FPT Software must back its tech capabilities with the domain expertise to win new markets

Offshoring is no longer just about labor arbitrage; it’s about costs and capabilities. FPT Software leverages its base in Vietnam to offer Global 2000 organizations highly differentiated services backed with emerging technologies. At a tower opening event and conference held in July, the firm shared recent developments and its vision to disrupt the market. FPT Software plans to become a global top 50 provider in the digital transformation space.

The firm highlighted the capabilities of its digital data platforms for digital transformation, cyber security capabilities, cloud suites and offerings, and other emerging technologies. FPT Software’s akaSuite and CloudSuite, are among the firm’s more notable intellectual properties. But technology platforms alone might not offer enough differentiation to win the deal. Providers in this space differentiate with domain and industry expertise. FPT must enhance its focus on domain expertise and industry coverage to gain new logos in North America and other markets. It currently focuses on the financial services, technology, manufacturing, and retail sectors.

Horizon 3 technologies are being applied to target less obvious targets – such as neuroscience

FPT Software has also invested in Horizon 3 technologies such as augmented collective intelligence, smart IoT and embedded devices, secure meta simulation, augmented reality, virtual reality, edge computing, 5G, and 6G. The offerings target less obvious verticals such as neuroscience, real estate, education, sports, and gaming. It also aims to tap the growth potential of the healthcare sector.

Many transformations fail because of a lack of objectives, shared visions, and skill issues. Enterprises want to engage with service providers that understand transformational challenges and have a transparent approach built into their offerings. FPT Software’s strategy for transformation centers on aligning with customer requirements. The firm’s customer-centric mindset is evident in how it designs its offerings and solutions, such as a design thinking approach and workshops to identify and understand the business well before it commences the project.

Rapid responses helped customers battle through COVID

FPT Software helped a US-based automotive services firm during the COVID period. Sales were down because of the lockdown and social distancing, and customer footsteps in the showroom were almost zero. FPT Software developed an online bidding platform that gave vehicle shoppers full experience, including sound and 360-degree view. The platform’s customer-centric approach helped sales resume and improve revenue. Additionally, FPT Software showcased a customer story about a Japanese automotive client it helped migrate to the cloud during the first COVID wave lockdown. The initiative was quite successful, achieving targeted objectives and improving the employee experience.

FPT Software’s young workforce needs to improve its soft skills

FPT Software has grown to 38,000 employees and launched services across the IT spectrum. Its key delivery centers are Vietnam, Japan, Thailand, Slovakia, and India. It is further expanding its delivery centers in Europe, including Germany, France, the Czech Republic, Belgium, and the UK. However, the firm’s core locations in South-East Asia come with challenges for its intent to expand – such as language barriers and time zone complexity. FPT is already working on adding more languages and building out structured programs to enhance its employees’ English proficiency. However, the firm needs to improve its focus on the communication part.

We previously discussed FPT’s vision and workforce advantages in our blog. The Vietnamese labor market’s key attributes are youth and a vast pool of graduates, many of whom have a numeric aptitude and an interest in math, leading to an interest in artificial intelligence. Additionally, the firm leverages its 2,000+ annual FPT University graduates. Its curriculum includes emerging technologies and training. Overall, the firm’s focus on technology and talent is noteworthy. Still, it must reinforce its domain and industry expertise and scale to rise above the plethora of mid-tier providers they are competing with.

The Bottom Line: FPT Software is pushing a differentiating blend of cost, talent, tech, and innovation, but domain expertise and marketing will determine its success.

FPT is pursuing a refreshing approach to clients in the mature and highly competitive North American and European markets—not just a price-competitive offshoring proposition, but one focused on differentiation around Horizon 3 capabilities. Early successes with marquee clients are encouraging, but to scale and achieve broader mindshare will demand investments in domain expertise, industry solutions, and marketing areas.