Offshoring has become an attractive strategy for all kinds of enterprises. It can provide a range of advantages to companies looking to make cost savings especially in the cost of labour, but the fact that it allows the advantage of access to valuable resources such as human talent and expertise that is the reason for its popularity.\nMany companies have specifically moved their intensive knowledge-based activities like research and development and technical facilities offshore, as it is the best way of tapping into the pool of advanced skills and talent that Vietnam can provide which may be in short supply in the home country.
Offshoring is the best way of using these human resources
A portion of the home company’s business process is outsourced to a facilitator or offshore staffing service overseas. This form of captive offshoring is very beneficial in terms of access to highly qualified labour and being able to manage that talent in a foreign location while the home company can maintain complete control without the distraction of administration.
Finding and attracting highly qualified workers can be left to the offshoring company as it is they would have the best knowledge about the local employment environment in which it operates. The offshore staffing company develops and recruits personnel and performs tasks such as personnel screening and evaluation before you make the decision on who to hire.
Vietnam has a rich supply of talented and highly skilled workers
With a literacy rate of over 97%. Vietnam places a high premium on education and recognises the value of having a young success driven workforce driving the economy.
Vietnam is in the world’s top 20 countries and has students recognised for their achievements in OECD rankings. Recently, Vietnamese students' high scores gained at PISA (Programme for International Assessment) tests has amazed some foreign experts. They were surprised that Vietnamese students could obtain such a high achievement for a relatively poor country. Of the eight developing countries participating in PISA, Vietnam had the lowest GDP per capita. Nonetheless, the achievements of the Vietnamese students were equal to students from Finland and Switzerland. The high results that the Vietnamese 15-year old students gained from the PISA tests are the Vietnamese people’s pride and joy.
Vietnam ranks 8th out of 72* countries in terms of its scientific performance. The students not only score high at the PISA results but in all international academic competitions. Vietnam has been among the most impressive teams at international Olympiads in mathematics and other sciences and a Vietnamese mathematician won the Fields Medal, the most prestigious prize in mathematics.
As another example students from the Ho Chi Minh City University of Science have been named among the world’s best coders. The top American organisation HackerRank, a technical recruitment company for hiring web engineers and developers, hosted a University Rankings Competition in order to determine which universities have the best coders. Over 5,500 students from 126 universities from around the world participated in solving coding challenges at the competition. Students from Russia’s ITMO University came out on top, earning the title of world’s best coders, followed by China’s Sun Yat-Sen in second and the HCMC University of Science in third. This put them in front of the University of California at Berkeley who came fourth.
With over one million bachelor’s degree graduates every year the talent pool is phenomenal. But this premium doesn’t come at a price as the average salaries are between 30 – 50% lower than developed countries.
Vietnam is ranked first in the cost-effectiveness of outsourcing globally ** so this all goes to prove that the country is the best option when selecting a destination for offshoring.
**Tholons Services Globalization Index 2017
