Software Development Outsourcing in Myanmar
Myanmar is a new emerging market for the ICT industry. IT outsourcing in Myanmar is just starting to gain momentum. It is quite new (in 2008 only 0.2% of the population had access to the internet) and rapidly developing because of the legislative changes made in this field. That’s why a lot of international companies are looking closely into IT outsourcing services in Myanmar. What are the main characteristics of the local IT industry? When considering software development outsourcing in Myanmar, businesses can benefit from leveraging custom software programming services and tapping into the expertise of AR developers to create innovative and immersive solutions.
- The industry develops pretty fast and there are 25 computer colleges and universities with about 6,000 graduates per year.
- It has been recognized as an important market by Huawei that has been providing technological services (AI and videoconferences) as well as work with local providers.
- About 70% of graduates with computer science degrees are women. They also represent the majority of the IT workforce.
- It is one of the fastest developing countries in the world. It is believed that by the year 2030 the ICT sector can bring $6.4 billion to Myanmar GDP.
Myanmar is a new and interesting destination for IT services, so people look into it as well as software development outsourcing to Bangladesh.
IT Market in Myanmar
The IT services sales in Myanmar are expected to bring in $565 million in 2023. The revenue for 2028 is predicted to reach $1,054 million, with an average annual growth rate (CAGR) of 13.28% during these five years. This pace is excellent for Myanmar as the same indicator for the US IT services market is two times lower (6.70%).
LinkedIn shows around 1,100 results when you search for a “software development company in Myanmar.” Many of these entities offer software development services to other countries and do that successfully. That’s because specialists forecast that more than 30% of the 2023 IT market sales in Myanmar ($184.2 million) will belong to its outsourcing segment.
The average annual salary of a software developer in Myanmar (formerly Burma) is 6,500, which makes this country attractive for IT outsourcing and outstaffing. Let’s explore the top tech hubs in this country so you know which location might fit your needs best.
5 Tech-Savvy Cities in Myanmar
Once you’re looking for outsourced staffing solutions in Myanmar, you’ll need to learn more about the country’s 5 largest and most tech-friendly cities.
- Yangon (formerly Rangoon). The most populated city in Myanmar has 5.6 million inhabitants and boasts offices of well-known IT companies like Nielsen, NTT Data, Grab, Rakuten, Appen, etc. LinkedIn finds 149 IT companies in Yangon, while the average salary of a technician here is $6,640 per year.
- Mandalay. Mandalay hosts over 1.5 million people and 37 IT-related companies registered on LinkedIn. Grab, Akamai, and Ooredoo Group are among the tech giants whose offices are open in Mandalay. A Myanmar mobile app developer (Android) is offered around $22,600 per year in this city.
- Nay Pyi Taw. A software developer in this city can earn up to $9,435 annually. So hiring, for instance, a web developer Myanmar is very cost-effective.
- Mawlamyine. The fourth-largest city in Myanmar has a population of 450,000 people. It offers a rich experience for tech specialists. So far, no Mawlamyine-based IT organization has accounts on LinkedIn. A software engineer vacancy here shows an annual salary of $680.
- Bago. Almost 250,000 people live in Bago, located 91 km away from Yangon. Glassdoor shows a software engineer vacancy offering $14,270 per year in Bago. This way, building a team of 3 coders in this city can cost up to $50,000 annually. The LinkedIn search returns no Bago-based IT companies.
Pros and Cons of Software Development Outsourcing in Myanmar
So what are the pros of software development outsourcing to Myanmar? Here are the main factors:
- The cost of the workforce is significantly lower than in other Asian destinations;
- It is one of the fastest-growing countries that go through rapid urbanization now, which promises more professionals;
- Burma outsourcing is popular due to further democratization of the country and the governmental focus on the ICT sector;
- The local market is much less competitive than hire developer Vietnam or India;
- Myanmar is located conveniently to provide service to Japan, Singapore, Australia, and New Zealand.
Like any other destination, IT outsourcing in Myanmar also has its cons, namely:
- The majority of local ICT companies focus on the internal market and have limited outsourcing experience;
- Software development outsourcing in Myanmar can be complicated due to underdeveloped physical and technical infrastructure;
- The lack of English skills makes software outsourcing and offshoring to Myanmar for English-speaking countries quite challenging.
The Average Salary of a Software Developer in Myanmar
Below, you’ll find the salaries of popular tech specialists in Myanmar. The numbers speak for themselves, highlighting the cost-effectiveness of hiring programmers in this Southeast Asian country.
As the table shows, the cheapest specialist with 4+ years of experience is the PHP coder (around $6k). The most expensive software engineer will be the Ruby developer with a $9k/year salary. Other programmers will cost you around $7k annually.
