Software Development Outsourcing in Thailand: Pitfalls & Possibilities
Asia was one of the first IT outsourcing hubs to attract international capital. Along with India and China, companies are also interested in hire developers in Myanmar and Thailand. In the last few years, Thailand has been experiencing a digital transformation that impacts all spheres of life in the country.
IT Market in Thailand
Thailand’s IT industry is witnessing a robust growth rate of 7.96%, solidifying its position as a major player in the global tech arena. With an impressive tech export of IT outsourcing Bangkok value of 45.84 billion, it reflects the strong technological prowess of the country.
The landscape comprises about 4,400 IT companies, harnessing the skills of approximately 1.2 million IT professionals proficient in popular programming languages including PHP, Lua, .NET, Java, and Node.js
The primary trends shaping custom software development Thailand are:
- Big Data and Analytics. Businesses are leveraging big data and analytics to derive actionable insights from large volumes of information.
- Cloud Solutions. The adoption of cloud solutions is on the rise due to their scalability and cost-effectiveness, enabling businesses to manage their resources and data more efficiently
- Internet of Things (IoT) and smart devices. IoT is revolutionizing various sectors, making processes more efficient and user-friendly.
- Artificial Intelligence (AI). Advancements in AI are leading to the development of smarter solutions, from customer service chatbots to predictive analysis tools
- Blockchain technology. Beyond cryptocurrencies, blockchain technology is finding applications in secure data sharing and supply chain management.
- Robotics and 3D printing. These technologies are transforming traditional manufacturing and prototyping processes, ushering in an era of highly customized and efficient production.
- Web design and development. Businesses apply to software development company in Bangkok to build building engaging and user-friendly digital platforms to connect with their audiences.
- Offshoring software as a service. This trend is gaining momentum, offering global businesses cost-effective and scalable software solutions.
Thailand’s Tech Landscape: A Tour Through Key Cities
Thailand’s thriving tech sector spans across the country, boasting an array of skilled professionals. The pool of talent, which includes proficient website developer Bangkok, contributes significantly to the nation’s digital landscape. Let’s delve into some key Thai cities and their tech industry offerings.
- Bangkok
Bangkok, as the capital and the most populous city of Thailand, is also the hub of the country’s tech industry. The city has an estimated 1300 software developers, significantly contributing to the city’s economy. A software developer Bangkok earns an average salary of $1500-2500, reflecting the lucrative opportunities available in this booming sector.
- Nonthaburi
Nonthaburi, Thailand’s second-largest urban area, is also a growing destination for IT companies. The city is home to around 330 software developers, who enjoy an average salary of $1100-2200. The presence of this skilled workforce underscores Nonthaburi’s strategic importance in Thailand’s IT landscape.
- Nakhon Ratchasima
Nakhon Ratchasima, often known as Korat, is an emerging tech hub in Thailand. It boasts of an approximate 300 software developers who earn an average salary of $1100-2100. Their expertise contributes significantly to the city’s economy, supporting its growth in the tech sector.
- Chiang Mai
Chiang Mai, known for its picturesque landscapes and cultural heritage, is also becoming a center for IT innovation in Thailand. Approximately 880 software developers call this city home and earn an average salary of $900-1500. This thriving tech community further software outsourcing Chiang Mai economic diversity and prosperity.
- Hat Yai
Despite being a smaller city, Hat Yai plays a crucial role in Thailand’s tech scene. It is home to around 270 software developers, earning an average salary up to $2000. This vibrant tech community highlights Hat Yai’s growing influence in the IT industry, despite its size.
Exploring the Benefits of IT Outsourcing in Thailand
Software development outsourcing in Thailand is a growing trend, offering a host of advantages that are attracting international businesses. As with every tech hub, there are both benefits and potential pitfalls, but the focus here remains on the compelling positives of IT outsourcing to Thailand.
- Affordable hiring costs
A primary attraction for software development companies in Thailand is the relatively lower salary rates of Thailand software developers. These skilled and educated professionals provide top-quality services at costs around 60% lower than their counterparts in the U.S.
