Vietnam is known as one of the potential nations of software outsourcing with the low cost labor and young workforce. In 2015, Vietnam has been revealed as the world’s top outsourcing location for the first time, according to new research from global real estate adviser Cushman & Wakefield.
Published on March 19, 2015, Cushman & Wakefield’s comprehensive global report – Where in the World? Business Process Outsourcing (BPO) & Shared Service Location Index – assesses factors likely to affect the successful operation of BPO functions around the world.
With one of the highest growth rates in outsourcing Vietnam has established its presence in the sector as an alternative destination for low-cost off shoring services, rising from fifth place in our BPO 2014 Index and benefiting from a stronger score in cost and condition criteria, which are weighted more strongly than risks.
Costs, risks and operating conditions are analyzed by the report to provide insight into which markets are particularly attractive in the current global environment.
Cushman & Wakefield’s head of occupier services for APAC and EMEA, Richard Middleton, said: “While not the cheapest outsourcing destination, Vietnam is still very competitive when compared to other global locations and wage rises in India and China largely contributed to it surging up the ranking to take first place in 2015. Despite rising costs and concerns that overheating will inevitably lead to further pressure surrounding access to skilled labor, India remains the world’s largest BPO destination by market size.”
The Vietnamese Government has put in place policies to promote the country as an outsourcing destination, with the services segment expected to expand rapidly. It's significant movement up the index has been largely driven by its low cost environment, a perceived drop in political risk and strong improvement in GDP output per capita.
Source: Cushman & Wakefield