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Vendors who provide Off shore IT Outsourcing Consultancy services are referred to as outsourcing consultants. These outsourcing consultants help companies experience significant cost savings by utilizing the cheap labor pool of low cost destinations like Vietnam. Since Outsourcing is a recent phenomenon; few companies have in –house competencies with regard to outsourcing of processes to low cost locations. Even today, most companies shy away from outsourcing their business processes due to lack of support in this space. In the process, a lot of value remains to be unlocked in the Outsourcing space.
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When considering whether to outsource a software project, the following advantages as well as the disadvantages should be taken into consideration:

Cost

Cost is the main reason that most companies take into consideration when outsourcing a project. Software engineers outside of the developed countries are compensated much less than their counterparts in developed countries. The average salary for a software engineer in Vietnam is $8,000 per year. The saving in salary can be passed on to the client. Maybe in a few years the cost benefit of outsourcing will not be so obvious. However, there are many other important advantages to outsourcing that one should consider.
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Introduction

This article provides a business case for considering Vietnam as an offshore outsourcing destination. It starts by outlining a framework for evaluating potential outsourcing destinations. It then proceeds to evaluate Vietnam against the framework, demonstrating that Vietnam is worthy of strong consideration as an offshore outsourcing destination.

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