Monday, July 25, 2016

IT revenues grow 7 times higher


A kiosk at the Vietnam ICT COMM 2016 in Ha Noi. The three-day exhibition of products and technology in Viet Nam's         telecommunication, IT and communication sectors ends today. — Photo hanoimoi.com.vn

HA NOI (Biz Hub) —  The Vietnamese IT industry has seen rapid development from 2010 to 2015, bringing revenue of US$7.6 billion in 2010 to $49.5 billion in 2015, or seven times as much as 2010.
This information was released by Nguyen Thanh Tuyen of the Ministry of Information and Communications at a seminar on Smart Society — a part of the Vietnam ICT COMM 2016 which began in Ha Noi on Wednesday and will conclude today.
 Tuyen said with total revenue of $49.5 billion, the information technology sector posted a growth rate of nearly 15 per cent against 2014. Particularly, in 2015, the ICT sector became the one making large contributions to the State budget with a tax collection of VND82.3 trillion ($3.68 billion) accounting for 10 per cent of the State budget collection.
Tuyen acknowledged that in 2015, IT continued to grow due to the recovery of local and export markets and IT outsourcing sector as well.
He noted that despite economic turmoil, the electronics sector continued its growth with estimated revenue of over $46 billion, posting a growth rate of 16 per cent.
Retail sales of electronic hardware devices remained stable despite slow sales in the segment of PCs and tables. The Vietnamese laptop market grew only 2.4 per cent in quantity and saw a modest growth in value against 2014.
Tuyen also attributed the decline in the software sector to the global economic turmoil between 2011 and 2015, while noting that in 2015, the domestic software industry posted revenue of $16 billion, growing 9 per cent.
As for the digital content sector, last year this sector saw stable growth posting a revenue of $1.5 billion or 10 per cent year-on-year, Tuyen said.
Revenue from online mobile games stood at $107 million or equivalent to VND2.4 trillion with the number of smartphones rising from 12.6 million users in 2014 to 13.3 million users in 2015. The country has 76 licensed enterprises, providing online mobile games services.
In addition, there are approximately 200 licensed social networking and Facebook users already reached 35 million, accounting for one-third of the population as of December, 2015.
Booming e-commerce
Le Thi Ha from Vietnam E-Commerce and Information Technology Agency (Vecita) told participants that application in e-commerce saw a boom between 2010 and 2015.
Today, about 62 per cent of Internet users are engaged in online shopping. In 2015, a Vietnamese spent about $160 per year, bringing more than $4 billion in revenue. This figure was expected to reach $10 billion by 2020 with average spending of $350 per person per year. It is equivalent to 5 per cent of total retail sales in the country.
Nowadays, more than 20,000 businesses have their own websites, accounting for 45 per cent of businesses in the nation. About 18 per cent have mobile sales applications.
Viet Nam has targeted to become a strong ICT country by 2020 and to use technology to drive competiveness and national economic growth. And it has the ambition to be among the fastest growing ICT countries in the world ranked by International Telecommunication Union (ITU).
To achieve this target, ICT businesses have made the effort to develop ICT infrastructure and boost IT applications in daily life and economic development.
Pham Duc Nghiem from the Ministry of Science and Technology said the Government had offered a lot of support for ICT enterprises and conducted certain incentives. —  VNS
Source bizhub.vn

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Monday, June 20, 2016

Outsourcing the fast speed of two-speed IT

Many companies have embarked on a digital transformation of their business in an effort to increase sales and support customers through online systems, apps and social media. IT organizations are encouraged to develop a “fast” or “second gear” mindset capable of operating at internet speed and being focused on a digital transformation. Carrying out this shift while simultaneously supporting legacy systems that cannot be changed as rapidly is a tall order for many IT organizations. In-house IT departments must either learn to reinvent themselves so they can adapt to the fast-paced evolution of technology or outsource these efforts to quickly gain the expertise needed. IT outsourcing, or more specifically, outsourcing the creation of innovative and dynamic software apps and systems, is a reliable way for companies to ramp up a development team for the required fast gear.

