Software Outsourcing in Vietnam - Cheapest in Asia

12:37:53 PM | 3/14/2009

Vietnam is ranked in the top ten of software outsourcing in Asia and has the lowest price of outsourcing.
 
Gartner - a market research company - has publicised the top ten of offshore service providers in the Asia - Pacific, including Vietnam.
 
Gartner's report does not rank nations but provides evaluation under 10 criteria related to software outsourcing, i.e. foreign language skill, Government's support, human resource, infrastructure, educational system, cost, economic and political stability, cultural similarity, globalisation ability, and security and privacy protection.
 
These criteria are rated as poor, fair, good, very good, and excellent. Accordingly, Vietnam is seen as the country with the cheapest software outsourcing among 10 nations. However, other criteria of Vietnam are rated poor and fair, four of which are assessed poor, including foreign language skill, Government's support, infrastructure, and security and privacy protection. The other five are only at the fair level.
 
Overall, Vietnam is ranked at the bottom, even behind such weaker competitors as the Philippines, Thailand, and Pakistan. In particular, Vietnam is only ranked higher than Thailand in terms of cost, the same poor position in security and privacy protection, and lower in other criteria. In comparison with the Philippines, Vietnam just stays at a higher position in outsourcing cost while being much far behind in other criteria from foreign language skill, Government's support, human resource, infrastructure, educational system, cultural similarity, to globalisation ability.
 
In its report, Gartner states that India is the leading Asian country in software outsourcing. However, China and the Philippines are becoming challengers for this first rank. India's sale of software outsourcing is still increasing but its global share is decreasing. Meanwhile, India is facing many problems that affect software outsourcing like employment cost, high rate of changing jobs, political issues (most typical is the terrorism in Mumbai and recently is the financial scandal at Satyam Group).
 
Based on overall criteria and market size, Gartner believes that India and China have the most advantages in software outsourcing in Asia. Australia, New Zealand, and Singapore will have the best infrastructure and educational system suitable for high-valued offshore services.
 
Regarding cost, the picture is completely different. Vietnam is ranked the first while China, India, Pakistan, the Philippines, and Thailand stay behind. The economic and political environment is an important issue for companies when they outsource. Still, Vietnam, Pakistan, the Philippines, and Thailand are rated low.
 
The top ten software outsourcing nations in the Asia-Pacific in alphabetical order includes: Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand, and Vietnam.
B.T