Europe Starts Sending IT Work to Indonesia

Thursday November 3

Developing countries generally have an average salary higher than other countries. Almost countries in Europe including Netherlands set a $ 15.25 / hour for the minimum salary in IT field. Compared with developing country such as Indonesia, the minimum salary in Europe is very high.

Assuming a 40-hour working week, one month people who work at minimum wage in the Netherland can get $ 2.440. As the development of globalization and communication technology, companies in Europe are starting to realize that they can reduce the cost of employee salaries to hire workers from other countries, especially for hard jobs and does require any special skills, like programmers. This is where the trend of outsourcing or hiring workers from other countries began.

The last few years have arguably there is only two country that became a major outsourcing destination for companies in Europe: India, and Indonesia. India has some major advantages in this field. In addition to cheap labor costs, India has a lot of workers who are able to speak English.

But now, because some jobs require special skills, like in IT field, especially programming. A country like Indonesia has significant opportunities. In 2015, companies in Indonesia opened many new outsourcing facilities. Indonesia has an average salary lower than India but with better skills.

Cities such as Bandung and Jakarta has a large number of young people with degrees in technical fields and business who are able to speak English well. They are capable of doing almost anything from developing an application, programs, and design or video games for foreign companies. Indonesia also has a large number of mobile programmers with brilliant skills.

All this shows that the multi-national corporations began to realize that it is not only easy jobs and entry level that can be moved overseas. In addition, they also have started looking for a country that can provide more overall value. Cheap salaries do not always guarantee the overall costs to a minimum. With a little more expensive cost, often provide higher quality and efficiency that can be achieved so that the total cost becomes smaller. This is actually an attractive trend because it can provide an opportunity for developing countries are beginning to achieve higher levels of education.