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Vietnams Growing Role in Outsourcing
clipped by: vietnam
clippers remarks: Picture in vietnamnet.vn: E-Town, rapidly developed hi-tech center in Ho Chi Minh City, Vietnam. HCMC has recently been chosen as 1 of 10 new destinations of outsourcing, follow Business Week.
When Microsofts video game unit began looking to offshore some work in 2002, Vietnam was hardly an obvious choice. But after a fact-finding team returned from an Asia-wide tour including stops in India, China, and South Korea, a small outfit named Glass Egg Digital in Ho Chi Minh City was a top contender. After successfully completing a pilot project designing 3-D racing cars used on the Forza Motorsport game installed in every Xbox console, Glass Eggs relationship with Microsoft (MSFT) has steadily grown.
Homegrown Vietnamese companies are gaining momentum too. The countrys largest outsourcing outfit is a division of Hanoi-based IT company FPT Corp., which just garnered a $36.5 million investment from private equity firm Texas Pacific and Intel Capital.
Further proof of Vietnams potential are the ringing endorsements the country has received from some of ITs biggest names. In March, Intel (INTC) Chairman Craig Barrett visited Vietnam to unveil plans for a $600 million chip testing and assembly plant (see BusinessWeek.com, 3/13/06, "Good Morning, Vietnam"). Intel subsequently bumped up the figure to $1 billion.
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