How to choose the right web development partner in Vietnam?

4.0 Industry is blooming now, as a result, everything related to internet is thriving, especially Ecommerce. Creating the website -the first and basic thing to start an E-commerce company can be considered as a core of the business- a wise strategy, while selecting a right development partner will play the main role. Then the IT outsourcing idea appears, and these tips below will provide the basic idea of a full process for picking a perfect web developer.

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Adamo Digital honored among GoodFirms Top IT Companies in Vietnam

GoodFirms- a B2B research and review agency basing on Washington D.C. recently recognized Adamo Digital in four main business categories: Mobile App Development; Web Development; Web Designing (UI/UX); and E-commerce Development in 2018.

Adamo Digital in GoodFirms 2018
Adamo Digital in GoodFirms 2018

The awards are the results after 1 hard-working year and reviewed by customers on GoodFirms among countries, categories, industries, business services, and so on then arrange all the companies from the top to the bottom.

As a B2B research, review and rating platform, GoodFirms is established to help customers in 4.0 industry to find the best services suppliers, as well as information technology companies, improve their online reputation.

Using different algorithms, GoodFirms rates and ranks listed companies to make sure showing the competitive advantages of each one. To understand more about the ranking process, please check it here.

Adamo Digital – a world-class mobile app and web development company- provides full-cycle services from mobile, web-based enterprise solutions to website application and portal development.  With customers around the world, Adamo is ready for building and developing to meet and satisfy customers requirements for the unique objective of Win-Win situation.

 

 

Should Australian Companies Consider Outsourcing Software Development to Vietnam?

Short answer? Yes! It’s hard to ignore the growth of Australia’s ICT (Information & Communication Technologies) market. With major investments in both infrastructure and labor, companies like Cisco, IBM and even Warner Brothers have made Australia a global destination for ICT, and the rate of growth in this market shows no signs of slowing. In fact, the Australian Department of Employment predicts the creation of nearly 15,000 new software development and related positions by 2019, a rate of growth that far exceeds the industry average. This is great news for Australia and for the industry, but it does present a challenge.

The fact is that between native labor and job-seeking immigrants, Australia will simply not be able to introduce enough new workers into the labor market needed to meet the needs of its ICT industry. On one hand, this is a good problem to have, but it is still a problem. In order to meet the needs of a growing IT industry, Australia will need to look for global solutions and find technology partners that are highly skilled, experienced and cost effective.

Vietnam is no newcomer to the Australian market. Several Vietnamese companies such as Fujinet have been selling software products in Australia for years, and many large Australian companies in the IT arena—companies like Cisco and Avaya, for example—have partnered with Vietnamese providers for efficient and cost-effective development expertise. In 2016, Australia’s leading virtual data room company Ansarada built a software development center in Vietnam, further illustrating the developing working relationship between the two countries. Let’s take a closer look…

Compared to Australia—a country struggling with an insufficient IT labor force—Vietnam has a growing and competitive engineering workforce; well-educated IT professionals with a proven record of performance on the global stage. In Vietnam, there is a strong emphasis on preparing students for careers in Information Technology, and these students typically start programming in the 2nd grade and learn English as part of their core curriculum. In fact, according to a Forbes survey conducted back in 2015, Vietnam was already a global top 10 producer of IT and engineering graduates. In addition, IT-specific education in Vietnam increasingly includes elements of language and culture to prepare them for immediate employment abroad. Some of these graduates enter the domestic workforce, but many choose to work and study abroad, and Australia is a top 5 destination.

And it’s not just a question of education and qualifications. Vietnamese culture values loyalty and a strong work ethic, and as such Vietnamese employees and contractors have very low leave rates (as low as 5%) and are highly productive and efficient. This creates many advantages in efficiency, cost-effectiveness, and productivity.

Currently, Vietnam is one of the top outsourcing software markets in the world, and the rate of Vietnam’s growth in the industry has been remarkable. By 2016, Vietnam was a top 5 location for outsourcing (Gartner’s Leading Global Locations for Offshore Services), was ranked 1st in pioneering location and cost environment (Cushman & Wakefield BPO and Shaped Service Location Index) and 6th in the 2017 Global Services Location Index (A.T. Kearney). This outstanding profile and exceptional performance mean Vietnam’s technology centers are poised to compete with California’s Silicon Valley and Washington’s Seattle Tech Hub in the future.

