Why Vietnam Should Be Your First Offshoring Destinations In Vietnam, the exceptional technical talent, high retention rates and business confidence have attracted major companies like Microsoft, Intel and IBM. A lot of major companies have turned to the rising Asian tiger to set up operations as they are now seeing rising costs in the usual […]

Why Vietnam Should Be Your First Offshoring Destinations

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Why Vietnam Should Be Your First Offshoring Destinations – Image Source: The Internet

In Vietnam, the exceptional technical talent, high retention rates and business confidence have attracted major companies like Microsoft, Intel and IBM. A lot of major companies have turned to the rising Asian tiger to set up operations as they are now seeing rising costs in the usual offshore locations such as China and India and are finding Vietnam a much more cost-effective alternative.

Vietnam’s rise as an outsourcing and offshoring destination started when in 2007 when it joined the World Trade Organization (WTO). It took 11 years of preparation, including 8 years of negotiation to come to fruition. WTO membership required Vietnam’s economic sectors to open the door to increased foreign competition and trade. As predicted at the time it proved to be a significant boost to Vietnam’s wealth and helped to ensure the continuation of liberalizing economic reforms that would, in turn, create perfect conditions for trade expansion and for business to flourish.

The Vietnamese are very keen to work with other parts of the world because and they are proud of their achievements value the positive investment and funding coming into the country. Many countries and companies work directly with Vietnamese universities to build programs to provide the kind of staff needed to work with foreign companies working within Vietnam. The neighbouring, countries like Thailand and Cambodia are now also seeking outsourcing opportunities and are coming finding creative ways to attract companies to their countries in the future, using Vietnam’s fine example.

In China and India, the biggest challenge they have is retention of staff. In these countries, it is culturally and socially acceptable to migrate to other countries to enhance your career. This is not necessarily the case for the Vietnamese. It is customary In Vietnam to provide for your immediate family and in most cases, your extended family too. It is typical in Vietnamese culture to want to stay and prosper in their own country. This significant difference makes Vietnam an important advantage for those choosing an outsourcing or offshoring model environment for their business. It is ideal for offshore business processing, offshore web development, or any dedicated offshore team.

Other advantageous factors that establish Vietnamese credentials as your first choice offshoring destination is the level of technical talent. Often organisations struggle to build offshore teams fast enough in Malaysia, for instance, because of the quality of staff needed to do an assignment. There is a competency but not at every level. Whereas technical competency in Vietnam is superior to the both, Malaysia and the Philippines. In The Philippines, they are very proficient for call centres but Vietnam has the edge regarding technical excellence required for Information Technology Outsourcing.

If all the major IT companies, Microsoft, Intel, IBM that are the gold standard in technical competency are setting up house in Vietnam, that says a lot about the technical talent Vietnam is offering.

When a smaller business outsources to India or China, they are quite often like a small fish in a big pool. When you only need five to 10 people to do a project, you just will not get the attention you need but in Vietnam, they have the flexibility to meet the needs of SMEs.

For businesses big and small you should look to Vietnam should as your first offshoring destination.

Factors that establish Vietnamese credentials as your first choice offshoring destination is the level of technical talent. Often organisations struggle to build offshore teams fast enough in Malaysia, for instance, because of the quality of staff needed to do an assignment. There is a competency but not at every level. Whereas technical competency in Vietnam is superior to the both, Malaysia and the Philippines. In The Philippines, they are very proficient for call centres but Vietnam has the edge regarding technical excellence required for Information Technology Outsourcing