Global talent map
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The document discusses the global talent map and outsourcing trends in the technology sector, highlighting the challenges U.S. companies face in hiring senior developers and the rising costs of local talent. It presents various regions—such as Latin America, Eastern Europe, and Asia—as potential outsourcing locations, each with unique advantages and disadvantages in terms of costs, skill availability, and cultural compatibility. The analysis includes metrics like education quality, attrition rates, and time zone differences to help companies navigate their outsourcing decisions.
Global talent map
- 1. GLOBAL TALENT MAP MARKET STUDY COMPARING TOP WORLD TECHNOLOGY HOTSPOTS FROM US PERSPECTIVE AgileEngine
- 2. AgileEngine 2 Will be the average time to hire a senior developer if your company name is not Google or Facebook. 3-5 months to hire To increase your chances of hiring great people you may consider perks like: • Free food • Bowling nights • Company cruise • Sign-on bonus But… … you will still struggle to find local people
- 3. AgileEngine 3 Loaded cost for a good us developer can be more than $90 per hour. Can you afford it? So building local development team is an expensive adventure.
- 4. AgileEngine 4 Finding talent Outsourcing some of the work globally can be solution to both: Controlling costs.AND
- 5. AgileEngine 5 That’s how many IT companies in US outsource. Total number of U.S. jobs outsourced in 2011 - 2,273,392 Percent of IT Companies in US that outsource - 43% Almost Half 44% 34% 31% 28% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Reduce or control costs Gain access to IT resources unavailable internally Free up internal resources Improve business or customer focus TOP 4 reasons why companies outsource Sources: Statistic Brain; Deloitte.
- 6. AgileEngine 6 Gartner’s list of leading locations to offshore IT services TOP 30 Outsourcing Locations Argentina Brazil Chile Colombia Costa Rica Mexico Peru Uruguay Source: Gartner, Inc. Bangladesh China India Indonesia Malaysia Philippines Sri Lanka Thailand Vietnam Belarus Bulgaria Czech Republic Hungary Poland Romania Russia Slovakia Ukraine Mauritius Morocco South Africa Turkey Americas Asia/Pacific Central & Eastern Europe Africa & Middle East
- 7. AgileEngine 7 We built a weighted model based Gartner research and World Indexes. We added IT- specific metrics like Attrition Rate, Time Zone Overlap, Graduates in Science and Engineering and Education Quality. Evaluation Model Criteria Source: Gartner, Inc.
- 8. AgileEngine 8 Environment and Infrastructure Source: The Global Innovation Index 2013 Political Environment, % Business Environment, % Education Quality, % Infrastructure, % US 79.3 84.2 61.1 52.5 Brazil 56.9 36.6 30.3 37.2 Mexico 50.3 75.8 31.9 35.5 Argentina 59.8 49.1 36.7 35 Colombia 47.7 74.9 26.8 42.2 China 39.2 55.5 40.6 39.8 Philippines 42.5 42.6 18.1 29.5 India 44.4 47.7 21.7 27.5 Malaysia 64.3 76.6 39.7 43.1 Poland 78.9 69.7 37.6 38 Hungary 72 67.8 40.2 44.1 Russia 42.9 68 44.1 37.2 Ukraine 47.2 47.3 37.9 26 Romania 59.5 60.1 29.5 42.8 Czech Republic 83.2 68.1 45.7 49
- 9. AgileEngine 9 Culture Compatibility and English proficiency. Education and Privacy/Security. Sources: The Global Innovation Index 2013; English Proficiency Index 2012; Gartner Research; InformationWeek; Big Four accounting firms, Hay Group; Outsourcing Institute; NearshoreAmericas; Global Outsourcing Information Inc Graduates in science and engineering, % English Proficiency Index Cultural Compatibility Data and IP Security and Privacy US 15.5 98 4 4 Brazil 11.3 46.8 3 1 Mexico 25.4 48.6 3 3 Argentina 13.5 55.4 2 1 Colombia 22.3 45 2 1 China 11.3 49 2 0 Philippines 24.3 60.1 3 1 India 11.1 57.4 3 2 Malaysia 36.7 57.9 2 1 Poland 15.7 59 3 2 Hungary 15.6 60.3 3 2 Russia 28.1 52.7 2 1 Ukraine 26.3 58.7 3 2 Romania 17.1 47.1 2 2 Czech Republic 23.4 59.9 3 3
- 10. AgileEngine 10 Attrition Rate Sources: Hay Group; Outsourcing Institute; Nearshore Americas; Global Outsourcing Information Inc; The Malaysian Employers Federation (MEF), etc. 54% of Indian workers are seriously considering leaving their jobs and 66% of whose who under age 24 are looking to leave, despite being highly satisfied with their organization Attrition Rate, % Brazil 15 Mexico 12 Argentina 25 Colombia 18 China 26.6 Philippines 19 India 26.9 Malaysia 15.9 Poland 15 Hungary 14.8 Russia 10.2 Ukraine 11.1 Romania 15.6 Czech Republic 14.8 Hiring of wrong employee can cost your business up to $60,000.
