Top 5 outsourcing services in Vietnam

Vietnam’s outsourcing industry is rapidly emerging as a significant player in the global market, driven by its skilled workforce, competitive labor costs, and strategic geographic location. 

In recent years, the country has become a preferred destination for specialized business process outsourcing (BPO) services.

With a young, tech-savvy population and a government keen on fostering a digital economy, Vietnam offers a dynamic environment for both startups and established companies. 

In the 513th episode of the Outsource Accelerator Podcast, Thuy Doan, Founder and CEO of Innovature, shares her valuable insights on how Vietnam is poised to strengthen its reputation as a hub for innovation and efficiency in the outsourcing sector.

Benefits of outsourcing services in Vietnam

Statista reveals that the overall BPO revenue in Vietnam is expected to reach an annual growth rate of (CAGR 2024-2029) of 8.32%, with a market volume of US$0.88bn by 2029.

This significant growth is indicative of the country’s increasing competitiveness in the outsourcing industry and potential for attracting further foreign investments. 

Premier outsourcing providers like Innovature are among the key players in boosting the country’s sector and job market. 

As per Thuy, “My initial thought when we set up Innovature was to provide job opportunities for Vietnamese from the beginning. So we stick to the strength of the Vietnamese individuals and employees.”

But why is the country becoming a go-to outsourcing partner for global companies looking to enhance their operational efficiency? 

Here’s a detailed discussion: 

1. Skilled workforce

The population of Vietnam is young and well-educated, and STEM (science, technology, engineering, and mathematics) education is highly valued.

This enables businesses to access a pool of skilled professionals who are adept at various domains, particularly in IT, software development, and customer service.

Leading BPOs also make the conscious effort to equip their staff with necessary skills and technology to enhance their career and productivity. 

“We continuously provide them with a new skill set so that we prepare our labor force to be able to provide for clients with different requirements,” the Innovature CEO shares. 

2. Cost efficiency

Outsourcing to Vietnam offers significant cost savings compared to many Western countries. 

Competitive labor rates, coupled with lower operational costs, allow companies to maximize their budgets while maintaining quality service. This cost-effectiveness makes it an attractive option for startups and established firms alike.

3. Cultural compatibility and language proficiency

Vietnam’s cultural affinity with Western business practices, along with a growing proficiency in English, facilitates smoother communication and collaboration. 

According to Thuy, “The Vietnamese government had put English as one of the requirements of the course from secondary school to up to college. And that helped to increase the quality of the talent that we’ve seen in the past five years.”

Cultural alignment and better communication help build strong partnerships and reduce the risks of misunderstandings and misalignments.

Top 5 outsourcing services in Vietnam

Vietnam’s top outsourcing services providers are well known for the following services:

1. IT services

Vietnam is recognized for its IT outsourcing capabilities, including software development, application maintenance, and cybersecurity services. 

Thuy believes Vietnam “has always been considered one of the options for outsourcing. But primarily we are known for IT outsourcing.”

The nation boasts a large pool of talented software engineers who are proficient in various programming languages and technologies.

2. Accounting and finance

Vietnamese firms help businesses streamline their financial operations by providing accurate and compliant financial solutions.

“A lot of Vietnamese people are very quick with numbers and they tend to want to grow… Instead of [just starting] with data entry, they want to move up. 

[For] the clients, it means that [the employee] can come as a junior accountant and grow into a Finance Analyst, and I think that that suits very well with Vietnamese people,” she adds.

3. Business intelligence

As organizations seek to leverage data for strategic decision-making, Vietnam’s business intelligence outsourcing services have also gained traction. 

Companies provide data analysis, reporting, and dashboard development, enabling businesses to gain actionable insights and enhance their overall performance.

4. Analytics

Outsourcing analytics focuses on turning raw data into valuable insights. This solution helps businesses improve customer experiences, optimize operations, and drive growth. 

With expertise in machine learning and data visualization, Vietnamese firms like Innovature deliver sophisticated analytics solutions tailored to client needs.

5. Customer service

Reliable BPOs in Vietnam provide a culturally aligned and multilingual customer service workforce. 

“We have a larger pool of those talents because as a Vietnamese instinct and desire, they’re prone to want to grow their career. So a lot of people try to learn different languages in Vietnam.”

Top BPOs like Innovature offer high-quality support across various channels, including phone, email, and chat for prompt and effective customer engagement.

Outsourcing services in Vietnam as a strategic advantage

Vietnam stands out as a prime destination for outsourcing across various sectors, including IT, finance, business intelligence, analytics, and customer service. 

With a supportive government and a dynamic workforce, the country is well-equipped to meet the evolving demands of the global market.