ECOMMERCE ECOSYSTEM GRASPING FOR EFFICIENTLY BUSINESS-DRIVEN

Author: Ngoc Tram
Publish date:27/12/2021
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Vietnamese ecommerce businesses are welcoming transformational opportunities amidst the rapid development of technology, market, consumer, and major investor presence. However, for outstanding and sustainable growth, in addition to seizing opportunities, businesses need to build a comprehensive ecommerce ecosystem. Therefore, a best-finish of the ecosystem in general and its components, in particular, is the foundation stimulating businesses, markets, and user interactions.

So, what are the components of the ecosystem? How should the business develop the ecosystem in line with its business strategy?

What components are included in the ecommerce ecosystem?

The ecommerce ecosystem is an interconnected community implementing all interactions and connections of human organisms, social organisms, information technology and applications, and services to provide value and effectively operate the components in the ecosystem. (Based on the concept of Assoc. Prof. Dr. Nguyen Van Hong)

The ecosystem components are operated through consistent mechanisms, policies, and laws to create a secure data interchange system, ensuring the rights and duties of businesses and consumers.

Ecommerce ecosystem grasping for efficiently business-driven-Key components in the ecommerce ecosystem
Ecommerce ecosystem grasping for efficiently business-driven-Key components in the ecommerce ecosystem

The main components:

  • Ecommerce infrastructure system includes hardware (servers and devices), software (services/tools for managing and analyzing), networks, and facilities forming the basis for the remaining components and ensuring that all e-commerce processes run smoothly and efficiently.
  • Ecommerce platform is a software application to build and manage all the activities. Today’s well-known ecommerce platforms can be mentioned as Magento, Shopify, BigCommerce, WooCommerce, Haravan, Wix,…,
  • The development component provides services and solutions for ecommerce websites, systems, and processes. In Vietnam, some of the notable ecommerce service and solution providers may include SmartOSC, Isobar, SECOMM,…
  • Marketplace provides an environment and all services to support ecommerce, allowing commercial activities between plenty of sellers and buyers. The leading ecommerce marketplaces in Vietnam can point to Shopee, Lazada, Tiki, Sendo,…
  • The payment includes networks, systems, and devices processing all ecommerce transactions. Currently, jointly with the payment, card types (domestic card, Visa, Mastercard,…), payment gateways (OnePay, PayPal, …) or e-wallets ( Momo, ZaloPay, ..) have been developing in Vietnam.
  • The shipping system includes the entire process of managing and distributing goods from the warehouse, packaging and delivering to customers. Typically shipping providers are Giao Hang Tiet Kiem, Giao Hang Nhanh, ViettelPost, J&T, Ahamove,…
  • Accounting software helps manage all data on ecommerce invoices, sales revenue, and cash flows. The birth of e-invoice software such as e-invoice, MISA meInvoice, FPT.eInvoice,… has maximally supported accounting processes.
  • Marketing supports promoting brands and products, and simultaneously approaches and personalizes customer experience through strategies, channels, and tools.
  • Management system uses the resource and operational processes software to enhance the seamlessness and performance of the entire ecommerce system. The most popular management systems are ERP, CRM, IMS, POS, OFM, etc.

How has the ecommerce ecosystem developed and perfected?

Ecommerce ecosystem grasping for efficiently business-driven-The maturity process of components in the ecommerce ecosystem
The maturity process of components in the ecommerce ecosystem

Stage 1: The fundamental ecommerce ecosystem

In the 1st stage, while customers are not been aware of their purchasing needs, the ecommerce ecosystem has fundamentally formed, beginning to approach, educate and stimulate consumers’ concern about brands and products.

Basic components (4/9): Infrastructure, Platform, Marketplace, Marketing

  • Infrastructure: essentially participating in the ecosystem, mainly using desktop and network devices, data systems, and facilities to support operating other components inside the ecosystem.
  • Platform: building website on simple platforms, including simple ecommerce interface and functions.
  • Marketplace: implementing sales on the ecommerce marketplaces to run sales-efficiency experiments, increase brand popularity, and approach a wide range of users for nurturing potential customers.
  • Marketing: using social media, advertising, content, email,… to increase views, and traffic and build awareness of brands, products, and services in the potential customer mindset.

Highlight components: Marketplace, Marketing

Inchoate components: Development, Payment, Shipping, Accounting and Management

Stage 2: The basic-operating ecommerce ecosystem

Customers become aware of their needs at this stage. As a result, the ecosystem comes into operation to approach potential customer needs.

Basic components (8/9): Infrastructure, Marketplace, Platform, Development, Marketing, Payment, Shipping, Accounting

  • Infrastructure: well-developed, ensuring all the seamless processes and interactions among components.
  • Marketplace: maintaining sales operation with constantly renewed programs and events to attract potential customers.
  • Platform: operating the end-to-end system, continuously updating new versions to enhance the increasing performance.
  • Development: developing and operating the ecommerce system and continuously improving system productivity.
  • Payment: perfecting the payment processing system and fully integrating payment gateways.
  • Shipping: perfecting the shipping system and partnering with shipping providers to deliver the first orders.
  • Accounting: completing the accounting and financial system to manage all ecommerce transactions
  • Marketing:
    • Increasing web-display frequency on search engines to increase brand and product identification and attract more potential targets.
    • Continue promoting social channels, advertising, content, email,… to improve the experience, education, and conversions for target customers.

Highlight components: Marketing, Payment, Shipping, Accounting

Inchoate components: Management

Stage 3: The advance-operating ecommerce ecosystem

The ecosystem enhances operation with many essential functions to directly navigate customers’ searching and buying considerations, thereby increasing the customer funnel conversion.

