FPT win $34 million contract in Bangladesh

FPT IS and the National Board of Revenue (NBR) sign a US$33.6 million contract to provide Integrated VAT Administration System for Bangladeshi government in Dhaka, Bangladesh on September 16. — Photo baophapluat.vn HA NOI (Biz Hub) — FPT Information System Company (FPT IS) beat five international contractors to win a US$33.6 million contract to provide, implement and maintain the Integrated VAT Administration System (IVAS) for the Bangladeshi government. The contract was signed by FPT IS and the National Board of Revenue (NBR) of Bangladesh in Dhaka, Bangladesh on September 16. This contract accounts for one-tenth of $310 million of trade between Viet Nam and Bangladesh in the first six months this year. FPT IS will implement the project IVAS in 12 months and give maintenance service in the five following years. FPT IS's technician will carry out solutions on software, infrastructure and management services for more than 320 local tax agencies under NBR. Due to limitation in IT application, indirect tax collection of Bangladeshi government has faced many difficulties, which affected its collection and statistics activities. IVAS will help Bangladeshi government lift the country's VAT collection from $4.5 billion last year, accounting for 3.7 per cent of gross domestic product (GDP) to $8 billion, or 4.5 per cent of GDP, by 2020. The winning of IVAS confirmed that Vietnamese technology and information (IT) capacity could meet requirements of big projects in foreign countries, said FPT IS chairman Do Cao Bao at the signing cermony. The victory is not only for FPT IS but also of the country's IT sector in the global market, opening cooperation opportunities between Viet Nam and Bangladesh in particular and the Southern Asia in general, even if India, a IT giant, is located in the region. Md Nojibur Rahman, chairman of NBR, said that this is an important project for the board, which will help the Bangladeshi government to increase its state revenue. "We are optimistic that the cooperation between FPT and its consultant units will make the project successful," the chairman said. FPT IS has also won many contracts in foreign countries including Cambodia, the Philippines, Laos, and Myanmar. — VNS Source:bizhub.vn

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40 Vietnamese leading IT companies to be announced

HA NOI (Biz Hub) — A list of 40 leading Vietnamese information and technology (IT) companies will be announced at an awards ceremony on October 8 in Ha Noi, announced the Viet Nam Software and IT Services Association (VINASA).

VINASA did reveal that 18 of these companies are working in business process outsourcing (BPO), IT outsourcing and offshoring areas; and 15 companies provide software and solutions services.

The awards' jury board includes representatives from the Ministry of Information and Communications, Ministry of Industry and Trade, the Viet Nam Chamber of Commerce and Industry, and IT experts.

The board had initially planned to choose 50 companies for recognition out of the award's 87 nominees, however only 40 companies met the award's criteria.

VINASA will also publish profiles of the 40 companies for distribution amongst 1,000 big domestic and international organizations and companies.

The publication is considered a handbook for foreign organisations and enterprises that want to analyse and work within Viet Nam's IT sector, said Mai Liem Truc, chairperson of the jury board.

The awards held last year garnered positive commentary and feedback from Vietnamese and foreign organisations, said the chairperson. — VNS

Source: bizhub.vn

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Risk and benefits of offshore IT outsourcing

Image provided by Getty Images (Purestock)

If you're considering offshore outsourcing, be sure to be aware of both the pitfalls and the advantages

Some say it’s a blessing, some say it’s a curse. Views on outsourcing seem to swing to extremes especially after the recession.

Outsourcing, an inevitable phenomena in the era of the globalization, is now under strict scrutiny in developed economies like the United States.

Despite all the criticism it’s facing, IT outsourcing is still in a growing phase.

Lucrative benefits

While outsourcing may not be for everyone, if properly executed you could find yourself spending less money and still getting high-quality work. Here are some other advantages:

Less stress: Efficiently managing an entire in-house development team can be exhausting, and it can be even more exhausting when you have to manage a team that is working on the other side of the world. Luckily, most offshore outsourcing firms provide project managers to guide the entire project, rather than relying on the company that hired them to take the reins. This reduces the amount of work for the customer, which in turn alleviates a tremendous amount of stress.

More time to focus on core functions: One fewer project to manage means more time to focus on other activities such as business development and marketing. Often, when you run an in-house development team, especially at a small firm, your time is geared towards managing rather than focusing on other business goals. Allowing someone to take this part over for you will open your schedule to pursuing other areas that may need some work.

Minimum liability: Offshore outsourcing equals no direct liability over the employees at the company you hire. If you aren’t satisfied with those who are working on your project, you can easily replace them with a better match without any consequences.

Little investment on infrastructure: If you decide to outsource your IT development, you don’t need to invest in infrastructure and technology that takes a chunk of the capital expenditure. Instead, that money to can be spent in developing other core areas of your business.

Shared risk: Outsource firms often specialize in analyzing risk mitigation factors. There are certain elements that you might not know that the firm can easily recognize and fix. Determining and preventing all possible risks is essential to achieving success.

Risks and limitations

Outsourcing is still in the experimental stage, where new methods are replacing old ones to create a strong and more failproof service. Here are some areas that still need work:

Risk of confidentiality: Before hiring an outsourcing firm, do your homework. Make sure their references check out and that they have no previous history of leaking information. This is always a concern when outsourcing. Take the proper precautionary legal measures to avoid any misuse of your sensitive data. Better safe than sorry!

