In 2017, vietnam rose by five places in the global services location index, a ranking of software outsourcing. On one hand, there are increasing numbers of software outsourcing contracts between companies with different languages and cultures. Degree programme degree programme in international business. Advantages and disadvantages of outsourcing your software. Top software development companies vietnam 2020 goodfirms. Orient software was established in 2005 and is the leading software outsourcing company in vietnam. Software outsourcing is a contract based relationship between client and vendor organisations, where the client organisation makes a contract for all or part of softwaredevelopment activities. Vietnam sourcing ranks third after china and india for outsourcing it and software services to japan and recently activity is evident in the outsourcing of hr services. Project manager nexle vietnam software outsourcing. Nov 27, 2012 vietnams burgeoning tech industry includes software development companies of all sizes working hard to prove vietnam is a worldclass hub of outsourcing providers. Three years later and thousands of dollars later i c. Vietnam has two westernmodeled stock markets, one in hanoi and the other in ho chi minh city. Before sending the contract created by pandadoc contract management software, be sure to read through the contract to ensure that your needs are fully met by the contract s terms and conditions.
Quantic leading vietnam software outsourcing company. Software web outsourcing services and software mobile app outsourcing services of saigon technology solutions meets your expectations of ontime delivery with high quality and low cost. There will be more costefficient because you can afford to add more developers to complete a project. Just like outsourcing to any other offshore development centers, software outsourcing to vietnam is not only about bringing out a good contract. The vietnamese telecom giant fpt also dominates the global outsourcing provider market in vietnam. Most employment matters in vietnam are governed by the labour code. We provide exceptional software outsourcing services and solutions to companies worldwide. A rule of thumb is that an indian engineer can make half what an american engineer makes, while a vietnamese engineer can make still half of what an indian engineer makes. What do you think about vietnamese coder resources and the. Apr 03, 2015 the promise of outsourcing to vietnam. Since 2008, osp has provided costeffective but topquality. Jul 16, 2018 right now, today, vietnam is the top software development outsourcing destination in the world. Why software outsourcing to vietnam is a right choice. Vietnam software outsourcing pros and cons tc systems.
However, just like a coin, everything has two faces. Vietnam is one of the best outsourcing destinations in asia for custom software, application development, mobile apps, and software testing. First, the contemporary context for offshore outsourcing in a tier four nation vietnam is explored, illustrating the nations advantages as well as key challenges that limit expansion. Vietnam now targets premium software outsourcing segment. Saigon technology leading software outsourcing company in. Outsourcing can be risky and complicated, so learn the big picture of how vietnam software outsourcing looks like and get wellprepared. Firstly, thanks to outsourcing, companies save themselves a whole lot of money by hiring lowpaid workers from other countries rather than employing highpaid local software engineers. Saigon technology leading software outsourcing company. Vietnam an emerging destination for it outsourcing. Overview of the technology market in india and china india. Vietnamese software win foreign games, lose home games april 11, 20 traucau1 new leave a comment reinifocing their own capacity to supply the technical methods to the actual socioeconomic problems, however technologies organizations stated they are place in a drawback, which might get them to conquered within the real estate market.
Vietnam it outsourcing conference 2015 on october 14th17th, 2015 the reverie saigon at times square, 2236 nguyen hue blvd. Vietnams tech industry strives to prove its a world. During nearly 10 years of development, savvycom has been constantly striving to complete the mission of delivering powerful products whether theyre mobile application or webbased application development, enterprise. Vietnamese business process outsourcing vietnamese call. Apr 05, 2019 and as stated in an article of asia nikkei, vietnamese technical workers are loyal, hardworking and always focus on and commit with their tasks. This case study of a successful vietnamese it outsourcing partner identifies critical success factors for firms.
After graduation i worked as a technical leader for fpt software where i managed projects that were ordered by major japanese companies. Vietnam has a lot going for it, and its a great outsourcing destination. However, despite the lack of development of the vietnamese software industry, we have identified the case of a firm operating in country which has emerged as a strategic outsourcing partner. Having been working in it outsourcing services for over 25 years, this longtime experienced country has no doubt to remain on top of the ideal destination for outsourcing technology projects in any report. Contract is a binding agreement which is enforceable by law. Software development is like building a house, or it is not. The past few years have seen a steady trend in the growth of offshore outsourcing software development projects from finland. As stated above, outsourcing software development will maximize your profit.
And next, it probably is will i need to hire a software outsourcing development company. And while much of this work remains smallscale and. With vietnamese phrase book, bilingual business cards and the perfect gift tucked into your carryon, you wonderwhat else will seal the deal in vietnam. Outsourcing involves transferring some of the tasks to the outside company and generally makes use of a contract which is agreed by the involved companies. Difference between outsourcing and contract outsourcing vs. This is a softwareasaservice and running on microsoft cloud computing. The data entered into the tokens on the right automatically populate data throughout this outsourcing services contract template.