Advanced components (8/9): Infrastructure, Development, Marketplace, Platform, Payment, Shipping, Accounting, Marketing

Maintaining components: Infrastructure, Development, Marketplace, Accounting

Highlight components: Platform, Payment, Shipping, Marketing

  • Platform: investing in developing the ecommerce system with a dedicated platform to operate and process complicated functions optimally.
    • Developing new functions to optimize user experience: interface renewal, promotion features (pop-up, banner,…), customer service (live-chat, chatbot),…
    • Optimizing the “Call-to-action” function and gathering emails on the website, at the same time implementing sale-off, and promotion programs to increase conversion
  • Payment: integrating more payment methods to diversify the checkout experience, from COD payment, and internet banking to VISA, Mastercard, or e-wallets.
  • Shipping: optimizing the packaging process, improving delivery speed by partnering with transportation providers or building an in-house delivery team, in addition, optimizing operational processes for instant order fulfillment.
  • Marketing:
    • Website: concentrating on blog content and optimizing product detail content.
    • Continuously maintaining Social Marketing performance
    • Focusing on the email channel to nurture and stimulate potential customers.

Inchoate components: Management

Stage 4: The optimal-operating ecommerce ecosystem

When customers transition to the decision-making stage of purchasing, the ecosystem maximizes effectiveness in all processes and operational components, simultaneously focusing on developing conversion functions through continuous improvement and innovation of marketing components.

Optimal components (9/9): Infrastructure, Development, Marketplace, Platform, Payment, Shipping, Accounting, Marketing, Management

Maintaining components: Infrastructure, Development, Marketplace, Platform, Payment, Shipping, Accounting

Highlight components: Marketing, Management

  • Marketing: focus on ecommerce marketing strategy
    • Implementing email plans to remind abandoned carts to stimulate potential customers constantly
    • Maintaining customer service using email channels to gather customer feedback and reviews while using products
    • Promoting loyalty programs with discounts, accruing points, membership cards,… to increase return customers
  • Management: 
    • Integrating ERP software to manage data, human resources, and processes more seamlessly
    • Synchronizing Website with ERP and CRM to optimize operational processes and increase customer funnel conversion

Stage 5: The complete ecommerce ecosystem

All the ecosystem components are complete and effectively interact with each other. In addition, the ecosystem is directed towards operating maintenance to support product experience, customer retention, and return-customer stimulation.

Optimal components (9/9): Infrastructure, Development, Marketplace, Platform, Payment, Shipping, Accounting, Marketing, Management

Maintaining components: Infrastructure, Marketplace, Payment, Shipping, Accounting, Marketing

Highlight components: Platform, Development, Management

  • Platform: using customer reviews to improve the quality of products, services, and system functions
  • Development: providing solutions and developing specialized functions for a much more complex ecommerce system
  • Management: seamlessly operating and managing all data, processes, and resources among website, ERP, CRM, and POS systems

Barriers Facing the ecommerce ecosystem in Vietnam

Although the ecommerce ecosystem in Vietnam is proliferating, it is being hampered by substantial barriers.

Vietnam's ecommerce ecosystem faces challenges and lacks optimal completeness due to factors from businesses, the market, and consumers
Vietnam’s ecommerce ecosystem faces challenges and lacks optimal completeness due to factors from businesses, the market, and consumers

Outside barriers

Legal issues in ecommerce

In comparison to the general Vietnam market, ecommerce would be a relatively new business. As a result, the legal framework for ecommerce remains inadequate and disorganised. In which tax, security, and information authentication in e-transactions, intellectual property rights, etc., have not been adequately safeguarded by legal means.

The disparity between the legal framework’s perfection and the faster market change makes ecommerce challenging to control or at threat of unhealthy growth.

Circular No.47/2014/TT-BCT on the management of ecommerce websites, particularly, contains guidelines on the ecommerce business registration process and procedures. However, their controlling method has not been carried out properly, resulting in fewer registered businesses than actual statistics.

Therefore, most of the legalities of starting ecommerce business have not been verified, leading to transaction fraud and other fraud. More serious are domain misappropriation and spoofing by hackers to business counterfeiting, causing severe damage to businesses and consumers.

This shows that the current legal framework needs to enforce more specific steps to prevent attacks from cybercrime.

Consumer confidence

One of the significant barriers is the reality that occurs throughout the purchase process. For example, product and service quality issues, typically the quality assurance process (for counterfeits, poor quality products), transaction frauds (credit account takeover), and shipping (fraudulent goods exchange in packaging and shipping),… all have a direct impact on customer interests and the healthy, sustainable growth of the ecommerce ecosystem.

Investment barriers

Another significant barrier is the competition and investment budgets among businesses. In particular, data security requirements and infrastructure investments are putting financial pressure on existing ecommerce businesses. As a result, the ecommerce ecosystem is primarily controlled by the expansion of marketplaces and international businesses investing in the Vietnam market.

 Inside barriers

Although the current number of ecommerce ecosystem components is fully completed, the uneven development level makes interactions and operational processes sporadic and challenging to achieve optimal growth. The challenges have mainly come from:

  • Ecommerce infrastructure: The limitations of infrastructure, facilities, and capacity to access technology in rural areas create notable gaps compared to urban areas, affecting market coverage in Vietnam.
  • Logistics: Logistics infrastructure has fallen behind ecommerce growth. The inequitable synchronization between logistics services and the lack of technology are still significant barriers for almost all SME logistics businesses in Vietnam.
  • Payment: Cash payment (COD) accounts for a high percentage, 60%, of transactions in the entire e-payment market share. This creates more risk when parcel refusal and failed deliveries make the order fulfilment process more costly and time-consuming.

Besides, the most significant barrier is the lack of a strong connection among ecosystem components to bring unifying and synchronous ecommerce solutions. The current connections are commonly between marketplaces and shipping providers or digital banking/e-wallets to provide economical and intriguing solutions for consumers.

