BPO is definitely not something new in the business solutions landscape. By definition, it is the method of subcontracting various business-related operations, both back office and front office to third-party providers. The benefits for clients are enormous, most remarkably including lower costs, higher efficiency, ability to focus more on core business functions, and advantages for global expansion.
BPO is one of the fastest growing industries, especially in India, China, Malaysia and the Philippines. Compared to these giants, BPO sector in Vietnam is relatively young and smaller in both size and revenue. However, the competitive advantages and potentials for growth in Vietnam are strongly present, even tremendous.
Let’s take a look at the 2019 A.T. Kearney’s Global Services Location Index (GSLI) – an indicator of a country’s potential and fit to deliver business services to global companies. Vietnam was ranked at Top 5 outsourcing locations in the world, in which our financial attractiveness scale was as high as India at 2.82 points, skills and availability are rated higher than Malaysia and Thailand while business environment is perceived more attractive than India and Indonesia.
Indeed, Vietnam is backed by a young population and skillful workforce that can meet diverse market demands for different types of services. While average costs of compensation and infrastructure as well as tax regulatory burden remain attractive, the country has been paying greater attention to education and drawing vast investments in Information and Communication Technology (ICT).
According to the statistics, in 2019, there are 55 mil people in the working age among the total population 96 mil. Specifically, in Q4 2019, it is an increase of 502 thousand people compared to the same period last year.
Out of the total number of people participating in the workforce in 2019, about 13 million people have been trained with Diplomas and Certificates.
Employed workers continued to increase up 20% among all economic sectors, labor structure shifted rapidly, however, jobs requiring skills are limited. With this changes in the economic structure, BPO sector for office service jobs like IT, Customer Services and Accounting will be an edge of Vietnam.
With all the promising talents and incomparable cost advantages on top of the young, dynamic, open and creative business environments, it is fair to say that Vietnam is one of the world most desired providers of BPO services. Like what our Founder and CEO – Ms. Thuy Doan has seen, believed and pursued throughout these years since 2015 when establishing Innovature Consulting:
“I strongly believe Vietnam, a country with smart and talented young professionals, can compete with BPO giants like India and Philippines in outsourcing services that offer a higher level of customization, accuracy, timeliness and creativity.”