Outsourcing unlocked incredible value for leading enterprises and lifted the economic fortunes of China, India, Eastern Europe, and Latin America.
Now it’s Vietnam’s turn. This vibrant country has everything it needs to become a new leader on the global outsourcing and digital transformation stage. Here’s how Vietnam and FPT Software, a $2B global IT services provider, meets the needs of the C-suite at global enterprises:
Reduce cost and risk by finding new outsourcing opportunities: As an emerging outsourcing partner, Vietnam offers exceptional value to enterprises. Vietnamese companies such as FPT can help their partners standardize processes, gain access to new talent pools, and capture cost efficiencies.
In 1997, one of FPT’s subsidiaries created Vietnam’s first intranet, the early backbone of our country’s internet. And in 1999, we created a software company that now provides digital expertise, solutions, and services to more than 700 customers, including a hundred Fortune Global 500 companies.
Favorable business climate and national strategy: Vietnam has made multiple strides to demonstrate that it is open for business. The country has 17 free trade agreements and had hundreds of foreign direct investment projects active at the end of 2021. Vietnam offers a 20% common corporate income tax (CIT) for foreign investors. However, technology companies are offered favorable treatment, with a tax exemption of up to four years, followed by a 50% tax reduction for another nine years, and a 10 % CIT rate for an additional period of 15 years.
The Vietnamese government has also committed to making the country a digital leader by creating three critical pillars of capability: fostering digital education and talent development, providing an entrepreneur-friendly business environment and ecosystem, and building the country’s digital infrastructure. Both national and foreign businesses are responding. Vietnam’s IT and telecommunications revenues have grown year over year and notched $124.68 billion U.S. dollars in revenues in 2020.
Capitalize on a tech-savvy youthful Vietnamese population: Many companies grapple with an aging workforce and frequent staff turnover in their home countries. As a result, it can be difficult to maintain business momentum.
One way to future-proof a company’s talent model and business strategy is to tap into the talent of a national workforce that’s both young and tech-savvy. In Vietnam, the median age of a resident is 32.5 years old. And the country’s citizens see digital and outsourcing jobs as a path forward not just for spurring professional growth, but also to lift the fortunes of their families. As a result, they are deeply committed to their jobs at companies like FPT and passionate about innovating new solutions and delivering exceptional service to global 2000 enterprises.
Vietnam‘s robust educational system ranks among the top-10 worldwide for graduating the highest number of IT students. The country has 236 universities, 149 of which are training IT professionals and delivering more than 50,000 IT engineers to the workforce each year. FPT is proud to help develop this talent pipeline.
FPT University, Vietnam’s first private university, has enrollment of more than 75,000 students across a variety of disciplines and graduates 6,000 to 7,000 engineers annually. We produce work-ready graduates by exposing students to real-world business challenges and technology solutions, enabling us to provide companies with talent at scale for digital transformation initiatives.
Gain end-to-end capabilities: Beyond outsourcing, enterprises are seeking partners that can help them speed digital transformation progress. It’s even better if new partners bring their own intellectual property and proven methodologies to the table.
FPT’s digital business is now growing at a rate of 80% a year, thanks to our client-focused business model and investments in advanced technology.
We start and end all client initiatives by aligning around our clients’ strategic intent and desired business outcomes, and then we use technology as a lever to accomplish change. We take a pragmatic approach to scale and roadmap digital transformation initiatives. By breaking them down into three-to-six-month programs, businesses can quickly invest, see results, measure ROI, align program objectives, and embrace further transformation. We also invite end users into the transformation journey to learn from them, use their insights to develop solutions, gain their buy-in for evolved processes, and provide them with tangible value for their contributions.
In addition, FPT offers a complete line of award-winning products. Tools such as akaBot, a comprehensive robotics process automation solution, and akaChain, an enterprise blockchain platform, help companies accelerate results.
C-level leaders constantly seek to create new sources of business value: from optimizing core processes and accelerating digital transformation to reducing cost structures. Look to Vietnam for these capabilities. When an enterprise collaborates with a Vietnamese technology company such as FPT, they gain a trusted partner with the talent, drive, commitment, and toolset to help them transform their business and outcompete in the digital marketplace.
Alwyn Joseph currently serves as Chief Revenue Officer at FPT Software Americas. In this role, he is responsible for leading the P&L and driving significant growth in revenue, profits, capabilities, and people. Under his leadership, his cross-functional teams have successfully built businesses and markets from scratch into multimillion-dollar portfolios. Prior to joining FPT, he held several managerial positions at leading technology firms, including ITC Infotech and Tata Consultancy Services (TCS).