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October 03, 2012

Low Employment Costs Boost Vietnam's Contact Center Market

By Raju Shanbhag
TMCnet Contributor

 

In recent years, contact center industry has grown tremendously in Asian countries. Thanks to the availability of well educated, English speaking graduates in these countries, many companies from U.S. and U.K. and other parts of the world have outsourced their contact center jobs to these Asian countries.

According to a recent report by Frost & Sullivan (News - Alert), Vietnam has registered impressive growth in its economy thanks to an unprecedented growth in its contact center industry. According to the report published by the company, Vietnam registered the highest economical growth in the Asia Pacific region in recent years.

One of the major reasons for the boom of contact center industry in Vietnam is the low cost of labor available in that country. Frost & Sullivan states that recruiting contact center employees in Vietnam is 30 -50 percent cheaper when compared to other outsourcing countries. This includes even the Asian countries like India and the Philippines, the report stated.

Already, companies like BFSI and Telco have set up a major part of their outsourcing activities in Vietnam, the report stated.

“ACD is the biggest contributor that accounts for almost 40 percent of all applications and is still growing at a fast rate as majority of contact centers' primary purpose is to support incoming voice calls. It is forecasted that in 2018, ACD will reach the saturated status of 31.7 percent from 37.3 percent in 2011 and start to slow down. The same will happen to other current major applications like CTI (News - Alert) and IVR," said Dao Thi Minh Thao, Research Associate, ICT Practice, Frost & Sullivan APAC.

Recently, Vietnam had become a popular destination for contact center outsourcing. As a result of this, Vietnam's economic growth has been among the highest in the Asia Pacific region in the last few years.

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Edited by Brooke Neuman