vietnam: a hidden gem for outsourcing
by Chloe Trinh Tran, Content Writer and Mohan Naidu, Managing Director at FPT Software
In the era of uncertainty post-pandemic, businesses are presented with various adversities, one of which is IT talent shortages. Business leaders must explore new outsourcing models and locations to overcome this challenge. In recent years, Vietnam has emerged as an attractive outsourcing destination for enterprises worldwide due to its growing IT infrastructure, improving logistics, and regulatory environment:
· Ranked 5th in Global Services Location Index (AT Kearney, 2021)
· Tier 1 Emerging Offshore location in APAC (Gartner, 2019)
· Ranked 9th in Top 10 Digital Nation (Tholons,)
· Top 6 best locations for IT outsourcing, according to The Global Services Location Index (GSLI, 2021)
· Ho Chi Minh City in Top Outsourcing Cities in 8 consecutive years (Tholons, 2009-2016)
There are several driving factors behind the success of Vietnam's outsourcing industry:
Improving Business Regulations
The Vietnamese government has had considerable success in strengthening its legal and institutional framework to provide an efficient, transparent, and business-friendly environment for investors and business enterprises, currently ranking 70th among 190 economies for Ease of Doing Business 2020.
Fast and stable economy
Vietnam's economic growth has shown fundamental strength and resilience despite Covid - 19 and is considered one of the fastest-growing economies in Southeast Asia – supported by export-oriented manufacturing and processing industry, robust domestic demand, and growing FDI (foreign direct investment) flow, and high fintech investments.
Abundant and talented IT Resource
Vietnam has a sizeable tech talent pool, with 153 IT specialized institutions delivering 50,000 IT graduates annually. Vietnam is also ranked 2nd in the Asia Pacific from the Global Skills Index 2020 for technology skills.
As an emerging outsourcing destination, Vietnam has the solid foundation to provide enterprises with innovative technological solutions. With a fast-growing IT market and high–skilled tech talent, Vietnam presents valuable opportunities for businesses to tap into excellent IT outsourcing services that can accelerate enterprises' digital transformation journey.
FPT Software as your trusted partner
Founded in 1999, FTP Software is a subsidiary of FPT Corporation and has been providing innovative solutions to various clients worldwide for the last two decades. FPT Software is now the most significant ICT company in the private sector in Vietnam, with more than 22,000 employees, including 16,000 technology employees, and 57 offices in 26 countries and territories abroad.
Watch Mohan’s full presentation at the Festival of Sourcing here.