However, that seamless and unified connectivity has not yet evolved to maximize business interactions in the ecosystem and among businesses in the ecommerce market.

Solutions for SMEs

The ecommerce ecosystem completion is a sustainable foundation for SMEs to build and implement ecommerce business plans aligned with each business stage while generating a complete ecosystem for themselves.

About the number of components

Businesses should determine the suitable components according to each business model and growth stage.

For example, a small and medium-sized enterprise would use the essential ecommerce components, such as the platform, to develop a complete ecommerce system, complete payment, shipping, and integration processes integrating more management software, namely CRM, POS, accounting, and marketing tools. 

Nevertheless, a medium/large-sized enterprise can integrate ERP for resource operation or omnichannel for efficient expansion.

About timeline

Following the identified ecosystem components, a business can estimate the appropriate timeline to promote in-time business processes, fully satisfying the market requirements and customer needs. Thereby, the satisfaction enhances the planning efficiency and the ecommerce ecosystem.

About the implementing budget
The budget would be distributed more specifically once the essential ecosystem components are clearly defined for your business model. Determining the proper budget is a critical factor for SMEs to successfully implement ecommerce and sustainably grow. This is especially important for existing SMEs due to the considerable budget pressures and the long-term investment process.

Ecommerce ecosystem grasping for efficiently business-driven-Selecting ingredients suitable for the business model helps businesses conduct ecommerce business effectively and sustainably in the long term
Selecting ingredients suitable for the business model helps businesses conduct ecommerce business effectively and sustainably in the long term

However, most of those SMEs still face many challenges in building their ecommerce plans. They have not adequately defined their business model’s needed and best-suited components, resulting in timeline and budget dilemmas.

With in-depth experience providing full-service ecommerce solutions, SECOMM will accompany businesses in respective stages of ecommerce implementation with tailor-made solutions.

Contact SECOMM to receive a comprehensive ecommerce consulting solution for your businesses.

Ready to Maximize Your eCommerce Potential? Let’s talk

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3. Amazon SingaporeAmazon

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10. Skin IncSkin Inc

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Conclusion

The above is a list of the top 10 eCommerce websites in Singapore. By implementing leading platforms such as Magento Open Source, Shopify Plus, and various others, these brands provide optimized online shopping experiences, attracting the interest of customers both domestically and internationally.

During its development process, SECOMM has collaborated with numerous clients from Singapore to create notable eCommerce websites, with the most prominent being the project to develop an online liquor supply system at Changi Airport.

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26/04/2024
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In this article, let’s delve into 10 top Shopify apps that you need to know to elevate your Omnichannel eCommerce strategy to new heights and deliver true value to your customers.

Shopify POSShopify-POS

POS (Point of Sales) is known as Shopify’s most comprehensive solution for supporting online, offline and omnichannel sales activities. This Shopify app comes in two versions: Lite and Pro. Both enable merchants to accept payments, manage customer profiles, handle inventory, and track orders from all channels on a unified platform. Integrating Shopify POS helps deploy Omnichannel eCommerce more efficiently, delivering a seamless customer experience from online to offline with various shopping options such as:

  • Buy online, Pick up in store
  • Buy online, return and exchange in store
  • Buy in-store, ship to customer
  • Browse in-store, buy online

Rating: 4.1/5

Key features:

  • Offers diverse shopping methods to boost conversions
  • Manages customer profiles, product details, orders, and inventory rigorously
  • Seamlessly connects and syncs data across sales channels
  • Facilitates the sale and redemption of digital and physical gift cards both in-store and online
  • Allows accepting multiple payment methods in a single transaction

Price:

  • Shopify POS Lite: Included in all Shopify plans. Limited staff access, basic customer profiles, and allows returns at the original purchase location
  • Shopify POS Pro: $89/month/location. Free for Shopify Plus merchants. Unlimited staff access, enables omnichannel sales, advanced customer profiles, professional sales reporting, and allows returns at any purchase location.

Smile: Loyalty & RewardsSmile Loyalty Rewards

Smile is an easy-to-use platform designed to create promotional campaigns and customer loyalty programs, aiming to boost sales and customer retention. With Smile, you can establish point systems, discount vouchers and special offers to encourage repeat purchases and enhance customer interactions across various channels.

As one of the valuable Shopify apps for deploying Omnichannel eCommerce, Smile facilitates seamless integration with other marketing and sales campaigns such as email, subscriptions, and POS. This ensures a more intuitive, diverse, and engaging experience for customers.

Rating: 4.9/5

Key features:

  • Create and customize loyalty programs with flexible point accrual and redemption rules
  • Seamlessly integrate with popular apps like Klaviyo, Gorgias, Shopify POS, and Judge.me
  • Automatically translate loyalty programs into six available languages including English, French, Portuguese, German, Spanish, and Chinese
  • Allow non-members to earn and redeem points

Price:

  • Free: Installation at no cost, with up to 200 orders per month
  • Starter: $49/month, with up to 500 orders per month
  • Growth: $199/month, with up to 2,500 orders per month
  • Plus: $999/month, with up to 7,500 orders per month

Avada Email Marketing & SMSAvada

Avada is one of Shopify Omnichannel apps that allows to create and automate email marketing and SMS strategies. Regarded as an efficient solution, it enables brands to engage, follow up, convert, and foster long-term customer relationships through various channels such as email, SMS, pop-ups, push notifications, and WhatsApp. This facilitates seamless Omnichannel Marketing optimization across online and offline platforms.

