Over the last few years, Vietnam has been continuously emerging as an appealing souring hub for BPO services. In 2015, BPO or procurement outsourcing services contributed $2 billion to the GDP of the country. In Vietnam, the BPO sector is growing at a large scale (20% per annum in the last decade). According to A.T. Kearney’s 2017 Global Services Location Index, Vietnam ranked 6th, only after India, China, Malaysia, Indonesia, and Brazil. Many US and UK-based companies are considering Vietnam a better option for outsourcing services than other top-ranking countries. Even when measured by the Business Environment scale, it has gained a higher rank than India and Indonesia.
If you are wondering how Vietnam procurement has become a top-notch BPO hub in a few years, you need to learn about the driving forces that have made it possible. Keep reading this blog to learn 4 key reasons why Vietnam is emerging as the best BPO hub in the global market.
4 Key Reasons behind the Emergence of Vietnam’s BPO Industry
- Affordable Services – BPO is assumed to be one of the driving sectors for Vietnam in the coming 5 to 10 years. This sector has surpassed retail banking, solar, hospitality, and other leading sectors in terms of gaining more revenues from the global market. Nowadays, Vietnam-based procurement outsourcing services are hired by most enterprises for leveraging the benefits of document process solutions, such as data capture and entry, data categorization, data updating, image processing, etc. Vietnam provides all these services at affordable prices. This is perhaps one of the vital reasons working behind its popularity as a demanding BPO hub.
- An abundance of Young and Skilled Workforce – Sometimes, Vietnamese outsourcing services are provided in the form of packages bundled with other ITO services, such as software development, system maintenance, and other simple IT services. Delivering all these quality services needs skilled youths. Vietnam has a very talented and efficient workforce. With a pool of qualified and young workers, Vietnam procurement is steadily marching towards the highest level of success. The country already has more than 1000 IT companies, which have already employed more than 80,000 educated employees.
- Safety against Potential Threats – Vietnamese BPO companies are aware of the potential threats that may arise from the deployment of automation and robotics technology. To ensure customers’ safety from hackers and any other kinds of cyber-attacks, the Vietnamese government is working with the Vietnam IT Development Group and the Shonan Industrial Promotion Foundation. This collaboration has strengthened the safety of the procurement outsourcing services in Vietnam making it more acceptable to foreign businesses.
- Healthy Business Ecosystem – Vietnam has improved infrastructures and a friendly business environment. Doing business with Vietnamese BPO sectors is easy due to the flexible laws and regulations of the country. Overall, the healthy business ecosystem has made a great contribution to the progress of the BPO sector.
Apart from these, strong economic growth and stability and dynamic foreign investment have escalated the popularity of Vietnam procurement in the BPO sector. Market experts have opined that the country will witness more growth in the near future.