Top 10 Asian Countries to Outsource Your Software Development

Today’s rapidly changing business landscape makes outsourcing IT work a go-to option, as many organizations find ways to gain operational flexibility and scale profitability. The capacity to hire remote developers in foreign regions gives companies access to an IT talent pool at a reduced cost.

However, outsourcing trends are continuously evolving. In a report done by Statista concluded in 2017, the most common outsourced IT functions were software web or app development, software app maintenance, data centers, IT infrastructure, service/help desks, networks, system integration, and HR BPO. This year, these existing trends are expecting to change, and outsourcing IT work will experience a visible transformation in 2020.

Emerging trends in 2020

According to a research campaign done by the National Outsourcing Association, the expected IT outsourcing trends in 2020 are the following:

• Enhanced automation - Artificial intelligence or AIs and chatbots will be used to execute tasks.

• Value over price - Clients will shift from choosing providers who can offer the lowest prices to choosing the ones that can offer more value.

• Co-sourcing - A practice where clients hire several providers for a single project or collaboration.

• Cloud-based platforms - A surge in storage and security projects is to be expected.

• Outcome-based contracting - Instead of the traditional output-based contracts, outcome-based contracts will be the new model. This will inspire more collaboration between the client and the provider, as both will be motivated by the risks and rewards that their project shares.

Now that you’ve been made aware of the new wave of changes that you might expect in outsourcing IT work, the next step is choosing where you could outsource your software developers. For many years, Asia has always been the favorite choice of Western entrepreneurs. Aside from the continuous supply of labor growth in the region, Asia is also a hotspot for technological innovation.

Here are the top 10 Asian countries to consider when outsourcing software developers.

1. Singapore

Singapore ranks 2nd in terms of global competitiveness, as reported in the 2019 Global Talent Competitiveness Index or GTCI, the only Asia-pacific country to make it to the top 10. Singapore remains a hotbed for tech experts and innovators, which can also be attributed to the huge support that software developers and engineers receive from the Singaporean government.

2. India

India is a popular choice in the region for its huge number of programming designers and developers. In 2016, India ranked as the 2nd country in the world to have the most STEM graduates with a number of 2.6 million. Over 120,000 IT professionals are added to India’s talent pool every year.

3. Philippines

The Philippines has seen a growing market opportunity in the IT industry over the years, with its increasing supply of software developers and engineers now ready to fulfill the rising needs of global enterprises. Aside from being the third-largest English-speaking nation in the world, the country is also a melting pot of cultures that allows them to easily adapt to the cultures of other nations. Labor cost is also relatively low with Filipino programmers and engineers earning a fifth of the expense of their Western counterparts.

4. Vietnam

Vietnam is a powerhouse when it comes to innovation and technology and has recently been hailed as the new “software outsourcing paradise”. Over the last decade, Vietnam has seen a dramatic 20-35% growth in its BPO and IT industry. Labor supply is also continuously growing with the country seeing a consistent number of 40,000 IT graduates per year.

5. Thailand

Thailand is another key player in the region when it comes to outsourcing IT software developers. Thailand offers a low operational cost and low maintenance cost, making them highly compatible with offshoring services. The country has a good educational framework which helps their IT graduates every year.

6. China

There is no doubt that China offers one of the largest pools of tech experts in the world. The country has a competent talent pool of 200,000 IT workers, with new 50,000 IT graduates added each year. China is a favorable outsourcing option for many Western countries, with its large supply of software talent at a lower cost.

7. Malaysia

Malaysia offers a competent labor pool of highly proficient software developers. Malaysia’s technology hub, TPM (Technology Park Malaysia), houses more than 150 technology companies. This multi-ethnic country also has a good educational framework with Malaysian citizens being extremely fluent in the English language.

8. Taiwan

In a report done by HackerRank, Taiwan is 7th when it comes to the best developers in the world. The Taiwanese government is also known to invest heavily in its goal to become Asia’s “Silicon Valley”, with additional funding for improved STEM Education and IT infrastructure.

9. Indonesia

While still being fairly new in the IT outsourcing market, Indonesia is a rising powerhouse in the Southeast Asian region. Recognized by Gartner as one of the top outsourcing countries of 2020, Indonesia’s growing technology hub is based in Jakarta.

10. Bangladesh

With its affordable resources and pay rate compared to most Western nations, Bangladesh is a rising hotspot for IT outsourcing in the region. Bangladesh has seen a huge growth in market opportunity for IT software developers with its current pool of over 500,000 active freelancers.

Conclusion

Narrowing your choices to the best Asian countries to outsource your software development is only your first step to a successful outsourcing collaboration. Ultimately, the best outsourcing location will still depend based on your current business needs and objectives.