Vietnam is a small country with humble beginnings, having very few (if any) IT companies a mere sixteen years ago. Now, Vietnam has been named an emerging market, making great waves in the technology and offshore industries. They have grown to become a major competitor and alternative to the offshore industry giants India and China, with plans to build Saigon Silicon City, the world’s next Silicon Valley.
The idea of tech companies running to set up shop in Vietnam makes you wonder: What is so great about Vietnam?
Many companies and investors are drawn to the small country over India and China for a number of reasons, a few of which are why we chose to base our offshore organization in the heart of Ho Chi Minh City, Vietnam.
- The lack of direct competition in the country makes us stand out as a leading offshore firm and a desirable workplace for industry top talent.
- Project value won’t be lost in translation. Vietnam has a 96% literacy rate and most professionals are 100% proficient in written and verbal English.
- Reliable, world-class infrastructure allows for a stable and fast Internet connection with no blackouts and manageable traffic, a problem common in India where projects can come to a complete standstill due to regular blackouts.
- Socio-Economic stability is key in choosing an offshore provider. Vietnam has had over 40 years of political stability and a rapidly growing economy. With the government’s strong commitment to growing the tech industry, policies have been put in place to entice companies, such as tax breaks, grants, and software parks for improved infrastructure.
- Vietnam provides a promising workforce with improved education programs tailored towards the IT sector to ensure the workforce remains current. Companies can partner with universities and high schools to improve tech education so that there is never a shortage of qualified workers to employ. Offers like our KMS Launch program arm new graduates with the knowledge, experience, and technical expertise in offshore services that IT students need to hit the ground running when starting a new career.
- Value! A low cost of living, a large IT talent pool, and labor costs up to 90% less than the U.S. is a recipe for great value for companies and employees. Employee loyalty is high keeping attrition low.
- Low turnover rates means less time and resources are wasted on impractical tasks such as re-training, knowledge transfers, and team rebuilding/restructuring. Companies that work with an offshore team in Vietnam don’t have to worry about eating the cost of losing a trained resource.
The surge in businesses arriving on the shores of Vietnam have contributed to the economic growth of the country, coming up from being one of the most poverty stricken nations in the world. Companies have started to take notice of the benefits of outsourcing to Vietnam versus the current industry leaders, and this rise in popularity is boundless in what it can do for the nation and its citizens.