Hiring A Remote Tech Team From Different Countries – A Statistical Overview
While business communities across the world endeavour to return back to pre-pandemic work systems, there is an increasing move towards the acceptance of hybrid and remote work even when lockdowns are being lifted. Specifically, the tech sector has seen a significant shift in the way businesses work with professionals whereby hiring a remote tech team from different countries is gradually becoming a norm, and in some cases, a need. This is unsurprising though since the past year has offered numerous case studies that highlight the merits and productive results of adopting this rather uncommon mode of hiring technical experts.
This article will now delve into exploring the cost dynamics of certain labour markets that stand out as promising platforms to hire remote tech teams from. This list is not exhaustive; the Coursera Skills Report catalogues a data-backed, comprehensive list of countries that make up the emerging and competitive markets for technology, data science and business skills globally. The tech sector, just like economies, develops incredibly fast and it is not uncommon to see a country enter the globally competitive labour or product/service markets unexpectedly. We compare the salaries and cost of living in seven countries to allow companies in different countries to gauge the implications of hiring from them. The cost of living data mentioned in this article is sourced from numbeo while salary data was procured from PayScale.
India – The Global IT Hub
India has seen its IT services sector grow by 2.3% with an additional $4 billion added to its revenue last year, according to a report by the National Association of Software and Services Companies (NASSCOM). The report also estimates the domestic demand to have increased by $2 billion during the period. The country enjoys a very growth-oriented culture of IT education which means that local education curricula and business enterprises are devoted to continuously improving the human resource skillset and investing in growth and transformational projects.
To get an overview of some relevant microeconomic stats related to the tech sector in the country, the average salary for an entry-level full-stack developer is $415, while a mid-level full stack developer can earn approximately $1,500 per month. More experienced professionals with over five years of experience are able to secure compensations above $2,000. Relevant to this is the cost of living in India, where, without rent, monthly expenses can be approximately around $329 every month. Residential rents are, on average, 86% lower in India than in the United States.
China – The New Leader in IT?
According to HackerRank, if there were an Olympics for programming, China would be a gold medalist. The country is one of the very top choices for outsourced software development work. With tech fields being extremely active, there is ubiquitous interest locally when it comes to learning up to date tech standards – one year sees approximately 4.7 million tech graduates ready to work in diverse areas of development in the sector including robotics, e-commerce, fintech, social media, telecommunication, automotive, etc.
Generally, costs in China are relatively lower as compared to other Asian countries as well, again making it more attractive for global companies to outsource their software engineers and product development from. In comparison with the US, living costs are estimated to be 48% lower in China, on average.
China’s incessant dedication to upping its tech game makes it a remarkable platform to hire remote tech teams from particularly when such teams have the potential to be very efficient and productive.
USA – Where It All Started
The United States is by and large host to the most advanced and innovative technology sectors on a global scale. Over 40% of the $5 trillion global IT market is made up of North American businesses. The tech sector also contributes over $1.8 trillion to the US value-added GDP with 11.8 million jobs in the country in this sector alone. Estimates from CompTIA suggest that there is over 525,000 software and IT services companies in the United States. Every year sees new and more innovative tech startups entering the highly competitive business arena.
A single person needs to spend over $1,000, on average, every month exclusive of rental expenditure. This is almost twice the cost of living for someone in China (without rent).
The US is the first stop to look for new IT trends and innovations to follow which in turn makes the tech talent pool of the country one of the most competitive and topnotch in the world.
Brazil – Promising Investments Opportunities
Brazil has shown to be turning into a very fertile ground for investments in tech businesses lately. 2018 alone saw the US investing over $45 billion in the country’s IT sector as well as providing student aid through projects like Science Without Borders to make IT education for Brazilian engineers more accessible. This has allowed the country to develop a large cohort of skilled developers that are able to work with international companies and meet global standards. Coursera’s Global Skill Index ranked Brazil in second place in Latin America as an emergent country in technology. The ICT sector is projected to inject around $845 billion into the economy through investments over the next three years making it even more attractive in the long term.
A single person living in Brazil incurs monthly costs of around $475 each month without rent making the place, on average, 48.8% less expensive than the USA.
Pakistan – A Promising Platform to Hire Remote Tech Teams
Over the past few years, Pakistan has entered among the top 5 countries that delivered freelance tech services worldwide while the country also saw its IT exports increase by 70% during the past three years. On top of the existing 2,000 tech companies, there are hundreds of startups driven by innovation and tech trends surfacing every year with several of them attracting millions of dollars in investment as well. Currently, there are over 50 incubation and accelerator programmes with the very top 10-20 startups graduating every year. The startup and business ecosystem has been made more robust through coworking spaces, BPO services, fellowship programmes and an upward trend of angel investments in the sector.
Software engineers still in the nascent stages of their career can expect to make $300-$400 per month on average, while someone with more skills and experience can secure a compensation close to $1,000 on average each month. An individual person’s monthly expenditures (without rent) add up to a little over $300 on average.
Russia – Making Tech More Competitive
Russia, with one of the world’s largest tech industries, is another major player in the global software engineering scene to hire skilled remote tech teams from. The International Data Corporation reported that the monetary value of the tech market in Russia grew by 7% in 2019 to reach the value of $24.88 billion. This growth was catalysed by both hardware and software products and services.
Software engineer salaries in Russia range from $700 to $2,000 on average depending on a person’s experience and skills. This income is often complemented with housing, transport and other benefits. On average, a single person’s monthly expenses, without rent, come up to around $520.
Croatia – Europe’s Growing Tech Hub
Young graduates and entrepreneurs in Croatia are entering professional circles as highly trained individuals in various areas of the tech sector. This recent spur of growth oriented mindset means that almost every industry in the country is now on the road to automation with new companies springing up to incorporate more innovative ideas into their respective sectors.
A software test engineer in Croatia can earn a salary between the range of $900 and $3,000 on average. Salaries can vary greatly owing to one’s level of experience, location, educational background and other factors. Overall, the cost of living in the country is around 21% lower than in the United States with a single person’s monthly expenses, sans rent, amounting to around $746.
This overview of some labour markets brings attention to a few countries that are rife with talent and ready to meet the growing global demand for skilled software engineers and developers. The cost of living estimates allows us and any companies that hire remote tech teams from these countries to have an understanding of the expected costs of hiring. Since pay scales for every country are different, Gaper also takes care of compliance and other legal issues that ensure that engineers get paid appropriately. The struggle lies in bridging this gap between this supply of skilled personnel and the demand for their services in other countries. Gaper’s business model aims to address this by evaluating, vetting and training these individuals and preparing them to meet global standards that are expected of professionals in this field.
The pandemic year taught everyone the importance of flexibility and adaptability. It is essential to be able to redirect and mould your business operations in alignment with the economic environment that is hosting it. This is of particular importance for startups and new companies that are entering a business environment that has undergone significant transformations over the past year. Similarly, in times of growth and opportunity, companies need to be on the lookout for the most efficient and effective means of traversing the growth path. Now, with an increasing acceptance of remote work and distributed tech teams, it appears that more and more businesses will now be willing to turn to these to fulfill their tech vacancies.