Vietnam was gradually winning recognition as a popular software outsourcing destination in the world, especially in 2016, Vietnam was progressively ranked the first top of manufacturing location in the world. By this way, The Where in the World report ranks nations according to their attractiveness for Business Process Outsourcing (BPO) – taking into account factors including cost, quality of service and their political and economic stability. It separates these markets into two categories: ‘Mature’ and ‘Pioneering’.
The report’s fellow author, Tamas Polster, Co-head of Strategic Consulting (EMEA), said: “In pioneering outsourcing markets, Vietnam retains its global number one spot from last year (2016)
The latest publication in Cushman & Wakefield’s, Where in the World series is the annual Business Process Outsourcing (BPO) and Shared Services Location Index. The index ranks outsourcing locations worldwide by assessing costs, risks and operating conditions.
At a global level, the BPO and Shared Service market continues to expand at pace, but the shifting focus of occupiers and investors continues to reflect the dynamics of the change in landscape and the pursuit of a balanced trade-off between cost and quality. While some markets have seen significant increases in cost due to wage inflation, others have repositioned their offerings competitively with new pioneering markets continuing to emerge.
From a global perspective, India has retained its position as the world’s leading outsourcing market with 56% global market share with the Philippines in second place with 15% – an industry that delivered 7% of the country’s GDP in 2015 compared to just 0.08% in 2000.
However, as a pioneering BPO destination 2016, Vietnam is in 1st rank. Vietnam leads in cost environment including labor productivity, lower rental payments and building costs. In fact, the labor cost in Vietnam is approximately 50% lower than that of India or China or South East Asian neighbors and the lower attrition rate is an advantage comparing to India.
Synthesized by Thuy Le