May 13, 2025 •
Business, System Development
Indonesia IT Outsourcing: The Complete Guide 2025 – Why IT Outsourcing in Indonesia is So Hot Right Now
With the demand for IT engineers becoming increasingly difficult to secure, the need for IT outsourcing is growing. With rising personel costs in Vietnam, which has led the IT outsourcing industry so far, and political instability in Myanmar, IT outsourcing in rapidly growing Indonesia is gaining attention. This article thoroughly explains the advantages and disadvantages from the perspective of an IT company that has been developing systems in Indonesia for 10 years. It's quite long as I've worked hard to write it, so please skip and read only the parts you need.
IT Outsourcing in Indonesia? Contact Timedoor Indonesia with 10 Years of Experience in Indonesia
[embed]https://www.youtube.com/watch?v=OomMjmpAp2M[/embed]
Click here for inquiries about IT outsourcing to Indonesia
Basic Information About Indonesia
Indonesia is a country located in Southeast Asia, with diverse natural environments and abundant resources. It consists of more than 17,000 islands and having multicultural and multi-ethnic society. With political stability and economic growth, foreign investment is increasing, and infrastructure development, manufacturing, and the digital economy are rapidly developing.
Indonesia has a population of approximately 274 million (estimated as of 2023), the fourth largest in the world. The official language is Indonesian, and English is also widely use in business and tourism.
In terms of economy, natural resources (oil, gas, minerals) are the main industry center for export, while manufacturing, agriculture, services, and especially the digital economy are growing remarkably. The government is focusing on improving infrastructure and strengthening education to accelerate economic growth, and ICT education, especially for young people.
Against this background, Indonesia is a promising market for many companies, and is attracting attention as a destination for IT outsourcing, especially for its cost efficiency and highly skilled human resources.
Geography and Nature
Indonesia is located directly under the equator and is blessed with tropical rainforests, volcanoes, and abundant marine resources. There are major islands such as Borneo, Sumatra, Java, Sulawesi, and New Guinea, and the natural environment is very diverse. As a result, the tourism industry is also thriving, and many places, especially Bali, Labuan Bajo, and Yogyakarta, are popular with tourists.
Population and Society
Indonesia has a population of approximately 274 million (estimated as of 2023), the fourth largest in the world. Much of the population is young and is a very important source of labor. Migration to urban areas is progressing, and the urban population is increasing. In Indonesia, 4 million people are born every year, which is equivalent to one Singapore. The official language is Indonesian, and there are countless local languages, but English is also widely use in education and business.
Economy
Indonesia's economy is diverse, with natural resources, manufacturing, agriculture, and services as major industries. In particular, it is rich in natural resources such as oil, gas, and minerals, and exports of these are the pillar of the economy. In recent years, it attracts attention as a country with a large amount of nickel reserves, which is essential for the electric vehicle industry. Manufacturing is also growing, with thriving production of automobiles, electronics, and apparel. Agriculture remains important, and is a major producer of rice, coffee, palm oil, etc.
Digital Economy and IT Industry
In recent years, Indonesia has achieved rapid growth in its digital economy and IT industry. The government actively promotes the "Making Indonesia 4.0" program to drive digitalization in manufacturing. Cities like Jakarta and Bandung have emerged as key hubs for startup companies, where innovators are advancing breakthroughs in e-commerce, fintech, edtech, and related fields. Meanwhile, the education sector emphasizes developing IT skills, with the government strengthening ICT education—particularly for young people—to prepare a future-ready workforce.
Infrastructure and Development
Since taking office, President Jokowi has prioritized expanding Indonesia’s infrastructure , driving initiatives to modernize roads, railways, ports, and airports. The government actively improves infrastructure to fuel economic growth, with particular focus on expanding transportation networks connecting major cities across Java Island. In the energy sector, officials advance renewable energy adoption , championing projects like solar power installations and geothermal energy development. Meanwhile, the government’s relocation of Indonesia’s capital from Jakarta to Kalimantan Island has sparked widespread discussion as a bold step toward sustainable urban planning.
Education and Workforce
The Indonesian government is strengthening the education system by prioritizing higher education and vocational training. Officials are expanding and upgrading universities and technical institutions, enabling more young people to pursue degrees and certifications. This focus has cultivated a highly skilled workforce, directly fueling growth in the manufacturing and IT industries.
Low Minimum Wage
In Indonesia, a minimum wage is set for each region, and prices and salaries of higher-level people are set based on the minimum wage. Although there are differences depending on the region, the minimum wage in Indonesia generally ranges from approximately IDR 3 to 5 million per month.
International Relations
Indonesia is a founding member of ASEAN (Association of Southeast Asian Nations) and has made a significant contribution to regional peace and stability. It is also a member of the G20 and plays an important role in international economic cooperation. In recent years, foreign direct investment has been increasing, and many multinational companies are entering Indonesia.
