Software Outsourcing – Why Vietnam?
Why outsource to Vietnam?
- Vietnam’s is an emerging market and the number of software companies is growing enormously.
- The government provides excellent support for setting up new software business and wants Vietnam to be a global player in the software industry.
- The economy in Vietnam is growing rapidly and is the second fastest GDP growth in all of Asia.
- Vietnam based companies are eager to form long-term alliances.
My first questions….- What about costs? Will I save big bucks?
You will make a substantial cost saving by outsourcing to Vietnam. Wages in Vietnam are much lower than those in Europe or US. They are also significantly lower than those in India, Ukraine or Russia. - I don’t speak Vietnamese…..help!
Don’t panic. English is the most popular language in the country and the majority of Vietnamese students speak good English. - I am ready so let’s start my first project and make some good profits.
Hey! Didn’t you read part 1? Do your homework and do some planning before dreaming of becoming a millionaire. In case you are serious looking for building a long lasting relationship be prepared to invest a bit first.
In Part 3 (Planning) I will give an idea about what you need to plan before doing your first software outsourcing project. Feel free to comment on this article if you have ideas/suggestion/questions on what you believe is important to plan before doing the first project.
I am about to venture into VN outsource market although I have managed many teams in Asia, include India, Singapore, and Russia. My questions for you are:
1. Can you comment on the Vietmanese work ethics? Do they often work over time when needed? Is 10 or 12-hour day normal there?
2. How is broadband infrastructure there, especially home-based broadband outside of Saigon (i.e. Da Nang and Ho Noi)?
3. I kept hearing that development cost is less than half what it costs in India. What is the real cost in term of productivity?