𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬 𝐨𝐟 𝐕𝐢𝐞𝐭𝐧𝐚𝐦𝐞𝐬𝐞 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐬𝐨𝐟𝐭𝐰𝐚𝐫𝐞 𝐨𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐉𝐚𝐩𝐚𝐧𝐞𝐬𝐞 𝐦𝐚𝐫𝐤𝐞𝐭!

Considering assessment criteria from the Porter’s Diamond Model, the author examines Vietnam’s competitiveness in the Japanese software outsourcing market, identifying how the country could become more competitive compared to other major and potential players in the global market. A qualitative approach is proposed for this study. In order to find out the current situation of the Vietnamese offshore software outsourcing industry and the Japanese market, they collected data and information from articles, publications and studies of professional institutions. In order to process the data and extract the relevant information regarding the competitive advantage of Vietnamese offshore software outsourcing sector, methods of comparison and critical analysis are also utilized. We finds that the practice of software outsourcing is a critical motivation for development enterprises in the Vietnamese IT sector and is driven by quality and availability of human resources, followed by costs, favourable international linkages, related and supporting countries and lastly, firms’ competitive structure and strategies.

While applying the Porter’s theory of competitive advantage, utilizing the diamond of “determinants” as a framework for analysis, we identifies that Vietnam’s offshore software outsourcing sector has competitive advantages in terms of superior and available talents, domestic rivalry, favourable supporting infrastructure and industries as well as preferential external events, government policy and vision. On the other hand, the study outlines some obstacles that should be resolved to consolidate the competitiveness of Vietnamese enterprises, including the improvements of soft skills and track records of doing business, and the tackling of the shortage of innovation process and international standards.

The paper presents an analysis with suggestions to enhance the competitiveness of Vietnamese offshore outsourcing companies in a demanding market like Japan; thus helping Vietnamese software companies in particular and the industry in general to mitigate limitations and become the top priority for major players in choice of an offshore software outsourcing location.

𝑷𝒍𝒆𝒂𝒔𝒆 𝒄𝒐𝒏𝒕𝒂𝒄𝒕 𝑰𝑻𝑺 𝑮𝑳𝑶𝑩𝑨𝑳 𝒊𝒎𝒎𝒆𝒅𝒊𝒂𝒕𝒆𝒍𝒚 𝒕𝒐 𝒍𝒆𝒂𝒓𝒏 𝒎𝒐𝒓𝒆 𝒂𝒃𝒐𝒖𝒕 𝒐𝒖𝒓 𝒔𝒆𝒓𝒗𝒊𝒄𝒆𝒔!
——————
ITS GLOBAL JOINT STOCK COMPANY
Hotline: 0247 309 6556
Email: [email protected]
Website: https://its-global.vn/