Software outsourcing is the term given to the process of programming and engineering services beyond national boundaries (eDINUS). As the global market today is highly competitive and continuously changing, a company must thus focus on both productivity and at the same time cut down costs. Thus, a lot of processes that take up precious resources are being outsourced. The three most common motives in executing the software outsourcing activities are cost reduction, competition and the utilization of third-country supplies of resources. Nowadays, software outsourcing is becoming a global trend and Vietnam also strongly engaged in this practice. Although software industry is now a young industry in Vietnam, it is growing rapidly with impressive turnover and increasing contribution to the country’s prosperity.

It is the fact that India has long been taking part in these activities, making huge success and currently is the world leading outsourcing site with revenue from offshore software development of up to US$ 50 billion – as much as the Vietnam GDP. China is the follower as an attractive hub to the globe and this industry has contributed to Chinese state budget a significant amount of total revenues from software products and services. Attracted by such visible benefits, other less-developed countries like Malaysia, Philippines, Russia, etc…are attempting to become others alternatives to India. Software manufacturers worldwide are seeking international markets to localize their products to countries with well developed IT support infrastructures, favorable demographics and labor costs, competent technical education, a favorable government regulatory environment supporting. While the markets are open to many participants, It raises the question that why Vietnam can not join and get one piece of this profitable cake? Vietnam is now just a 10-year-old player in the game with the bright future ahead to make strides in this area.

In order to fully grow up, it is important to this country to look into some of the key potentials and strengths to prioritize the development efforts. The government and enterprises should be better aware of what advantageous factors they possess, the awaiting opportunities and difficulties as well. Only by good preparation and coordination, they can best utilize the available resources and realize the objectives of following in the footsteps of India and become a prominent player in the world software outsourcing.

1. Chapter one provides theoretical background about the software industry and the software outsourcing activities, the concept, types, advantages and disadvantages, then the software outsourcing development in the world, in India and China.

2. Chapter two investigates the development of software outsourcing in Vietnam and focuses on some of the key factors for development, as well as the opportunities and the challenges.

3. Chapter three is aimed to learn about the success story of software outsourcing in FPT Software (FSoft). Chapter four offers some possible recommendations to foster the growth of this industry in the next few years.