Geographically, Vietnam also has several advantages over much of the competition. For example, travel time between Vietnam and Australia, at 8-9 hours, compares favorably with travel time between Australia and India at 12-14 hours. There are frequent and convenient flights between Australia’s Sydney, Melbourne and Perth and Vietnam’s Hanoi and Ho Chi Minh City, making those sometimes necessary face-to-face meetings much easier. Also, the time zone gap between the two countries is 1 to 4 hours, creating sufficient overlap to facilitate real-time communication and virtual meetings.

Vietnam has been building a positive image and solid reputation with its many Australian customers. As the excellent feedback from big tech companies has grown, so has the number and quality of working relationships between Australia and Vietnam. The number of Vietnamese students and employees studying and working in Vietnam further facilitates these working relationships, and more and more Australian companies are leveraging the many advantages of outsourcing some development to Vietnamese providers. With increasing cooperation between the two country’s governments, both the private and public sectors are creating what promises to be an outstanding environment for a sustained, long-term relationship.

Adamo Digital has ventured heavily into Australia’s software development market with great results. Our Australian customers include companies like OnContractor, Apps People and Edway, among others. Recently, a group of OnContractor managers flew to Hanoi from Perth to meet and work with Adamo on a website overhaul project. We had an effective meeting to organize the management of the project and “put names to faces”, which will make long-term cooperation that much easier. It’s an excellent example of the kind of working relationship that can be had between Australian and Vietnamese partners.

With broad knowledge and areas of specific expertise, a strong work ethic, and many cultural commonalities, Vietnam is building a reputation as an ideal outsourcing software destination for the Australian technology industry. Vietnam has already seen great success in in similar markets, including Japan and the United States, and the excitement is palpable among Vietnam’s IT professionals. Information Technology is still a relatively young field of endeavor, and Vietnam is earning its place in the spotlight as a global player. As the rapid pace of growth leads the world towards a future of unimaginable achievement, you can bet that Vietnam will be at the vanguard of the expeditionary force taking us there.

Choosing the Right Outsourcing Partner – is Outsourcing to Vietnam Right for You?

Right now, today, Vietnam is the top software development outsourcing destination in the world. In fact, this has been the case since 2016, when Cushman & Wakefield named Vietnam as the number one global destination for Business Process Outsourcing (BPO). This is why companies from all over the world choose Vietnamese providers as their trusted partners, and why so many companies continue to invest in Vietnam. So, how you can select a winning development partner for your business? That’s the subject of today’s blog.

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Vietnam as a Software Development Outsourcing Destination for Singaporean IT Companies

The Singapore software market

Singapore has seen accelerated growth in the information technology sector, from low-cost building companies to innovations in telecommunications, blockchain tech, and more.

However, hiring and retaining engineers in the tech ecosystem is challenging, especially in talent-scarce Singapore. Tech founders are competing against the global landscape where engineers are happy to go where they are most valued.

According to a recent Marketline report, the total income of  Singapore’s software market reached a high peak of 2.3 billion USD in 2014. Another survey from BMI Research revealed that the income is expected to see a sharp increase to 9.1 billion SGN (6.7 billion USD) in 2019.

Yet according to Singapore’s Minister for Communications and Information, Dr Yaacob Ibrahim, a significant percentage of Singapore’s 6,000 engineering graduates do not enter the IT sector. In part, this is because most companies are looking for developers with some experience, but there are other factors at play.

Adamo Digital in the business travel to Singapore
Adamo Digital in the business travel to Singapore

While new startups are seeking talent, so are banks and large tech companies. Reports indicate in the next 2 years, programmer positions will account for more than 40% of the expected demand in tech manpower. IT firms in Singapore can, therefore, expect the competition for tech talent to intensify further.

As Singapore grows its technology ecosystem, the availability of local engineering talent has not kept up, and we see entrepreneurs seeking overseas talent and foreign software houses to build their products. This option is reinforced as IT companies in Singapore find the quality they need at lower cost by outsourcing to providers in other countries.

The global IT outsourcing market

Outsourcing today is no longer just about cost. Over the years, outsourcing has resulted in highly efficient, process-driven organizations. Now it’s time to harness that energy to reach the next level of growth and performance.

