Hire offshore developers in South-East Asia
Businesses are seeking ways to optimize their operations and maximize profits. However, the high costs of hiring local developers can strain your resources and budget. That’s why a more cost-effective solution, such as hire offshore developers from Southeast Asia can can help companies to achieve their goals faster. This region has become a hub for software development outsourcing due to its skilled talent pool and favorable business environment.
Overview of South-East Asian countries
|Southeast Asia countries||Vietnam, Malaysia, Singapore, Phillipines,|
Indonesia, Thailand, Myanmar, Brunei,
Cambodia, Laos, Timor-Leste
|Area of land||4,545,792 km2|
|Population up to 2023||675,796,065|
|GDP of 2022||$3.66 trillion|
|GDP growth rate of 2022||5.2%|
Economically, Southeast Asia is home to some of the fastest-growing economies in the world, with a combined GDP of over $3 trillion.
The population of Southeast Asia is diverse, with over 650 million people living in the region, many of whom are young and well-educated. This provides a large supply of technical talent for the IT industry.
Over the past few decades, many Southeast Asian economies have experienced strong and accelerated economic growth, driven by trade, investment and industrialization. Countries like Vietnam, Indonesia, Philippines, Malaysia and Thailand have consistently achieved GDP growth rates of 5-7% annually in recent years.
Why hiring offshore developers in Southeast Asia?
With increasing globalization and the growth of remote work, more and more companies are looking to hire offshore developers in Southeast Asia. Let’s explore the reasons why Southeast Asia is becoming a hotbed for offshore developers, and how businesses from all industries can benefit from hiring these top-tier professionals.
The rise of hiring offshore developers in Southeast Asia
- Revenue in the Segment IT Outsourcing is projected to reach US$8.88bn in 2023.
- Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 10.24%, resulting in a market volume of US$13.11bn by 2027.
These incredible numbers show that the tendency to hire offshore developers in Southeast Asian country will increase considerably in the future.
Access to broader talent pools at affordable cost
South-East Asia is home to a large and growing pool of tech talent with advanced degrees in STEM fields from top universities. While talent is scarce and expensive in Western nations, tech companies from this region have access to high-quality talent at a fraction of the cost. According to Glassdoor, by offshoring to Southeast Asia, businesses can save up to 70% in total labor costs. Get to know more insights about tech workforces of these Southeast Asian countries:
- Vietnam has one of the largest tech workforces in Southeast Asia with over 450,000 IT engineers and 58,000 IT students graduated each year
- 30% of the developers are seniors with over 5 years of experience
- The IT outsourcing service had around 120,000 full-time employees (FTEs), ending 2021 with 1.44 million FTEs overall and recording growth of 9.1% compared to 2020.
- Philippines is one of the top 2 countries that dominates the number of workers in the IT outsourcing industry, only after India
South-East Asia also boasts a diverse and skilled pool of developers, offering expertise in a wide range of programming languages, frameworks, and technologies. With a strong focus on education and skills development, the region produces a steady stream of top-tier talent, ensuring a constant supply of cutting-edge development services.
English proficiency has been improving in the region, especially among technical professionals. Among the countries in the region, the Philippines and Malaysia are in the high English proficiency group, with the respective ranking of 18th and 28th in the world. While accents can sometimes be challenging, overall English skills are adequate for effective communication.
While English proficiency varies, most software developers in South East Asia have the basic level of English needed to complete technical work successfully. The level of English required also depends on the specific role and responsibilities.
Supportive government policies
Governments provide incentives like tax breaks and special economic zones to promote the growth of outsourcing and the IT industry. This has attracted investments from multinational tech companies.
Philippines has special economic zones with ready infrastructure for IT-BPM companies or Malaysia’s Multimedia Super Corridor
- Talent development programs – Southeast Asian countries offer training programs to develop local IT talent at reduced costs for companies. Some even subsidize labor costs through salary grants. The Philippines has multiple grants for IT firms to help develop local talent.
- Promotion of outsourcing – Thailand, Malaysia or Philippines governments actively promote their countries as attractive IT outsourcing destinations through overseas roadshows, marketing campaigns and participation in industry events.
Process of hiring offshore developers in South-East Asia
Determine your project requirements
Before hiring offshore developers in Southeast Asia, your businesses must first determine and clarify all project requirements. This involves identifying the scope of the project, the required skill sets, and the project timeline. This information will help your businesses to select the right offshore developers for the projects.
Choose the right offshore developers
After handling the detailed requirements, you can now begin the process of choosing the right offshore developers. This involves conducting research to identify reputable offshore development companies in South-East Asia. Businesses should look for companies with a proven track record of delivering high-quality software solutions and who have a strong reputation in the industry.
Establish clear communication
Effective communication is crucial when working with offshore developers in Southeast Asia. Businesses should establish clear communication channels with their offshore development team and ensure that they have a good understanding of their project requirements. This will help to avoid misunderstandings and ensure that the project is completed on time and within budget.
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