Post the disruption from the pandemic, many Enterprises realized that the remote model might not be as bad as it seems. The ongoing digital transformation had already ushered many tools that made quality collaboration with far-off resources realistically possible. The next natural, logical consequence of this was offshore collaboration.
Connecting with experienced IT teams in remote areas of the world looked feasible. You could quickly locate a talented group of qualified professionals to execute your project. However, going abroad does invite confusion. Multiple regions with a pool of experts, varying economics, cultural differences, and other parameters can make the hiring process a bit daunting.
So, which nations make the best hub for an offshore model. Let’s dive in to find out.
India is already positioned as the leading offshore development company in the world. With 1.3 billion people, the region saw the biggest IT boost in the mid to late 90s and has only grown by leaps and bounds since then.
According to industry estimates, around 1.5 million software engineers graduate in India every year. The likelihood of landing developers from your specific niche is also pretty high.
• Rates: The average hourly software developer rates range from $15-$50. Besides being cost-effective, these developers get internally screened. Depending on your requirements, most companies offer different tiered hiring models, such as dedicated, time-based, and project-based.
• Language: In terms of languages, most states have their state-specific languages. But a broader exposure to English content and an English-backed education system should mean you’ll not face any problems in communication.
• Time zone: Even Though there is a 9:30 to 11:30 hour difference between India and USA, the overall willingness of most offshore software companies to work at your convenience negates it completely. Most developers are pretty flexible, and you’ll also find resources willing to sync according to your shift timings.
• IT hubs: Bangalore has already established itself as an IT state within India. Major IT giants like Google, Apple, and Microsoft are all setting up their Research Centers in Bangalore. India also has around 60+ SEI CMM level 5 certified software companies.
China is another nation that has a superior infrastructure and a pool of talent that can easily accommodate your custom development needs. As per Go Remotely, China’s software development industry is growing at 6% to 8%, which is bound to create more openings for International companies.
China has also constructed more than 50+ science and technology industry zones throughout the country – thereby positioning it to handle the growing demand for software development.
• Rates: Not only does China have a massive pool of IT specialists, but it also charges much less compared to other prominent offshore nations. The development rates in China can vary between $15-55, but overall the rates are pretty value for money. You get the best returns for the time, effort, and money invested in an offshore Chinese team.
• Government: The government is very supportive of the IT industry and continues to roll our policies and plans to support further growth in the region. This makes long-term collaboration relatively easy, as any reputed IT hub will only push forward in the immediate future. According to China’s Ministry of Commerce, in the first two months of 2021, businesses inked service outsourcing contracts worth $26.45 billion.
• Language: The locals strongly lean towards Mandarin and Chinese, but new-age millennials and Gen Z can easily communicate in English. Even then, most aren’t as well-versed with the Western culture, so expect to experience some difficulties working with Chinese developers.
• Population: China has over 1.1 billion people, and out of this, it adds almost 500,000 programmers every year. Shanghai, Beijing, Hongkong, and Shenzhen serve as the significant IT states within China.
• Time zone: There is a 12-hour time zone difference between China and the US, so don’t expect instantaneous responses unless the software team is willing to sync with your time zone.
As an offshore development nation, Brazil hadn’t figured in the list of top countries to hire remote developers. But, in recent years, this pattern saw several changes, and the country plans to accelerate towards new IT opportunities. Brazil produces over 450,000 software engineers per year and is now the leading Latin American outsourcing country.
• Culture: the colorful culture of Brazil is known to blend effortlessly with any community in the world. A strong leaning towards Portuguese with a core English education system and solid global exposure means Brazil does well in breaking the cultural and language barriers.
• Rates: The rates can vary based on experience; elementary level developers can charge anywhere around $20-40 per hour, while Senior developers in complex projects will quote around $70-80 per hour. It all comes down to your project specifications. Brazilian software developers make only about $18,000 per year, compared to the $75,000 charged by US developers.
• Time Zone: Brazil and the US east coast only have a time difference of one hour, whereas, with the west coast, this difference is only 4 hours. Working with software developers in Brazil is like working in real-time. The minimal time zone differences mean you can collaborate seamlessly.
• Government Support: The Government has already set up many dedicated tech parks all over the country in Sao Paulo, Rio de Janeiro, Porto Alegre, and Curitiba. Many of the Brazilian IT parks are renowned globally for their research centers, the density of developers, and various well-renowned tech companies.
Vietnam has time and again served as one of the best places to hire offshore development teams. Even the overall political climate in Vietnam is pretty stable, which puts you at ease while outsourcing your tasks. Furthermore, the government has taken initiatives to boost IT projects across Vietnam.
