Many companies (especially IT) are in the constant lookout for a rewarding outsourcing

destination off late. The reason is that companies are under pressure to produce quality products
and deliver impeccable services more efficiently and at very tight budgets. For this reason,
companies are looking out to establish a working offshore-onshore model, which is a lucrative
outsourcing business model. Despite India, Pakistan, China and Russia have successfully
implemented this model and occupy worlds major market share, Vietnam on the other hand is
sprouting up slowly and steadily. Here are top ten reasons why you should choose Vietnam as
the perfect outsourcing destination. Vietnam a rewarding destination for
outsourcing


Top ten reasons to choose Vietnam
1) Out of 90 million population over half of it (45%) are working
2) From year 2008-12, the average FDI (Foreign Direct Investment) capital was close to 11
billion USD
3) Extensive support from factors that include PEST (political, economical, social and
technological)
4) It is one of the most secure and stable economies. Vietnam is a member of WTO since
the year 2007
5) It is 50% less expensive than other Eastern European countries and 30% less expensive
than India
6) A very stable and strong political system that has not fought with any neighboring
countries since 1979
7) Vietnam Government announced tax incentives for software companies and it reduced
costs of telecom
8) Heavily invested in HR (Human Resource) development and had set up many IT parks
that include Saigon Software Park and Da Nang Software Park
9) Intellectual property protection improved largely. Between the years 2003-11, software
piracy reduce up to 9%
10) Social environment setup is incredible with 60% of total population under 30 years of
age, 90% literature rate, English language being taught as a major foreign language from
6
th
grade, over 30000 IT graduates pass out every year, IT training programs in about 400
universities and colleges and finally attrition rate is about 10% and less with Ho Chi
Minh city topping the top 50 outsourcing city to have lesser attrition rates
Key facts and figures about Vietnams outsourcing market
(a) As per AT Kearney, it has listed Vietnam in the top 10 list for Global Services Index
location for the year 2009 and 2011
(b) As per KPMG, Vietnam is the next outsourcing market expected to have a major boom
(c) 1 billion USD was invested by Inter Corporation in Saigon Tech Park
(d) About 2.2 billion USD was invested by Samsung Corporation. Vietnam became the
major hub for Samsungs mobile phone manufacturing
(e) IDG had allocated about 600 million USD for Vietnams software industry as investment
funds
(f) Many Fortune 500 companies have already chosen Vietnam as their next outsourcing
destination. A few to mention are Oracle, IBM, Toshiba, NTT, Emerson, HP, Panasonic,
Alcatel Lucent and Flextronics
For all the above reasons, Vietnam is most sought-after destination for BPO, KPO and IT
outsourcing and consulting. The countrys government has set up Special Economic Zones
(SEZs) for this purpose.
As there would always be a negative factor to add on any industry, Vietnam also has few
impending challenges to mention, however very limited. They are:
Cultural barrier between Europe and Vietnam
As per VINASA (Vietnam Software Association), the country has only 15000 qualified
and trained software engineers