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.

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.

Outsource to Vietnam? Offshore development includes software, web design, website, application testing and more. Outsourcing software development is the driving economic force of many emerging countries.  India and China are well recognized as the industry leaders for outsourcing software development. Despite their huge market share in offshore development, Vietnam is quickly emerging as a software outsourcing destination. Outsourcing to Vietnam is gaining recognition as a low cost quality software maker in Asia. CIO magazine suggests that to outsource to Vietnam is about 90% cheaper than developing software in the United States of America. Compared to India, developing software in Vietnam costs between one third and one seventh times cheaper. These are very convincing figures for companies to start venturing their offshore development to Vietnam.