Rating: 4.9/5

Key features:

  • Automates Omnichannel Marketing workflows
  • Offers a diverse range of email marketing templates
  • Allows creating and sending of various email types within newsletter campaigns
  • Captures potential customers through forms and pop-ups
  • Personalized email and SMS messages
  • Provides a simple and user-friendly editor

Price:

  • Free: Includes up to 12,000 emails, basic automation, and standard email templates
  • Pro: $16/month, includes up to 12,000 emails/month, unlimited automation, access to all email templates, and supports SMS and WhatsApp
  • Advanced: $47/month, includes unlimited emails, all Pro plan features, integration with Google and Facebook Ads, and admin account management.

ZendeskZendesk

Deploying Omnichannel eCommerce or any type of online business requires meticulous customer care services. Zendesk is the perfect solution to streamline this process.

This Shopify Omnichannel app enables you to engage with customers via email, hotline, live chat, social media, and various other channels, all managed through a single, simple and intuitive dashboard. Integrating the Zendesk app into the Shopify system can enhance customer relationships and efficiently resolve customer issues.

Rating: 2.9/5

Key features:

  • Allows access to customer data for quick and personalized support
  • Processes refunds, and cancels orders directly from the Zendesk app sidebar
  • Embeds live chat into any sales channel with just one click

Price:

  • Suite Team: $55/month
  • Suite Growth: $89/month
  • Suite Professional: $115/month
  • Suite Enterprise: $150/month

StockyStocky

This inventory management app is specifically designed for Shopify POS Pro, offering the most advanced and comprehensive inventory solution to date. It’s also a valuable Shopify app to integrate for effective Omnichannel eCommerce deployment. Stocky allows the synchronization of order and inventory data between online and offline retail stores. This helps optimize inventory management, streamline business processes, and provide a seamless shopping experience for customers.

Rating: 2.9/5

Key Features:

  • Pre-built integration with Shopify POS Pro
  • Allows review and receipt of inventory data input from POS
  • Utilizes barcode scanning functionality to expedite receiving inventory data from POS
  • Enables creation and management of orders and contacts with suppliers
  • Facilitates inventory counting by either manually counting or scanning items in the warehouse and making necessary adjustments
  • Provides in-depth reports to make accurate inventory decisions through inventory data analysis

Price: Free to use

DeputyDeputy

Managing personnel during Omnichannel eCommerce deployment is a challenge. Deputy is here to help overcome that challenge. With Deputy, you can optimize employee management processes and your schedules.

This Shopify app enables managers to monitor employee schedules, efficiently manage shifts, and assign tasks effectively. Additionally, Deputy leverages real-time data from Shopify sales reports, allowing managers to optimize employee schedules to minimize costs. Deputy also offers quick and accurate digital timesheets for payroll calculations.

Rating: 5/5

Key Features:

  • Provides easily understandable sales data to plan and schedule employees more effectively
  • Avoids costly timekeeping errors and ensures accurate payroll for employees
  • Export timesheets to the business’s payroll software with just one click.

Price: Free 30-day trial. $25/month.

Endear CRM and ClientelingEndear CRM and Clienteling

Endear is a powerful CRM and customer care app designed to help retailers increase sales and strengthen customer relationships. This Shopify app allows businesses to organize customer data, send personalized emails and SMS messages, and analyze employee outreach capabilities and sales performance.

Rating: 4.3/5

Key Features:

  • Enables access to and management of all customer data on a single platform
  • Builds and automates SMS and email campaigns using pre-designed templates
  • Provides in-depth sales reporting and built-in integration

Price: Free 14-day trial

  • Starter: $60/month. Up to 1,000 emails + 250 SMS
  • Growth: $160/month. Up to 9,000 emails + 500 SMS
  • Pro: $300/month. Up to 15,000 emails + 1,000 SMS

OmisellOmisell

Omisell is a leading multi-channel management application, that allows one to manage orders, inventory, and deliveries across multiple sales channels from a single interface. This Shopify app helps optimize management processes and ensures synchronization between various sales channels.

Rating: 4.6/5

Key Features:

  • Easy integration and management of multiple sales channels: Lazada, Shopee, Shopify, Tiktokshop.
  • Seamless management of categories and synchronization across channels
  • Order management, automatic synchronization, and processing
  • Inventory management and synchronization
  • Integration with 50+ shipping service providers across Southeast Asia

Price: Free to use

Progus Store Locator MapProgus Store Locator Map

Progus is one of the useful Shopify apps that allows users to create a map displaying retail stores on the eCommerce website. This will help customers easily search for and locate the nearest store to them. This Shopify app creates a convenient and seamless shopping experience for customers from online to offline, while helping increase conversion rates.

Rating: 5/5

Key Features:

  • Multiple map styles, customizable markers, colors, and fonts
  • Provides advanced and customizable reporting
  • Multilingual system, providing language translation apps
  • Quick and easy setup, no API connection required

Price: Free 14-day trial

  • Free: 1 store location. Multilingual, various map styles, and markers
  • Basic: $9.99/month. Up to 100 store locations. Multilingual, various map styles, and markers
  • Standard: $19.99/month. Up to 500 store locations. Multilingual, various map styles, and markers
  • Unlimited: $29.99/month. Unlimited store locations. Multilingual, various map styles, and markers.

JivoChat: Live Chat & WhatsAppJivoChat

JivoChat is an app that enables users to engage in messaging exchanges to directly support customers from the eCommerce website. JivoChat can integrate and receive messages from popular platforms such as Facebook, Instagram, WhatsApp, and LiveChat. All messages are efficiently managed through an internal CRM system, allowing appropriate notifications or marketing messages to be sent to current and potential customers. This Shopify app not only provides an engaging multi-channel chat experience for customers but also strengthens the relationship between them and the business, significantly increasing conversion rates.