- 11. AgileEngine 11 Labor Pool of Software Developers Sources: LinkedIn Corp, Wall Street Journal 75% of engineering graduates in India are globally unemployable. While in China only 10% of qualified Chinese engineers could be considered globally employable. Java .NET Mobile TOTAL US 238 000 101 000 71 000 1 420 000 Brazil 16 000 6 200 2 900 129 000 Mexico 3 000 1 600 600 30 000 Argentina 4 800 2 800 900 26 000 Colombia 1 200 600 200 16 000 China 8 500 2 100 2 400 101 000 Philippines 2 800 1 100 700 62 900 India 154 000 53 000 22 000 1 128 000 Malaysia 1 800 700 300 17 000 Poland 6 700 2 900 1 400 28 300 Hungary 5 700 1 900 1 400 6 500 Russia 14 300 6 200 3 900 32 500 Ukraine 5 800 3 900 2 000 26 100 Romania 4 800 2 300 1 100 23 800 Czech Republic 2 300 1 100 550 10 100
- 12. AgileEngine 12 Hourly Bill Rates Source: Data is taken based on research made on more than 60 companies world-wide. Junior Developer Middle Developer Senior Developer Average US $45 per hour $68 per hour $105 per hour Brazil $38 $44 $50 Mexico $26 $35 $44 Argentina $40 $45 $51 Colombia $41 $45 $58 China $16 $20 $25 Philippines $15 $21 $26 India $16 $20 $24 Malaysia $20 $22 $25 Poland $29 $36 $44 Hungary $27 $35 $41 Russia $27 $31 $40 Ukraine $27 $36 $41 Romania $29 $37 $44 Czech Republic $28 $37 $42
- 13. AgileEngine 13 Time Zone Overlap Source: http://www.worldtimebuddy.com/ AM PM Time to coop. Eight to Six EST East Coast 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 West Coast 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 7 Nine to Five for Latin America Brazil 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 8 Mexico 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 8 Argentina 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 8 Colombia 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 8 Ten to Six for Asia China 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 0 Philippines 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 0 India 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 2 Malaysia 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 0 Ten to Six for Eastern Europe Poland 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 5 Hungary 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 5 Russia 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 3 Ukraine 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 4 Romania 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 4 Czech Republic 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 5
- 14. AgileEngine What’s right for you? 14
- 15. AgileEngine 15 Scenario #1. Fixed requirements and cost matters most. If you have a well-defined project without necessity in daily communications and low cost is most important, then India, China and Malaysia are best choices. Evaluation Criteria Weight Education Quality 2 Cost 10 Time Zone Overlap 1 Political Environment 1 Business Environment 1 Graduates in science and engineering, 2 Infrastructure 2 Developers available 6 Cultural Compatibility 1 Attrition Rate 1 Data and IP Security and Privacy 1 English Proficiency Index 2
- 16. AgileEngine 16 Scenario #2. Agile process and outcome matters most. If you use agile development with daily communications in a location with well- educated engineers who stick around, then your best choices are Mexico, Czech Republic and Ukraine. Evaluation Criteria Weight Education Quality 5 Cost 6 Time Zone Overlap 8 Political Environment 1 Business Environment 1 Graduates in science and engineering, 7 Infrastructure 1 Developers available 5 Cultural Compatibility 6 Attrition Rate 10 Data and IP Security and Privacy 3 English Proficiency Index 5
- 17. AgileEngine 17 Asia has the lowest cost and largest population, but attrition rate is high and challenges with communication. Highest overall score: India. Cost savings – 65-75% Cheapest but highest per cent of turnover, inconvenient time zone for agile communications. Asia winners India is #2 (after US) among all countries in Global IT IQ Report. Walmart alone outsources $1 billion in IT contracts to India.
- 18. AgileEngine 18 Latin America presents the best time zone and geo proximity but does not have a very mature technology market yet and is not high on innovation. Highest overall score: Mexico. Cost savings 55-65% Best time zone and reasonable billing rates but recently experienced some violence. Latin America winners Expect just a 3 to 6 hours flight when visiting your Mexican team. Mexico is part of NAFTA which makes it easy to do business with
- 19. AgileEngine 19 Eastern Europe is close culturally and has highly skilled and innovative developers, but the timezone allows only half-day interaction. Highest overall score: Czech Republic and Ukraine. Cost savings – 50-60% Middle of the road timezone and highest quality developers but not the lowest rates. Eastern Europe winners IBM chose Prague as the location for its HQs from which it would direct its activities in Central and Eastern Europe. Ukraine is the 2nd Most Master Level Certified Nation after US according to Brainbench.
- 20. AgileEngine 20 Reach out to us at info@agileengine.com if you have any questions.
