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TN, Agencies - Japanese IT firms set sights on Vietnam for outsourcing   2008-11-04 - Thanh Nien News

Japanese IT firms set sights on Vietnam for outsourcing
 
Vietnamese software programmers are involved in almost 17 percent of Japanese firms’ offshore outsourcing deals, estimated to be worth about 10-15 billion yen (US$101-152 million) a year  
Japanese IT firms consider Vietnam their third-best option after China and India for software outsourcing and want to move here, a Japanese IT industry executive has said.

 

 

Tomohiro Nagase of Brain Works Group, a Kobe-based training, consulting and IT services firm, said Vietnam is a populous country with around 25,000 software engineers and over 10,000 graduates every year.

Software in Japan is often written by Chinese, Vietnamese and Indian engineers, his company said, with Vietnamese involved in almost 17 percent of Japanese firms’ offshore outsourcing deals, estimated to be worth about 10-15 billion yen (US$101-152 million) a year.

Software outsourcing is a new trend in Japan, offering opportunities for countries like Vietnam, India and China, it said.

Nagase said though Japanese information technology is among the world’s best, it lacks young IT engineers since Japan’s is an aging population.

Japanese firms, having to pay high costs for programming at home, have, therefore, decided to turn to Asian countries that cost just one third.

Around 80 Vietnamese IT firms have tie-ups with Japanese partners to provide software but only a fourth of them get regular orders.

Ha Than, director of Lac Viet Computing Corporation, said together with the US, Japan is Vietnamese businesses’ key market for software, but unlike in the US, its engineers often face difficulties with Japanese customers due to the language barrier.

Lac Viet is famous for its online Vietnamese-English dictionary used in almost all computers in Vietnam.

The better Vietnamese engineers understand requirements expressed in Japanese, the more successful their businesses would be, he said.

Nagase said Japanese firms would place more orders with Vietnamese firms if they improve the skills of their IT engineers and learn experiences from China.

He said Chinese engineers deal quicker and better with emerging issues than their Vietnamese counterparts.

Hoang Le Minh, head of the Vietnam National Institute of Software and Digital Content Industry, said the Vietnamese software industry aims to increase outsourcing.

Outsourcing is an important revenue earner for the industry, he said, which was worth $3.58 billion last year. It included $500 million in software and $2.9 billion in hardware.



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