Vietnam is slowly becoming a favored destination outsourcing. Vietnam ranks 20th among the top BPO destinations in the world. It is predicted that they will overtake India and China by the end of 2012.
Vietnam has a population of 90 million people, out of which 60% are under the age of 30. They have young and talented IT skilled people, and now they are gaining strength because of the increasing English speaking population. Literacy level in Vietnam is about 96%, and almost 80% students’ holds a degree as software developers, which address, the growing demand for offshore development. The nation has already created a mark as the best destination for outsourcing software development functions in the global market.
What makes Vietnam attractive for outsourcing?
The country has succeeded in offering competitive, high quality services at low cost for its clients. Now with their deregulation procedures, membership in WTO and considerable foreign investments in IT, Vietnam is considered as one of the best outsourcing destination for international players.
The other factors that make Vietnam suitable for outsourcing are:
- High skilled work force
- Economical labor
- Economic stability
- Political stability
Another main factor that attracts foreign investments is that, Vietnam has not reported any religious or communal riots since 1979. So companies find it to be safe to make investments in the nation. According to a survey taken in 2002, Vietnam is the safest country to travel in Asia-Pacific region, which adds to the comfort factor. 30 years of political stability in the nation are strong factors that attract the giants to outsource their activities to firms in this country. Vietnam stands second to China in GDP growth among the Asian countries, and this reflects economic stability and growth of the nation over the years.
Vietnam is also becoming a favorite destination for manufacturing, retails and distribution companies. In one of the recent conferences, Industry players pointed out that, by 2015, wages in china and India will raise, and this will make the multinationals outsource their processes to Vietnam. Players like Adidas, Coach and Prada have already set up outsourcing units in Vietnam owing to the wage rise in other outsourcing markets.
Some of the top firms providing BPO services in Vietnam are:
In today’s world, outsourcing activities by the companies have become a common practice because they are able to enjoy cost benefits and experience expertise in many of their business processes. However, choosing the right offshore destination to outsource activities is critical to these companies and Vietnam is fast becoming the right choice for companies to do that.