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Vietnam tops the list in financial attractiveness for offshoring
For western managers, the question they face everyday is no longer to outsource or not, but where to outsource to? Managers must consider each country's mix of capabilities and specific niche in the global competition before making this decision. A recent report released by global management consulting firm A.T. Kearney uses the 2011 Global Services Location Index (GSLI) to demystify the growing trends that are happening in every corner of the world. While India and China still dominate the overall list taking first and second place respectively, Vietnam stood out as the most financially attractive destination for offshoring.
| “Simple data-entry is only the first step. Vietnam is also capable of handling other inhouse functions across so many different industries that the untapped potential is enormous here” | Established in 2004, the GSLI analyzes and ranks the top 50 countries worldwide as the best destinations for providing outsourcing activities, including IT services and support, contact centers and back-office support. The recent financial crisis has shook up the rankings, with Vietnam jumping from 10th to 8th place, highlighting its favorable business environment, strong government support and competitively priced labor supply.
Mark Tran, Managing Director of Transcend People, a rapidly growing Business Process Outsourcing (BPO) firm based in Ho Chi Minh City, explains how his company was able to carry out data processing and research tasks for large US and European clients in both the English and German languages in a sector traditionally dominated by India and the Philippines.
“When you buy a house, they tell you its all about Location! Location! Location! The same is for choosing an outsourcing provider. Choose a provider in a location with a favorable economic climate that has a large pool of a young skilled workforce to tap into, and of course, at a highly competitive cost. Needless to say, Vietnam was the perfect fit.”
While the report highlighted that the lion’s share of IT outsourcing services still go to India and call-center support continues to be strong in the Philippines, BPO activities such as data entry, data processing, research and back office support are becoming more financially viable in countries like Vietnam. Craig McKinney, Project Supervisor at Transcend People, expects Vietnam’s share of BPO services to increase over time. “Simple data-entry is only the first step. Vietnam is also capable of handling other inhouse functions across so many different industries that the untapped potential is enormous here,” he says.
About Transcend People
Established in 2004, Transcend People Limited (TPL) is a privately-owned and western managed BPO provider headquartered in Ho Chi Minh City. With core focuses on data-entry, research and back-end support, the company services 9 customers on the Internet Retailer Top 500 List. TPL will be exhibiting at the upcoming IRCE 2011 exhibition in San Diego from 14th June - 16th June at Booth 1221.
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