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Organizations outsourced to Vietnam: Intel, Microsoft, Nortel, Alcatel-Lucent, IBM, Oracle, Juniper Networks, Flextronics, Electronic Arts, France Telecom, Fujitsu, NTT, Hitachi, NEC, Canon, Renesas, Nidec. + One of the most stable and secure countries + Annual GDP growth of 8% during the last 15 years + Young and well-educated population - 70% of 87M population under 30 - Literacy rate more than 90% - 220,000 university/college graduates a year + Vietnam emerging as a high technology center + Intel, Renesas, Samsung, Campal, Foxcon committed to invest more than $10B to develop/manufacture high tech products + IBM has set up two Global Delivery Centers in Vietnam. + Large talent pool + 30K - 40K ICT graduates a year + Supply will continue to exceed demand for many years. + Quality - Only top resources are employed. - Adoption of international quality standards: ISO, CMMi,... + Competitive cost - 40% lower than China & India (neoIT, 2006) + Low attrition - Less than 10% + Strong government support for the software industry - Tax, training & education, software/high tech parks, etc. Vietnam Software News: KPMG selects 'locations to watch' for next outsourcing boomThe credit crisis seems set to prompt a new rush for outsourcing services across the I.T. sector, with a number of new locations worldwide emerging as viable Business Process Outsourcing (BPO) hubs, according to KPMG's Advisory practice. Launching their Exploring Global Frontiers report at this week’s NASSCOM outsourcing event in India, KPMG claims to have identified 31 cities which are rapidly emerging as leading pretenders to the BPO crown held by the traditional powerhouses such as Bangalore, Chennai or Shanghai. Two Vietnam Cities in the Top Global Outsourcing ListTwo cities in Vietnam are among the top 50 outsourcing cities, according the Global Services research report on Oct. 2008. The study named Ho Chi Minh City (Vietnam) among the Top 5 Emerging Global Outsourcing Cities, and it included Hanoi (Vietnam) as one of the Top 50 Global Outsourcing Cities. Ho Chi Minh has grown to the number four from the number six last year, and Hanoi moved from number twelve to number eleven in the list. Of the top 50 cities, 19 are from Asia and 13 from Central and Eastern Europe. The study said the choice of the city has become more important than the choice of the country to set up an outsourcing center since it represents a more accurate package of attributes that global service providers seek. The factors such as quality of workforce, cost, and infrastructure determine its attractiveness. Rather than that, the service provider should view the evolution of the city as a direct result of a country’s inherent capabilities as an outsourcing provider. For example, Ho Chi Minh City for IT Outsourcing (ITO) processes highlights the respective country’s strengths. Further than that, the lower cost equation is not always the best choice for outsourcing solution. It’s always a trade-off between cost benefit and complexity. As the cost benefit is an advantage, the complexity of services that can be lower. For instance, offshore city such as Ho Chi Minh City provides high-end, complex functions but not at a lower cost. The research report also said that cities in the countries with large population such as India and China will maintain competitive advantage and other countries cannot counter since it has the best potential to offer scale, labor costs and a wider array of outsourced services. However, the advantage is not always exclusive to such big cities. The city such as Ho Chi Minh City, Vietnam, smaller in population but has made inroads in high-value ITO and engineering services. New Software Park $1.2 Billions approvedVietnam has approved a $1.2 billion high-tech park that will house software, hardware and human resources companies, the Ho Chi Minh City's People's Committee said Tuesday. The project is a joint venture between three Taiwanese companies and a Vietnamese partner. Construction is scheduled to begin in July and be completed in 2012, city officials announced on their Web site. The 15.9-hectare (39 acre) park will be built in Ho Chi Minh City, Vietnam's business hub, by Taiwanese Teco Electrical and Machinery, Shining Group, the Industrial Bank of Taiwan, and their Vietnamese partner, Saigon Tel. The park will have enough space for 70,000 workers and will produce software for export, design circuits and chips, and train technology workers. The Taiwanese companies own 80 percent of the joint venture, while the Vietnamese firm has a 20-percent stake. Vietnam is striving to develop its software outsourcing and high-tech manufacturing sectors and has attracted some of the world's technology giants recently. Taiwan's Hon Hai Precision plans to invest $5 billion in several manufacturing plants in Vietnam, and Intel Corp is constructing a $1 billion chip assembly and testing plant in Ho Chi Minh City. Vietnam's plugged-in generation: Internet boom creates 'Little Silicon Valley'Some Internet giants such as eBay, Yahoo, Google have noticed the Internet boom in Vietnam and made aggressive steps into the country. The increases of from 500,000 users using the Internet from eight years ago to 20 millions which is a good sign to allure EBay and Google launched Vietnamese web sites, and Yahoo created the Vietnam’s most popular website. IDG Ventures predicts as many as 36 million Vietnamese will be using the Internet in less than two years. One of the reasons for the Internet boom is the young population of the country; the median age is around 24. |
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