My previous article focused on outsourcing the slow speed of two-speed IT. The two-speed IT strategy is popular because it helps companies understand the difference between the traditional “slow” focus of IT, centered around maintaining internal business-critical systems, compared to the “fast” UX design and DevOps focus needed to create dynamic online and mobile, customer-facing apps.

The rapid growth in new technologies such as the Internet of Things (IoT), mobile apps, big data analytics, and seemingly unlimited cloud storage and compute power has profoundly changed every industry. Companies like Amazon, Facebook and Google have aligned their technology and IT systems with their business goals. They limit the size of their software engineering teams to support efficient agile and Kanban methods of development. Product managers think about entire user experiences instead of single features. Leading internet companies rely on frequent testing, experiments with the user interface and collecting data about consumer behavior in their products to learn what works and what doesn’t, even at the risk of failure.

The building blocks of digital enterprise architecture

According to McKinsey & Company, a digital enterprise architecture needs to include several elements to facilitate digital transformation:

Two-speed IT architecture – as described here

Instant cross-channel deployment of functionality - using microservices for small features or functionality that are deployed in minutes or hours

Zero downtime – using test-driven development (TDD), continuous integration and deployment (CI/CD) that enable the update of individual pieces of functionality without disrupting the entire system

Real-time data analytics - analytics that become an integral part of the app and not just a stand-alone process

Easy process configuration - business users are able to change features without custom coding
     
Automated scaling of IT platforms - scalability across redundant private and public-cloud environments to eliminate potential slowdowns and downtime

Secure architecture - cybersecurity as an integral part of the overall application

Outsourcing provides these elements and accelerates the transition to a two-speed model. The agile culture required to think of software as a product, created in a factory-like manner with continuous improvement is achieved much more easily in an outsourced software development shop that is an expert at product development, rather than building a “fast” IT team and culture in a historically “slow” IT organization.

What are the risks in outsourcing the faster portion of IT?

For most technology executives, the question is not whether to outsource but what to outsource. There are two popular models of software outsourcing for fast IT:

+ Team extension – your developers work together with the outsourced developers
+ Autonomous team – the outsourced team(s) do all the development and you provide a product owner(s)
In both cases, the outsourced team has a significant responsibility to perform and there is a risk they won’t rise to the occasion.

To start, there is a risk you will select the wrong IT outsourcing firm. For example, the company you hired for slow IT maintenance of your legacy systems is probably the wrong choice for fast IT. You also face internal risks, as well. You will need one or more knowledgeable product owners who will be in frequent contact with your outsourced teams, and you may have to watch for declining employee morale. Underperformance and passive/aggressive behavior are common with employees who think their jobs are at risk.

Fast IT outsourcing benefits

There are also many rewards you should expect to see when outsourcing:

+ Access to the latest technology – good software outsourcing companies keep up with the latest trends
+ Cost savings – IT outsourcing to some locations has a lower cost structure, even when factoring in travel
+ Expert developers – it’s difficult to hire great developers, but IT outsourcing firms are constantly recruiting in under fished markets for the specific qualifications and certifications needed by their clients. Good software outsourcing companies have a pipeline of qualified candidates available to them
+ Flexibility – even if you can hire developers, you have limited ability to ramp up and ramp down teams as your needs change

Summary

The two-speed IT architecture is a good model for enabling the digital transformation of your company’s business in an agile and dynamic manner, while also delivering the positive user experience expected by customers. Fast or slow, there is a role for IT outsourcing in any company that is serious about digital transformation. There are many great software outsourcing companies to choose from in several convenient global locations. It is important to select a partner for your fast-mode outsourcing that is an expert in the technologies, methodologies and best practices of UX design and DevOps that you need.

Source: cio.com

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Wednesday, March 16, 2016

K&G TECHNOLOGY comes to Cebit Hanover 2016


HERE,  K&G TECHNOLOGY COMES CEBIT HANOVER 2016

ABOUT CEBIT - NEW PERSPECTIVES IN IT BUSINESS
CeBIT offers unique benefits. Boasting an IT show and a conference programme for professionals, CeBIT defines the latest IT trends, presents talks by high-calibre speakers and forward-looking panel discussions, and showcases product innovations from all over the world. The CeBIT fair is the opportunity to launch new products, meet new buyers, learn about emerging trends and access the global ICT market. 

