The Value of Outsourcing Remote Teams to South East Asia

Outsourcing remote work to contractors in South East Asia is fast becoming one of the greatest tools for cutting operations costs. Find out how much it really costs.

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outsourcing remote teams

Outsourcing remote work is not a new concept. Circumstances in 2020, however, have pushed it into the mainstream. Remote work opens up the opportunity to hire from the global talent pool. But what exactly is the cost of having remote teams in other countries?

Here’s what you need to know about outsourcing remote employees from Indonesia, Vietnam, and the Philippines.

The Benefits of Operating as a Remote Company

If the pandemic has proven anything, it’s that remote work is a viable option for many companies. Companies around the world have allowed employees to work from home, some have even gone as far as letting go of their offices completely.

Chris Herd, a tech CEO offers his fearless forecast of the future of outsourcing remote work in a tweet,

The overwhelming consensus is that outsourcing remote work is beneficial for both employers and employees. Without an office to maintain, the overhead costs for a business will be much lower. Workers also won’t lose valuable time traveling to and from work.

Another welcome advantage brought by a remote setup is that employers are now hiring from anywhere in the world.

Outsourcing Remote Employees from Southeast Asia

In a tweet, podcast host John Ryan quotes Lauren Farrer, a CEO and remote work expert,

As the world moves toward non-traditional work setups, hiring employees in other countries is becoming more and more common. Companies are expanding their recruitment efforts and setting their sights on Southeast Asia.

Southeast Asia has been the primary destination for outsourcing remote teams over the last couple of decades. As such, working with international companies is nothing new to local labor forces. However, in many cases, hiring directly has more benefits than using business process outsourcing (BPO) providers.

A large portion of the workforce in these countries are highly educated and skilled. Many are also proficient in English, making it easy for them to work and collaborate with foreign colleagues.

Labor Costs in Southeast Asia

One of the draws of hiring from Southeast Asia is the cost of labor in the region. Companies can recruit top talent for a fraction of the cost of hiring someone from the US or Europe.

Minimum Wage in Southeast Asia

Below is a chart showing the minimum wage in select countries to help you get an idea of the difference in labor costs in Southeast Asia.

Sources: Department of Labor and Employment of the Philippines (2020), US Department of Labor website, UK Government Website, Ministry of Manpower of Singapore (2018)
* Taken from the Worker’s Party proposed minimum wage in Singapore.
** Minimum wage computed by multiplying the hourly minimum wage by 40 hours per week for four weeks

Average Salary in Southeast Asia

Wages in Southeast Asia are highly competitive. Here are the average salaries in Indonesia, Vietnam, and the Philippines for some of the most in-demand roles.

Customer Service Outsourcing Cost

customer service salaries outsourcing remote work

The Cost to Outsource Website Development

software development outsourcing remote worker salaries
software engineer salaries

Data Analysts

outsourcing remote work for lower salaries

How to Hire Remote Employees in Southeast Asia

Some employers try to source and hire candidates directly. However, there are a couple of other ways to find employees in Southeast Asia.

Professional Recruiters in Southeast Asia

One way to find top talent in Southeast Asia is through a professional recruitment company. Local recruiters have a better understanding of the local talent pool.

For example, a local recruiter knows which schools produce the best candidates for specific fields or industries. They will also be able to advise you on the standard compensation package for the role you want to fill.

Emerhub is ready to serve as your local recruiter in Indonesia, Vietnam, and the Philippines. Using our professional networks and databases, we will connect you with the region’s best candidates. Fill out the form, below to get started.

Outsourcing Remote Workers with Employer of Record Services in Southeast Asia

In a nutshell, an employer of record is a company that hires employees on behalf of another company. It’s one way to hire remote employees without setting up a legal presence locally. Aside from sourcing and hiring employees for you, an employer of record also provides HR support for your employees.

An employer of record will ensure that you maintain compliance with local employment laws. The services of an employer of record include the following among others:

  • Employment contracts
  • Payroll computation and management
  • Tax compliance
  • Providing workspaces and equipment to your employees

Emerhub can be your employer of record in Indonesia, Vietnam, and the Philippines.

Build your remote team in Southeast Asia with Emerhub. Fill out the form below and our consultants will get in touch with you.

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