Basic Information About Indonesia
Item
Details
Location
Situated in Southeast Asia, an archipelagic country consisting of over 17,000 islands
Geography
Located on the equator, featuring tropical rainforests, volcanoes, and abundant marine resources
Main Islands
Java, Bali, Borneo, Sumatra, Sulawesi, New Guinea
Population
Approximately 274 million people (estimated as of 2023)
Language
The official language is Indonesian; English is also widely used in business and tourism
Ethnicity
Around 300 ethnic groups and over 700 languages exist
Major Industries
Natural resources (oil, gas, minerals), manufacturing, agriculture, services, digital economy
International Relations
Founding member of ASEAN, member of G20, increasing foreign direct investment
GDP
Approximately $1.2 trillion (estimated for 2023)
GDP per Capita
Approximately $4,500 (estimated for 2023)
Unemployment Rate
Approximately 5.8% (estimated for 2023)
Inflation Rate
Approximately 3.3% (estimated for 2023)
Main Export Products
Oil & gas, minerals, electronics, garments, agricultural products (palm oil, coffee, etc.)
Main Trading Partners
China, Japan, the United States, Singapore, India
Other Articles: eFishery Startup Fraud: Why Financial Transparency Builds (or Breaks) Public Trust in Business
Comparison of IT Outsource Costs in Various Countries
IT outsourcing has traditionally attracted companies by leveraging lower labor costs in overseas markets. However, in recent years, rapid currency depreciation and economic growth in emerging countries have driven up engineer unit prices. Despite this trend, Indonesia and Myanmar actively offer significant cost advantages. Today, IT outsourcing isn’t just about cutting labor costs—it’s about securing top-tier talent. With the fourth-largest population globally, Indonesia now faces soaring international demand for its skilled workforce, positioning itself as a key player in global tech talent acquisition.
Comparison of IT Engineer Salaries in Indonesia
Indonesia: The average monthly salary per person is approximately $1,600 USD (Rp25.887.760). Indonesia is a very cost-effective IT outsourcing destination compared to other Asian countries. In addition, the number of IT engineers is rapidly increasing, which is an important factor for companies to not only reduce costs but also make up for the shortage of human resources.
IT Outsource Comparison with Other Asian Countries
India : Engineers earn $3,300 USD/month. Long a top hub for Europe and U.S., but costs rise yearly.
Bangladesh : Engineers average $2,900 USD/month. Competitive rates exist, but Indonesia offers better affordability.
Myanmar : Engineers earn $1,800 USD/month. Low costs attract firms, but political instability deters many.
Philippines : Engineers average $2,400 USD/month. English fluency drives popularity, though pricier than Indonesia.
Vietnam : Engineers earn $2,700 USD/month. Surging demand boosts popularity, but costs climb steadily.
China : Engineers average $3,300 USD/month. Strong technical skills exist, but expenses grow rapidly.
The average monthly salary per engineer in Indonesia is approximately $1,600 USD (Rp25.887.760), which is a very low level compared to many other Asian countries. For this reason, Indonesia is very attractive as a base for IT outsourcing with excellent cost performance. Especially when companies are seeking high-quality software development while reducing costs, Indonesia has been attracting attention as one of the options.
IT Engineer Salaries in Urban Areas
In major cities such as Jakarta, the salaries of IT engineers tend to be higher than in other regions. The specific salary range is as follows:
The average annual income is about $4,000 USD (Rp 60,000,000) to about $8,000 USD (Rp 120,000,000), and the number of people who are headhunted by mega-ventures and foreign companies for $13,000 USD (Rp 195,000,000) or $20,000 USD (Rp 300,000,000) is increasing as they gain skills. Since excellent engineers are in high demand, it may be common for excellent people to repeat job changes and raise their salaries
IT Engineer Salaries in Rural Areas
Rural areas pay IT engineers 30% less than urban regions due to lower living costs. For example, urban engineers earn $1,050 USD/month (15,000,000 IDR), while rural workers make $730 USD (10,500,000 IDR). Urban employers set high salaries to cover expenses and compete for talent. Rural wages stay low as living costs decrease, adjusting salaries accordingly. Companies now avoid Jakarta, Bandung, Yogyakarta, and Bali to cut labor costs.
Advantages of IT Outsourcing in Indonesia
The characteristics of IT outsourcing in Indonesia stem from the unique advantages the country offers. Indonesia is a rapidly developing country with a rapidly growing economy and improving education and technology skills in the IT sector. When considering IT outsourcing, Indonesia is attracting attention for its unique advantages. In particular, the low cost of engineers and the high affinity with people from other countries are major attractions for companies.
Low Cost of IT Engineers
Indonesia offers Asia’s lowest labor costs, delivering high-quality software development at lower prices than most countries.
Vietnam and China see rising IT outsourcing costs due to economic growth and higher living standards. These nations lose appeal as affordable destinations.
