An Integrative Conceptual Model of Vietnam as an Emerging Destination for Offshore Outsourcing of Software Development for Finnish Companies

Abstract

Companies are constantly under pressure to develop software within tight budgets and more efficiently. Offshore outsourcing has been seen as one solution to the dilemma, and lucrative outsourcing businesses have evolved in many countries. Vietnam is now emerging within this global outsourcing sector. This study conducts an in-depth literature review and analyzes a number of important issues related to developing countries in general and Vietnam in particular, as an offshore outsourcing destination for Finnish companies for developing their software. From the analysis, an integrative conceptual model of software development through offshore outsourcing was developed. The study found challenges as well as potential in Vietnam’s software outsourcing industry. In addition, it provides valuable information for practitioners interested in outsourcing to Vietnam and for further research within the area.

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