Working for a salary in tech has actually been rather of a wild trip in APAC in the last few years.
First, there were the boom times leading into the year 2022, when the widespread pursuit of digitisation initiatives following the peak of the international pandemic integrated with prevalent talent scarcities put tech skill in the chauffeur’s seat. Salaries rose, typically at extremely high rates.
Then, economic headwinds hit the global tech market. This triggered an about-face in fortunes in the area, as employing freezes and layoffs were seen throughout 2022 and 2023. The jobs offered and heading income figures took a hit as need for tech roles dried up.
Fortunately is that 2024 is bringing back more steady income growth for tech workers. Recruiter Robert Half stated there is 3-5% income development for tech workers overall. Meanwhile, bigger raise are being seen in high-demand sections like expert system.
Digital transformation drove APAC tech salaries before 2022
Melissa Lau, Director, Robert Half Robert Half director Melissa Lau, based in Hong Kong, was an eyewitness to the extraordinary increases in tech incomes that happened before 2022. At that time, companies across the area were strongly hiring tech talent to speed up digital improvement efforts across numerous markets. Hong Kong also worked as a popular hub for crypto business.
“At the time, the supply of skilled people in the field fell short of satisfying the required headcount, developing a skill lack,” Lau informed TechRepublic. “As a result, wages experienced an upward spike as business competed to draw in and keep the limited pool of highly experienced tech workers.”
APAC 2022 and 2023 tech wage crunch followed global tech sector concerns
From 2022, the tech market in APAC experienced some turbulence. The worldwide tech market ran into a period of “high inflation and raised rate of interest,” according to one summary from Deloitte, and macroeconomic uncertainty resulted in “softening customer costs, lower item need, falling market capitalisations and workforce reductions in 2022.”
This trend continued into 2023. “Several business carried out retrenchments that adversely affected a considerable variety of people in the tech industry,” Lau explained. The 2022 crypto crash, which slashed practically three quarters from the value of cryptocurrency Bitcoin at the time, likewise ended the heady rush for tech pros in the crypto industry in Hong Kong, she said.
FREE DOWNLOAD: TechRepublic’s leading tech task predictions for 2024
Software engineering salaries cut in 2023
The Asia Tech Salary Report from talent platform supplier NodeFlair kept in mind the “challenges the industry faced, consisting of layoffs and hiring freezes,” in Asia throughout 2023. Using exclusive and external information from six nations in APAC, it found software application engineer salaries reduced by approximately 0.99% during 2023, compared to a boost of 7.61% experienced in 2022.
Some software engineering disciplines fared worse than others. For instance, there was a 6.66% reduction in salaries for video game engineer positions. Wages for services engineers visited 5.7%, blockchain engineers by 5.4% and DevOps pros by 2%.
The news was not all bad; information science roles bucked the pattern with 11.3% growth in wages.
2024 is looking better for tech wages across APAC
Tech sector incomes appear to have actually stabilised in 2024. In fact, Robert Half has actually seen a go back to more stable, steady growth in the Hong Kong tech market. “The innovation industry is revealing indications of a gradual healing after a decrease in demand in 2023 caused by overhiring,” Lau said.
This means that, broadly, tech workers can now anticipate raise of in between 3-5% if they stay at their present company and do not receive a promo. Those who do get promotions are receiving boosts varying anywhere between 5% and 10%, Lau said.
SEE: Tech Employee Wage Growth in Australia Has Normalised
Those who make the effort to find new work are likewise in a position to make the most of higher boosts, albeit lower than before the wage crunch. Lau said those who are altering positions could anticipate to be rewarded with raise of between 5-15%.
NodeFlair, too, anticipates incomes to recover. “Incomes for tech employees, in general, are poised for recovery in 2024 as the economy rebounds. The development rate may vary across different roles, with a strong focus on the increasing need for AI and data science specialists.”
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APAC tech employee incomes in 2024 depend on area
NodeFlair’s report revealed the incomes workers command throughout APAC depend upon the marketplace in which they live. For instance, the median regular monthly base pay of a lead software application engineer in Singapore is United States $6,688, compared to United States $1,937 in Vietnam.
Median monthly base salaries for tech employees differ by nation in the APAC area. Image: NodeFlair The tech functions with
the best potential for salary increases in 2024 There are likewise distinctions in demand for various functions, with AI and data science anticipated to lead income development in 2024. “This sector-specific surge in need might lead to competitive salary offers to attract and retain top skills in these specialised fields,” NodeFlair said.
AI and data science
The international rise of AI is driving working with in Asian markets. NodeFlair’s report found incomes for data researchers at all levels increased by 11.3% year-on-year in the Singapore market during 2023, even amidst moribund demand for tech functions as a whole. Just one example is that the income for a middle percentile lead information scientist in Singapore has grown from S$ 12,500 per month (US$ 9,234) in 2022 to S$ 14,187 each month (US$ 10,480) in 2023, or 14%.
NodeFlair discovered wages for data researchers, that includes AI professionals, grew in between 2022 and 2023 in Singapore by
11.3%. Source: NodeFlair argued demand for skills in areas like artificial intelligence, natural language processing and data analysis would be critical as businesses recognise the transformative potential of AI.
Lau stated this is being reflected in Robert Half information showing tech wages increasing in Hong Kong. “This can be credited to the industry’s increasing focus on employing AI professionals,” she described. “As AI continues to advance and shape various sectors, business are actively seeking experienced AI specialists, leading to a growing demand and subsequent rise in salaries.”
Cybersecurity
The continuous growth and increasing intricacy of cyber hazards are resulting in “extremely high need” for cybersecurity experts in Hong Kong and the area, Lau stated.
“Companies across industries are investing greatly in protecting their digital possessions and customer data, driving up wages for cybersecurity experts.”
NodeFlair found that salaries for cybersecurity engineering roles grew by 8.24% year-on-year in the Singapore market in between 2022 and 2023.
SEE: AI deepfakes increasing as a threat for APAC organisations
Task management
In addition, IT project management is showing to be a rewarding ability. Lau stated large corporations, like insurance companies or corporations, are using attractive salaries for task management functions.
“These business typically need competent experts to supervise and lead massive jobs such as system enhancements, upgrades, and service process reengineering, indicating their specialised know-how to handle these moving parts contributes to competitive salaries,” she stated.