According to the “Vietnam IT Market Report, Vietnam ranks 5th in the global service location index, 13th in the top 50 digital countries, and 18th in the top 100 outsourcing destinations.
• Rates: Vietnam is well-known for its reasonable labor costs, facilities, and infrastructure. The average cost to hire a developer in Vietnam can come to around $18-32, which is cost-effective compared to other countries. Investors in Vietnam will realize the cost-benefit in Vietnam is much higher than that in India or China.
• Technology: Many developers in Vietnam start at a young age. According to BSS Commerce, around 8.24% began coding before 20. The number of young developers aged 20 – 29 years old in Vietnam accounts for 54.76%. Most developers, therefore, have an expert level of understanding and exposure in almost all top-tier in-demand programming languages such as Java, PHP, .NET, and more.
• Culture: Vietnamese is the official language. However, English is favored as a secondary language. Interacting and explaining your pain points and discussing your project specification won’t be an issue with the Vietnamese software developers. In fact, according to the English Proficiency Index (EPI) in 2014, Vietnam ranked 2nd in the world with the most English proficient software developers.
• Government Support: The government has already introduced policies to attract foreign investment to initiate a concrete digital transformation. Vietnam has become an attractive destination to hire offshore software developers for technology investors. Both Hindustan Computer Limited (HCL) and Qualcomm opened their offices in Vietnam in 2020.
• Time Zone: When it comes to the time difference, Vietnam is around 11 hours ahead of the USA, and this may make communication a little unpleasant. Co-ordinating in real-time may not be possible unless the offshore agrees to your time zone.
Argentina is another top-tier destination for businesses from around the world. If you are looking to outsource work, you can’t afford to look past Argentina.
From quality to communication, believe it or not, Argentina can be just as good at software projects as they can be at their Football skills. From agile to adaptive, they provide any project methodology you want.
• Number: The population of Argentina is somewhere around 45 million and out of it manages to produce about 100,000+ developers every year.
• Education: According to a survey by US news, Argentina ranks 29th in the list of top countries for education in the world. This only means that Argentina values its academia more than anyone.
• Time Zone: Time zone is a definite advantage for Argentina. Any remote software team in Argentina won’t even be offshore, seeing as they are situated just 1 hour away from US time zones – making it a nearshore company. Expect to receive a shorter response time to address any queries or glitches on your projects.
• Language: Argentina scores a whopping 58.38 on the English Proficiency Index, which shows the exposure their software talent has towards English. Communicating with them won’t be a struggle.
• Rates: The development rates in Argentina can range from $30-65, but complex high-level projects that require expert assistance may not be as affordable. Nonetheless, Argentina’s proficiency in various tech languages means they wouldn’t compromise on quality.
If you are looking to start a low-cost, impactful, responsive, and high-performing offshore development team, you want to look into the Philippines. So much so that UK’s National Outsourcing Association even voted the Philippines as the world’s number one outsourcing destination three times.
• Number: The population of the Philippines is somewhere around 100 million, which is a lot of people for an island nation. However, they only manage to see around 130,000+ tech students graduate every year from various universities.
• Culture: Philippines was once a US colony, and most people are pretty westernized anyways. The Philippines is one of the most “US-friendly” nations in Southeast Asia. You’ll have the same energy and vibe when communicating with a software developer as you do with a local in the US.
• Language: In terms of language, there aren’t going to be any issues. The Philippines figures as one of those nations where over 90% of the population understands and speaks English. The country also ranked 13th on the EF English Proficiency Index, ahead of Switzerland. In southeast Asia, the Philippines has the second-highest level of English proficiency after Singapore.
• Technology: Most developers in the Philippines are well-versed in Java, PHP, ASP.NET, Ruby on Rails, C, and many more programming languages. Plus, locals pro-actively take up programming tutorials and courses to elevate their knowledge.
• Rates: The Philippines has always been a cost-effective market. According to a report by IDR, the average rate of hiring a developer in the Philippines is somewhere around $15-45 per hour. That’s is pretty cost-effective. Next time you want to get quality services at reasonable rates, reach out to an IT company in the Philippines.
In the new normal, hiring from many nations is suddenly a possibility. This allows you to spread your recruitment net into territories outside your proximity. However, you need to factor in the unique challenges in different regions regarding language, culture, rates, etc. Once you get past the initial hurdles, it won’t be long before you realize a smooth working model.
From nations in Asia such as China, Sri Lanka, or even India to countries in Africa, you can set up a remote base anywhere. India takes it one step further, since many IT companies here run a dedicated offshore package that caters to different business types (B2B/B2C) in almost all industry verticals. Ultimately, pick the nation that aligns best with your finances, culture, requirements, and other parameters.