- 21. AgileEngine 21 References 1. Wall Street Journal http://online.wsj.com/article/SB1000142405297020340550457 6603073952835408.html 2. Wall Street Journal http://online.wsj.com/article/SB1000142405274870351550457 6142092863219826.html?mod=WSJ_hp_MIDDLENexttoWhat sNewsTop 3. Sourcing Line Computer Economics http://www.statisticbrain.com/outsourcing-statistics-by-country/ 4. Deloitte’s 2012 Global Outsourcing and Insourcing Surveyhttp://deloitte.wsj.com/cfo/2012/09/18/outsourcing- becoming-standard-business-strategy-for-many-companies/ 5. Gartner Reports http://www.gartner.com/newsroom/id/1500514 6. Gartner Says Alternative Offshore Locations for IT Services Are Emerging as Global Delivery Models Evolvehttp://www.gartner.com/newsroom/id/2177915 7. Computer Weekly http://www.computerweekly.com/blogs/outsourcing/2012/09/in dias-dominance-as-offshore-it-location-being-diluted.html 8. The Global Innovation Index 2013 – http://www.wipo.int/export/sites/www/freepublications/en/econ omics/gii/gii_2013.pdf 9. English Proficiency Index http://www.ef.com/epi/ 10. CBS Interactive http://www.techrepublic.com/blog/cio- insights/indian-outsourcing-why-skills-shortages-persist- despite-the-graduate-glut/ 11. Outsourcing Institute 12. Nearshore Americas 13. ABS-CBN Interactive http://www.abs- cbnnews.com/business/04/02/12/bpo-workers-opt-jobs- overseas 14. Hay Group - http://www.haygroup.com/in/press/Details.aspx?ID=37383 15. Human Resources Online - http://www.humanresourcesonline.net/news/31092 16. Malaysian Employers Federation. - http://www.mef.org.my/library/MC_MEFinthenews/SunStar120 219a.pdf
Editor's Notes
- #6: Sourcing Line Computer Economics http://www.statisticbrain.com/outsourcing-statistics-by-country/Deloitte’s 2012 Global Outsourcing and Insourcing Survey http://deloitte.wsj.com/cfo/2012/09/18/outsourcing-becoming-standard-business-strategy-for-many-companies/
- #7: Gartner,Inc - http://www.gartner.com/newsroom/id/1500514
- #8: Gartner's 30 Leading Locations for Offshore Services - http://www.prominente.com.ar/pdfs/centrodesarrollo/Gartners%2030%20Leading%20Locations%20for%20Offshore%20Services..pdf pages#2-3
- #9: The Global Innovation Index 2013 – http://www.wipo.int/export/sites/www/freepublications/en/economics/gii/gii_2013.pdfUS - page 264Brazil - page 172Mexico - page 237Argentina - page 133Colombia - page 182China - page 157Philippines - 256India - page 211Malaysia - page 233Poland - page 256Hungary - page 209Russia - page 261Ukraine - page 285Romania - page 260Czech Republic - page 187
- #10: The Global Innovation Index 2013 – http://www.wipo.int/export/sites/www/freepublications/en/economics/gii/gii_2013.pdfEnglish Proficiency Index (EF EPI) - http://www.ef.com/ca/epi/US - page 264Brazil - page 172Mexico - page 237Argentina - page 133Colombia - page 182China - page 157Philippines - 256India - page 211Malaysia - page 233Poland - page 256Hungary - page 209Russia - page 261Ukraine - page 285Romania - page 260Czech Republic - page 187
- #12: Wall Street Journal - http://online.wsj.com/article/SB10001424052748703515504576142092863219826.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTopHow many software developers are there in thecountry?How this number was calculated?1. Go to http://www.linkedin.com2. Go to Advanced Search3. Choose "Computer Software" and "Outsourcing and Offshoring" industries.4. Choose country.OR simple click the link belowUS - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=us&f_N=F,S,A,O&f_I=4,123&rsid=377867831375183296073&orig=MDYSBrazil - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=br&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181162945&orig=MDYSMexico - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=mx&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181173481&orig=MDYSArgentina - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ar&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181198734&orig=MDYSColombia - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ar&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181198734&orig=MDYSChina - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=cn&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181234137&orig=MDYSPhilippines - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ph&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181269403&orig=MDYSIndia - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=in&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181253044&orig=MDYSMalaysia http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=my&f_N=F,S,A,O&f_I=123,4&rsid=377867831375181283637&orig=MDYSPoland - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=my&f_N=F,S,A,O&f_I=123,4&rsid=377867831375181283637&orig=MDYSHungary - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=hu&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181325984&orig=MDYSRussia - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ru&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181337742&orig=MDYSUkraine - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ua&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181355594&orig=MDYSRomania - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=ro&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181367869&orig=MDYSCzech Republic - http://www.linkedin.com/vsearch/p?openAdvancedForm=true&locationType=I&countryCode=cz&f_N=F,S,A,O&f_I=4,123&rsid=377867831375181381476&orig=MDYS
- #18: http://www.businessinsider.com/amazing-facts-about-india-2010-12?op=1http://www.brainbench.com/pdf/globalitiq.pdf
- #20: http://www.czechinvest.org/data/files/ict-nahled-lock-98-en.pdfhttp://www.pr.com/press-release/406123