Finding a top-notch app developer in Singapore is hard! Recruiting them is even harder when you have to compete with those tech giants such as Tencent, Amazon, and the like.

Many growing businesses are choosing to build their own tech team in Vietnam as a much more affordable alternative with great results.

But how much can you really save up by recruiting these Vietnamese app developers compared to local hires? Is it even worth the trouble of offshoring? After all, a measly 2~5 percent cost reduction would definitely not justify the risk of it.

Well, let’s find out!

Salary rate factors

Not every app costs the same price to build, and not every developer charges the same rate. When it comes to a developer’s salary, there are several factors that can affect it significantly.

Market availability

When tech talent is rare, you have to pay much more to appeal to them. On the other hand, if the market is overflowing with IT talents, their salary and compensation will also be much cheaper.

Unfortunately, Singapore is well-known for its limited talent pool with a severe shortage of developers. Meaning that if you want to hire app developers in Singapore, be prepared to pay the big bucks.

Year of experiences and job role

It goes without saying that the more experiences an employee has, the higher their expected salary. According to a recent report, an app developer with 2 to 4 years of experience in Vietnam would cost around $1,000 to $1,500, while management-level hires can vary between $1,500 to $2,500.

Skillset

Each job has a different requirement with its own skillset. Therefore, depending on the programming languages, certain perks, or skills, you can expect the salary varies differently compared to others.

Location

The developer’s salary is also affected by the place they live and work. For example,  Singapore is one of the most expensive places in the world so the employee salary has to start at a much higher rate compared to its neighbor.

Cost of hiring app developers in Singapore

Let’s take a quick look to figure out how much it cost to hire an app developer or a tech team in Singapore. As mentioned above, there are different factors that can affect the developer salary but recruiters often based on years of experience as the main metric. And

Let’s take a quick look to figure out how much it cost to hire an app developer or a tech team in Singapore. As mentioned above, there are different factors that can affect the developer salary but recruiters often based on years of experience as the main metric.

Position Level (Experience) Salary (US$/month)
Junior 0-2 years 3,537
Mid-senior 2-5 years 4,462
Senior 5 years + 5,887

From our experience, startups with small scale and limited budgets should focus on building their tech team of three members, including one junior, one mid-senior, and one senior. Meaning you have to pay at least $13,887 per month to hire those app developers in Singapore. That is a lot of money to hire an app developer!

Moreover, the country is facing a severe shortage of tech talent in the next decade with 56 percent of employers reporting having extreme difficulty finding the right candidate. As a result, the “real” salary offer often ends at a much higher rate than expected.

Cost of hiring app developer in Vietnam

According to Vietnam IT Income Salary, Vietnamese app developer salaries is much cheaper than Singapore hires. Meaning, you can hire more talents to improve your tech operation while still having some extra cash to spend on other needed areas such as HR, office rent, equipment, etc.

Position Level (Experience) Salary (US$/month)
Min Max
Junior 0-2 years 500 1,000
Mid-senior 2-5 years 1,000 1,500
Senior 5 years + 1,500 2,500

 

Why Vietnam is the better choice for hiring app developers

Affordable but adequate tech talent

Vietnam is well known for being one of the best offshoring destinations for its affordable but wide tech talent pool. For example, a team of three technicians usually costs only $5,000 per month in Vietnam while a team with the same quality and quantity of members in Singapore may cost $13,877.

The cost of hiring app developers in Vietnam is approximately lower by 60 percent when compared with Singapore. Especially the disruption caused by COVID19 has had a significant impact on the world’s economy, the effective cost is much more valuable.

Shorter recruitment time

The country’s labor force is ranked in the top three countries that have the highest IT talent in the next five years. Meaning one of the biggest strengths of Vietnam lies in its availability of tech labor. Thus, you can find the right candidate with the appropriate skill set in a much shorter time compared to Singapore while having a better chance of hiring them successfully.

Easier for employee retention

Vietnamese app developers prefer working in a professional environment with a competitive salary, especially for international business where they can practice and use English frequently. Therefore, Singapore-based companies will be able to appeal to top-notch app developers in Vietnam who have a high level of commitment and loyalty.

Conclusion

If you are looking for an alternative to hiring app developers for your business in Singapore without burning up all the budget, then offshoring to Vietnam is one of your best bets.

However, recruiting and managing offshore tech teams are extremely difficult and require near-perfect execution so we recommend you seek a trusted HR service provider who is an expert at IT recruitment in Vietnam.


Trung Ho is a digital marketing lead at Tech JDI, a venture support services company that helps startups swiftly access the market and resources in Vietnam.

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