
    • 220,000 university/college graduates a year
    • Literacy rate more than 90%
    • The government of Vietnam recognizes and promotes the importance of education and training
    • The aforementioned 2006 GlobalServices article cited Ho Chi Minh's "significantly low attrition rate" and "strong labor pool" as two other reasons for the city's inclusion in its list of the top 50 outsourcing cities
  • Competitive cost: 40% lower than China & India (neoIT, 2006)
  • Socio-Economic Stability
  • Strong government support for the software industry: tax, training & education, software/high tech parks, etc.
  • Ethnic/Religious Stability: Vietnam was ranked as the safest among the 14 countries in the Asia-Pacific Region by the Political and Economic Risk Consultancy in Hong Kong (Berth of a Nation in Time, autumn 2002)
  • Political Stability
  • Language: Unlike many Asian languages, Vietnamese uses the Latin alphabet, just as English does, which makes it relatively easy for Vietnamese speakers to learn English

Who already outsourced to Vietnam?

Many Japanese companies such as Fujitsu, NTT, Hitachi, NEC,... are choosing to outsource much of their IT work to Vietnam. According to a November 2006 article in GlobalServices, "Vietnam: Capitalizing on the China-Japan," by the year 2010 as much as 10% of Japan's software outsourcing may be sent to Vietnam.

San Jose Mercury News, "Intel Invests in Vietnam Software Company, October 24, 2006"

Many other companies that have chosen to outsource to Vietnam include Nortel Networks, Bayer, Sony, Cisco, and Anheuser Bush,…

You can read more on Vietnam software outsourcing industry news