Why Outsource To Vietnam?
Human Resource Supply is Exceeding Demand
The global talent shortage is one of the reasons firms look for external help from outsourcing vendors. According to a recent Gartner report called "Service Providers are Waging War Against U.S. Talent Shortage With Unconventional Methods," this is biggest problem facing the U.S. technology economy. By 2020, there will be 1.4 million computer specialist job openings, but the US universities are projected to likely produce qualified graduates to fill about 30% of these jobs. IAOP's 2013 Industry Survey showed that 39% of companies outsource to get access to new skills. The talent pool exceeding the demand makes Vietnam a promising location for IT outsourcing.
Vietnam is the 13th most populous country with over 90 million people. Twenty-five percent (25%) of the population is under 15 years old. Vietnam enjoys the "golden population structure" since 2009. The "golden population structure" means that for every two or more people working, there is only one dependent person. Vietnam's "golden population structure" is predicted to last until 2035 with about 66% of the population in working age and each year more than 1.5 million people joining the labor force (Source: Vietnam General Statistics Office).
Percentage of literate population aged 15 and above is 94.2% (Source: Vietnam General Statistics Office). The literacy rate of Vietnam is 96%. In addition, 80% of the graduates from Colleges and Universities are majors in science. According to research conducted by the World Economic Forum, Vietnam is one of the top 10 countries with the most engineering graduates.
Education system has 290 universities and colleges with ICT training programs. In 2013, there were 43,000 students graduated in different ICT majors; 177,000 studying in ICT related areas; and 55,000 ICT students enrolled to these institutions.
ICT Industry is young but developing very fast. The industry has over 13,000 IT businesses with over 440,000 employees. In 2013, total hardware and software industries had reached to $39.5 billions USD (Source Vietnam ICT White Book 2014).
|Number of employees||2010||2011||2012||2013|
|Total in Information technology industry sector||250,290||306,754||352,742||441,008|
|Digital content industry||50,928||60,200||63,242||67,680|
If you want to get more information about Vietnam as an emerging destination for IT Outsourcing please download this presentation: http://www.slideshare.net/imtsolutions/vietnam-an-emerging-destination-for-software-outsourcing