TL;DR: Vietnam, the Philippines, Indonesia, Malaysia, and Poland offer lower costs, less attrition, and strong developer talent compared to India.
India has been the default choice for offshore hiring for two decades. But the numbers are shifting. Indian IT salaries grew over 10% year-over-year for five consecutive years. Attrition in the IT sector still sits at 25%. And only 55% of graduates are employable for technical roles.
We work with startups that hired in India first. Many came to us after losing three or four developers in a single year. The cost savings disappeared when they had to re-hire and retrain every six months.
There are better options now. Five countries offer strong developer talent at competitive rates. With lower attrition and growing tech ecosystems. Here is how they compare.
| Country | Avg. Developer Salary (USD/year) | Talent Pool Size | English Proficiency | Key Strength |
|---|---|---|---|---|
| Vietnam | $18,000 – $63,000 | 600,000+ IT professionals | Moderate | Strong backend and systems engineering |
| Philippines | $22,500 – $60,000 | 1.5M+ remote workers | High | English fluency and US time zone overlap |
| Indonesia | $15,000 – $54,000 | Large and growing fast | Moderate | Lowest costs in Southeast Asia |
| Malaysia | $21,000 – $72,000 | Growing mid-size pool | High | Cloud-native skills and IP protection |
| Poland | $54,000 – $96,000 | 400,000+ developers | Very High | Top-6 global coding skills, EU compliance |
What’s your biggest hiring challenge?
Select your situation below.
You’re spending too much on Indian developers with 25% annual attrition. Vietnam offers senior backend developers at $18,000-$63,000/year—40% less than India with half the turnover. Our clients save $2,400+ per developer monthly. Compare Vietnam rates →
You need developers who communicate clearly in daily standups and client calls. The Philippines ranks #1 in Asia for English proficiency with 600,000+ IT professionals. 92% speak business-level English versus 55% in India. Hire Philippines developers →
You’ve lost 3-4 developers this year and you’re tired of retraining. Our EOR service in Vietnam and Malaysia delivers 12% attrition rates—half of India’s 25%. We handle contracts, payroll, and retention so your team stays intact. Get EOR pricing →
You need full-stack developers who can ship fast across backend, frontend, and mobile. Indonesia‘s 600,000-strong tech workforce offers full-stack talent at $15,000-$45,000/year. We pre-screen for technical skills and cultural fit. Hire full-stack developers →
The Remote Premium: Add 20–30%
The salaries above reflect what developers earn when working for international companies remotely. This is important to understand. Local salaries in these countries are lower. But when you hire a developer to work remotely for your US or European startup, expect to pay a 20–30% premium over local market rates.
This remote premium exists for a reason. Developers who work across time zones, communicate in English daily, and meet international code standards are in high demand. They know their market value. Companies that try to pay pure local rates lose candidates to competitors who pay the remote premium.
We see this across all five countries. A mid-level backend developer in Vietnam earns $1,800 per month at a local company. The same developer earns $2,250 to $2,700 when working remotely for a foreign startup. In the Philippines, the gap is similar. A senior developer making $4,000 locally will expect $5,000 to $5,200 for remote international work.
Factor this premium into your budget from the start. It is still 40–60% cheaper than hiring in the US. And it gets you developers who are already used to remote workflows, async communication, and working with distributed teams.
Why Companies Are Moving Away from India
India still has the largest developer workforce in the world. That is not the problem. The problem is what happens after you hire.
Indian IT attrition averaged 25% in 2025. That means one in four developers leaves within a year. For a startup with a five-person dev team, you lose at least one engineer every year. Sometimes two.
Salary inflation compounds this. India saw a 9% average salary increase in 2026. Senior developers in Bangalore now cost $38–$60 per hour. That is close to what you would pay in Vietnam or the Philippines for equivalent experience.
We worked with a Series A SaaS company that had four developers in Hyderabad. Within 18 months, all four had left for larger companies offering 30% raises. The CTO told us the real cost was not the salaries. It was the six weeks of lost productivity every time someone quit.
1. Vietnam: The Top Alternative
Vietnam is the strongest alternative to India for developer hiring. The numbers back this up.
The country has over 600,000 IT professionals. That number grows by 55,000 to 60,000 new graduates every year. More than 153 universities run computer science programs. The talent pipeline is deep and consistent.
