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Every employer dreams of growing beyond their home turf, but it takes a lot of time, effort, and a bit of risk-taking. Still, there are compelling reasons why many employers are ready to make that leap. In markets where skilled talent is in short supply, looking beyond local boundaries opens the door to a wider talent pool, bringing fresh skills and diverse perspectives to the table.
With the global economic pinch, businesses are reevaluating their strategies. While some tech giants are steering teams back to the office, others are exploring cost-effective ways to sustain growth. Southeast Asia (SEA) has emerged as a prime destination for remote tech talent.
So, what makes Indonesia, Vietnam, and Philippines stand out for employers looking to build remote tech teams? Let’s break it down:
The ongoing economic downturn and inflation have resulted in significant layoffs across many tech firms, with major players like Meta and Twitter letting go of thousands of employees recently. Even Shopee, a well-known Singapore-based online marketplace, has gone through three rounds of retrenchments since mid-2022.
However, amid this challenging landscape, there’s a silver lining. The influx of skilled tech talent now available in the job market presents a fantastic opportunity for non-traditional tech employers eager to boost their digital capabilities. Small businesses, including SMEs and startups that might have struggled to fill tech roles just a few months ago, can now tap into this expanded talent pool—provided they’re in solid financial health.
For employers in Singapore, this is especially promising. The demand for skilled tech talent is higher than ever, with the island nation being home to the headquarters of tech giants like Grab and Razer. This competition has intensified the struggle to find qualified candidates in an already tight market.
The situation is similar across the pond in the US, where the labor shortage currently sits at 70%, just five percentage points below the global average. This means that 7 in 10 employers are unable to find suitable candidates for their job vacancies, putting a strain on operations and growth.
To navigate this talent shortage, many companies are looking beyond local borders to neighboring countries like Indonesia, Vietnam, and Philippines. By doing so, they can access a more diverse talent pool while maintaining cost efficiency. This approach not only helps companies secure the talent they need but also supports their growth in the competitive digital landscape.
The country boasts a 96% literacy rate, and its fast-growing digital economy has led to a steady flow of graduates equipped with specialized tech skills.
From 2021 to 2023, Vietnam’s digital economy has been the fastest-growing in Southeast Asia, and this momentum is expected to continue until 2030, with only the Philippines keeping pace. This growth opens up exciting business opportunities and drives up the demand for skilled talent across various sectors.
Startups are popping up like mushrooms in Hanoi and Ho Chi Minh City, propelling Vietnam to third place in Southeast Asia for investment and funding. Alongside Indonesia and Singapore, Vietnam is part of the “golden triangle of startups,” especially with the surge in fintech and blockchain ventures that showcase a new wave of entrepreneurial spirit.
What makes Vietnam particularly appealing for companies is its lower labor costs compared to other regional players. With over 400,000 engineers and 55,000 IT graduates entering the workforce each year, the talent pool is robust. For context, a full-stack developer with 5-10 years of experience earns 2.2 times less than their counterparts in Singapore, while a data engineer’s salary is about 2.5 times lower.
The Vietnamese government is also doing its part to attract foreign investment by offering tax breaks and streamlined regulations. The tech sector has seen tremendous growth, leading to the rise of innovation hubs and a notable improvement in the country’s global innovation ranking—moving from 62nd to 57th out of 132 countries in just four years.
Certain domains like Web3 and AI have matured significantly, with Vietnam even ranking first globally in cryptocurrency adoption, outpacing giants like the US and China. With a national policy for AI research and development set to last until 2030, Vietnam is well on its way to becoming a vibrant hub for innovative tech talent.
Indonesia’s thriving e-commerce sector has sparked high demand for tech talent, creating a new generation of skilled professionals. Unicorns like Tokopedia and Gojek have inspired a wave of young tech enthusiasts eager to contribute to the digital economy, which is projected to grow by over $100 billion by 2025.
With around 2 million graduates entering the workforce annually, Indonesia offers employers a diverse mix of tech skills, from web development and fintech to machine learning and AI. Institutions are also stepping up to offer more tech programs to meet industry demand, making it easier to find skilled candidates.
As Indonesia’s tech scene flourishes, it’s not just nurturing software developers, product designers, and data engineers; it’s also creating a growing number of digitally-savvy professionals in business development, sales, and marketing. With businesses increasingly leveraging AI for growth and operating with leaner teams, these professionals are enhancing their tech skills and soft skills to stay ahead of the curve.
As companies prioritize innovation and profitability, the need for skilled talent continues to climb. The good news? Indonesian talent comes at a significantly lower cost compared to their peers in Southeast Asia. For instance, a full-stack developer in Indonesia with 5-10 years of experience earns about 3.8 times less than their Singaporean counterparts. Similarly, the salary for a sales representative is around 4.8 times lower than in Singapore. This makes hiring skilled talent in Indonesia a cost-effective strategy. With skill sets expected to grow rapidly, it’s clear that salaries will likely rise in the coming years.
With strong English skills and a vibrant entrepreneurial-tech culture, the Philippines has earned its title as “The BPO Capital of the World.” Tech companies from Singapore, Japan, the US, and Germany are actively tapping into Filipino talent to meet their workforce needs.
Ranking 2nd in English proficiency across Asia—just behind Singapore—this advantage is crucial for roles that demand excellent communication skills, such as customer service, sales, and tech support.
What truly sets the Philippines apart is its position as a prime destination for global labor arbitrage, thanks to its lower salary expectations. This cost-effectiveness makes it a smart choice for companies in higher-cost regions looking to outsource operations. For instance, a local Business Development Manager in the Philippines can earn up to 70% less than their counterpart in Singapore.
But don’t let the lower salaries fool you—the talent pool in the Philippines is impressive. It’s filled with highly educated professionals across various fields, particularly in tech, content marketing, and business development. With such a diverse and skilled workforce, the Philippines is a go-to choice for companies aiming to bolster their teams while keeping costs in check.
As the demand for tech talent continues to surge across the globe, expanding your hiring horizons to include Indonesia, Vietnam, and the Philippines can provide a strategic advantage for your business. Each of these countries boasts a vibrant pool of skilled professionals ready to tackle the challenges of the digital age, all while offering significant cost benefits compared to hiring locally in markets like Singapore or the US.
With Indonesia’s booming e-commerce sector, Vietnam’s rapid digital economy growth, and the Philippines’ strong English proficiency, you can tap into diverse skill sets that can drive innovation and efficiency in your operations. Embracing this talent not only helps you stay competitive in a challenging market but also opens doors to fresh perspectives and ideas that can fuel your company’s growth.
In today’s landscape, where agility and adaptability are key, leveraging the strengths of these emerging tech hotspots could very well be your next smart move. So why not consider exploring these markets for your next wave of talent? Your future team might just be a flight away!
Build your team with Glints TalentHub. We make hiring across Southeast Asia simple, helping you find skilled talent quickly and affordably. Schedule a call with our team today, and we’ll guide you every step of the way toward creating a stronger, more cost-effective team.
This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.
Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.
Schedule a no-obligation consultation with our experts to receive a tailored proposal today!
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