- Significant talent pool
Although the concept of IT outsourcing Thailand is fairly new, the country is home to approximately 100,000 proficient developers. This provides access to a talent pool that could be scarce in other regions.
- Effective project management
If you’re considering software development company in Thailand, you’ll find the city’s developers to be dedicated, efficient, and courteous. Their strong work ethic and adherence to deadlines make them reliable partners.
- Stable Infrastructure
Compared to other Asian regions, IT oursourcing Bangkok is less risky in terms of infrastructure. The country boasts a stable internet connection and consistent electricity supply.
While software outsourcing companies in Thailand offer several advantages, businesses must also consider potential challenges, such as lower English proficiency, significant timezone differences for European and U.S. clients, and certain cultural nuances. However, the increasing popularity of software development companies in Bangkok is a testament to Thailand’s growing tech prowess.
Alternatives to Software Development Outsourcing Thailand
Those who are not sure about IT offshore outsourcing in Thailand probably wonder what the alternatives are. Although Asia has been at the forefront of IT outsourcing, there are other excellent destinations to choose from, for example, Ukraine. It is one of the leading outsourcing destinations in Eastern Europe.
To compare Ukraine to offshore software development Thailand, check out the pros of this European destination:
- Minimal time zone difference with Europe. There are lots of direct flights and easy communication. Depending on the state, there is also a window to have online meetings with Ukrainian developers.
- High quality of delivery. Unlike IT outsource Thailand; Ukrainian programmers have proven their reputation worldwide. For example, they are in 6th place worldwide according to TopCoder and in 11th place in HackerRanking list. Here a business can find highly-skilled and experienced programmers that ensure top-notch quality of services.
- Good English skills. According to Global ranking, Ukraine is in 44th place among other countries. Local companies invest in additional language education and Ukrainian developers have good English proficiency. It makes cooperation much easier.
- Ukraine has a wide talent pool with 200,000 programmers to choose from.
- As a part of Europe, Ukraine is GDPR compliant and shares the same business ethics and culture.
Legalities of Software Development: Hiring and IP in Thailand and Ukraine
Navigating the hiring process and intellectual property (IP) protection in Thailand and Ukraine comes with certain legal implications.
When it comes to hiring a software developer Thailand Labor Protection Act and Social Security Act regulate various aspects of employment, from worker rights to social security provisions. Similarly, in Ukraine, the Labor Code delineates the rights and obligations of both employers and employees, ensuring a clear framework for employment relationships.
As for IP protection, Thailand provides coverage through the Patent Act, Trademark Act, and Copyright Act. For software development, automatic copyright protection is granted to the creator. In Ukraine, part of numerous international IP conventions, software is treated as a literary work under copyright law, offering robust protections. Clear contracts defining IP ownership, tailored to the respective laws of each country, are essential for businesses seeking to protect their interests.
Software Development Outsourcing Thailand vs Ukraine: Comparison Table
| Thailand | Ukraine | |
| Time zones | UTC+7 | GMT+2 |
| Size of a tech talent pool | 100,000 | 200,000 |
| English proficiency | Low | High |
| Education level | Higher education, mostly BA | Higher education, BA and MA |
| Talent availability | Decent availability compared to other Asian countries, but smaller pool overall | High availability due to wide pool and focus on international cooperation |
| Risks related to natural hazards | High | Low |
| Average monthly rate for middle developers | $1420 | $2000 |
| Data safety and insurance | Not GDPR compliant | GDPR compliant |
| Quality to price correspondence | Decent, as the rates are quite low, but there is a risk of poor quality delivery | High as the rates are significantly lower than in US or EU and quality is outstanding |
| Ease of doing business | Not very easy because of different culture and low English proficiency as well as time zone difference | Very easy, western culture, good English, simple tax laws, minimal time difference |
Of course, the choice of outsourcing destination depends on the company’s needs, expectations, and finances. It is important to make an educated choice and select a credible local vendor. It will make the process easy and productive.
