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Why Vietnam is an attractive IT offshoring destination

Stephanie Overby | Aug. 22, 2016
Harvey Nash’s chief digital officer discusses the benefits and drawbacks of outsourcing IT work in Vietnam.

But, keep in mind that the challenges only relate to speaking skills. It does not impact writing and documentation. Written skills are superior because English is Vietnam’s official second language.

Then there is the time challenge. Some companies are still concerned about the time differences but this, of course, is not specific to Vietnam. What impact might the passage of the Trans-Pacific Partnership (TPP) have on U.S. businesses outsourcing work to Vietnam?

Frazzetto: I think it will hurt China because it is not part of the TPP. On the other hand, it may influence more companies to look at Vietnam (since they are part of the TPP supporters) as a great outsourcing option. I see a similar impact as when Vietnam entered the World Trade Agreement in terms of supporting and driving business in a more collaborative way. What advice would you offer companies considering outsourcing to Vietnam?

Frazetto: Vietnam is truly unique in its low turnover rates. This reinforces the need to be sensitive to helping them feel like a natural extension of your workplace environment.

I also advise on the need to be sensitive to how you bring a new person onboard and factor in the necessary time to make sure they comfortably fit into your environment. Harvey Nash’s philosophy is that our clients train us once and then it is up to us to maintain the training on [ongoing] basis for any additional resources a client may need. The only exception occurs when there is a technology change.


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