Take this chance, K&G Technology participates to this big event to  promote our service to the world! 

For more information about CeBIT 2016
Go to: www.cebit.de
Meet us at Hall 5, Stand D48 to explore more how K&G can be the new IT Outsourcing Destination! 
Date trade fair: 14 - 18. March 2016
Venue trade fair: Hanover, Germany
Representative: Mr. Kenny Khoa
Whatapp/ viber/call/ zalo: 0084989619019










Wednesday, October 28, 2015

Government gets on Facebook

HA NOI (Biz Hub) — The Government Portal is trying out a fanpage on Facebook called "Thong tin Chinh Phu" or Government information.
Vi Quang Dao, director-general of the portal, told the media that the page would carry news about the Government faster and to a wider audience.
It would feature press releases, information about instructions from the Prime Minister and his deputies and Government activities.
A fanpage called Dien dan Canh tranh Quoc gia, or National Competition Forum, is also being tested.HA NOI (Biz Hub) — The Government Portal is trying out a fanpage on Facebook called "Thong tin Chinh Phu" or Government information.
Vi Quang Dao, director-general of the portal, told the media that the page would carry news about the Government faster and to a wider audience.
It would feature press releases, information about instructions from the Prime Minister and his deputies and Government activities.
A fanpage called Dien dan Canh tranh Quoc gia, or National Competition Forum, is also being tested.
The fanpages are part of a Government resolution that focuses on boosting administrative reforms related to information technology use.
Le Manh Ha, deputy head of the Government Office, said if e-governance is to become popular, online procedures must be simple and convenient.
The deputy head asked for intermediate applications for people to communicate with authorities on mobile phone base, as well as, increasing constant supervision of people.
One hundred public services are to be provided online by the end of 2016, the resolution targets.
It also seeks to integrate the public services offered by ministries, agencies, and localities on the national public service portal.
Deputy Minister of Information and Communications Nguyen Thanh Hung said it is necessary to improve the IT skills of both government workers and the public.
His ministry would work together with the Ministry of Education and Training to develop appropriate training programmes, he said. — VNS

The fanpages are part of a Government resolution that focuses on boosting administrative reforms related to information technology use.
Le Manh Ha, deputy head of the Government Office, said if e-governance is to become popular, online procedures must be simple and convenient.
The deputy head asked for intermediate applications for people to communicate with authorities on mobile phone base, as well as, increasing constant supervision of people.
One hundred public services are to be provided online by the end of 2016, the resolution targets.
It also seeks to integrate the public services offered by ministries, agencies, and localities on the national public service portal.
Deputy Minister of Information and Communications Nguyen Thanh Hung said it is necessary to improve the IT skills of both government workers and the public.
His ministry would work together with the Ministry of Education and Training to develop appropriate training programmes, he said. — VNS
Source: bizhub.vn
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Thursday, October 22, 2015

French firm to sell smartphones, tablets in VN


HCM CITY  (VNS) — Archos, a French electronics firm which makes smartphones, has entered the Vietnamese market via its partner PetroVietnam General Services Joint Stock Corporation (Petrosetco)

Established in 1989, Archos has developed a variety of products, including digital audio players, portable video players, digital video recorders, and netbooks, in addition to personal digital assistants, and a tablet that uses Google Android and Microsoft Windows. It also makes smartphones and smart home devices.
Archos will launch its feature phone, smartphone and tablet in Viet Nam at a price ranging from VND590,000 (US$25) for a feature phone to VND6 million ($250) for its tablet and high-quality smartphone. — VNS
Source: bizhub.vn

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Tuesday, October 20, 2015

Outsourcing IT service boosted among state agencies


The Government is aiming to boost the hire of information and technology services in state agencies. — Photo thongtincongnghe.com