Salary Ranges
| Role | Junior (USD/month) | Mid-Level (USD/month) | Senior (USD/month) |
|---|---|---|---|
| Backend Developer | $1,350 – $1,800 | $2,250 – $3,300 | $3,300 – $5,250 |
| Frontend Developer | $1,200 – $1,650 | $1,800 – $2,700 | $2,250 – $4,200 |
| Full-Stack Developer | $1,500 – $2,100 | $2,700 – $3,750 | $3,750 – $7,500 |
| DevOps Engineer | $1,500 – $2,250 | $2,700 – $4,200 | $4,200 – $6,750 |
| Mobile Developer | $1,350 – $1,950 | $2,250 – $3,300 | $3,300 – $5,700 |
A senior full-stack developer in Ho Chi Minh City costs $3,750 to $7,500 per month. The same profile in Bangalore costs $6,000 to $9,750. That is a 30–50% saving.
Why Vietnam Works
Vietnamese developers rank first in Southeast Asia for programming skills. The workforce is young. About 45% are mid-level and 25% are senior. Ho Chi Minh City holds 57% of the developer population. Hanoi has another 34%.
Vietnam’s IT services market reached $2.37 billion in 2025. It is forecast to hit $4 billion by 2030. Global companies like Samsung, FPT, and Bosch already run large engineering teams here.
We placed a backend team of three developers in Ho Chi Minh City for a US-based dev tools startup. The team shipped their first feature within three weeks. After a year, all three developers were still on the team. That kind of retention is rare in India.
The main trade-off is English proficiency. Vietnamese developers are strong technically. But communication takes more effort compared to the Philippines or Malaysia. Written English is usually solid. Spoken English varies. Plan for async communication tools like Slack and Loom.
Hire developers in Vietnam through Second Talent to access this talent pool directly.
2. The Philippines: Best English Proficiency in Asia
The Philippines has one advantage no other Asian country can match. English is an official language. Every developer you hire can join your daily standups without a language barrier.
The country has over 1.5 million remote workers. The IT-BPM sector is projected to reach $59 billion by 2028. Filipino developers earn $30 to $53 per hour. Monthly salaries range from $3,000 to $6,300 depending on experience.
Where the Philippines Shines
- Native-level English communication
- Strong overlap with US West Coast time zones (GMT+8)
- Growing demand in AI, data science, and cybersecurity
- 15% annual growth in tech job openings
- Cultural alignment with Western companies
We helped a Seed-stage AI startup hire two full-stack developers in Manila. The founders said onboarding felt identical to hiring someone in San Francisco. No translation issues. No cultural friction during code reviews. The developers joined sprint calls, gave demos, and wrote documentation without extra coaching.
The trade-off is cost. Filipino developers cost 10–20% more than Vietnamese or Indonesian developers at the same experience level. You pay a premium for English fluency. For client-facing roles or companies that rely on synchronous communication, this premium is worth it.
Hire developers in the Philippines for roles that need strong English and US time zone overlap.
3. Indonesia: Largest Untapped Market in Southeast Asia
Indonesia is the dark horse of offshore hiring. It has 280 million people. The largest population in Southeast Asia. But most companies have not looked beyond India or Vietnam.
That is changing fast. Indonesia’s IT outsourcing market was valued at $1.98 billion in 2024. It is projected to reach $3.44 billion by 2029. That is a compound annual growth rate of 11.68%.
Cost Advantage
Indonesian developer salaries are 5–10% lower than Vietnam. Junior developers charge $23–$38 per hour. Mid-level developers charge $38–$53. Seniors charge $53–$75. For local hires (not remote international), monthly salaries start as low as $840 for entry-level roles in Jakarta.
Indonesia offers the lowest developer costs in Southeast Asia. A startup can build a three-person dev team here for the cost of one senior developer in the US.
What to Watch Out For
The Indonesian tech ecosystem is younger than Vietnam or the Philippines. The senior talent pool is smaller. Finding developers with five or more years of experience in specific frameworks takes more effort.
English proficiency is moderate. Similar to Vietnam. You will need async workflows and clear documentation practices. Jakarta is the main tech hub. Bandung and Surabaya are growing but still limited.
We placed a mobile developer in Jakarta for an e-commerce startup. The developer had three years of React Native experience. The hourly rate was $33. The same profile in the Philippines would have cost $45+. For backend-heavy work without much client interaction, Indonesia delivers strong value.
Hire developers in Indonesia when budget is the top priority and you have async workflows in place.
4. Malaysia: The Balanced Choice
Malaysia sits between the low-cost Southeast Asian markets and the premium Eastern European ones. It offers a mix of strong English skills, cloud-native expertise, and solid IP protection.
Software developers in Malaysia earn $3,750 to $7,500 per month. Senior developers in Kuala Lumpur earn 20–30% more than those in other Malaysian cities. Hourly rates range from $30 to $68.
Why Malaysia Stands Out
- English is widely spoken in professional settings
- Strong government support for digital transformation (Malaysia Digital initiative)
- Good IP protection laws compared to other Southeast Asian countries
- Cloud-native, AI/ML, and cybersecurity specializations are growing fast
- 55–60% payroll efficiency compared to Western markets
Malaysia is more expensive than Vietnam, Indonesia, or the Philippines. But you get a more mature business environment. Legal frameworks are stronger. Payment infrastructure is reliable. If your startup handles sensitive data or needs strict compliance, Malaysia reduces risk.
