Becoming a Bright Point in World Outsourcing Map

20 years ago, FPT Software’s forerunner was a unit producing software of FPT Group – the biggest IT group in Vietnam. In 2004, FPT Software officially became the Software Joint Stock Company, in which FPT accounts for 70 percent and staff, 30 percent of the company’s shares. By now, the company is home to 2,900 staff. Turnover in 2008 is estimated to be US$42 million (equivalent to VND715 billion). The company has branches in Hanoi, Ho Chi Minh City and Da Nang.

 

To have a development like today, FPT Software has paid great attention to training and keeping the high quality human resource, focused on and penetrated further into core technologies, and made continuous investment in improving working infrastructure system with a good information system and hi-speed transmission line.

FPT Software has made efforts to access the international standards since 2004. Thanks to all these endeavours, nowadays, the company has become Vietnam’s first company to receive ISO9001：2000, CMMI 5, and BS7799-2:2002.

 

Implementing its globalization strategy step by step, FPT Software opens FPT Software Japan in Tokyo in 2005, FPT Software Asia Pacific in Singapore in 2007, FPT Software Europe in Paris, FPT USA in San Francisco, FPT Australia in Sydney and FPT Malaysia in Kuala Lumpur. With establishment of companies overseas, FPT Software desires to really become a global player to provide better assistance and higher quality, cheaper services for its customers, contributing to turn Vietnam into an outsourcing point with good reputation in the world map.

 

Long steps behind India and China, Vietnam has only penetrated into Japan market since 2003 – 2004. Being a market with the second largest ICT service after the U.S, Japan is well known for its choosiness and requirements on very high quality, cheap price and absolutely timely delivery.

 

Though supplying a very tiny volume of products for Japan market, Vietnamese enterprises have initially proved their capacity in terms of technique, competitiveness due to cheap price and gained customers’ trust thanks to their industriousness. I believe their participation into Japan market will increase more and more when Vietnamese enterprises are making enthusiastic investments into the Bridge Software Engineer (BrSE) team and improving Japanese skills of engineers. Besides, Japanese economy is encountering difficulties, under severe pressure to reduce price, which will further accelerate outsourcing. With the China + 1 strategy, Japan is seeking new destinations with more appealing prices, cheaper labour source and higher quality. With the advantage of similar cultures and cuisine, Vietnam is sure to be an attractive destination for Japanese customers.

 

Currently, the number of people working for Japan market is around 1,800 ones. Turnover of FPT Software from Japan market sees a fairly high growth, about 80 percent per annum. FPT Japan in Tokyo and Osaka currently has over 150 staff, a majority of whom are sent to work at customers’ companies.

 

From very initial successes and experiences of FPT Software in Japan market, many Vietnamese software enterprises see Japan as their potential major export market.

 

I completely agree with this statement. Whether Vietnam can have a firm standing in the IT world map and turn into a leading software export country completely depends on the fact that whether it has an abundant and high quality labour force.

 

FPT Software considers developing and guaranteeing a working force as the most important factor. FPT Software has a Resource Assurance Centre (RAC). The centre offers training programmes on technology, management skills, foreign language and business cultures. The centre regularly organizes training courses for new staff as well as periodically holds specific training and improving courses for senior staff. In addition, FPT Software is also keen on providing training to managers with the motto: enterprise is the training environment, and doing jobs is training courses. High-ranking managers directly participate in and provide training to subordinate managers and staff.

 

In 2007, FPT University officially was established. The university is currently home to 2,000 students. The university aims at training IT engineers of high quality, fluent in both Japanese and English, having skills to work in teams, and a professional working style. FPT graduates will help meet the demand for high quality IT engineers of FPT Software and FPT Group in the years to come. 

 

Vietnam’s potential for software export is very huge. The potential is first and foremost shown in the young, studious and hard-working labour force. According to the report of Ho Chi Minh Computer Association (HCA), there are currently 235 colleges and universities providing training on ICT across the country.

In Vietnam, IT is a sector favoured by the young generation and brings fairly high income. Vietnam Government is extending enthusiastic support through many attractive policies in order to boost demand for the software export industry.

 

Moreover, Vietnam is having more advantages than other big rivals in Japan market, thanks to similarity in cultures, ability to use Japanese and a favourable geographical location.

 

In a report of such an organization which has large influence like Gartner (a world leading IT Consultancy), Vietnam gets listed among countries outsourcing software in the world. Most recently, in 2008 report of Global Services, Ho Chi Minh City ranks 4/50 cities which have the most potential for outsourcing in the world, up 2 levels against 2007; and Hanoi, 11/50, one level up against 2007. Such names as FPT Software, Vietnam Software Outsourcing Co., Luxoft and Vietnam Offshore Service get mentioned in the list of potential outsourcing companies in the world, which reflects higher position of Vietnam and Vietnamese enterprises.