Business process outsourcing, or BPO, is a method that companies use to subcontract various business functions to third-party vendors. Common types of BPO in Vietnam include onshore outsourcing, nearshore outsourcing, and offshore outsourcing. Outsourcing services most sought after in Vietnam include: Accounting, HR, Corporate Tax, & Recruitment Outsourcing.
Read More about Cekindo’s Business Process Outsourcing Services
A large number of companies all over the world have long considered business process outsourcing in Vietnam as a great instrument for improved productivity and cost-efficiency.
Business process outsourcing is no longer a new category, but a market that has already matured and brought a lot of success to business operation and performance.
How can Business Process Outsourcing in Vietnam Support Rapid Business Growth?
There are four ways that business process outsourcing to Vietnam can augment your business success rate:
- BPO gives you more time to work on your core activities, allowing you to be more productive, especially when you opt for HR outsourcing, accounting and tax reporting outsourcing, and payroll outsourcing in Vietnam
- Your business can save a lot of money on monthly expenses as you don’t have to hire full-time employees to deal with certain business activities.
- You can expand to new markets more rapidly because you have the expertise from BPO to help you deal with recruitment and hiring, accounting, license and permit application, and other business setup activities.
- You can get global talent in remote markets by using BPO’s employer of record service.
RELATED: Cut Overhead Costs During Lockdown with Business Process Outsourcing
Reasons for Software Outsourcing to Vietnam
Other than the outsourcing services mentioned above, in recent years, Vietnam has rapidly emerged as a global IT hub and software outsourcing destination.
For many foreign companies, software outsourcing to Vietnam is regarded as an effective software development solution due to its cost-effectiveness and high quality.
When compared to developing software in the United States, companies can save up to 90% of costs by outsourcing to Vietnam. And when compared to outsourcing to India, software outsourcing to Vietnam is up to 33% cheaper. This is a very telling reason so many global enterprises have been switching their software and IT outsourcing to Vietnam.
In addition to cost-saving benefit, other reasons are contributing to making Vietnam one of the leading software development havens:
- Vietnam has an abundant young population. The majority of Vietnam’s population (approximately 70% of them) is under 35 years old and 45% of them are between 15 and 35 years old. This young population is ideal for Vietnam’s current IT workforce.
- Vietnamese now have a higher education level. There is a relatively high literacy rate among the population in Vietnam. About 280,000 Vietnamese graduates from college or university every year.
- Vietnam has IT-specialised institutions. Many employees in Vietnam’s software development companies are professionally trained in IT and graduated from IT-specialised colleges or universities.
- Its people are hard-working. Vietnam is one of the most hard-working nations. The young population is hard-working, motivated, and innovative, making them an important asset to compete against competitors.
- Global big investors are in Vietnam. There are already many large international IT companies in Vietnam including IBM, Intel, Canon, Fujitsu, and Foxconn. This makes it even easier for enterprises to outsource to Vietnam due to the constantly-developing IT infrastructure in the country.
- Low costs. The wage of Vietnam’s workforce is relatively low compared to many countries in the world, even in Southeast Asia. For this reason, many companies that previously had their manufacturing companies in other countries such as China have moved their production to Vietnam.
How Cekindo can Assist
Many organisations are now constantly seeking ways to revolutionise and refine their capabilities in this ever-changing business environment. They want to ensure that their business performance and results are in line with their business demands.
To achieve this goal, a majority of companies have adopted outsourcing over the last decade, especially outsourcing to Vietnam, as the country offers lower outsourcing costs and quality products and services.
At Cekindo, we offer outsourcing services in Vietnam that enable business owners to garner greater operational competitiveness and enhanced business value.
If you are on the lookout for outsourcing to Vietnam to deliver sustained business value to your clients and stakeholders, be sure to talk to one of Cekindo’s professional representatives. Fill in the form below.