Guide to Software Development Outsourcing Asia 2021

Guide to Software Development Outsourcing Asia 2021

If you’ve been in the IT industry for a while, you might have already heard that outsourcing Asia is skyrocketing, attracting world-known companies and helping them save costs while delivering high-quality products. The region boasts an impressive number of software developers that are skilled in the top programming languages and technologies.

When opting for Asian outsourcing, the companies get access to a large talent pool of educated programmers, marketers, and designers. Besides, the region has an entrenched culture of collaboration, easily adjusting to any demands and being one of the world’s fastest developing economic regions. 

Asia has a strong position on four elements: consumer demand, large manufacturing companies’ concentration, labor endowment, and active policy support. These factors are the catalysts for technological advancements in the region.

Outsourcing to Asia is gaining some ground, approaching the world’s outsourcing leaders—Eastern Europe and Latin America. That’s why Qubit Labs has decided to dive deeper into the topic and see what else this hotspot for innovation has to brag about. 

 

Why is Asia IT Outsourcing In High Demand?

As per Grand View Research, the global outsourcing market size is expected to reach $405,6 billion by 2027. Asia, undoubtedly, will have a significant impact on reaching this number thanks to its infrastructure solutions and cooperation with big and small companies worldwide. 

Let’s see the key reasons for Asia outsourcing:

 

1. Large pool of skilled specialists

The Asian region is highly competitive because there are several qualified candidates for one vacancy. That’s why locals strive to excel in their skills and become the best in their areas of occupation—that’s the only way to stand out among the competitors. Even if you have specific project requirements that aren’t that common or need a specialist that has knowledge of a rare programming language, you’ll undoubtedly find one in Asia.

Also, outsourcing Asian countries is cost-effective because you pay much less money for the same quality of services when compared to the US. Local specialists put effort into fulfilling clients’ requirements because it’s crucial for them to retain their customers and keep the bar high. 

 

2. Convenient time zone

Effective time management is a prerequisite for success for any organization. Asia has a convenient time zone insofar as your outsourced employees will work when you’re asleep. That’s an effective way of decreasing the downtime and completing the work within shorter deadlines. 

 

3. Reasonable pricing

High quality often implies high prices, but not when it comes to Asian outsourcing. When you opt for the region’s countries, you enjoy low pricing, which is on this level thanks to high competition and an abundance of specialists. Although the region is often thought of as the option companies pick when they prefer quantity over quality, Asia is walking with long strides towards improving the services’ quality. 

 

4. Absence of a language barrier

Many business owners are worried about the possible misunderstandings between them and their Asia outsourcing partners. Nowadays, local software development companies aren’t limited to English; they often have specialists with the knowledge of German, French, or Spanish. 

 

5. Strong economic growth within the region

Since outsourcing Asian countries are rapidly developing, local vendors know all the struggles that hinder the business’ success. These challenges allowed the region for “growing” specialists that aren’t afraid of difficulties and can find ways out of any situation. 

Besides, Asia has accounted for 52% of global growth in tech-company revenues and 43% of startup investment over the last decade. The region’s countries came up with some notable tech developments, while local governments are vital catalysts for these advancements. 

We understand that choosing among the best software development in Asia countries is cumbersome. So, we came up with a list of the key tech hubs in the region to facilitate your choice. 

 

What are the Best IT Outsourcing Asian Countries?

India

India is probably the most famous among other outsourcing Asian countries and is often compared to the major tech hubs of other regions. India faces an exponential increase in demand for local IT outsourcing services, and its IT spending is estimated to reach $93 billion by the end of 2021. 

The country boasts a high rate of developers with extensive experience and qualifications, so you can find technically competent specialists specialized in various areas. The IT industry is among the top 5 priority areas in Indian, so the local government is implementing policies aimed at advancing this sector. This, in its turn, allows for less complicated legal issues, lower taxes, and improved communication.

Moreover, India is the second-largest English-speaking country with software costs that are several times lower than in the rest of the world. To name a few, Microsoft, Cisco, Amazon, and Google are the companies that selected India as their outsourcing destination.

 

The Average Rates of Indian Software Development Outsourcing Companies  

Outsourcing Company Hourly Rates
Trigent $25 – $49
Computer Solutions East  $100 – $149
ThirdEye Data $50 – $99 

The average outsourcing rates in India range from $25 to $149 per hour. 

 

Average Software Developer Rates in India

Average Software Developer Rates in India

Programming Language Hourly Rates
Python $6,88
Java $6,67
JavaScript $6,11
C# $2,60
Ruby $11,78

 

  • Python developer hourly wage in India is $6,88
  • The average Java programmer in India makes $6,67 per hour
  • JavaScript hourly rate in India is $6,11
  • C# developer hourly rate in India is $2,60
  • In India, the average Ruby programmer hourly rate is $11,78

 

China

This country is home to 26% of the world’s unicorns and leads the way in tech entrepreneurship in Asia. In China, there are around 10,97 million outsourcing professionals and over 6,600 outsourcing vendors. The local government makes arrangements to ease up on foreign access restrictions and implements regulatory reforms to provide growth opportunities to the outsourced service industry. 

The country is a hot opponent for American software developers because local programmers boast extensive knowledge and deliver cutting-edge solutions at a lower cost.