Rating: 4.7

Key Features:

  • Integration with the most popular messaging platforms
  • Allows making calls from the eCommerce website (even video calls) using phone numbers
  • Deploy pop-up message campaigns + WhatsApp to convert potential customers
  • Utilizes an internal CRM system to track offers, support requests, and build customer profiles

Price:

  • Free Forever: Free for up to 5 users, unlimited live chat and website support, supports translation into 20 languages
  • Pro: $29/month. Free 14-day trial, provides detailed information about website visitors and real-time tracking of their behavior on the website.

The Bottom Line 

In recent years, deploying Omnichannel eCommerce has become not just an option but a necessity for a brand to survive and thrive. With support from leading Shopify apps, brands can build a robust and flexible multi-channel sales system, providing a memorable shopping experience for their customers.

From Shopify POS to Smile, Zendesk, and Stocky, each application offers unique solutions to optimize Omnichannel eCommerce strategies. From inventory management to creating promotional strategies and direct customer interactions, each tool plays a crucial role in enhancing the shopping experience and strengthening customer relationships.

Need advice on choosing the most suitable Shopify app? Contact SECOMM or call the hotline (028 7108 9908) today!

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Top 10 IT outsourcing countries
TOP 10 IT OUTSOURCING COUNTRIES IN 2024

With the economic challenges post-COVID-19, IT outsourcing has become a go-to solution for businesses aiming to use their budgets effectively. They’re partnering with outsourcing companies for IT tasks instead of solely depending on in-house teams.

Meanwhile, the IT sector is rapidly growing, fueled by ongoing tech advancements. Outsourcing is crucial to this growth, which is expected to soar to USD 525.2 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. This points to a sustained high demand for IT outsourcing well into the decade.

When considering outsourcing software tasks, it’s crucial to identify the best countries for the job. The ideal locations are those that excel in technological expertise, offer favorable business environments, lead in innovation, and have strong English language proficiency. The following list will highlight the top 10 countries with stand-out IT dedicated teams that could be considered prime choices for IT outsourcing services.

1. IndiaIndia

India has consistently been at the forefront of the outsourcing sector and is renowned for its extensive pool of IT and software development talent. The country’s cost-effective services, proficiency in English, and solid tech infrastructure have established it as a preferred choice for global businesses. With more than 1.5 million IT graduates each year, India ensures a continuous influx of skilled professionals to satisfy the increasing demands of the outsourcing market in Asia.

Moreover, India’s cost structure is generally more affordable than Western countries, making it an attractive option for companies looking to outsource development tasks. For instance, according to Upwork, software developers in India typically charge between $18 and $39 per hour, which is significantly lower than the $50 to $60 per hour rate in the United States or Germany, with the average rate from $150 to $250 per hour. This combination of a large, skilled workforce and competitive pricing positions India favorably against other leading IT outsourcing destinations.

2. ChinaChina

Just like India, China’s massive talent pool and diverse skill set make it one of the best countries for outsourcing, and it has emerged as an IT outsourcing power dominating the labor market. With an education system that promotes Math and Science, China provides some of the world’s best technology and IT services.

In terms of talent pool, China is one of the largest producers of IT graduates worldwide, boasting over 3 million IT graduates a year (this number is quite significant compared to India due to its large population). This vast number of highly educated and skilled individuals further solidifies China’s position as a desirable destination for outsourcing.

Additionally, the Chinese government actively supports IT development and invests in education to build a strong talent base. It focuses on advancing STEM (science, technology, engineering, and mathematics) education, which is essential for the IT sector. This approach improves learning in science and math, which is foundational for IT expertise.

In 2024, China remains a competitive choice for outsourcing, with an average IT outsourcing salary of about $20-$45 an hour, striking a balance between cost-effectiveness and quality output. This affordable rate and the country’s commitment to technological advancement make China an appealing choice for businesses worldwide.

3. PhilippinesPhilippines

The Philippines is a sought-after hub for software development outsourcing and BPO is favored for its cost-effective labor and proficient workforce. English is the official language, simplifying communication and aligning with the country’s strong cultural connections to the US. This understanding of Western work culture is a significant advantage, especially since 94% of the population speaks English.

With around 190,000 developers stationed in key BPO centres like Manila, Cebu, Davao, and Bacolod, the Philippines is recognized as a leading IT outsourcing hub, especially in the healthcare and fintech sectors.

The educational system in the Philippines annually produces approximately 200,000 IT graduates, emphasizing IT and technical skills to create an adaptable and globally competitive workforce. In 2024, the average IT outsourcing salary stood at around $20-$60 an hour, affirming the Philippines’ position as one of the most economical offshore outsourcing destinations.

4. BrazilBrazil

Similar to the Philippines, Brazil shares cultural affinities with the US, which translates into high-quality IT services at competitive rates. This cultural resonance, coupled with its strategic location, makes Brazil a preferred partner for North American IT firms.

Brazil’s commitment to building a skilled tech workforce is reflected in the production of about 150,000 IT graduates each year. The government’s efforts to perfect the technological education infrastructure set Brazil apart as a top destination for offshore software development.

Although Brazil’s outsourcing costs are slightly high, with the average IT outsourcing salary at approximately $20-$50 an hour and an annual software engineer salary of around $12,000, it remains a competitive market. The country’s youthful population, 38% of which are young, positions Brazil as an ideal locale for hiring junior developers, underlining its robust and skilled tech workforce.

5. VietnamVietnam

Vietnam is advancing as a notable destination for IT outsourcing, backed by a vast pool of skilled IT professionals. The country’s educational system, with over 300 IT-focused universities and centres, produces around 57,000 IT graduates each year. The Vietnamese government’s dedication to the IT sector is evident through supportive policies and incentives, contributing to Vietnam’s ranking within the top 50 digital nations.

