The article appears in PR Newswire
Vietnam has consolidated its position in the global IT outsourcing industry, recognized for its favorable factors in socio-economics, technology infrastructure, talents and labor costs. Its growing reputation attracts technology incentive finance companies to entrust their IT operations to the country.
Vietnam’s IT outsourcing sector has grown 13.31% annually, poised to reach $881.90 million by 2027. Kearny’s Global Services Location Index ranks Vietnam in the top 6 places for IT outsourcing. IT outsourcing, citing its favorable business environment, strong technology ecosystem, availability of a skilled IT workforce, and cost effectiveness. This makes it a perfect choice for global companies, including Australian entrepreneurs, looking to establish digital hubs for software development, data analysis, and digital testing.
Vietnam’s high-octane economy, with a strong focus on fintech, has invested $639 million in digital transformation, resulting in a digital banking growth rate of 40% and a remarkable 249% increase in foreign funding for 2022.
The country has also made significant strides in the technology ecosystem, climbing 7 places in the government’s AI Readiness Index by 2023, ranking 6th among ASEAN nations and 55th globally. The government’s establishment of the National Innovation Center (NIC) further underscores its commitment to fostering technological advances.
Vietnam’s technology infrastructure thrives on its abundant supply of highly-skilled labor. With strong coding skills nurtured through early STEM education, Vietnam was ranked 22nd globally in the 2020 Global Skills Index, covering 480,000 IT engineers. Complemented by their proficiency in English, adaptability, and enthusiasm for learning, Vietnam’s tech talent is a great fit for companies looking to drive innovation.
Another significant advantage of Vietnam’s tech workforce is its competitive labor costs compared to other offshoring locations. This allows companies to tap into Vietnam’s talent pool to meet immediate and long-term strategic initiatives while maintaining profitability.
All these factors position Vietnam as the rising star within the global IT industry, attracting numerous financial institutions like ANZ Bank, HSBC, Deutsche Bank, NAB and more to establish digital hubs there.
In particular, NAB, the largest commercial bank in Australia, established the NAB Innovation Center Vietnam (NICV) in 2019 to provide great technology and improve the customer experience for its 8 million customers. Over the past four years, NICV has expanded rapidly with three offices open in HCMC and Hanoi, employing hundreds of skilled professionals in various technology roles. Working in collaboration with the Australian NAB team, NICV is emphasizing digital transformation initiatives such as the upcoming launch of AUDN, a blockchain-based real-time enabling stablecoin of Australian dollars.
Successful IT outsourcing in financial services requires the collaboration of competent IT vendors that demonstrate extensive technical skills in the BFSI domain, strong governance and delivery processes, backed by a proven track record. To find such IT providers, platforms like Clutch or GoodFirms, along with the best rankings for IT services in Vietnam, provide a convenient starting point. These resources offer information about provider services, ratings, testimonials and more.
KMS Solutions, with its 14 years of experience in the IT industry, is well equipped to help financial institutions establish efficient offshore technology centers in Vietnam. The company’s extensive track record includes successful digital transformations for renowned companies such as Prudential, Paidy and Bill Identity, Discovermarket and more. This experience ensures that KMS Solutions has the knowledge and capabilities to handle the complexities of financial technology operations.
In addition, his experience in incubating and launching three software products further demonstrates his competence in managing and operating IT solutions. With KMS Solutions as a partner, financial institutions can rely on their expertise to establish and run effective offshore technology centers in Vietnam, thereby maximizing their operational efficiency and staying ahead of the ever-evolving financial landscape.