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Vietnam's name on the world IT map
Since involved in the software outsourcing industry in 2006,
when the concept of software outsourcing in Vietnam was still new, a well-known
technology company in Vietnam started supplying the software outsourcing
service to the US, Japan market and other countries like Singapore and Germany.
Currently, the industry contributes about 30% of the company's revenue and has
a very high proportion of profit.
From these first steps, up to now, Vietnam's software and IT
services industry have achieved many successes, contributing to enhancing
Vietnam's position in the international arena. At the same time, the IT
industry is considered to be an infrastructure of the infrastructure, a new
development method to enhance national competitiveness, playing an important role
in the country's socio-economic construction and development.
According to statistics in 2003, the software and IT service
industry in Vietnam was still in its infancy with total revenue of
approximately US $ 62 million with about 5,000 engineers. Over the years, the
industry has continuously grown at a very fast pace. Data from the Ministry of
Information and Communications shows that the software industry continued to
maintain a relatively high growth rate (13.8%) with an estimated revenue of US
$ 4.3 billion and an export turnover of an estimated 3, 5 billion USD in 2018.
Besides traditional markets - Japan - North America also has emerging markets
such as Europe, Myanmar, etc. The number of software enterprises currently is
over 10,000 with a workforce of over 120,000 people. In the last 16 years, the
revenue of the whole software industry and IT services has increased by more
than 69 times and the labor force has increased by 24 times.
Experts shared that software outsourcing has made an
important contribution to making the world know about IT strengths of Vietnam.
The CEO of the company emphasized: “The most obvious result and achievement is
that Vietnam's position in the world in the field of software has increased
significantly, becoming the first choice of big countries such as Japan or the
US and China. As for businesses, the results are more evident in the revenue
and profit growth steadily over many years.
After more than 20 years - with the support of the state,
ministries, and efforts of organizations and enterprise software and IT
services - Vietnam has achieved its dream of putting Vietnam on the world IT
map. “If 20 years ago nobody knew Vietnam IT, Vietnam is now an important
partner in the IT industry of many businesses in the world. For many years,
Vietnam has been chosen by Japan as the desired destination of Japanese
businesses. We have also had an impressive growth rate” a Chairman of a Vietnam
Software and IT Services Association evaluated.
Over the past few years, Vietnam's ranking on the world IT
map has made significant progress. In particular, in the field of software and
IT services, according to the 2016 report of Tholons - the leading
international organization specializing in consulting, evaluating and ranking
software outsourcing, Ho Chi Minh City and Hanoi are all in the Top 20 of the
top 100 attractive cities for IT outsourcing (ITO). Gartner's "Assessment
of countries on IT outsourcing services in the Asia-Pacific region in
2016" ranked Vietnam first in the top 6 locations for global technology
transfer in Asia. Asia-Pacific (the remaining 5 countries are China, India,
Malaysia, Philippines, and Sri Lanka).
Vietnam has also advanced 5 steps to rank 6th in global
outsourcing. According to the report of Cushman & Wakefield (C&W) in
2016, 2017, Vietnam ranked No. 1 among attractive destinations for business
process outsourcing (BPO) worldwide.
It is time
for software businesses to not only focus on outsourcing
A General Secretary of the Association evaluated software
outsourcing and services to help businesses accumulate finance, experience,
branding and technological capacity for the next stages of development. “Like
China or India, Vietnamese software enterprises need to have a period of
outsourcing for international partners, after accumulating enough experience
and having enough capacity, they will be able to invest in developing new
products”, Ms. Giang shared.
The Association also assessed the limitations of the
software industry and IT services at the previous stage, such as the lack of
human resources in both quantity and quality; the vast majority of businesses
are very small in scale, so there is no concentration of manpower, finance,
technological capacity, and low competitiveness. And also because of the small
scale, most businesses do not invest much in R&D activities, so they can
hardly create innovative and breakthrough products and services with a position
in the world market. .. The 2018 summary report of the Ministry of Information
and Communications also pointed out that one of the shortcomings of Vietnam's
software and IT services industry is that many large software enterprises have
not yet been formed and lack of High-tech software products with innovative
breakthroughs and especially many Vietnamese software enterprises have not yet
participated deeply in the process of software design and development but have
just participated in the low added value stage like software outsourcing. Many
industry experts believe that, after more than 20 years of development, it is
time for Vietnamese software to focus on product development or doing higher
value-added work, instead of mainly doing outsourcing projects as the previous
stage.
About us: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,400 engineers. Our engineering team was selected from a large pool of Vietnam IT resources; they are well-trained and have successfully completed many large and complex projects.
Visit us at: https://www.tmasolutions.com/
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