Traditional outsourcing will continue to decline. As more enterprises join the digital revolution, they require new skills, tools, processes and ways of thinking. Service providers that understand this need, and can support the mega-trends in IT, are the ones that will ultimately succeed.

According to the report “IT Outsourcing -Market Demand, Growth, Opportunities and Analysis of Top Key Player Forecast to 2023”, published in 2015, the global IT outsourcing market reached $314.92 billion in 2015. The market is projected to reach $481.37 billion by 2022, representing a CAGR of 6.2% during the forecast period.

Adamo Digital in the business travel to Singapore
Adamo Digital in the business travel to Singapore

Improved company focus, gaining access to exceptional capabilities and reduced costs are some of the major factors driving the market. On the other hand, factors such as loss of control and reduced employee morale are hindering the growth of IT Outsourcing. New business models, new market opportunities and trends in cloud computing are contributing to the growth of the IT infrastructure outsourcing services market. The Asia-Pacific and Latin American markets specifically are expected to see increased growth due to expansion by multinationals into these regions.

Why Vietnam?

Vietnam’s IT outsourcing industry is perhaps just leaving its infancy. In 2002, Vietnam was considered a newcomer with little experience. But in 2017, just 15 years later, Vietnam ranked 5th on the Global Services Location Index, a ranking of software outsourcing services by consulting firm A.T. Kearney.

Another report, this one from Cushman & Wakefield in 2016, showed Vietnam as the number one destination for Business Process Outsourcing (BPO) in the world. In fact, Vietnam BPO brought in 2 billion USD in 2015 and expected profit increased by 20-25% per year. Vietnam currently sees continuing investment from such global technology giants as Intel, IBM, Samsung Display, Nokia and Microsoft.

Economic growth

Despite being a socialist republic with a history of communist political influence, significant reforms in 1986 completely changed Vietnam’s economic landscape. In fact, since the year 2000—much to the surprise of some Western business leaders—the country has had one of the highest economic growth rates in the world. In 2007, Vietnam joined World Trade Organization (WTO), making it easier for Western companies to do business in and with Vietnam. No longer a junior player, Vietnam is now a global competitor.

Investment in education

In a previous post, I talked a bit about some of the ways the Vietnamese government invests in education, especially in information technologies. Recognizing the importance of technical knowledge, the Vietnamese educational system ensures children are exposed to computers and programming from a young age. As I outlined in that article, the results speak for themselves, verified objectively by the likes of Google engineer Neil Frasier during his trip to Vietnam in 2013.

Reasonable cost

While the cost of labor may not be the primary consideration when selecting an outsourcing IT provider, it’s definitely up there. Once an IT firm is convinced that an outsourcing partner can provide the quality required, decision making moves on to costs, and the average labor cost in Vietnam is around 90% less than the US, 50% less than China and 40% less than India. High quality at lower costs is always a winning formula.

Cultural factors

Despite (or perhaps because of) Vietnam ’s interesting and often complicated history, Vietnamese employees are very loyal to their employers, reflecting the powerful connection the culture places on familial bonds. Vietnam workers are expected not only to provide for their immediate families but also give support to their extended families. It’s a cultural distinction that often keeps Vietnamese professionals close to home and loyal to good employers. As a result, Vietnamese companies typically retain talented developers longer than their international competition.

Others considerations:

For companies in Singapore, another reason to consider outsourcing is a cultural commonality. Singapore and Vietnam are only a 2-3 hour flight away from each other. The two countries are only separated by a single time zone, making real-time meetings and consultation during normal business hours possible. Singapore and Vietnam are close geographically, share similar customs and lifestyles, and have a similar work ethic. This means the likelihood of working well together right from the start, with no need for cultural adjustments or acclimation. The process is clearer, easier and much more convenient.

Adamo Digital in the business travel to Singapore
Adamo Digital in the business travel to Singapore

Also, many Vietnamese companies are focusing on Singapore market, like FPT, which founded a software center to serve the needs of the government and large corporations. Adamo Digital, specializing in mobile apps and website development, serves small and mid-size companies as well as start-ups in Singapore. Every month, Adamo employees travel to Singapore to consult with customers and secure new contracts.

