SOFTWARE OUTSOURCING: A SOLUTION FOR “CHEAP PRICE” IS NO LONGER A COMPETITIVE ADVANTAGE

08.13.2020

Vietnam has been rated as one of the 10 most attractive destinations for outsourcing, attracting many "big players" in the industry such as Microsoft, Samsung Electronics, LG. In software export and IT translation services, more than 80% of businesses have customers abroad with the main export markets being the United States, Australia, Canada, EU, Japan. However, the other side is the “labor cost” . This is still only half the number in India and some parts of China.

WHILE CHEAP COST IS NO LONGER A COMPETITOR

Our country has a large population of young people and technology is highly appreciated. 
In fact, the issue of training qualified personnel following orders has not been resolved. Most engineers, programmers, even with professional training could not immediately meet the needs of businesses because foreign partners are very strict in recruiting software workers.

According to many experts, many businesses choose to hire outsourcing teams to reduce costs. However, today's outsourcing trend is all about the needs for technological innovation and access to new solutions.

Although we are left behind many countries in terms of development and social needs, after two decades of development and certain progress, it has reached a new chapter when the Vietnam Information Technology industry and the software outsourcing market need to have a new transformation. No longer consider "cheap cost" as a competitive advantage but need to hit harder on the factor. quality, creativity and branding, and our own imprint.

 

A CHALLENGING MOVE TO A WHOLE NEW CHAPTER

VNITO - The Vietnam IT Services Export Union is optimistic that our country's software outsourcing industry can move up to the whole new level of creativity and software design rather than merely "coding". In the past, outsourcing companies in Vietnam rarely received orders to design or process all products, but only made a few small details, leading to the fact that most human resources gradually lack factor and create a product with its own mark because it is only accustomed to "just where to fight".

The transition to product design requires businesses to restructure and invest heavily in specialized divisions. In addition, it is also necessary to focus on education to train a generation of Engineers and Programmers who are capable and qualified to turn Vietnam into a breakthrough and creative software development center. 

Investing in education is a long way but however promising. Because of the dynamic, therefore, innovative and integrated global citizenship, the future generation of iGen / Gen Z, Gen Alpha will surely make things very desirable.

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