The demand for top-tier software engineering talent continues to outstrip supply.
According to recruitment outsourcing firm Korn Ferry, the global talent shortage in the tech sector could reach 85 million unfilled jobs by 2030. This scarcity is pushing many companies to look beyond their borders for IT workers.
This guide will explore six of the best countries for hiring remote developers and high-quality software engineers for your development team in 2024. These emerging tech hubs offer a compelling combination of skilled and cost-effective talent, helping reduce your labor costs by 40-70% compared to Silicon Valley rates.
Eastern Europe: A Hub of Talent and Affordability
Eastern Europe’s strength in tech talent stems from a robust educational foundation. Developers from Eastern European countries consistently rank in the top 20 globally for their programming skills.
In 2023, Poland boasted the highest number of software developers among Central and Eastern European (CEE) countries, totaling nearly 500,000 individuals, followed by Ukraine and Romania.
Poland
While not the cheapest option in Eastern Europe, Polish developers offer an excellent quality-to-cost ratio. Average salaries for senior developers range from $40,000 to $70,000 annually, significantly lower than in Western European countries.
Poles excel in languages like JavaScript, Python, and C++ and are known for their strong AI and machine-learning skills.
Poland’s education system strongly emphasizes STEM fields. The country produces around 15,000 IT graduates annually and ranks 13th globally in the EF English Proficiency Index, ensuring smooth international communication.
Ukraine
Despite ongoing challenges from the war, Ukraine’s tech sector has shown remarkable resilience. In 2022, Ukraine’s IT industry was the only sector to grow amidst the ongoing conflict and reached a record $7 billion.
More than 200,000 IT professionals reside in Ukraine, and about 23,000+ IT graduates join the workforce annually. Ukrainian developers are known for their proactive approach and strong problem-solving skills, which align well with Western work cultures. They also excel at web development, backend technologies, and cybersecurity.
Bonus: Other CEE countries — including North Macedonia, Armenia, Lithuania, Kosovo, and Romania — are also increasingly attracting international interest thanks to their growing pool of skilled software engineers and competitive living costs.
Asia: The Rising Star in Tech Talent
Asia is a powerhouse in the global tech industry. The region’s rapid digital transformation and significant investments in tech education have created a fertile ground for software engineering talent. According to a 2023 report by Startup Genome, several Asian cities rank among the top 30 global startup ecosystems.
Let’s explore two key players in Asia’s tech talent landscape: India and the Philippines.
India
India boasts the world’s largest tech talent pool, with over 5 million software developers. The country has over 3,500 engineering colleges, including prestigious and top-ranking institutions like the Indian Institutes of Technology.
The remarkable pace of infrastructural development, investment in skill diversity, and government programs like Digital India and Startup India have bolstered the country’s tech ecosystem.
Another advantage? English is often the primary language of instruction in higher education, particularly in engineering and computer science programs. This results in the broader availability of English-speaking tech talent.
Indian developers are exceptionally skilled in JavaScript, Python, and mobile app development. They’re also rapidly gaining expertise in emerging technologies like AI, machine learning, and blockchain.
Despite rising costs in tech hubs like Bangalore and Hyderabad, senior developers’ annual salaries typically range from $20,000 to $40,000, a fraction of those in Western countries such as the U.S., Germany, or Canada.
The Philippines
The Philippines is emerging as a key player in the global tech talent market, particularly in cloud computing and data science. It’s perfect for companies seeking a blend of technical skills, particularly in PHP, ASP.NET, and Ruby on Rails.
Senior software developers in the Philippines typically earn between $18,000 and $35,000 annually, offering employers significant cost savings.
The country is conveniently located for employers based in Japan, Australia, New Zealand, and Southeast Asia time zones.
While India and The Philippines stand out, other Asian countries, such as Kazakhstan, Cambodia, Pakistan, Laos, Thailand, and Hong Kong, are increasingly drawing the attention of international employers with their growing tech ecosystems.
Latin America: Untapped Potential and Growing Tech Hubs
Latin America (LATAM) is particularly attractive as an IT market hotspot for North American companies seeking high-quality programmers in similar time zones.
The region’s tech ecosystem has been growing rapidly, with VC investments in LATAM startups reaching $15.7 billion in 2021 according to the Association for Private Capital Investment in Latin America (LAVCA).
This surge in the tech sector has been accompanied by a rise in the number of high-quality developers, especially in countries with high internet penetration, such as Argentina and Brazil.
Argentina
Argentina boasts a robust public education system with a strong emphasis on STEM fields. The country’s IT sector is reported to grow at over 20% annually and produces software engineers who excel in languages like Java, SQL, and Python.
Building a development team in Argentina is cost-effective due to the extensive tax incentives and tax stability the government offers to software companies.
Brazil
As the largest economy in Latin America, Brazil has a burgeoning tech industry fueled by talented, high-quality programmers and a supportive startup ecosystem. In 2023, there were approximately 500,000 software engineers in Brazil.
Senior developers in Brazil typically earn between $25,000 and $45,000 annually, offering a good balance of skill and affordability.
Other LATAM countries, such as Colombia, Mexico, and Uruguay, are also gaining recognition for their tech talent. These countries offer similar advantages regarding time zone alignment and cultural affinity with North American businesses.
The Future for Tech Talent: Looking Ahead
The Jamstack Community Survey 2022 found that 80% of software developers work remotely most of the time, and more than half would rather quit their jobs than work from an office. Remote work acceptance will likely globalize the tech talent market further.
The top countries we’ve explored are just the beginning.
New talent hubs are continuously emerging worldwide. Bui Hoang Tung, senior executive vice president of Rikkeisoft, the leading IT outsourcing provider, says, “There are three emerging markets in particular to pay attention to for global tech talent: Colombia, Poland, and Vietnam.”
But tapping into global talent pools comes with challenges — navigating local labor laws, managing payroll across different countries, and ensuring compliance with various regulations.
This is where an Employer of Record (EOR) proves invaluable. An EOR acts as the legal employer for your international workers, handling payroll, benefits, and compliance, and eliminating the need for you to set up a local entity in each country where you employ staff.
When hiring developers, software engineers, programmers, and other tech professionals, RemoFirst can help you build your remote team in more than 180 countries while ensuring full compliance and efficiency.
