VietNamNet Bridge – Local software enterprises are seeking to boost exports to the U.S. to reduce dependence on Japan, which currently generates nearly 40% of revenue and 30% of profit for the software outsourcing industry.

Chu Tien Dung, chairman of the HCMC Computer Association, told the Daily that enterprises are looking for outsourcing contracts from the U.S., a huge market for the information technology sector.

Local enterprises have many years of experience in providing software outsourcing service for foreign partners in Japan, Europe and North America. In addition, many firms have won international quality management certificates, facilitating their penetration into the U.S. market, Dung said.

FPT Software Company has penetrated into the U.S. market after providing outsourcing service for Japan for a long time.

Bui Hoang Tung, director of FPT USA Company, a unit of FPT Software, said that FPT Software set up the 100%-owned subsidiary in the U.S. amid the global economic crisis in 2008. In the last five years, the U.S. has become the second biggest market of FPT Software.

The U.S. market accounted for less than 10% of FPT Software’s revenue previously but the ratio was up to 27% last year. Between 2010 and 2012, FPT USA Company obtained revenue growth rate of 65% each year.

Other enterprises such as TMA Solutions, KMS, Havey Nash and Aricent have also joined the potential market.

Nguyen Huu Le, chairman of TMA Solutions, said that the U.S. market always makes stable growth and generates high revenue for a number of years. The enterprise expects to obtain revenue growth of around 30% in the market this year, Le said.

However, local software enterprises still have to face many challenges in this market.

Tung of FPT USA Company said that the nation cannot compete with rivals such as China and India.

The software market in the U.S. is huge but enterprises have to face tough competition. Therefore, local enterprises with the only strong selling point of low prices should not wait for U.S. firms to come and knock on the door, Tung said.

Source: SGT