 

The Average Rates of Chinese Software Development Outsourcing Companies 

Outsourcing Company Hourly Rates
Global Data Solutions Limited $100 – $149
Cloopen $50 – $99
Beyondsoft Corporation $150 – $199

On average, Chinese outsourcing software companies charge from $50 to $199 per hour.

 

Average Software Developer Rates in China

Average Software Developer Rates in China

Programming Language Hourly Rates
Python $26,23
Java $26,32
JavaScript $21,30
C# $19,61
Ruby $23,30

 

  • The average Python hourly rate in China is $26,23
  • Java developer in China makes $26,32 per hour
  • The hourly rate of a mid-level JavaScript developer in China is $21,30
  • In China, C# developer hourly wage is $19,61
  • Ruby programmer makes $23,30 on an hourly basis in China

The Philippines

This outsourcing Asia option has over 1,35 million software development specialists and covers around 10-15% of the global market share of the IT-BPO industry. The government supports the industry’s development by enacting tax breaks, educational grants, and simplified import/export procedures. Also, the county’s authorities support growing and globally competitive software companies to increase their market share in the international arena.

The Philippines are excellent for Asian outsourcing because the country is a melting pot of different cultures and nationalities, so local software developers easily adapt to the ways of doing things in other countries. Besides, when cooperating with Filipino programmers, you can spend around 5 times less money compared to when software development is executed by their Western colleagues. 

The biggest companies that outsource to the Philippines are Oracle, Microsoft, and JP Morgan Chase & Co.

 

The Average Rates of Filipino Software Development Outsourcing Companies 

Outsourcing Company Hourly Rates
Arcanys $25 – $49
Hireplicity $25 – $49
1902 Software $50-$99

Software outsourcing companies in the Philippines usually charge from $25 to $99 per hour.

 

Average Software Developer Rates in the Philippines

verage Software Developer Rates in the Philippines

Programming Language Hourly Rates
Python $5,74
Java $5,70
JavaScript $3,91
C# $3,62
Ruby $6,77

 

  • Python developer hourly rate in the Philippines is $5,74
  • Java programmers make $5,70 on an hourly basis in the Philippines
  • The average JavaScript developer hourly wage in the Philippines is $3,91
  • A Filipino C# programmer earns $3,62 per hour
  • A mid-level Ruby developer hourly rate in the Philippines is $6,77

 

Malaysia

When outsourcing to Asia, consider choosing Malaysia. The country’s estimated BPO revenue is $1,4 billion by the end of 2021. Local outsourcing companies are putting effort into being at par with global competition, and the government is trying to strengthen the workforce to keep up with the industry’s demands. 

The country’s technology hub, TPM, houses over 150 tech companies and offers a qualified labor pool of skilled and experienced software developers.

 

The Average Rates of Malaysian Software Development Outsourcing Companies 

Outsourcing Company Hourly Rates
Kadam Technologies <$25
Avows Technologies Sdn Bhd $100 – $149
Denariusoft  $25 – $49

The cost of Malaysia software outsourcing companies’ services starts from <$25 to $149 per hour.

 

Average Software Developer Rates in Malaysia

Average Software Developer Rates in Malaysia

Programming Language Hourly Rates
Python $11,12
Java $16,32
JavaScript $35,47
C# $12,84
Ruby $13,72

 

  • Python developer hourly rate in Malaysia is $11,12
  • Java programmer in Malaysia earns $16,32 per hour
  • The average hourly wage of a JavaScript programmer in Malaysia is $35,47
  • A mid-level C# programmer in Malaysia charges $12,84 per hour
  • The average hourly rates of Ruby developers in Malaysia are around $13,72

 

Singapore

The total revenues from BPO services in Malaysia are worth $829,7 million, while 98% of local companies rely on outsourced infrastructure services. When outsourcing Asia, pay attention to Singapore because it has one of the lowest tax rates in the world and pro-business policies that allow for rapid development of global business companies with their offices in the country. 

The local government introduces changes to the regulations to support software developers and help the country keep its position in the GTCI, where it ranked 3rd in 2020. Such companies as Dell, Microsoft, Facebook, Apple, and Google outsource their services to Singapore, so you can tell that it boasts the best software development in Asia countries for a reason.  

 

The Average Rates of Singapore Software Development Outsourcing Companies 

Outsourcing Company Hourly Rates
Singsys $25 – $49
Buuuk $100 – $149
Calvin Seng Co $25 – $49

The average Singapore software outsourcing company rates range from $25 to $149 per hour.

 

Average Software Developer Rates in Singapore

Average Software Developer Rates in Singapore

Programming Language Hourly Rates
Python $44,95
Java $54,23
JavaScript $48,42
C# $32,98
Ruby $34,96

 

  • Python developer hourly rate in Singapore is $44,95
  • The average Java programmer in Singapore charges $54,23 on an hourly basis
  • Singapore JavaScript software programmer hourly rate is $48,42
  • C# developer in Singapore earns $32,98 per hour
  • Ruby developer hourly wage in Singapore is $34,96 on average

 

Wrapping Up

Narrowing your search to Asia outsourcing is a prerequisite for finding a reliable vendor. However, choosing the best destination among the region’s countries might be challenging because you need to take into account their specificities and understand whether they correspond to your requirements. 

If you’re not up for doing the research and highlighting the pros and cons yourself, you can entrust this to Qubit Labs. We will be glad to help you address any issues you might have regarding outsourcing. 

Contact us to discuss any questions.

 

 

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