HIGH-QUALITY LABOR FORCE OF SOFTWARE DEVELOPMENT INDUSTRY IN VIETNAM FOR OUTSOURCING

Abstract

As globalization and technology bringing the world closer, the physical frontiers are almost eliminated. The relevance of outsourcing has expanded noticeably in recent years because of its efficiency, cost-effectiveness, and expert solutions, particularly in software development. However, it is projected that cost reduction is not the only factor affecting outsourcing decisions. The quality of services is appointed as the key feature for competition in dynamic economic. The aim of this work is to explore the advantages of the Vietnamese workforce for outsourcing software development, besides the low labor cost rather than other IT outsourcing competitors. Additionally, the aim is to determine high-quality labor as one of the best core competencies of the Vietnamese workforce to not only compete in the software development industry but also build and maintain the trust of foreign customers in outsourcing decision making to Vietnam. To achieve these goals, a qualitative method is applied to the semi-structured interview approach. The interviewees are working for different IT companies with various positions, including project managers, human resources managers, senior developers, and freelancers. The outcomes of this study indicate that Vietnam's core competencies for outsourcing software development are consist of cost efficiency and high-quality labor. Among those, high-quality labor is gradually becoming more important and influences the outsourcing decision making of foreign customers because of the characteristics of Vietnamese developers. These findings provide some insights for decision-makers when selecting the outsourcing candidate for their own companies. Moreover, this outcome encourages Vietnamese providers to improve their workforce quality in order to attract more foreign clients.