Alternatives to IT Outsourcing in Myanmar
Companies that look for more stability are interested in alternatives to software development outsourcing in Myanmar. Of course, Asia was one of the earliest IT hubs, but nowadays Eastern Europe and Ukraine especially are gaining more recognition. Here are the main reasons to consider this destination instead of software development outsourcing Myanmar:
- Ukraine is conveniently located for companies with headquarters in Europe. There is a minimal time difference (GMT+2) and lots of direct flights that’s why there are more than 100 R&D centers of industry giants here.
- Ukrainian developers have a great reputation for their high quality of code, which is still hard to say about software development in Myanmar. According to Topcoder, Ukrainian programmers are in 6th place worldwide. Ukrainian coders also scored 88.7 out of 100 in HackerRank competitions and took 11th place.
- There are no natural disasters and technical infrastructure is highly developed, unlike offshore software development in Myanmar.
- Ukraine is a European country that shares the same business ethics and values. Local programmers have great English knowledge, especially compared to IT offshoring to Myanmar.
All these point make Ukraine attractive outsourcing destination. So if you want to hire SW engineer, Ukraine is a good option.
Software Outsourcing Myanmar vs Ukraine: Comparison Table
To make an educated choice between software development service in Myanmar or Ukraine, one might take a look at the comparison table below.
|Number of graduates||There is no distinct information except 6,000 graduates per year||16,000 graduates per year|
|Education level||Higher education, usually BA||Higher education, BA or MA|
|Talent availability||Low, as there is a shortage of professionals in IT outsourcing in Myanmar||High as there is a wider talent pool overall|
|Risks related to natural hazards||Medium||Low|
|Average monthly rate for middle developers||$524||$2,000|
|Cultural similarity||Similar to Asian countries, which makes software outsourcing Myanmar advantageous for them. Not similar to EU or USA||Very similar to the EU and the USA culturally|
|Data safety and insurance||Not GDPR compliant||GDPR compliant|
|Quality to price correspondence||Low, there is a popular problem with copied code||High, great performance for the price|
|Ease of doing business||Not easy due to underdeveloped infrastructure, low number of experienced workers||Easy and convenient, especially for the USA, the UK, and the EU|
After all, the choice of Myanmar software development or Ukrainian dedicated team is up to your needs, budget, and location. The next important step is to find a credible vendor after you’ve chosen a destination.
Mobilunity – Your Trusted Vendor
Mobilunity offers staff outsourcing services in Myanmar as we have dedicated top-skilled recruiters working in this market. They have experience finding technicians in complex IT job markets in Southeast Asia. Our specialists consider the cultural peculiarities of Myanmar-based software engineers and use proven approaches to attract highly qualified technicians.
Mobilunity is a reliable Ukrainian IT company that provides dedicated development teams for international partners. We have more than 10 years of experience and can power up your business with the best programmers.
We have more than 40 international clients from all over the world and hundreds of released projects. Our team is always focused on clients’ needs and knows exactly how to find the best employees for your product.
Mobilunity is a vendor that offers you access to highly-skilled and talented Ukrainian developers that can tackle any project.
3 Cooperation Options for You
We at Mobilunity keep the cooperation format flexible. This allows us to fit any requirement and budget for hiring a Myanmar mobile software developer or other top-skilled coder.
- Dedicated Development Teams
This plan assumes hiring a team of software developers in Myanmar who work full-time for you. It’s the best for projects that last for 6+ months and get regular financing. We cover your team’s HR and accounting assistance while you decide who does what. This way, Mobilunity offers outsourcing staffing solutions in Myanmar that require a project manager from you. We issue monthly invoices with a pre-agreed fixed amount.
- Consultancy Services
This type of cooperation allows you to hire a web developer Myanmar or other technicians part-time. Without long-term commitments, you pay only for the hours your software engineer works. Select this option if you need specific stack consultancy, regular supervision, an IT training advisor, or another team member at high-load times. Under this plan, we also send you monthly invoices.
- Recruiting Services
The Recruiting-as-a-Service option allows you to leverage the experience of Mobilunity’s recruiters. They’ll advertise your vacancy on tech job boards and search LinkedIn to hire locally in Myanmar. Also, our specialists create their own talent pools and collaborate with colleagues to find the best candidates in Eastern Europe (Albania, Serbia, Croatia, Azerbaijan, Kazakhstan, etc.)
Hire developers in other Countries
Expand your team’s potential by recruiting top-notch developers from around the world. This approach offers access to a diverse range of skills and perspectives, fueling innovation and enhancing your projects’ global relevance.