Vietnamese information technology firms get the nod from Prime Minister Nguyen Tan Dung to use outsourced services, the English language news website VietNamNet Bridge reported.

IT firms will provide software products and technology systems under the mode of service packages to customers for use.

The systems will run on the suppliers’ platforms. Customers can order the services they want and pay for service packages, while the service providers will take the responsibilities for all the stages of the service deployment, from operation to maintenance.

According to Do Cao Bao, Chair of FPT Information System Company (FIS), there are four basic benefits institutions and individuals can enjoy when using outsourced services.

They can cut down expenses, save time, improve productivity and reduce labour costs.

Regarding the investment rate, the companies only have to pay small sums of money for what they receive for years, instead of having to spend big money at once to build up information systems of their own.

Customers will also be able to save time because they do not have to follow the complicated administrative procedures. If they use IT firms’ services, they will not have to worry about procedures because this will be undertaken by the IT firms.

Using IT services instead of developing information systems of one’s own is believed to be an economical solution for everyone. They do not need to maintain a large workforce to run IT works.

Nguyen Xuan Hoang, CEO of Misa, said IT services are especially suitable for small and medium enterprises and state agencies, which can easily access high-level management systems, and do not have to spend too much money on servers and systems.

However, analysts commented that it is too early to say the Government decision on allowing state agencies to use outsourced IT services would help develop the market.

In fact, Vietnamese institutions and individuals have been aware of the benefits of IT services. However, they are hesitant to go ahead.

Bao of FIS said that this is understandable. The “hesitancy” is the thing regularly seen in developing countries, where the management level remains lower than in developed economies.

However, Bao said, this does not mean that the opportunity to develop the IT outsourced service market has not come. Vietnam is believed to have all the necessary conditions to do this right now.

IT has been developing more rapidly than the average development of the other sectors of the national economy. Some experts believe that Vietnam’s readiness index is even higher than that of other countries with similar GDP growth rates.-VNA