TECHNOLOGY, OUTSOURCING, AND COMMERCIAL TRANSACTIONS
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS

While India and China remain the most popular outsourcing destinations, experts have been eying smaller Asia/Pacific countries as potential areas for growth as costs in the two outsourcing powerhouse nations continue to rise.

Vietnam has emerged as a potential landing spot for IT outsourcing operations, although industry experts note that significant challenges remain before companies should consider Vietnam as a reliable host, as they do India and China. A recent article on TechCrunch explored the allure of Vietnam. The article notes that Vietnam and its citizens are well-positioned to provide services to international corporations. Companies that have used Vietnam as an outsourcing location have found workers fluent in English and with “modern IT skills . . . equal to and in some cases exceed what India offers.” Furthermore, low attrition rates keep wages down, whereas in India in particular climbing attrition numbers have pushed the cost of offshoring upwards.