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YouTube - College Level Job Outsourcing in Vietnam. Solitary Fracture.flv
Below is taking from a outsourcing website that specializes in outsourcing to Vietnam.
WHY OUTSOURCING TO VIETNAM?
Price: Obviously one of the main resources to outsource work is to save money, so naturally you will be interested in the price quoted by the offshore provider. But it is critical to know exactly what that price includes. Costs for labor and overhead are both important components of the total price. Before doing direct comparisons of offshore providers' labor costs, you should consider how much overhead you will incur in managing the outsourced work.
Labor Force: Who exactly will be working on your project? You should be familiar with these workers' professional experience, education, and technical expertise. Also, make sure that there are enough workers available to work on your projects, so that your work won't be slowed by labor bottlenecks. Find out what kind of turnover rate the offshore provider has, because if the turnover rate is high, a lot of time will be wasted on re-training and transferring information to new offshore employees.
THE BENEFITS OF OUTSOURCING TO VIETNAM
Price: In Vietnam, labor costs are 96% less than those in the U.S., which means significant cost savings for your company. Even compared to other outsourcing destinations, Vietnam's labor costs are attractive. According to an article in "GlobalServices" in August of 2006, Vietnam's labor cost for outsourcing IT functions and business processes are 30% less than those in India, and also less than those of countries in Eastern Europe. In October of 2006, GlobalServices named Vietnam's Ho Chi Minh City among the top 50 outsourcing cities in the world, due to its having "one of the lowest production costs," among other reasons.
Labor Force: The government of Vietnam recognizes and promotes the importance of education and training. There were more than 300 institutions of higher learning in the country in 2005, and that number had increased by 60% from 1998-2004. Today the country has a 96% literacy rate and 80% of the country's college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an exceptional country for outsourcing technological projects, because the highly educated population has a high level of scientific and technical literacy. The labor force also have much lower turnover and much higher stability than do those of most other countries that are active in outsourcing. Overall, companies in Vietnam has an IT-related turnover rate of less than 5%, whereas in many other countries, such as India, this turnover rate can be 10% or even higher. The aforementioned 2006 GlobalServices article cited Ho Chi Minh's "significantly low attrition rate" and "strong labor pool" as two other reasons for the city's inclusion in its list of the top 50 outsourcing cities.
VIETNAM IS AN EXCELLENT OUTSOURCING DESTINATION
Price: Vietnam's labor costs are significantly lower than those of many other companies
Labor Force: Vietnam's labor force has a 96% literacy rate and high scientific and technological knowledge.
Socio-Economic Stability
Economic Stability: Vietnam has very high GDP growth, with significant foreign investment and membership in the World Trade Organization.
Ethnic/Religious Stability: There are no ethnic/religious conflicts in Vietnam.
Language: Most college graduates in Vietnam are fluent in English, which is the second-most popular language in the country, in large part thanks to Vietnamese's use of the Latin alphabet.
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