Breakdown of Hiring Software Developers in Bangkok
The approximate cost of hiring an app developer Bangkok varies depending on the level of expertise. For a junior software engineer, with their budding skills and enthusiasm, businesses can expect to spend between $8,400 and $12,000 annually. This cost considers only the base salary and doesn’t include benefits or other associated expenses like recruitment and training.
For mid-level front end developer Bangkok, who bring more substantial experience and a wider skillset, the annual salary can range from $12,000 to $18,000. Their comprehensive understanding of software development processes and problem-solving skills are well worth the investment.
Senior software engineers, possessing deep domain expertise and leadership capabilities, command a higher salary range between $18,000 and $30,000 per year. The considerable knowledge they bring, along with their ability to manage complex projects and strategic decision-making skills, justifies this investment. For specialized roles, such as an android developer Bangkok, the costs can potentially be even higher due to the specific technical skills required.
It’s important to note that these are base salary figures and the total cost of hiring a web developer Bangkok can be significantly higher when factoring in benefits, bonuses, training, and overhead costs. Additionally, costs may also fluctuate based on the specific demands of the role, the tech stack, and the current market conditions.
Your IT Solution in Thailand: Why Mobilunity is the Right Choice
If you’re contemplating IT outsourcing to Thailand, Mobilunity is your reliable partner. With a decade-long experience in outstaffing, we’re well-poised to find the perfect dedicated team in Thailand for your project.
We boast over 40 satisfied clients and numerous successfully deployed products, a testament to our commitment to meeting and exceeding our clients’ needs and requirements. Our policy of transparent rates of WordPress Developer Bangkok stands as a testament to our ethical business practices.
But what distinguishes us is our access to an extensive pool of high-skilled and experienced developers. Our software team in Thailand, including experts from software development Bangkok to web developer Chiang Mai, is adept at tackling any project challenges. Trust in Mobilunity for your IT needs in Thailand and unlock the potential of our expert software development company Bangkok.
If you are interested in IT outsourcing to Ukraine, Mobilunity is the partner to trust. Feel free to ask Mobilunity and hire game developers, embedded system developer and even Hybris experts – our team is eager to help!
Success story
Our success in navigating complex markets is evident in our accomplishment in Japan. Tasked with finding a highly qualified UX designer in Tokyo, we faced a competitive tech industry with high standards. Starting with 145 potential candidates, we meticulously evaluated each profile to meet technical, cultural, and organizational requirements.
The selection process was rigorous, narrowing down the pool to the top four candidates. These individuals stood out with their exceptional UX design skills, problem-solving capabilities, and adaptability to design trends.
The final decision was in the hands of our client, who selected the candidate that best aligned with their needs. This candidate embodied an impressive mix of design expertise, creativity, and the ability to create user-friendly interfaces.
This successful placement in Tokyo attests to our recruiting proficiency and commitment to client satisfaction. It underscores our ability to source and place top talent worldwide, making us a reliable partner for your global recruiting needs.
Mobilunity’s Service Models
At Mobilunity, we offer a range of versatile service models tailored to cater to the unique needs of each client, ensuring the best alignment with your business requirements and goals. Here’s a brief overview of our main service models.
- Dedicated Development Team
We offer businesses exclusive, fully-committed teams that align with their unique development requirements. While our clients directly manage these full-time resources, we expertly handle all HR, accounting, and helpdesk operations, facilitating seamless project execution and top-tier results.
- Consultancy Services
In this model, clients manage a part-time resource, enabling them to scale the workforce as needed, while we continue to provide comprehensive support in all HR, accounting, and helpdesk matters. This approach ensures flexible and efficient operation, balancing workload and resources.
- Recruiting Services
Our Recruiting-as-a-service model is tailored to both local and global hiring needs. We are capable of hiring software developer in Thailand locally or sourcing the best candidates from Eastern Europe.
In search of reliable software outsourcing companies in Thailand to boost your business performance? Reach out to us today and let’s embark on the path to success together!
All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
