Top 5 Reasons for Outsourcing to Vietnam
As the world continuously tries to live through the Covid-19 pandemic, outsourcing has been a way for companies to keep their businesses afloat. Third-party services acquired through outsourcing have aided countless companies with various business functions that could not be done on-site. Foreign companies have tapped into Asian countries like China, India, and the Philippines – countries that are known to be outsourcing hubs. In addition to this, Vietnam is also climbing up the list for more companies to outsource to.
Vietnam is a country known for its diverse culture, amazing cuisine, and colorful history. However, it is also making its mark as a player in the outsourcing industry. Now, many foreign companies have started to embrace outsourcing to Vietnam for several reasons. Read some of these reasons below and discover why you should consider Vietnam, too.
1. Educated Workforce
Vietnam’s working population is about 74.3 million with about 95.4% literacy rate. They are among the countries that have the highest literacy rate. The country has also built vocational training centers to accommodate citizens who wish to improve their skills. In response to the increasing demands of science and technology, Vietnam also offered technical training targeted toward IT and engineering.
This means that the Vietnamese workforce is equipped and ready for the diverse range of outsourcing opportunities.
2. Stable Economy
Vietnam is one of the most stable countries socio-politically. Their economy is also booming and ripe for foreign investors. With market-oriented economic policies, more companies are looking forward to the country’s growth. It is also notable that during the height of the pandemic, Vietnam was one of the very few countries to post GDP growth.
With this, companies view Vietnam as an economically stable country where they can easily set up shop. There is also no threat of unrest and possible danger.
3. Competitive Cost
As with most countries where outsourcing is huge, the cost of outsourcing to Vietnam is relatively low. The rates are even said to be cheaper than most outsourcing hot spots. Companies can access skilled workers and a competent workforce while still saving money.
The average rate for hiring a skilled senior developer from Vietnam would cost only an average of $35 per hour. In comparison, a senior developer outside of the outsourcing industry would cost an average of $140 per hour.
4. Presence of Global Companies
Another reason why a lot of companies are attracted to outsourcing to Vietnam is that many big companies have already established their presence in the country. IT giants like Intel, LG, Samsung, IBM, and more have outsourced some of their services there. Sony, Cisco, and Bayer are also included. Often, they outsource full-cycle services, web applications, mobile or web-based enterprise solutions, and more IT services.
This shows that Vietnam is a capable country and its workforce have earned the trust of many big global companies.
5. Cutting-Edge Technology
As one of the fastest-growing countries in Asia, Vietnam is stepping up to the global stage with innovative technology. As proven by the many big IT companies having footholds in Vietnam, the country is leading in several areas of technology. Cloud computing, IoT, Blockchain, AI & Machine Learning, and more are some of the complex technologies that are being used and adapted in the country.
This is also supported by the many technical schools that support studying and hands-on experience with technology to equip the Vietnamese workforce with the skills they need.
Outsourcing to Vietnam
Although Vietnam is not the first country that comes into mind when talking about outsourcing, the country has proven its worth in the industry. With a skilled and competent workforce, tasks can easily be done – even those required to deal with complex technologies. Companies can also be assured that they are outsourcing to an economically stable country with a lot of promises for growth and development. Having the presence of big companies also helps in proving how amazing and competent the outsourcing workforce of Vietnam is.
Outsourcing to Vietnam might seem unfamiliar but taking this leap of faith might be what your company needs. Book a free business consultation with Outsource Asia today to learn more.