We worked with a fintech startup that needed developers with experience in PCI DSS compliance. They started hiring in Vietnam but switched to Malaysia for the regulatory alignment. The two developers they hired in Kuala Lumpur had prior experience with Malaysian financial regulations. That saved weeks of compliance training.
Hire developers in Malaysia when you need English fluency, compliance expertise, and a mature business environment.
5. Poland: The Premium European Option
Poland is not a low-cost option. Developer salaries range from $54,000 to $96,000 per year. Senior remote developers earn around $107,000. But it is still 40–60% cheaper than hiring in the US or UK.
Polish developers rank in the global top 6 for coding skills. They have the second-highest English proficiency in Eastern Europe. And they work in EU time zones. That means real-time collaboration with European headquarters.
When Poland Makes Sense
- You need EU-compliant data handling (GDPR)
- Your team works in European time zones
- You need senior architects or tech leads, not just execution
- Quality matters more than lowest cost
- You want developers who can lead technical decisions
Poland has over 400,000 developers. The ecosystem is mature. Warsaw, Krakow, and Wroclaw are established tech hubs. Many Polish developers have experience working with US and European startups. They understand agile workflows, CI/CD pipelines, and modern cloud infrastructure.
The trade-off is price. A senior backend developer in Warsaw costs 2x what the same role costs in Ho Chi Minh City. But the communication overhead is near zero. Polish developers participate in architectural discussions, challenge technical decisions, and propose alternatives. That is harder to find in markets where developers are trained to follow specs without questioning them.
Full Cost Comparison: India vs. Five Alternatives
| Factor | India | Vietnam | Philippines | Indonesia | Malaysia | Poland |
|---|---|---|---|---|---|---|
| Senior Developer (USD/month) | $5,250 – $8,250 | $3,300 – $7,500 | $4,200 – $6,300 | $3,000 – $5,250 | $4,500 – $7,500 | $6,750 – $8,250 |
| IT Attrition Rate | 25% | 10–15% | 12–18% | 10–15% | 12–16% | 8–12% |
| English Proficiency | High | Moderate | Very High | Moderate | High | Very High |
| Time Zone (GMT) | +5:30 | +7 | +8 | +7 | +8 | +1/+2 |
| Talent Pool | 5M+ | 600K+ | 1.5M+ | Large, growing | Mid-size | 400K+ |
| Salary Inflation (Annual) | 9–10% | 6–8% | 5–7% | 5–7% | 5–8% | 7–9% |
| Best For | Scale | Backend, systems | Client-facing roles | Budget-first hiring | Compliance, fintech | Architecture, EU work |
Common Mistakes When Hiring Outside India
We have seen startups make the same errors when they first move away from India.
Mistake 1: Choosing Only on Cost
The cheapest developer is rarely the best value. A $23/hour developer who needs constant supervision costs more than a $45/hour developer who works independently. Factor in communication overhead, code review time, and ramp-up periods.
Mistake 2: Ignoring Time Zones
A four-hour overlap with your team is the minimum for effective collaboration. If you are based in the US, Southeast Asia gives you early morning overlap. Poland gives you afternoon overlap for European teams. Plan your sprint rituals around these windows.
Mistake 3: Hiring Without Local Knowledge
Job boards in Vietnam work differently than in the Philippines. Salary negotiation norms vary. Labor laws affect contracts. Work with a partner who understands the local market. It saves time and reduces hiring failures.
How Second Talent Helps
We recruit developers across all five countries listed here. Our team is based in Southeast Asia. We vet candidates for technical skills, English proficiency, and cultural fit.
We also offer Employer of Record (EOR) services. You do not need to set up a legal entity in Vietnam or the Philippines. We handle payroll, compliance, and benefits. You focus on building your product.
Check our developer rate card for detailed salary data across Southeast Asia. Or explore our Asia Tech Salary Index for the latest benchmarks.
The Bottom Line
India is not a bad choice. It has the largest talent pool in the world. But it is no longer the obvious default. Salary inflation, high attrition, and growing competition for senior talent have narrowed the cost gap.
Vietnam offers the best overall value. The Philippines leads on English and communication. Indonesia wins on pure cost. Malaysia adds compliance and business maturity. Poland delivers European quality at a fraction of US prices.
The best approach for most startups is to diversify. Do not put all your developers in one country. Build a team across two or three markets. Use each country for what it does best.
Hire vetted remote developers with Second Talent to build your distributed team across Asia and Europe at 40–60% lower cost than India.
