Why Vietnam is becoming the next big Outsourcing destination?

Offshore outsourcing is a time-tested way of saving on cost that almost every multinational company has accepted and used. Outsourcing the business processes in an emerging economy enable them to create the infrastructure and get the labor at a much cheaper price, than their native country.

  

Once India used to top the list of nations preferred for outsourcing, but that is changing. With the India’s economy reaching new highs every year, even surpassing the China in the race. In this growing economy where youth is getting better prospects than before and with middle class getting more and more empowered, the low labor cost might soon disappear. Foreseeing this, outsourcing companies are looking for new destinations to outsource to. And they are eyeing the Vietnam.

    

Vietnam’s economy quietly slipping, with the worst drought in the last decade country is far below the ambitious GDP aim it had set for itself. It’s becoming the next hot destination for offshore outsourcing. With Vietnam’s talent pool increasing in technical areas and modern tech infrastructure, as well as its reasonable rates, mean it’s catching the attention of tech companies big and small.

“The Vietnamese have a very strong desire to work with other parts of the world because they value the positive flow of money and funding coming into their country,” said Anna Frazzetto, chief digital officer and senior vice president at recruiting firm Harvey Nash. “All the big players are setting up their own facilities. If the companies that are the gold standard in technical competency are setting up house in Vietnam that says a lot about the technical talent Vietnam is offering.”