All told, Vietnam has important advantages as an outsourcing destination for Singapore’s IT community, including competitors from India, China or Malaysia. A handshake between companies in Singapore and Vietnam creates the foundation for a long-lasting partnership that benefits not just each company, but each country as well.

Vietnam: The next giant in Software Outsourcing Development?

According to the October 2017 PwC article “Spotlight on Vietnam”, Business Process Outsourcing (BPO) is one of five business areas in Vietnam with the greatest potential for growth and investment in the near future. (The others are solar and wind energy, luxury hotels, modern agribusiness and food, and retail banking).

Vietnam’s BPO potential is backed by an advanced IT infrastructure and a large workforce that welcomes 40,000 new ICT graduates each year. With the continued growth of digital connectivity and market demands, there is plenty of room to develop the BPO sector across the three main channels of service: domestic/onshore outsourcing, nearshore outsourcing, and offshore outsourcing.

Vietnam’s geographic location, its young and abundant workforce, and a stable government committed to economic growth are coalescing into the perfect environment for Software outsourcing development. With the recent implementation of new government policies to boost investment in technology and education, Vietnamese industry is gradually transitioning from a low-cost manufacturing location to an outsourcing destination for international business interests needing well-educated, highly-skilled IT service providers.

High growth potential for IT outsourcing in Vietnam

In Vietnam, the BPO industry has grown considerably. According to figures from the Vietnam Software and IT Services Association (VINASA), IT outsourcing has grown 20-35% annually over the past decade, with last year’s industry revenue reaching $2.2 billion. Based in Hanoi, Adamo Digital is a growing, forward-thinking software company with a well-deserved position in Vietnam’s IT landscape.

Adamo Digital’s office in Hanoi

With a population of 92 million, 65% of which are under the age of 35, Vietnam has one of the fastest growing economies in Southeast Asia. Given the growing political differences between China and Japan and with proximity and access to Japanese and Korean markets (where India and South America have challenges with time zone differences and culture gaps), Vietnam is well-positioned as a favorable destination for Software outsourcing development. The cost of labor in Vietnam is approximately 50% lower than that of India, China and other Southeast Asian neighbours, and Vietnam benefits from much lower attrition rates amongst its labor force.

In addition to tax incentives offered to investors and new policies benefiting human resource development, the Vietnamese government has mapped out a new master plan in for investment and development in the power sector to meet the needs of increased industrial capacity.

Although Vietnam’s BPO market is still in its early stages, there is reason to be optimistic about the potential for continued growth. According to the Global Services Location Index released by A.T. Kearney in 2017, which analyses and tracks the contours of the offshoring landscape in 55 countries, Vietnam ranked sixth out of 20 emerging markets with the highest potential for BPO growth. It jumped five spots in comparison to the previous year, surpassing the Philippines (seventh) for the first time. Vietnam has even outperformed China, becoming the second largest offshore software R&D partner for Japan in 2016. Yet Vietnam’s BPO revenue only accounts for 1% of the country’s GDP, indicative of the tremendous potential for growth in the BPO industry.

It is safe to say that Vietnam’s growth potential as an Software outsourcing development destination is massive. Aside from software R&D, there is abundant talent available for other outsourcing services such as accounting, payroll management, customer service, and others. If local market players can leverage “latecomer” advantages, Vietnam’s growth in high-end outsourcing could be much faster than that of others in the region. For instance, Vietnamese firms could increase investment in knowledge process outsourcing, which requires higher expertise like market research, data mining, fraud analytics, strategic planning, and so on.

The Vietnamese government is committed to its vision for growth, with new regulations designed to attract foreign exchange and FDI in the IT industry. For example, Vietnam has welcomed the opening of several foreign-invested IT R&D centers, which can be considered the first building blocks of the IT ecosystem needed to support the BPO sector.

BPO service providers in Vietnam hold many competitive advantages and are following a growth trajectory similar to and perhaps exceeding those of India and the Philippines. Continued engagement in large markets such as Japan and China will bring significant foreign investment to boost the development of high-tech outsourcing in Vietnam. Nevertheless, for further advancement in these services, BPO providers in Vietnam will need to transform through industry leadership and innovation to meet the ever-increasing demands of the market. This strategy is a core principal at Adamo Digital.