According the BPO and Shared Service Location Index 2016 by Cushman and Wakefield, the BPO and shared service sector will move the investment focus from traditional to pioneering countries due to the changes of economic and political conditions.
The mature destination including India and the Philippines still remain the leading position, accounting for 56% and 15% respectively of total share. Other traditional main provider for Latin America is Costa Rica; for European area are Romania and Poland. Although those countries have the advantages of skilled talents with multilingual capabilities, the cost environment and risks related to operations and operational conditions are key drivers in redefining BPO sector globally.
In the leading group of pioneering BPO destination 2016, Vietnam is ranked the 1st. Vietnam leads in cost environment including labor productivity, lower rental payments and building costs. The labor cost in Vietnam is approximately 50% lower than that of India or China or South East Asian neighbors and the lower attrition rate is an advantage comparing to India.
Vietnamese Government also encourages foreign investment and development by tax incentives for Information Technology and BPO industry. With the dramatic drop in political risk and strong GDP output, the BPO sector in Vietnam is expected to develop significantly from the current rate of 20% to 35% annually.
The Promise Of Outsourcing To Vietnam
It’s no surprise that Vietnam is being talked about as an alternative, amid rising costs and attrition rates in popular offshoring destinations like China and India. Tech giants like Samsung, Microsoft, LG and Intel have invested in large operations in Vietnam.
What’s the attraction?
Vietnam first achieved a “good” rating from Gartner back in 2010 when it was named one of the top 30 countries for offshore services. There has been steady improvement since then with continued maturity of the existing industry, a wave of new graduates, foreign investment and startups. A Gartner report from January this year named Vietnam in the top tier of emerging market locations, alongside China and India.
IT skills in Vietnam equal to and in some cases exceed what India offers. English skills in Vietnam are also excellent. Schools teach English and it’s well-understood that proficiency in the language allows progress in the IT industry.
A bright future
It may still be early days for Vietnam, but there’s a whole new generation of talent coming through and a strong focus on computer science in the school system. That investment will pay off as the technology sector matures and more companies see the appeal of locating here.
The reliable address of BPO service – Business process outsourcing in Viet Nam
Minh Phuc Ltd. (MP Telecom) – Minh Phuc is a leading company in Viet Nam providing contact center solutions in the three large cities: Ha Noi, Ho Chi Minh and Da Nang and Business Process Outsourcing – BPO in Da Nang. We gained the International Certificate ISO 9001:2008 for Quality Management System and ISO/IEC 27001:2013 for Information Security.
For BPO services, MP Telecom provide:
- Data entry processing
- Accounting outsourcing
- Translation/ Interpreting
- E-commercial Data Entry
- DTP / ITO
For more details on our Cloud Contact Center services and solutions, please contact MP Telecom via our Hotline 1900 585853 or email email@example.com.