Software Development Outsourcing in Myanmar: Overview and Risk Assessment
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?
- 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.
Time Zone: GMT+6:30
Average Monthly Rate of middle-level developer: $410
Biggest Tech Hubs: Yangon, Mandalay, Sagaing
Number of Graduates: 6,000 graduates per year
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 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;
- The software market is still largely underdeveloped and there is a shortage of experienced professionals;
- Software development outsourcing in Myanmar can be complicated due to underdeveloped physical and technical infrastructure;
- There is a widespread problem of copied code among software developers in Myanmar Burma;
- The lack of English skills makes software outsourcing and offshoring to Myanmar for English-speaking countries quite challenging.
Companies that choose to outsource software development to Myanmar might be facing significant risks.
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.
Time Zone: GMT+2
Average Monthly Rate of middle-level developer: $2000 (according to Mobilunity’s Recruitment Team research)
Biggest Tech Hubs: Kyiv, Lviv, Kharkiv, Odesa, Dnipro
Number of Graduates: 16,000 per year
Although software development Myanmar might look attractive based on the low rates, Ukraine has much more to offer when it comes to quality, convenience, and safety.
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 – Trusted Ukrainian Vendor
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.