Vietnam an Emerging Destination For Software Outsourcing
-
Upload
imt-solutions -
Category
Business
-
view
3.447 -
download
1
description
Transcript of Vietnam an Emerging Destination For Software Outsourcing
Revised Aug 20th, 2013
All Rights reserved - © IMT 2008-2013 2
Vietnam At A Glance
Population: 90+ millions
The 13th most populous country
Size: 331,698 km2
Main cities
Ha Noi (Capital), Ho Chi Minh city (Business
hub), Hue (Ancient Capital), Da Nang
(Central hub), Can Tho (Mekong Delta hub)
New powerhouse of Southeast Asia
Fast economy with average GDP growth
rate expected 6.9% for 2006-2010
Workforce: 45+ millions
Average annual implementation FDI capital
is $11B USD from 2008-2012
All Rights reserved - © IMT 2008-2013 3
Evaluation of Vietnam as a
Destination for IT Outsourcing
Economic Environment
Political Environment
Legal Environment
Social Environment
All Rights reserved - © IMT 2008-2013 4
Economic Environment
One of the most stable and secure economies
Annual GDP growth increased significantly since open door
policy launched (1986)
WTO member since 2007
Expect to join TPP (Trans-Pacific Partnership) by end of 2013
Source Word Bank
All Rights reserved - © IMT 2008-2013 5
Economic Environment
Attractive cost for IT outsourcing
30% less expensive than India and 50% less expensive than Eastern
Europe (source: NeoIT 2006 and Ukrainian Hi-Tech Initiative 2007)
ICT industry is young but developing fast
4,000+ ICT companies with 300,000 employees
Software industry reached $1.2 USD with 79,000 employees in 2011
Source: Internet world stat Source: Vietnam MIC
All Rights reserved - © IMT 2008-2013 6
Political Environment
Vietnam has a very stable political system
No conflict with any neighbor country since 1979
No ethnic and religious conflict
Government commits to support high tech
industry
Investing in human resource development
Granting tax incentive for software companies
Reducing telecom cost
Setting up software parks
Saigon Software Park, Quang Trung Software City, Da Nang
Software Park…
All Rights reserved - © IMT 2008-2013 7
Legal Environment
Legal system improvement on-track to meet
WTO commitments
Intellectual Property Protection being
improved
Software privacy reduced 9% from 2003 to 2011 (source BSA)
All Rights reserved - © IMT 2008-2013 8
Social Environment
Young, hardworking and fast learning workforce
60% of population under 30
Literature rate higher than 90%
English taught as a main foreign language since grade 6, secondary
school
Larger pool of talents
30K IT graduates annually
400 universities and colleges with IT training programs (3-5 years)
Human resource nearly doubled in 4 years, from 150K in 2006 to
250K in 2010
Attrition is less than 10%
Global Services cited Ho Chi Minh city in top 50 outsourcing cities for
its large labor pool and “significantly low attrition rates” (Tholons
2006)
All Rights reserved - © IMT 2008-2013 9
Emerging as High Tech Center
A.T. Kearney lists Vietnam in top 10 for Global
Services Location Index of 2009 and 2011
KPMG selects Ho Chi Minh city as location to watch for
next outsourcing boom (Feb 2009)
Tholons (from 2007-2012) selects Ho Chi Minh city in
top 10 of emerging outsourcing cities
Ho Chi Minh city was
ranked #16th in Top 100
Outsourcing
Destinations by Tholons
(2013)
All Rights reserved - © IMT 2008-2013 10
Emerging as High Tech Center
Intel invests $1B USD in a chip plant in SHTP (Saigon
High Tech Park)
Samsung invests $2.2B USD. In 2013 nearly 50% of
Samsung mobile phones manufactured in Vietnam
IDG set up $600M USD investment fund for Vietnam
software industry
Fortune companies chosen Vietnam for their IT
outsourcing services
EA, IBM, Oracle, Juniper Networks, Microsoft, Alcatel-Lucent,
Flextronics, NEC, NTT, Hitachi, Toshiba, Emerson, Panasonic,
HP
All Rights reserved - © IMT 2008-2013 11
Emerging as High Tech Center
Eastern Europe IT outsourcing companies
open delivery centers (such as Luxoft)
Indian rivals Aptech, NIIT and Tata
Consultancy Services opened training
centers to address the growing market
Top 3 fastest growing telecom market in Asia
144% mobile phone penetration (2011)
3 top 100 global mobile service providers
All Rights reserved - © IMT 2008-2013 12
Why Vietnam for IT Outsourcing
One of the most stable and secure economies
Large pool of talents
Competitive cost
Strong government support
Emerging as a high-tech center
All Rights reserved - © IMT 2008-2013 13
About IMT
Company Overview
Information & communications
Technology services firm based in
Vietnam and serving client globally.
We partner with clients from early-stage
to Fortune 500 across various industries
and regions to resolve business-as-
usual and complex technology
challenges.
Service offerings
Custom Application Development
Outsourced Product Development
Independent Validation & Testing
Mobile Application Development
Fast Facts
Founded 2008, growing from 8 to 150
engineers in 5 years
30% of staff have worked internationally
in North America, Europe and Asia
Each project manager has 10+ years of
experience in project management; with
PMP or Certified Scrum Master
Top talents
Median age: 26
Average experience: 5 years
70% Male vs. 30% Female
Notable Certified Partnerships include
Microsoft (Gold), Danish Government
(Danida B2B), and Norwegian
Government (Innovation Norway)
For more information, please contact
IMT Solutions
Email: [email protected]
Skype: imtsolutions
YIM: imtsolutions
Tel: +84 8 3811 7742
Fax: +84 8 3811 6980
Web site: www.imt-soft.com