Lack of quality: This often happens when you choose a vendor that doesn’t have a proper development process or enough experience. Those who experience this often go for the “cheaper” outsourcing firms, which in turn can end up hurting you and costing you more money. Look through the vendor's portfolio to see the type of work they do and how complex it is. This will give you a sense of their capabilities and experience.

Weak customer support: Service providers without good experience in managing outsourcing relationships may fail to deliver good customer care. If they are working for more companies than they can afford, you won’t get enough attention and the end result will be disappointing.

Hidden costs: Although outsourcing is known for cost-effectiveness, hidden costs may stem during the development period. These costs arise from unanticipated changes that demand some quick adjustments. Setting a clear outline of cost and potential extra charges upfront should be done before signing a contact.

Communication and cultural barriers: Lack of understanding the cultural differences between the company and outsourcing vendor may cause problems in communication. Set clear expectations for both parties in the beginning to decrease the chances of this happening.

If you're considering offshore outsourcing, be sure to be aware of both the pitfalls and the advantages. Choosing an efficient, trustworthy vendor with an impressive history is the most important factor determining the success of outsourcing.

Source: http://www.bizjournals.com/

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Mobile apps lead the IT trend

Mobile applications ranked highest in a VietnamWorks' recent survey of IT trends that draw the most attention. — Photo thongtincongnghe.com

HA NOI (Biz Hub) — Mobile applications ranked highest in a recent survey of information and technology (IT) trends that draw the most attention, chosen by 64 per cent of respondents.

The survey was conducted by online employment recruiter VietnamWorks.com ahead of the Tech Insider Expo to be held this month. The results were revealed late in July.

VietnamWorks carried out the survey to determine which IT trends drew the most attention among nearly 500 people working in the IT field in Viet Nam.

The result also matched global IT trends, based on a survey by IT research and advisory company Gartner last year, which showed that the most popular IT trends were management activities through mobile devices and mobile apps.

Another trend that interests people working in the IT field is "big data," accounting for 55 per cent of VietnamWorks' respondents.

Big data has become hotter in recent years among enterprises with huge data resources, according to VietnamWorks.

Big data can result in greater operational efficiency, cost reduction and risk reduction.

The trend of business start-ups also drew much attention, being voted on by 46 per cent of the survey respondents.

When asked about hi-tech trends, 61 per cent of respondents voted for SmartHome technology.

The technology makes household chores easier with smart electronic home appliances that may also conserve energy.

According to a study by iControl Networks, a provider of home-technology solutions, the number of SmartHome devices on market will rise from 1.9 billion units in 2014 to nine billion units by 2018.

Other hi-tech trends include the application of robot technology to daily life, security technology and virtual reality technology.

VietnamWorks will organise the Tech Insider Expo in Ha Noi and HCM City this September to host workshops discussing hot topics in the IT field and to present exhibitions for technological advances.

The event expects to draw more than 3,000 people and 40 IT companies along with well-known speakers in the IT field. — VNS

Source: bizhub.vn

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Vietnam aims to build strong Info-technology outsourcing brands

VietNamNet Bridge - Vietnam is one of most competitive choices in the world for ITO (information technology outsourcing), according to market survey from Gartner, thanks to low labor costs, personnel stability and the “golden population” period.



Great advantages

Gartner noted that the labor cost in Vietnam is just equal to half of that in India. Meanwhile, Vietnam has entered the golden population period meaning for every two people or more working, there is only one dependent person.

Lam Nguyen Hai Long, deputy director of the Quang Trung Software Park, cited a series of advantages that could make Vietnam the world’s leading ITO provider. 

Vietnam produces 40,000 IT bachelor degrees every year. Besides the tax incentives offered to investors and the policies on human resource development, the government also encourages investment in high-tech zones and software parks.

Regarding the service fee, Long said though the ITO service fee has increased recently, the service fee is still lower than in Eastern Europe and India. 

The inflation rate of below 10 percent could also be a great advantage for Vietnam.

Great rival

Luong Thanh Binh from FPT Software, one of the Vietnamese largest software firms, noted that in the US, Vietnamese IT service firms now enjoy opportunities to compete equally with the large technology firms from India and China. 

Meanwhile, Vietnam has been chosen by Japanese firms as the top priority destination for ITO. According to Japan Information Technology Promotion Agency (IPA), 31.5 percent of Japanese firms plan to outsource IT services to Vietnam. 

Meanwhile, the figures are 20.6 percent for India and 16.7 percent for China.

The 2015 report by Tholons showed that HCM City (ranking 18th) and Hanoi (20th) in Vietnam both have been listed among the 100 most attractive addresses for ITO.

The latest report by Cushman & Wakefield in 2015 showed that Vietnam has for the first time been ranked Number 1 in the world for BPO (business process outsourcing).

Vietnam’s 2014 White Book showed that software and digital content industry in 2014 achieved revenue of $2.6 billion.

Vietnam needs strong brand

Vietnam has good conditions to develop ITO services, but it still lacks a strong brand.

Nguyen Duc Hien from the Quang Trung Software Park noted that Vietnam’s ITO remains little known in the world due to inappropriate marketing strategies. 

The majority of Vietnamese software firms are small and medium sized, and do not have opportunities to do marketing overseas.

Tran Phuc Hong, deputy CEO of TMA, confirmed that foreign partners complained it was difficult to find information about Vietnam’s software industry in English. 

Meanwhile, India, Malaysia and the Philippines have been following highly professional strategies to introduce their software industry to the world. 

NLD

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