HA NOI (Biz Hub) — The Government is aiming to boost the hire of information and technology services in state agencies, according to a resolution released on October 7.
Accordingly, state agencies can choose between full or partial service packages related to hardware, software, transmission lines and solutions to provide online public service.
The government also will allow ministers, deputy ministers, governmental agencies and the People's Committee chairperson to assign contracts and choose short-term hiring prices (under 12 months) if there are not enough conditions to determine a fixed price.
The Vietnam National Committee on Information Technology adopted the hire of information and technology services in state agencies last year.
The Prime Minister also signed a decision to initiate contracts for information and technology services in state agencies, which took effect in February.
According to the decision, state agencies, which outsource information and technology services, must have requirements for service providers related to professional capacity, finance, technical and technological conditions, experience, and information safety and security.
The outsourcing can help State-run agencies and companies remove the need for large investments in high-tech facilities by spending on their specific needs. — VNS

Source: bizhub.vn

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Friday, October 16, 2015

IT outsourcing grows strongly



Lam Nguyen Hai Long, CEO of Quang Trung Software City, said the software outsourcing industry had been growing rapidly. — Photo bizlive


HCM CITY (Biz Hub) — Viet Nam's strong growth in the IT sector, low-cost and easily trained workforce, and support infrastructure for offshore outsourcing has made it a an emerging destination for IT outsourcing services, speakers at a conference held in HCM City said yesterday.
Lam Nguyen Hai Long, CEO of Quang Trung Software City, said the software outsourcing industry had been growing rapidly.
Speaking at the coun-try's first conference on IT outsourcing, Long said that HCM City and Ha Noi ranked 18th and 20th respectively among the top 100 most attractive global cities for software outsourcing, according to a 2015 report by Tholons, a leading strategic advisory firm for global outsourcing and research.
Nguyen Cong Ai, vice president of KPMG Vietnam, said a survey conducted by KPMG and QTSC of 80 business executives in the IT industry in Viet Nam pointed out that 98 per cent of polled firms rated Viet Nam as an attractive market for ITO businesses and indicated that they would invest in expanding business in the country.
Rising labour costs in other ITO hubs like China and India could trigger more opportunities for Viet Nam, he said.
Viet Nam has a skilled labour force with more than 40,000 engineers graduating each year from 290 universities across the country, in addition to 160,000 Vietnamese studying overseas.
Vu Anh Tuan, general secretary of the HCM City Computer Association (HCA), said that Viet Nam's further integration in the global economy, via foreign trade agreements, including the Trans-Pacific-Partnership Agreement and ASEAN Economic Community, would also help improve the country's infrastructure and the quality of labour force as well as business opportunities for out-sourcing firms.
However, delegates at the conference said that though Viet Nam's labour force was indeed professional, language competency remained a barrier for the industry. They said it was still difficult to recruit a large, skilled software team in the country.
Another problem is the low awareness about intellectual property rights and copyright issues, they said.
Ai urged enterprises to co-operate more with universities and colleges, and encourage them to provide more practical training curricula to match businesses' requirements.
To develop the domestic ITO industry, the Government and IT enterprises should work together to improve certain areas affecting the industry, including taxes, human resources, infrastructure and marketing, he added.
Representatives of IT firms at the conference urged improvement in the stability, speed and bandwidth of the electricity, telephone and internet infrastructure in the country.
Yuko Adachi, vice president of research at Gartner Asia-Pacific, said that domestic IT firms should also work closely with other providers, industry associations and government agencies to address concerns over data security.
The environment of offshore IT outsourcing is dramatically changing due to increasing cost pressures and uncertainty in the global economy, as well as emerging digital technologies such as automation and smart-machine-enabled services, she said.
ITO companies must prepare for the new competition from smart machine-enabled services, she added.
Ai said he agreed with Adachi, and urged Vietnamese firms to create a breakthrough in the smart machine field and not to rely on low-cost labour as a way of doing business, which would be inefficient in the long run.
Tuan said firms need to focus more on improving product quality and intellectual property rights as well as hiring qualified human resources to meet customers' requirements and capitalise on opportunities the TPP agreement will bring.
Organised by the QTSC and HCA, the two-day Viet Nam ITO conference attracted about 400 local and international business leaders, government representatives, entrepreneurs and education representatives. About 100 of that number were international investors and vendors from the US, Japan, Europe, Australia, Korea, Singapore and other countries. — VNS

Source: bizhub.vn

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