The IT outsourcing market in Vietnam is forecasted to reach $698.90 million in revenue in 2024, with an anticipated annual growth rate of 16.38%, leading to a market volume of $1,282.00 million by 2028. The enterprise software segment is expected to achieve a market size of $247.3 million by the end of 2024. Moreover, the average spend per IT outsourcing employee is projected to be $11.80 an hour in 2024. These figures highlight a dynamic IT outsourcing market with an outstanding IT dedicated team in Vietnam, with growing employment and increasing value per employee, reflecting the nation’s investment in education and technological infrastructure.

6. PolandPoland

Poland is a standout choice for IT outsourcing within Europe. Its central position in Europe and EU membership and a strong pool of software engineering talent make it an attractive base for businesses looking to grow in the European market.

The country’s IT industry is well-developed and supported by numerous universities that provide computer science education. Recent reports indicate that there are between 63,000 and 78,000 students enrolled in IT and ICT degree programs, with an annual graduation rate of about 10,500 to 13,500.

A significant draw for the IT Outsourcing market in Poland is the cost-effective yet highly skilled workforce, which is more affordable than in many other European nations. The cost for offshore software development services in Poland typically ranges from $40 to $56 per hour, depending on the project. This positions Poland as one of the leading Eastern European countries for cost-efficient programming expertise.

7. MalaysiaMalaysia

Malaysia is gaining traction in the IT outsourcing industry due to its cost-effective solutions and skilled workforce. Over 60% of Malaysians speak English, which, along with strong government support, makes the country an appealing outsourcing destination.

Annually, Malaysia produces around 100,000 IT graduates, reflecting its commitment to digital skills development. The government bolsters this with initiatives like tax incentives and funding for R&D.

In Malaysia’s tech sector, the average monthly salary is about $3,500, with an hourly rate of $14. These rates are lower than in the US or Western Europe. Moreover, a key development in Malaysia’s IT outsourcing is the growth of cloud computing and mobile app development. IT firms are investing in these technologies to offer better and more cost-effective services.

8. ArgentinaArgentina

Argentina’s IT industry is attractive to US and European clients due to English proficiency, cultural similarities, and time zone alignment. Competitive pricing and a highly skilled workforce add to its appeal. Web developers’ costs vary from $20 to $60 per hour, or around $14,100 yearly, based on experience.

With over 115,000 developers, many from top universities, Argentina’s education quality is evident. The country’s 2023 QS World University Rankings featured over 40 renowned computer science programs, 14 of which are in Buenos Aires, ensuring well-educated IT professionals.

9. EgyptEgypt

Egypt’s rise in the IT outsourcing market is attributed to its skilled workforce and cost-competitive services. The country’s low labor costs, combined with a large pool of engineering and development talent, make it a lucrative option for companies seeking IT outsourcing services.

The average hourly rate for IT outsourcing in Egypt in 2024 was between $25 and $50, presenting a budget-friendly choice for businesses. The ITIDA reports that an IT professional’s average annual salary in Egypt is about $10,000, significantly below the global average of $45,000.

Egypt’s educational system contributes around 50,000 IT graduates each year to the industry, ensuring a steady supply of technically skilled professionals. The Egyptian government is proactively enhancing the IT sector by offering incentives and training to expand the talent pool. This initiative is expected to grow the industry significantly.

10. MexicoMexico

Mexico’s IT Outsourcing market is attractive for several reasons, including cost savings, access to a pool of skilled talent, and the ability to quickly scale operations.

In 2024, the average hourly rate for IT outsourcing in Mexico was estimated to be between $20 and $40. While this rate is slightly higher than some other outsourcing destinations, it is balanced by the advantages of geographical closeness, time zone compatibility with the US, and a deep understanding of Western business practices.

Mexico’s higher education system is on par with that of the United States and Europe, contributing to the supply of skilled IT professionals, with approximately 120,000 IT graduates produced annually.

The Mexican IT Outsourcing industry has seen steady growth over the past decade and is currently ranked as the fourth-largest IT outsourcing destination in Latin America. The industry’s expansion is expected to continue, driven by increasing demand for services such as software development, data analytics, and cloud computing.

To Sum Up!

The IT outsourcing market in 2024 is a strategic asset for businesses aiming to innovate and grow. It offers cost-effective access to skilled talent, driving operational efficiency and competitive advantage. Outsourcing is no longer just an option; it’s a strategic necessity that allows companies to focus on core competencies while outsourcing non-core activities to experts worldwide.

At Secomm, we can provide you with the best of our IT dedicated team, who have more than 10 years of experience in the IT sector. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to ensure that your IT operations are handled by top-tier talent, fostering innovation and propelling your business forward.

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What is Cloud eCommerce Benefits from Cloud eCommerce
WHAT IS CLOUD ECOMMERCE? 4 KEY BENEFITS OF CLOUD ECOMMERCE

eCommerce has been booming more than ever, driving the demand for new technologies to adapt to the continuous growth of the market. Some emerging eCommerce technologies include VR/AR, MSI (Multi-Source Inventory), PWA (Progressive Web Apps), Headless Commerce, etc. However, among these, the technology that developers and businesses are currently paying the most attention to is Cloud eCommerce.

What is Cloud eCommerce?

Cloud eCommerce utilizes server clusters and cloud computing systems from cloud service providers to process large transaction volumes and online sales channel traffic. In simpler terms, Cloud eCommerce involves renting Internet servers based on cloud platforms to process, store, or use applications for various eCommerce business purposes.

What is Cloud eCommerce Benefits from Cloud eCommerce-What is Cloud eCommerce
What is Cloud eCommerce?

Before cloud-based eCommerce platforms and other solutions emerged, traditional eCommerce platforms like IBM WebSphere and Oracle ATG required on-premise server setups and continuous maintenance. Unlike those “on-premise” eCommerce solutions, cloud-based eCommerce allows companies to outsource their IT infrastructure without the need to invest in equipment and continuous maintenance as before.

