VietNamNet Bridge - Both software business and state agencies are facing difficulties in providing and receiving IT outsourcing services because of unclear regulations.

The Prime Minister turned the green light on for state agencies to use outsourcing IT services one year ago, which aims to help create a competitive market and reduce the state’s investment in computing infrastructure items. 

However, to date, software firms are still finding it hard to find clients, while state agencies remain hesitant about using outsourcing services.

Hoang Duy Dinh, director of the Hai Phong Information and Communication Department, said though the government’s Decision 80 allows state agencies to use outsourcing services, it does not clarify how to calculate IT service fees. Therefore, things still cannot proceed.

Tran Duy Binh, director of the Thanh Hoa provincial Information and Communication Department, also said his department still cannot do anything but wait for guidance from ministries.

“A lot of IT outsourcing service providers have contacted us to introduce their services and solutions. However, we still cannot make any decision,” he said.

Software firms await agencies’ decisions

After the government said that state agencies could use IT outsourcing services, Vietnamese software firms said they could provide high-quality services.

In fact, BKAV tried to provide the service several years ago. Instead of selling software and solutions, it tried to lease software to clients who then ran the software on their infrastructure. 

BKAV, for example, provided a one-stop shop service, e-information portal, e-office and online conference services. 

Under this mode, clients still used their servers and only bought BKAV’s solutions and installation services.

BKAV’s Vice President Ngo Tuan Anh said the software leasing mode allowed state agencies to use necessary solutions without having to spend money to buy the solutions.

However, the mode was not entirely an IT outsourcing service as expected by the community (software firms provide both infrastructure items and services, while clients only have to pay for services).

MISA, a well known software firm, which has a high number of clients from state agencies (25,000 state agencies now use its software), also put a high hope on developing IT outsourcing services.

MISA focuses on developing products on the basis of cloud computing and providing them in the market under leased services. These include software on managing school works, assets and residence certificates.

A senior executive of MISA admitted that the firm was facing big barriers in approaching clients. 

“State agencies still want to produce software and buy equipment themselves,” he said. “The Ministry of Finance even makes software and sells in the market as a competitor to software firms.”

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