The fierce competition for skilled labor between software outsourcers has led to a rising trend of job hopping in this industry.

illustration photo source FPT

These companies prefer experienced people, Dung said. Certain firms have even committed an act of unhealthy competition. The bottom line is many companies put quick profits first but lack long-term investment in human resource development.

The demand for information technology (IT) specialists has far exceeded the supply. As a result, enterprises are facing constant job-hopping and sharp rises in wages.

The increasingly high specialisation of software outsourcing and continuous personnel changes have sent the market shrinking as enterprises do not employ people who are trained from scratch but experienced ones.

Vuong Bao Long, human resource manager of LogiGear Vietnam, specialising in software testing, said LogiGear had been hurt in the fierce battle for staff. He stressed other software companies had sent emails to engineers of his company and offered attractive salaries.

“Many companies will, at all costs, hunt for experienced people when they have projects. But they will terminate their labor contracts when the projects are done. There are certain companies having proposed transferring their employees to other firms. This leaves an adverse impact on the labor market,” Long said.

Other software outsourcing companies like CSC, Global CyberSoft and TMA are also struggling with this pressing issue. They said the unhealthy competition was initiated by some foreign-invested and local newly-established companies, but they declined to reveal the names of those firms.

Under the pressure caused by the fight for human resources, multiple companies have offered their employees higher salaries, a better working environment and opportunities for promotion. In addition, software outsourcers have joined hands with the Ho Chi Minh City-based colleges to boost the number and the quality of IT students to create a more stable labor supply.

However, Long said these measures could only help remove the tip of the iceberg. He proposed the authorities should intervene to remedy this situation.