Japan shifts software outsourcing orders to Vietnam ? TalkVietnam

Ha Van and Dinh Nghia

Employees at GCS, one of Vietnamese enterprises outsourcing software for Japan ? Photo: Le Toan

Mobile application export grows strongly

At the Japan Information and Communications Technology Day opened on Monday in HCMC, Vietnamese enterprises said that they saw more opportunities to win orders from Japanese IT businesses amid the current high tension between Japan and China.

According to Tran Ngoc Cuong, deputy general director of GMO RUNSYSTEM, the total value of contracts Japanese partners signed with Vietnam used to account for less than 5% of the value that Japan outsources internationally, but it has now increased much.

Cuong said that most of Vietnamese IT enterprises outsourcing software for Japan were growing steadily. GMO has obtained a growth of 150% in terms of sales, profit and new employees.

Doan Hong Viet from FPT Software said that Japan was the firm?s big exporting market, with over 55% of FPT Software?s revenue earned from this market.

?The number of outsourcing contracts has been on the rise over the past time,? said Viet.

A survey of Japan?s Information Technology Promotion Agency carried out with over 1,100 Japanese IT enterprises indicates that around 31.5% of enterprises pick Vietnam for their offshore activities while only 20.6% and 16.7% choose India and China respectively.

Chu Tien Dung, chairman of the HCMC Computer Association, said that Japan has been the biggest software exporting market of Vietnam in the past ten years with an annual growth of 30%. Currently, Japan?s contracts account for 23.3% of the total number of software outsourcing contracts of Vietnam.

According to Dung, software outsourcing for Japan will continue to grow strongly in the coming years. However, the greatest challenge for Vietnam?s software industry is human resources which lack many skills for sophisticated projects of Japanese partners.

* The outsourcing and export of mobile applications have currently increased rapidly with a growth of 15-30%.

Tran Phuc Hong, director of TMA Mobile Solution Center (TMS), said that the global market of mobile applications in recent years have increased continuously due to the popularity of smart-phones and tablet computers.

?The outsourcing revenue of mobile applications in the nine-month period rose by over 50% from the same period last year while the average growth of other software outsourcing fields is only around 20% per year,? Hong said.

Previously, TMS mainly outsourced mobile applications for the U.S. and Japan, but now it has expanded market to 11 countries in Europe and Asia as well as Australia, he said.

Dao Quoc Tuan, director of Mobisoft, said that the number of outsourcing contracts has increased by over 30% since September. However, the value of orders has slightly declined.

Meanwhile, the monthly revenue growth of AnTek earned from exporting mobile applications is around 10-15%.

?AnTek has recently expanded to new markets such as Japan, India and South America. The growth at these new markets is over 20% per month, and the number of customers buying our applications has reached over five million,? said director of AnTek Le Duc Bao.

Bao said that customers have tended to move some of their tasks from desktop computers to mobile devices and use applications such as reading business results and market research.

In addition, customers have a demand of applications which is beautifully-designed and easy to use. Moreover, they prefer applications which can be used on many different operating systems, on both iOS and Android, Bao said.

Source: http://talkvietnam.com/2012/11/japan-shifts-software-outsourcing-orders-to-vietnam/

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