workdone outsourcing software industry market size 2017

WorkforceĪccording to a recent report by the Vietnam Software Association (Vinasa), the country will require approximately 400,000 IT workers for the 2016-20 period, while 290 universities and junior colleges in Vietnam and the other 150 training establishments can supply just 250,000 in that time. Industry players say a focus on vocational training will help with the shortfall. In addition, universities only offer short internships of one to three months, which is not sufficient for prospective IT staff. He noted that a continued focus on workforce training is still required, as universities cannot produce enough highly skilled graduates.

“If someone wants something built from scratch, they must be careful, as the IT market is only 10-15 years old and has had a slow start, meaning there is a limited supply of talent,” Rick Yvanovich, CEO and founder of TRG, a technical solutions provider, told OBG. Standard programming and testing is currently taking place throughout the industry, but this is considered low down the value chain. The relative immaturity of the market is still evident. Once these hiccups have been sorted, the cable promises internet speeds twice as fast as current rates. However, the new cable was affected by a number of issues only a few days after its opening, requiring operators to conduct repairs. A new $450m undersea cable connecting Vietnam with its neighbours went on-stream in the beginning of 2017. However, additional capacity via new cables is being built, which will improve the situation. Indeed, overall connectivity is mostly reliant on one submarine cable, the Asia-America Gateway, and if that cable goes – as it has many times since its installation in 2009 – the internet comes to a complete halt. The market comprises multiple internet providers that all utilise the same gateway, which means an issue at the source can cause major problems. There remain structural concerns, however.

Vietnam’s internet connection speed was 3.3 Mbps in the first quarter of 2016, faster than in the Philippines (3.1 Mbps), India (2.4 Mbps) and Indonesia (2.4 Mbps), according to Akamai Technologies’ first-quarter 2015 “State of the Internet” report. Infrastructure-wise, the internet speed in the country has improved greatly over the past few years. Under its strategic development plan for 2011-20, the government is aiming to ensure that at least 95% of residential areas will be covered by 3G/4G networks with an average downlink speed of over 4 Mbps in urban areas and 2 Mbps in rural areas. Although there is still a notable difference between rural and urban internet usage, penetration has started to increase in the countryside, with latest data showing penetration at 20% among those aged between 18 and 24. By the end of 2001 the number of subscribers was estimated at around 165,000 and a year later, after a cut in prices, users measured well over 1m.Īccording to estimates by Internet Live Stats, based on data by the International Telecommunication Union, World Bank and UN Population Division, as of mid-2016 active internet users via fixed and mobile connections logged in at around 49m – a 52% penetration rate. Indeed, Vietnam only connected to the internet in 1997, after six years of cautious experimentation with more basic forms of electronic communications. The country’s IT market is still young but has registered rapid growth. The latter are getting more encouragement to innovate as the country modernises and adopts international standards in areas such as communications infrastructure and education technologies. With a population of approximately 95m, Vietnam is an important regional market both for global technology vendors and for home-grown entrepreneurs.

Workdone outsourcing software industry market size 2017