HO CHI MINH CITY, Vietnam, June 20, 2023 /PRNewswire/ — Vietnam has solidified its position in the global IT outsourcing industry, renowned for its favorable factors in socioeconomics, tech infrastructure, talents, and labour costs. Its growing reputation attracts tech-incentive finance companies to entrust their IT operations to the country.
Vietnam’s IT outsourcing sector has surged at 13.31% annually, poised to reach $881.90M by 2027. Kearny’s Global Service Location Index ranks Vietnam among the top 6 best locations for IT outsourcing, citing its favourable business environment, strong technology ecosystem, availability of a highly skilled IT workforce, and cost efficiency. This makes it a perfect choice for global enterprises, including Australian entrepreneurs, looking to establish digital hubs for software development, data analytics, and digital testing.
Vietnam’s high-octane economy, with a strong focus on fintech, has invested $639M in digital transformation, resulting in a 40% digital banking growth rate and a remarkable 249% increase in foreign funding by 2022.
The country has also made significant strides in the technology ecosystem, climbing 7 positions in the government’s AI readiness index for 2023, ranking 6th among ASEAN nations and 55th globally. The government’s establishment of the National Innovation Center (NIC) further highlights its commitment to fostering technological breakthroughs.
Vietnam’s tech infrastructure thrives on its abundant and highly-skilled labour supply. With solid programming skills nurtured through early STEM education, Vietnam ranked 22nd globally in the Global Skills Index 2020, encompassing 480,000 IT engineers. Complemented by their proficient English, adaptability, and eagerness to learn, Vietnam’s tech talent is an excellent choice for companies seeking to fuel innovation.
Another significant advantage of Vietnam’s tech workforce is its competitive labour costs compared to other offshoring locations. This allows businesses to leverage Vietnam’s talent pool to fulfill immediate and long-term strategic initiatives while maintaining cost-efficiency.
Vietnam’s potential has attracted numerous financial institutions like ANZ Bank, HSBC, Deutsche Bank, NAB, and more to establish digital hubs there. Notably, NAB, Australia’s largest business bank, launched the NAB Innovation Centre Vietnam (NICV) in 2019 to enhance technology and customer experience. Throughout the years, the NICV has expanded rapidly, with three offices across HCMC and Hanoi, employing hundreds of skilled professionals in various tech roles.
Successful IT outsourcing in financial services requires collaboration with competent IT providers who demonstrate extensive technical BFSI domain skills, robust governance, and delivery processes, backed by a proven track record. A trusted IT vendor with vast experience in helping financial institutions build digital hubs is named KMS Solutions. This company specializes in assisting enterprises in expanding their development capabilities, improving software quality, optimizing business processes, and more
As fintech continues to disrupt traditional banking models, Vietnam emerges as the prime destination for Australian financial institutions to establish digital hubs and drive strategic growth. With supportive government policies, a well-built tech ecosystem, skilled IT talents, and competitive labour costs, it offers an exceptional environment for these endeavours.
Bich Le, Marketing Director, KMS Solutions