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Offshore to Indonesia – Picture this: Your company is thriving in Singapore’s bustling market, but now it’s time to expand. If you’re aiming to scale up, offshoring to Indonesia could be your next smart move!
With industries like tech, digital marketing, and finance booming there, Indonesia has become a promising offshore destination. Over 170,000 new IT graduates enter the workforce every year, and success stories like Tokopedia and Gojek prove the potential of local talent. Many Singaporean startups report up to 70% cost savings while maintaining quality standards, making Indonesia an appealing choice.
Offshoring usually means relocating certain business processes to another country, usually done so to cut down on costs in your home country. We have a fantastic team over the waters in Indonesia (Selamat Siang!), and it’s been amazing having a family away from home! But with mega offshore countries like India, why in the world would you make Indonesia your second home?
As mentioned previously, offshoring is the use of a third party from foreign countries to carry out business processes. Indonesia is not only famous for its stunning landscapes and food, but it’s also fast becoming a hub for companies looking to offshore their business operations. The country offers significant cost advantages and access to a larger talent pool, making it an increasingly popular choice.
With over 60% of its 280 million population under the age of 40, Indonesia has one of the youngest and most dynamic workforces in Southeast Asia. This is especially appealing for tech, digital marketing, and customer support roles.
According to Coursera’s Global Skills Report 2023, Indonesia ranks 8th in Asia for digital skills. Combine this with competitive labor costs and a rapidly growing digital ecosystem, and it’s clear why more companies are turning to Indonesia for their offshoring needs.
Indonesia’s competitive workforce is making waves as one of the top offshoring hubs. Beyond just lower salaries, you’ll find that setting up operations here—whether it’s office rentals, hiring, or infrastructure—is way more cost-effective than in Singapore. From recruitment fees to equipping your team, initial setup costs are surprisingly budget-friendly. If you’re a Singapore-based company looking to scale without breaking the bank, Indonesia ticks all the right boxes.
Moreover, Indonesia is still a relatively new player in the offshoring industry as compared to countries such as India. Hence, hiring talents from Indonesia will be less expensive, helping you to save on hiring costs. No matter what stage your start-up is at, you’ll want to maximize your investments and resources while recruiting passionate individuals into your team.
Home to over 260 million people, Indonesia is brimming with talent, making it one of Southeast Asia’s largest talent markets. This enormous market is a great opportunity for you to invest, especially in their best product: their people. In Jakarta alone, over 200,000 university graduates enter the job market each year, with many specializing in high-demand sectors like tech, digital marketing, and finance.
The country is also seeing rapid growth in the startup ecosystem, driven by government support for digital innovation. Indonesia’s tech sector has seen an annual growth rate of over 10%, with cities like Jakarta, Bandung, and Yogyakarta now emerging as tech hubs.
Additionally, LinkedIn’s data indicates a steady rise in digital talent, with tech skills like software engineering, data analysis, and digital marketing among the most sought-after skills in the country. For companies seeking a young, ambitious workforce ready to tackle global challenges, Indonesia’s talent market offers an ideal mix of skills, adaptability, and passion.
Offshoring to Indonesia not only strengthens your company, but will also help you to understand the wants and needs of the Indonesian population. This will make expanding into the market a breeze!
That being said, offshoring to Indonesia doesn’t just happen with the nap of your fingers. There’s a whole lot of work to be done in order to get to the other side. Here’s three things you’ll most definitely need to kickstart your offshoring journey:
The first step is figuring out which parts of your business you want to offshore. Are you thinking of customer support, back-office roles, or maybe even IT development? Indonesia’s got a lot to offer in these areas.
Did you know that the country ranks 7th in LinkedIn’s 2023 Southeast Asia Talent Trends report for the fastest-growing pool of customer service roles? This makes it a prime destination if you’re looking to enhance customer support or technical helpdesks.
Plus, the vibrant startup ecosystem (with over 2,400 active startups!) creates a dynamic talent pool across tech, marketing, and customer service sectors.
With more than 65% of Indonesia’s workforce below the age of 35, this is a young, eager, and rapidly developing workforce. And they’re not just numbers—they’re talented too! For instance, Indonesia ranks among the top 10 countries in Asia for tech education, as highlighted by Startup Ranking 2023. Whether it’s digital marketing wizards or software developers you’re after, the local talent pool is both broad and specialized. You’ll find English proficiency is solid, too—Indonesia ranks 51st out of 111 countries in the EF English Proficiency Index 2022, meaning your customer interactions won’t get lost in translation.
Offshoring is largely about cutting costs, and here’s where Indonesia really shines. The average tech developer’s salary in Indonesia is about 60% lower than in Singapore, as reported by PayScale 2023. That’s not all—operating expenses, like rent and utilities, can also be 50-70% cheaper compared to Singapore or Hong Kong (Knight Frank SEA Real Estate Market Report 2023). By offshoring to Indonesia, you can stretch your budget further, investing the savings back into product development or expansion.
You don’t need to go through the hassle of setting up a local entity to start offshoring. We make it simple! At Glints, we provide access to vetted talent across Indonesia while managing the HR, compliance, and payroll. Think of us as your local talent bridge. We help Singaporean companies save up to 30% in recruitment and HR management costs while scaling rapidly—sounds like a win-win, right?
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There are a whole laundry list of things to take note of if you intend to offshore, but offshoring remains one of the best ways to cut down costs and gain global exposure. As a startup, offshoring to Indonesia will provide you with the talent and experience you wouldn’t have gotten otherwise in the constraints of your home country. That, we feel, will be a worthy investment for the future.
Want to start offshoring to Indonesia and help your business scale like never before? Want to expand your reach into the regional markets? Explore TalentHub, where we connect you with top talent and handle all the hiring, compliance, and HR processes—so you can focus on growing your business. Click here to learn more!
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