Outsourcing industry flourishes in Vietnam

The Vietnam Software and IT Services Association (VINASA) said the outsourcing industry has grown at a respectable fast clip of 20-35% annually over the 10-year period with revenue reaching US$2 billion last year.

Increased use of new technology platforms such as cloud, analytics and big data are helping boost demand, it said.

Most notably, an improving Japanese economy has helped outsourcing firms win new orders, as the island country in East Asia accounts for the overwhelming majority of revenue for Vietnam’s budding industry.

In particular, VINASA said rising revenue in Japan’s finance and accounting industries, credit card services along with the ever expanding services in the insurance and human resource industries, have helped support increased outsourcing sales.

A spokesperson for FPT Software in turn said last year’s success has brought an overall optimism for the industry and he expects to see continued growth in revenue over the next five years.

“The future looks very promising and I expect the industry to flourish for at least the next five years,” said the spokesperson.

Now in their 13th year, the Sao Khue Awards have become the most prestigious award for the software and information technology industry in Vietnam, said VINASA.

This year's award will have many changes, including the addition of five categories in four groups, including transportation, sales management, health care and beauty, tourism, restaurant and hotel management, and smartphone and mobile apps for education and training.

These fields either have high demand for IT application or have been experiencing trends that IT firms want to develop.

In addition, it will be the first time launching ‘2016 Top 10 Sao Khue’, which will select 10 excellent products and services among the winners.

These will be the products and services that have received the highest evaluations from the jury board on socio-economic efficiency, revenue, market shares, customers and technology.

The changes aim to help enterprises develop brands, prepare for integration and create competitive advantages for enterprises and for the country's IT sector, said Truong Gia Binh, VINASA chairman.

To date, the program has given 735 awards for outstanding IT products and services.

VINASA said March 1 will be the deadline for applicants, and the awards ceremony will be held in Hanoi prior to the end of April.