It first outlines factors to consider in deciding which offshore locations to outsource to. As a leading vietnam software outsourcing company, saigon technology is trusted by growing startups and wellknown enterprise companies in the world such as maizal, kaercher, topicus, stone forest to name a few. The most common contract models available are the timeandmaterials contract and the fixed price contract. Business relations and negotiations youre flying to ho chi minh city for the highly anticipated meeting with vietnamese government officials and private counterparts. India, which has made a name for itself as a global leader and destination in software outsourcing, can now look to vietnam as a supplier which they manage.
I was sponsored by the vietnamese government to study computer science in russia. Vietnam offshoring and outsourcing contract manufacturing services are a late comer to the global supply chain destination stage. So, you will get a lot of budget savings if you contract an indian or vietnamese software developer compared to the same developer in the u. I have over 10 years experience in the japanese outsourcing market. Software outsourcing in vietnam wiley online library. Vietnam software outsourcing by request for mobile applications a mobile app is a software applications developed specifically for use on small, wireless computing devices, such as smartphone and tablet, rather than desktop or laptop computers learn more web seasolutions. On the other, there is a paucity of studies into the role of trust in software outsourcing relationships and factors. Beyond it outsourcing, vietnam is gradually emerging as a global hub for tech products and services of all types. Vietnams bpo industry has been growing at a fast pace of about 20 percent per annum over the last decade.
Kearneys 2017 global services location index, which has placed vietnam at sixth. Software outsourcing is a contract based relationship between client and vendor organisations, where the client organisation makes a contract for all or part of software development activities. By 2001, roughly 30 software development companies were operating in vietnam. Outsourcing software development makes your business profitable. Outsourcing solid partner jointstock company osp is a subsidiary of solution software enterprise group, one the few leading providers professional development services based in viet nam. How to select a vietnam software outsourcing vendor quora.
Especially, the regular changes in the labor force of chinese, indian software firms have badly affected the implementation of the projects ordered. The study found impending challenges as well as potential in the vietnamese software outsourcing industry. I recommend you do not out source your code to vietnam based on my own experiences. On one hand, there are increasing numbers of software outsourcing contracts between companies with di. New destination for software outsourcing vietnam is an asia tier 1 emergingmarket location and top 5 location for outsourcing gartners leading global locations for offshore services, 2016 ho chi minh city in top outsourcing cities in 8 consecutive years tholons, 20092016. According to the vietnam software and it services association vinasa, the growth of it outsourcing industry is at the exponential rate 2035% rate annually over the recent 10 years period. Before sending the contract created by pandadoc contract management software, be sure to read through the contract to ensure that your needs are fully met by the contract s. By 2001, roughly 30 software development companies. In exploring this question and examining our exemplar firm, the paper makes three key contributions. Outsourcing industry in vietnam potential and advantages. The biggest challenge for the company and the software industry in general relates to human resources, toan said.
The first contribution of this paper introduces the benefits and challenges associated with outsourcing software projects to facilities or partners. Vina outsource, a dallas texas company, provides remote staffing services from vietnam at the highest standards. Most of the contracts vietnam gets nowadays have the values higher than in the past, since vietnamese firms now can undertake more complicated works. It outsourcing services contracts and models adamo digital. The biggest challenge for software development outsourcing in vietnam right now is to attract and keep resources and talent. On the other, there is a paucity of studies into the role of trust in software outsourcing relationships and factors critical to the establishment and maintenance of trust in such relationship. May 19, 2017 in the past two decades, outsourcing to vietnam has been much easier thanks to intentional efforts from the country. Following successes in the japanese market, vietnamese software outsourcing companies are actively seeking new opportunities in. Right now, today, vietnam is the top software development outsourcing destination in the world. What to look out for as for all emerging markets there are challenges in language, culture and business norms. Ngo van toan, vice president of gcs, said in the current sagging economy, the company has been able to win more outsourcing contracts, especially those from the u. Software outsourcing industry in vietnam saigon technology. With over 20 years of experience in the recruiting and staffing industry in the us, the founders started vina outsource to tap into an underutilized resource rich workforce.
Outsourcing services contract template get free sample. We are one of the top 50 it companies in vietnam for 3 consecutive years of 20162018. Outsourcing to asia leading agile software outsourcing. Trusted outsourcing offshore software development partner. Gm delivers first ventilators under 30,000unit government contract. America hardware manufacturing, japan software services. One of the key competitive factors making vietnam be such an appealing market and become a positive it outsourcing destination like that is a lowcost. We also have good relationships and experienced cooperation with other it vendors that help us in developing big outsourcing projects utilizing their resources. Establishing and maintaining trust in software outsourcing. By analysing the strategies of fpt software, the paper investigates what is required to vietnamese software companies to be successful in offshore software outsourcing. Access to a highly skilled work force, especially in software development viet. Outsourcing software development to vietnam accelerance.
