Vietnam as the Tech Hotbed of Asia
Outsourcing software engineering and Quality Assurance has never been a more viable option than it is right now. Pressures of cost restraints, overheads, and the benefits of skilled workforces with cost effective services in locations like South East Asia, are driving the industry.
Of all the emerging hot-spots Vietnam has rapidly established its dominance. As far back as 2010, The Gartner report highlighted Vietnam as one of the leading contenders. Forbes named Vietnam as the new alternative to China amidst concerns “due to the increasing costs of labor in China. Vietnam is #3 in global off-shoring hotspot and #1 in competitive cost (Tower Watson, Services Offshoring Ranking 2013) and in 2014 Gartner elevated Vietnam to a tier 1 Location for outsourcing.
It is no surprise that Vietnam is in the top 10 countries for software engineering graduates, and shows that the high level of demand in the industry has a great supply future in Vietnam.
One of the key aspects of any successful outsourcing relationship is a continued deep understanding of the client's needs, and an in-depth knowledge of the project's characteristics. Employee retention rates play a large part in this, removing the concern of new employees needing time to become familiar with the project. The comparatively lower supply of qualified talented in locations within India, have started driving employment wage wars, and lowering retention rates. Good for the employee, but not so good for consistency in quality, and timely returns.
Vietnam’s bright future in tech is also backed by TechCrunch in a 2015 article, The Promise Of Outsourcing To Vietnam, and with the likes of Eddie Thai and Binh Tran pushing for a new Silicon Valley in Vietnam, the rise of this South East Asian Tech hotbed shows no signs of slowing down. Google chief executive Sundar Pichai visited Vietnam in December and, after meeting with Prime Minister Nguyen Tan Dung, announced Google would help train 1,400 local IT engineers. He said, “Vietnam would soon become one of Google’s most important markets”.