Vietnam offshoring and outsourcing contract manufacturing services are a late comer to the global supply chain destination stage.

Due to an emergence of a wide degree of sourcing arrangements within, and with, the country, Vietnam’s contract manufacturing opportunities are developing at a rate that was not on the global radar ten to fifteen years ago.

While Vietnam’s wages can be as low as 1/20th of Taiwan’s wages, its labor rates are still not as competitive as China’s. Meanwhile, Vietnam has devised a national strategy for its IT industry that is much different from those strategies adopted by Singapore and South Korea in the 1960’s and 1970’s

1. Insurance
The outsourcer should have adequate public liability insurance against loss or liability through injury or damage.
2. Third party suppliers
The arrangements as to which party (purchaser or outsourcer) will hold and which party will administer the terms of any agreements currently in place between the purchaser and other third party suppliers. It is advisable to transfer the Maintenance contracts to the outsourcer unless the outsourcer has agreed to provide maintenance services for all equipment and software.
3. Software licenses
Where third parties supply software used to provide outsourced services, the appropriate licenses must be obtained. Any licenses currently held by the purchaser that relate to services being provided may need to be extended to cover the activities of the outsourcer.

By Dan Blacharski

The outsourcing of software development to both offshore and onshore development centers has become widely accepted as a part of the business model of many companies. And while outsourcing software development creates efficiencies both in terms of time and money, it comes with its own set of concerns.

Vietnam was ranked in the Top 5 in the Top 50 emerging outsourcing destinations survey released Monday by CyberMedia and Tholons research group.

The survey was based on six criteria: the ratio and quality of human resources, costs, trade promotion, infrastructure, risks and quality of life.

A lot has been said about the global economic meltdown and its impact on the offshore outsourcing industry. And it is the time to look forward to economic recovery now. And businesses are just gearing up for that. However, cost cutting remains to be a prime strategy employed by companies in order to make sure they remain in a key position in the market.

If you have made the decision to outsource some of your IT tasks to an external company then it’s important to make sure you choose a company who will look after you properly. Throughout the rest of this article we will look at some of the things that you will want to carefully think about when looking for an IT staffing agency.

This article by Andrew Bibby, in a slightly different form, was first published in the Financial Times, 2003

Trieu Nguyen used to teach architecture to university students in Ho Chi Minh city (Saigon), Vietnam. These days his workplace is a modern office block near the city's airport and his days are typically spent checking technical drawings for, say, a new secondary school in the Home Counties or a student accommodation block in south London.

The seminar aims to provide more information for IT workers in Vietnam, particularly on knowledge outsourcing and patching.

India is reputed for providing knowledgeable and skilful IT workers to many international companies working in the IT industry. Rohit Talwar, an Indian senior business advisor for international corporations investing in India said that outsourcing is still a major earner for India and is tied to the development of its IT sector. Nevertheless the country needs to pay more attention to emerging competitors, such as developing countries in Eastern Europe, Africa and other countries in Asia, like Vietnam and Pakistan.

Many Japanese companies are choosing to outsource much of their IT work to Vietnam. According to a November 2006 article in GlobalServices, “Vietnam: Capitalizing on the China-Japan,” by the year 2010 as much as 10% of Japan’s software outsourcing may be sent to Vietnam.

For all the reasons described above, Vietnam is clearly an excellent choice for meeting any business’ outsourcing needs. Here is a quantitative summary of the advantages of working with offshore providers located in Vietnam.