Vietnam may become second india in software outsourcing vietnamnet bridge vietnamese information technology it firms can keep abreast of the world in the fields of cloud computing, big. Especially, the regular changes in the labor force of chinese, indian software firms. Manage team to ensure the project is on time and on budget work with client to clarify requirements active participation in customerpartner design meetings and general engagements. We can work with our customers in the following types of contracts. Since the late 1980s, when the country moved from a centrally planned economy to a marketbased economy, vietnam has slowly made legal reforms to welcome business investment and outsourcing. As the biggest event for it outsourcing in vietnam, vietnam it outsourcing conference, vnito, will be held on 1516 oct 2015 in ho chi minh city with the main theme vietnam an emerging destination for it outsourcing. The vietnamese government also has provided great support to the it sector, including legal and financial incentive packages. Since then, the vietnamese tech and outsourcing industries have grown steadily.
These names have been carried over from other business areas, like construction. America hardware manufacturing, japan software services, vietnam software development outsourcing. A growing global tech hub with rising domestic demand. If you havent heard and recognised this potential destination, this year will give you a great chance.
Factors affecting outsourcing software development from. Factors affecting outsourcing software development from finland to vietnam. This is a software asaservice and running on microsoft cloud computing. The center will be expanded into a huge software development hub with 10,000 engineers by 2020. Less than 5% staff turnover for the last three years. Vietnam ito conference 2019, with the main theme vietnam the emerged destination for innovation, was held on 2325 october in ho chi minh city, to create a complete picture of vietnam it industry with various activities, such as conference, panel discussion, exhibition, business matching, gala dinner, software park tour, etc. Analysts noted that english speaking markets tend to outsource software development to vietnamese companies instead of chinese, indian, because the chinese, indian labor force has been on the rise. Their english is not as good as their thai, malaysian, and their philippine counterparts as people normally speak only vietnamese in their daily life.
Vietnam offshoring and outsourcing contract manufacturing. For further reading on the labour code, please refer here many of the countrys statutory requirements, including those pertaining to leave and vacation, provide for rights to employees who work under normal conditions, as well as those under hazardous, strenuous, or dangerous. Vietnams tech industry strives to prove its a worldclass. Vietnam may become second india in software outsourcing. Established in 1999, fpt software provides services including software development and maintenance, erp implementation, application.
Vietnam software outsourcing services, vietnam software. Due to an emergence of a wide degree of sourcing arrangements within, and with, the country, vietnam s contract manufacturing opportunities are developing at a rate that was not on the global radar ten to fifteen years ago. Savvycom, founded by a team of four passionate software engineers, is a vietnams leading software outsourcing company. Vietnams fpt scores major software contract from german utility. Some it software outsourcing companies in ho chi minh city, vietnam are very good. This document lays out the business case for meeting your companys software development needs by outsourcing to vietnam. In the beginning, this seemed like a great idea since i had very little money. We are one vietnambased it company to provide it solutions consulting, development and software outsourcing services focusing on high quality, ontime.
This vietnamese inotes version will be used by the state bank of vietnam. Industry news archives nexle vietnam software outsourcing. By the end of july 2011, 3g network coverage has raised from 54. Investor friendly environment why vietnam for software. Hanoi was listed among the 20 most attractive cities for software outsourcing and is also ranked 3rd in the worlds top 20 most dynamic cities vietnams capital is the largest education center in the country, hosting hundreds of scientific research institutes and over 50 universities and colleges. From your initial requirements, well estimate the needed manday effort, and fees. Vietnamnet bridge after more than 10 years of doing the software outsourcing for japanese, vietnamese software firms believe they have accumulated. The country has the advantages of a strong young, talented labor pool with the lowest labor cost compared to other it outsourcing rivals and a safe, stabile government environment. If local market players can leverage latecomer advantages, vietnams growth in highend outsourcing could be much faster than that of others in the region. You have to catch the talent or internally develop it. We offer comprehensive software outsourcing services. One of the biggest challenges with software outsourcing to vietnamese outsourcing vendors, in general, is their poor english language proficiency. You hire fulltime vietnamese developers for a 1year contract with us. It is now one of the most successful companies in vietnam.
Logixtek have experiences, skills and tools to capture, store, manage and analyze the data sets, all in a timeframe that preserves the intrinsic value of the data. We are experts in helping companies use web based technologies to maintain and enhance legacy applications and build new systems. Foreign direct investment fdi in vietnam is is booming. The trend of building software teams in vietnam will grow stronger, meaning that the demand and chase for skilled and talented resources will continue.
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