Remote work was not popular five years ago, but now it is becoming a new trend. Following that, offshore development starts to emerge. From cross-country to intercontinental, it is formed as a response to global circumstances. The objective is to ensure business continuity and economic stability during a worldwide crisis.
The World Economic Forum quoted a graph from NBER showing that companies starting to open job vacancies with full-remote and hybrid settings surged when COVID-19 peaked in 2020 to 2021. Most are STEM and business operations companies in the UK, US, Canada, Australia, and New Zealand.
This trend continues with offshore hiring, where companies look for workers across countries and continents. Offshore development is a strategic solution for hiring skilled workers cost-effectively without compromising quality. Several tech companies based in New Zealand have implemented this.
Almost half of New Zealand’s most prominent tech exporters implement a strategy to offshore, attracting overseas talent pools, according to People Matters Global. Quoting the recent report from Deel and TIN, 47% of employees at New Zealand’s top 200 tech exporting firms are hired by offshoring. IT services and support are second, following HealthCare as the top tech subsector.
Deel’s global hiring report stated that New Zealand companies are still increasingly hiring remote talents from Philippines, India, and US for tech sectors and design. TIN predicts they will keep hiring workforce from overseas, targeting emerging markets in Asia and Latin America, then North America and Australia by 2028.
Considering Indonesia-owned growing tech hubs with unicorn startups, offshoring these talents is a wise choice. Hiring tech talents such as offshore software developers is more straightforward, as New Zealand startups can rely on our IT services based in Melbourne, next door to NZ.
Talent Crunch in New Zealand
New Zealand startups opt for offshore tech talent and developers for various reasons, including challenges in sourcing local talent:
- High labour costs for hiring developers (e.g., NZD 80-120/hour locally vs. lower offshore rates).
- Limited pool of specialised skills (AI, cloud computing, etc.).
- Time-consuming recruitment processes.
These three considerations may seem generic, but they can be crucial for NZ startups in a competitive landscape seeking talented tech talent. Compete with emerging countries in cultivating artificial intelligence (AI) and professionals overseas.
Why Offshore Development is the Answer
In the future, global hiring will continue to surge, especially in tech and AI utilisation. Deloitte recent report states that 60% of organisations are leveraging third-party vendors for AI-powered outsourcing. New Zealand has pioneered this new way of adopting offshore development globally.
Following this, NZ startups earn benefits from implementing offshore development in sourcing tech talents overseas:
- Cost Savings: Save 30–70% on development costs.
- Access to Scalable Talent: Tap into Indonesia’s 300k+ annual STEM graduates.
- Faster Time-to-Market: Speed up projects with dedicated teams.
Highlighting why Indonesia is a good place to hire offshore developers is reflected in the number of startup growth led by STEM graduates.
Why Indonesia Stands Out for NZ Businesses
Indonesia is emerging as a top offshore destination for NZ startups. Talents offer a balance of affordability and seamless collaboration. Here is why:
- Time Zone Alignment:
- Indonesia (UTC+7 to +9) vs. NZ (UTC+12/13) = 3–6 hours overlap.
- Real-time collaboration for agile workflows.
- Cost Efficiency:
- Average hourly rates are 30-70% lower than in NZ.
- Skilled Workforce:
- Government tech initiatives (e.g., Digital Talent Scholarship).
- Expertise in modern stacks (React, Python, AWS).
- Cultural Compatibility:
- English proficiency in tech circles and Western-friendly work ethics.
Hiring tech-savvy from Indonesia with these considerations won’t be your second thought, as you will get talented ones here. Once you find the best fit, consider the type of offshore employment for tech talents: offshore developers or project-based.
How Our Melbourne-Based Company Bridges the Gap
Understanding that NZ startups face a growing demand for tech talents, Upscalix, a Melbourne-based company, bridges the gap by connecting you with skilled offshore developers. With Indonesia’s thriving tech ecosystem, we offer seamless, cost-effective solutions aligning with NZ’s innovation goals.
- Regional Expertise:
- Deep understanding of NZ and Australian markets.
- Streamlined Process:
- Requirement Analysis: Match skills to your project.
- Talent Vetting: Pre-screened developers from Indonesia.
- Flexible Engagement: Full-time, part-time, or project-based.
- Ongoing Support: Performance monitoring and replacements.
- Timezone Coordination:
- Overlap hours for daily standups and updates.
Our services are available, and we have proven track records with Australian businesses and overseas. Let us know how we can help.
About the Author
Cecylia is a Content Writer at Upscalix. She combines her passion for storytelling with her expertise in technology to create engaging, informative content. With 8+ years of experience in content creation, she specialises in crafting blog posts that simplify complex tech topics and resonate with Australian audiences.
At Upscalix, Cecylia plays a key role in shaping the company’s voice, ensuring that every piece of content aligns with the brand’s mission to empower businesses through innovative offshore development solutions. When she’s not writing, Cecylia enjoys reading and travelling, which fuel her creativity and inspire fresh ideas.
