Vietnam’s IT outsourcing firms – Marketing Strategy Essay
The aim of this thesis proposal is to identify the marketing strategies which would enable the rise of Vietnam in Information Technology (IT) outsourcing. Vietnam has its own Software Association which is known as Vinasa who is responsible for any Information Technology or software related business development in the Vietnam’s economy. It is deciphered from the research and the seminars conducted by Vinasa and Vietnam’s software organizations that Vietnam has all the required capability to become the world’s 3rd largest software exporters after India and China.
The fundamental gap which needs to be addressed by the Vietnam’s software business is the effective marketing of its software talent and engaging western organizations which are transferring their IT outsourcing to India and China. The process of addressing the gap would also involve developing a marketing model to build a sustainable competitive advantage as compared to other leading countries. The research methodology is to collect the data and analyze the current state of the IT outsourcing in Vietnam and compare them against the leading outsourcing firms in India.
The next step is to identify the gaps in terms of the marketing strategy of the Indian IT firms and the Vietnam’s outsourcing firms. Finally, a workable
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Introduction Vietnam is an East Asian country with the advantage of cheap labor and educated population which is a critical advantage for the IT outsourcing. The rise of Vietnam in the area of business development including IT outsourcing has become visible to the Global Corporates as the possible alternate IT outsourcing destination after India and China. Vietnam now is considered as one of the 25 most attractive software outsourcing markets in the world (Computerjobs, 2008).
Vietnam has twin advantage. As it has cheap labor costs compared to the current labor Cost in India, the IT firms in India are also looking towards developing an offshore center there. This is in addition to the other advantage where the business clients who outsource their work might be interested in transferring their work to Vietnam’s IT firms. A two days workshop conducted in Vietnam’s Capital, Ho Chi Minh City and Hanoi, focused on the different ways to target the European Union (EU) Customers.
The workshop proposed that the European Union (EU) organization must be targeted through a common website of the IT Outsourcing firms of Vietnam rather than individual organizations doing the marketing on their own. This thought expects to combine the marketing forces of various IT outsourcing firms in Vietnam (Target EU with a special website, 2008). An HBR Study shows the high increasing costs associated with the popular IT outsourcing destinations like India and proposes the development of an alternate location to keep the outsourcing costs to the same minimum level (Smarter Offshoring, 2006).
The IT outsourcing industry of Vietnam has developed noticeably and has gained 500 million USD in 2007 (ThongTinCongNghe, 2009) which is 10 times as the one in 1997. The above snippets clearly outline the strong position of the Vietnam’s cheap labor and the strong position it is in from the perspective of capability to handle the assigned IT outsourcing tasks. The only disadvantage it seems is the lack of clear marketing strategy which can be leveraged to showcase the talent of the Vietnam’s manpower and the cheap labor available.
The research thesis is targeting to address the optimum and applicable marketing strategy to enhance the visibility of the IT Outsourcing talent in Vietnam. Literature review The literature review would consist of reviewing the relevant secondary data on the marketing strategy in the outsourcing of the IT related task to other organizations. The top Indian IT firms like Infosys and Tata Consultancy Services (TCS) would be studied especially from the perspective of their marketing strategy and related growth. The focus would be arrive at few pointers on what works well in getting business in the IT and what needs to be improved.
Methodology The methodology would be to collect the data from all the sources on Marketing strategy in IT Outsourcing, Studying the Top IT Outsourcing firms in India like Infosys and TCS and applying the concepts to the Vietnam’s industrial position and more specifically in the area of IT Outsourcing. The next step would be to analyze the details gathered against the current trends in the outsourcing which would also try to draw a conclusion on what makes India an outsourcing hub and whether Vietnam’s current position is advantageous to take on the giants in the IT outsourcing. Results
This section would focus on tabulating the results of the research conducted to understand the Vietnam’s current IT Outsourcing position and how an effective marketing strategy can bridge the gap to make Vietnam a preferred destination for IT Outsourcing. The learning obtained by researching the Indian IT firms like Infosys and TCS would be summarized to gather the best practices which made them the leaders in this field. Discussion This last section would critically examine the results obtained out of the research and would suggest the possible marketing strategies which can make Vietnam a hub for IT Outsourcing.
A marketing model with a subsequent Sales strategy to follow-up on the marketing plan would be devised and discussed in this section. The marketing plan could be a holistic plan for the entire IT outsourcing industry of Vietnam which would be drilled down further to the individual organization’s level to identify the responsibilities of each firm in furthering the common Goal of making Vietnam a preferred destination for IT Outsourcing by a western primary outsourcing organization or an Indian secondary outsourcing organization.
References ____ Businessweek, Vietnam’s growing role in Outsourcing (2006), [Internet], Available at: <http://www. businessweek. com/technology/content/dec2006/tc20061211_099877. htm>, Accessed on: 27 Jun 2009 ____ Centre for the promotion of Imports from the developing countries, Target EU with a special website (2008), [Internet], Available at: http://www. cbi. eu/? pag=55&nid=610>, Accessed on: 27 Jun 2009