This solution helps businesses adapt to the increasing demands of customers, enhance security, simplify maintenance, and integrate new eCommerce applications as needed. For these reasons, Cloud eCommerce is often combined with eCommerce platforms such as Shopify Plus, Salesforce, Magento, etc.

Cloud eCommerce Solutions

There are several cloud eCommerce solutions to choose from, including IaaS, PaaS, and SaaS, each with different resource requirements.

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Solutions
Cloud eCommerce Solutions: IaaS, PaaS and SaaS

IaaS eCommerce

Infrastructure as a Service (IaaS) is where businesses rent physical resources such as servers, databases, and network equipment to build a sustainable eCommerce architecture. IaaS eCommerce focuses on providing on-demand data storage on disks and virtual servers, making it easy for businesses to use database services rather than dealing with hardware. However, businesses are responsible for managing applications, data, runtime, middleware, and the operating system on this infrastructure.

Notable IaaS providers include Amazon AWS, Microsoft Azure, and Digital Ocean. IaaS is suitable for businesses wanting full control over the system without the complexity of on-premise eCommerce.

PaaS eCommerce

Platform as a Service (PaaS) is similar to IaaS but requires less infrastructure management, allowing more time to build eCommerce applications using predefined infrastructure with pre-defined operating systems and processes to handle resources, planning, and error correction.

For example, Google App Engine provides a PaaS environment for developers to build web applications without worrying about infrastructure. PaaS eCommerce is suitable for businesses needing to build specialized eCommerce applications and are willing to eliminate infrastructure-related factors in their technology stack.

SaaS eCommerce

Software as a Service (SaaS) provides ready-made eCommerce services, including complete eCommerce solutions or individual eCommerce applications like Product Information Management (PIM) software, Order Management System (OMS), etc. SaaS eCommerce providers are responsible for managing both the infrastructure and software and businesses only need to configure the desired software. Additionally, SaaS eCommerce developers can work outside the user interface with APIs to develop custom solutions without the need for custom software development.

SaaS eCommerce is suitable for businesses that want to quickly deploy eCommerce solutions without significant involvement in infrastructure and software management.

Cloud eCommerce benefits

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Benefits
Cloud eCommerce Benefits

High scalability

Cloud eCommerce inherits features from PaaS, making it easier to expand system functionality.

Typically, when fashion businesses start, they may not initially focus on scalability. However, from a strategic perspective, investing in technologies with scalability capabilities, such as Cloud eCommerce, can help businesses expand system functionality in each stage of eCommerce website development to foster business growth.

Improve page loading speed

According to Think with Google, if a website takes up to 6 seconds to load, the probability of users bouncing increases by 106%. That’s why businesses need to focus on page load speed.

When an eCommerce website leverages Cloud eCommerce with data stored on a cloud platform, the speed of processing queries and API calls is significantly faster.

Increase security

In the current era of the 4.0 technological revolution, the concern for data loss is a major focus for business leaders. As a response to this, numerous new technologies have emerged to address this goal.

According to PC Magazine, Cloud eCommerce provides control over data and storage locations, along with options such as physical backups and file synchronization to ensure data safety. Additionally, Cloud eCommerce supports businesses in obtaining PCI-DSS (Payment Card Industry Data Security Standard) certification, enhancing the credibility of their website.

Increased stability

Typically, businesses struggle to optimize storage capacity on their websites, especially when facing a massive surge in traffic during peak seasons, such as the “sale hunting” period. This sudden increase in workload poses a significant challenge to storage operations.

Cloud eCommerce offers a flexible solution to meet the demands of unpredictable spikes in traffic, whether seasonal or even hourly. It can dynamically scale up or down to support the real-time needs of a business. Overall, Cloud eCommerce is becoming a widely adopted technology in the digital transformation journey, helping businesses expand their functionality, improve page loading speeds, and enhance the security and stability of their websites.

However, mastering these new technologies requires programmers to possess a significant amount of specialized knowledge and hands-on experience with various complex projects. As a result, the costs associated with implementing Cloud eCommerce can be relatively high.

With over 9 years of experience designing complex eCommerce systems for companies like An Nam Gourmet, Laybyland, Jasnor, etc., SECOMM understands the challenges that businesses face when exploring new eCommerce technologies. 

Contact SECOMM today for a free consultation on detailed eCommerce system development solutions!

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On-Premise CRM vs On-Cloud CRM: Key Differences
ON-PREMISE CRM VS ON-CLOUD CRM: KEY DIFFERENCES

When it comes to Customer Relationship Management (CRM) software, businesses often have two choices: On-premise CRM and On-cloud CRM. This article will focus on clarifying the key differences and pros and cons of each option.

Understanding the distinctions between On-premise and On-cloud CRM can help businesses make well-informed decisions, optimize customer relationship management, and succeed in today’s business landscape.

Related Reading: What is CRM? Top 5 benefits of using CRM software in 2023

On-Premise CRM Software

On-premise CRM is a type of CRM software installed and hosted on the servers and infrastructure owned by the business. When deploying On-premise CRM, the business takes responsibility for all aspects of the CRM system, including hardware, software, maintenance, security, and database management.

Pros

On-Premise CRM vs On-Cloud CRM: Key Differences
Pros of On-premise CRM
  • Data Control: Businesses have complete control over their CRM data, which is particularly crucial for safeguarding sensitive and essential information.
  • Customization: On-premise CRM systems frequently provide a high level of customization, allowing businesses to tailor the software to meet their specific needs and operational workflows.
  • Security: With full data control, businesses can implement their security measures and protocols to ensure the protection of both customer and business data.
  • Operational Efficiency: On-premise CRM software can offer robust operational efficiency and faster data access as it is stored and operated entirely on the internal servers and infrastructure of the business.
  • Cost Efficiency: On-premise CRM requires businesses to pay for hardware and software licenses upfront. However, ongoing costs can be significantly lower than cloud-based CRM, making on-premise CRM cost-effective in the long run.

