The government’s Decision 80/2014/QD-TTg on piloting informationtechnology outsourcing (ITO) within the public sector, which took effecton February 15, is expected to stimulate a market ripe with potential.
Taking advantage of outsourcing, State-runagencies and companies can remove the need for large investments inhigh-tech facilities by spending on their specific needs, the SaigonTimes Online quoted Le Quoc Cuong, Vice Director of the Ho Chi Minh CityDepartment of Information and Communications.
Asfrom a business perspective, Vo Van Khang, Vice Chairman of theModernisation Committee at Eximbank, stated that hiring outside labourdoes not always lower costs but that many businesses willingly accepthigher prices in favour of improved competitiveness, rapid productlaunches or outstanding service quality.
Outsourcing is particularly relevant for professional and short-term services, Khang declared.
Some Vietnamese enterprises have thus far outsourced popular ITservices such as internet hosting services, digital marketing, softwaredesign, and system management, but the use of the service is stillrelatively limited.
In previous years, ITservice providers were tasked only with installing computer systemswithout continued management or maintenance, but that status quo isshifting.
In the context of nationwide officialprocedure reform with targets for a future electronic government, ITO isin great demand, as it saves time, overcomes a lack of resources,reduces costs and produces professional quality.
According to Do Cao Bao, CEO at FPT Information System, IT companies inVietnam provide three main services: system management, cloudsoftware leasing and maintenance services. Maintenance services is thelargest component, earning 4-5 trillion VND (168-233 million USD) peryear.
Local giants, such as FPT Corporation,Viettel and VNPT, have already joined in. Preparing for the future waveof ITO demand, those companies have prioritised expanding their humanand financial resources.
Decision80/2014/QD-TTg reflects the Government’s efforts to boost public sectorperformance and provide additional opportunities for other sectors inthe market.
To be effective and practical, thedecision requires associated official guidance on payments, standardsand technical specifications of IT services, among others. Regulationsconcerning foreign factors in ITO are also needed.-VNA
Taking advantage of outsourcing, State-runagencies and companies can remove the need for large investments inhigh-tech facilities by spending on their specific needs, the SaigonTimes Online quoted Le Quoc Cuong, Vice Director of the Ho Chi Minh CityDepartment of Information and Communications.
Asfrom a business perspective, Vo Van Khang, Vice Chairman of theModernisation Committee at Eximbank, stated that hiring outside labourdoes not always lower costs but that many businesses willingly accepthigher prices in favour of improved competitiveness, rapid productlaunches or outstanding service quality.
Outsourcing is particularly relevant for professional and short-term services, Khang declared.
Some Vietnamese enterprises have thus far outsourced popular ITservices such as internet hosting services, digital marketing, softwaredesign, and system management, but the use of the service is stillrelatively limited.
In previous years, ITservice providers were tasked only with installing computer systemswithout continued management or maintenance, but that status quo isshifting.
In the context of nationwide officialprocedure reform with targets for a future electronic government, ITO isin great demand, as it saves time, overcomes a lack of resources,reduces costs and produces professional quality.
According to Do Cao Bao, CEO at FPT Information System, IT companies inVietnam provide three main services: system management, cloudsoftware leasing and maintenance services. Maintenance services is thelargest component, earning 4-5 trillion VND (168-233 million USD) peryear.
Local giants, such as FPT Corporation,Viettel and VNPT, have already joined in. Preparing for the future waveof ITO demand, those companies have prioritised expanding their humanand financial resources.
Decision80/2014/QD-TTg reflects the Government’s efforts to boost public sectorperformance and provide additional opportunities for other sectors inthe market.
To be effective and practical, thedecision requires associated official guidance on payments, standardsand technical specifications of IT services, among others. Regulationsconcerning foreign factors in ITO are also needed.-VNA