Cons

On-Premise CRM vs On-Cloud CRM: Key Differences
Cons of On-premise CRM
  • High Initial Costs: Implementing on-premise CRM entails substantial initial payments for acquiring servers, obtaining software licenses, and establishing the necessary infrastructure. This considerable upfront investment might pose challenges for some businesses.
  • Maintenance:  Businesses have responsibility for all maintenance tasks, security measures, updates, and issue resolutions. This can consume a lot of resources and requires a highly skilled technical team.
  • Limited Accessibility: On-premise CRM software is quite limited in terms of remote access, making this system less appealing to businesses with multiple branches in different locations.
  • Limited Scalability: Scaling up the on-premise CRM system can be complex and incur significant costs for purchasing and configuring additional hardware and software.
  • Software Backup: Businesses must deploy their own data backup solutions to ensure the availability of data in case the CRM system encounters unforeseen issues.

Some popular on-premise CRMs like Microsoft Dynamics, Oracle Siebel CRM,…

On-Cloud CRM Software

On-Cloud CRM is a form of customer relationship management software hosted on the remote servers of a third-party provider. With this software, businesses are relieved from the task of managing and maintaining fundamental infrastructure like servers and central databases, as those responsibilities are handled by the On-Cloud CRM provider.

Businesses can access the CRM system from anywhere with an internet connection through a web browser or mobile application.

Pros

On-Premise CRM vs On-Cloud CRM: Key Differences
Pros of On-Cloud CRm
  • Easy Deployment: On-cloud CRM systems are typically deployed quickly because they don’t require complex hardware setups or software installations.
  • Low initial costs: Cloud CRM solutions often have lower upfront costs compared to on-premise CRM solutions because businesses don’t need to invest in servers and infrastructure.
  • Scalability: Cloud CRM can easily scale to meet the growing number of users and changing business needs without the need for additional hardware investments.
  • Accessibility: Cloud CRM users can access the system from anywhere with an internet connection, making this software appealing to businesses with multiple branches in different locations.
  • Automatic Updates: On-cloud CRM providers are responsible for handling updates and maintenance, ensuring users quickly access the latest features and improvements.
  • Data Security: On-cloud CRM providers are highly regarded for their ability to offer optimal security measures to protect customer data.

Cons

On-Premise CRM vs On-Cloud CRM: Key Differences
Cons of On-Cloud CRM
  • Data Control: The entire data is stored on servers owned by the third-party provider. This raises concerns about data control and security, as well as risks from the provider’s end.
  • Dependency on the Internet: Cloud CRM operations rely on Internet connectivity. If the connection is slow or interrupted, it may impact the overall system performance.
  • Customization Limitations:  While many cloud CRM solutions are highly configurable, compared to on-premise CRM solutions, they still have limitations in terms of customization.
  • Subscription Costs:  Using on-cloud CRM, businesses will incur ongoing monthly or annual usage fees. Initially, the upfront costs may be lower than on-premise CRM, but there are ongoing fees such as user quantity fees, customization fees, etc., which businesses will continuously have to pay throughout the deployment process. This leads to an increase in the total cost of using the cloud CRM system over time.

Some popular Cloud CRMs include Salesforce Sales Cloud, SAP Sales Cloud, Oracle CRM On Demand,…

Related Reading: 

What is The Difference Between On-Premise and Cloud CRM?

On-Premise CRM vs On-Cloud CRM: Key Differences
Difference Between On-Premise and Cloud CRM

On-Premise CRM vs On-Cloud CRM: Which is The Better Choice?

The choice between On-premise and On-cloud CRM becomes a crucial decision in the strategy of deploying CRM. Each type comes with its own set of advantages. On-premise CRM offers high control and customization, while On-cloud CRM is convenient, flexible, and helps reduce the burden of infrastructure and initial costs. 

The ultimate decision depends on the deployment needs, data control requirements, and budget.  Nevertheless, both can serve as valuable tools for businesses to manage customer relationships and amplify operational efficiency. 

Contact SECOMM or call the hotline at 02871089908 today to learn more about deploying and developing a comprehensive CRM system and determine the optimal choice between On-premise and On-cloud.

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ECOMMERCE JEWELRY: POTENTIAL, PROCESSES & CASE STUDIES
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BUILDING A FURNITURE WEBSITE: PROCESS, NOTES & CASE STUDY
BUILDING A FURNITURE WEBSITE: PROCESS, NOTES & CASE STUDY
- The role of eCommerce in the furniture industry
- The basic process of building a furniture eCommerce website
- In-depth process of building a furniture eCommerce website
- Special considerations when implementing furniture eCommerce websites
- Successful lessons from furniture brands
5
40
21/03/2024
MOBILE COMMERCE: POTENTIAL, DEPLOYMENT PROCESS & PRICES
MOBILE COMMERCE: POTENTIAL, DEPLOYMENT PROCESS & PRICES
- Potential, benefits and trends of the Mobile Commerce market
- Detailed process and prices for deploying mobile shopping apps
- Detailed process and prices for deploying mobile payment apps
- Detailed process and prices for deploying Social Commerce
4
36
19/03/2024
ECOMMERCE FASHION: PROCESS, IMPLEMENTATION COSTS
ECOMMERCE FASHION: PROCESS, IMPLEMENTATION COSTS
- The potential of eCommerce in the fashion industry
- Specifics of eCommerce in the fashion industry
- Basic process of building a fashion eCommerce website
- In-depth process of building a fashion eCommerce website
- Success lessons from major brands
5
32
18/03/2024