Indonesia’s low costs benefit startups and budget-focused projects, enabling more development within tight budgets.
Low costs also support large-scale projects and rapid agile development for new features.
Easy Access to Resources
Indonesia has a population of approximately 270 million, the fourth largest in the world, and its young and vibrant workforce is a major attraction. The abundant population provides an environment where it is easy to secure resources such as IT engineers and software developers. In particular, as part of the government's IT human resource development program, IT education is being strengthened and skills development is progressing, and excellent human resources are being developed. This allows companies to efficiently procure the necessary technical resources and enables rapid project deployment.
Technical Skills and Education
Until now, many people may have had the image that Indonesia is inferior to China and Vietnam in terms of technical capabilities. The Indonesian government is promoting the "Making Indonesia 4.0" program, aiming to integrate manufacturing and digital technology. This program aims to position Indonesia as a technology hub in Asia and enhance its international competitiveness. Specifically, it aims to dramatically improve the efficiency and productivity of the manufacturing industry through industrial automation, the introduction of smart technologies, and the development of digital infrastructure.
The current head of the Indonesian Ministry of Education is Mr. Nadiem Makarim, the founder of Gojek, Indonesia's largest unicorn company. With the strengthening of Indonesia's education system, the number of young workers with IT-related skills is increasing. Many universities and vocational schools are strengthening ICT education, and a large number of graduates with advanced technical skills in fields such as programming, data science, and cyber security are being produced. As a result, there are many engineers with high technical skills in the Indonesian labor market, and they have the ability to meet international technical demands.
Furthermore, through government scholarship programs and industry-academia collaboration projects, students have opportunities to come into contact with the latest technology trends. This allows graduates to contribute to companies as immediate assets, contributing to the improvement of Indonesia's technological capabilities. It is said that there are currently about 400,000 software engineers in Indonesia, and this number will continue to increase in the future considering the population dynamics. This abundant talent pool is an important resource, especially for start-ups, small and medium-sized enterprises, and global companies, and is expected to support the success of future innovative projects.
Indonesia's Capital Relocation and Smart City Project
A representative national project aimed at making Indonesia a technological powerhouse is the relocation of the capital to Nusantara on Kalimantan Island, combined with a smart city project.
The new capital aims to fully utilize technology to address multiple challenges, including environmental issues, resolving overpopulation, and diversifying the economy. By leveraging sustainable infrastructure and advanced ICT, the new capital, Nusantara, is expected to become a model case for a future-oriented city.
Sustainable Infrastructure: Environmentally friendly buildings, the use of renewable energy, waste management systems, and other features are being implemented to achieve sustainable urban development.
Advanced ICT Infrastructure: Advanced ICT infrastructure such as high-speed internet, the Internet of Things (IoT), smart grids, and other technologies will be developed to enable efficient management and operation of the entire city.
Improved Transportation Systems: Development of public transportation, the introduction of self-driving cars, smart traffic management systems, and other improvements are planned to alleviate traffic congestion and improve transportation efficiency.
Characteristics of Indonesian
The obedient, gentle, and sincere nature of Indonesians is advantageous in IT outsourcing. First, their gentle nature facilitates smooth communication within and outside the team, making project adjustments and problem-solving smoother. While they may be slightly less strict regarding adherence to deadlines and the provision of high-quality deliverables, they are generally honest and can be improved through education. Also, their obedient nature promotes teamwork and enables them to work cooperatively. Because they are gentle and have flexible adaptability, they can quickly respond to requests such as project changes and adapt to changes. These characteristics can be said to be suitable for IT outsourcing projects.
Points to keep in mind when working with Indonesians, based on 10 years of experience: Differences in personality and ways of thinking.
High Affinity with People from Other Countries
Indonesia has a long and complex historical relationship, but in modern times, many people have a high affinity with people from other countries. Many Indonesians are familiar with other cultures and show a positive attitude toward collaborating with international companies in business settings. Respect for people from other countries, foreign companies, and international products is also very high.
Cultural Affinity: This affinity is a very important factor for business success. When international companies cooperate with Indonesian IT outsourcing companies, there are few cultural barriers and smooth communication is possible. While there are gaps in thinking about business customs and quality standards, there is a deep understanding of the high quality standards and they are honest in accepting and learning from education. As a result, they can accurately respond to the strict demands of international clients' projects.
Economic Growth and Political Stability
Indonesia has achieved stable economic growth in recent years, maintaining an average annual GDP growth rate of around 5%. This has led to the development of infrastructure and the strengthening of industrial foundations, and investment in many industries, including IT, has become active. With economic growth, technical education and vocational training are also being enhanced, and excellent IT human resources are being developed in abundance.
Also, Indonesia has a stable political environment compared to some other countries. A stable political system provides clear legal regulations and a predictable business environment, making it a low-risk investment destination for foreign companies. The government is also actively promoting policies to promote foreign direct investment (FDI), and recently, well-known global companies such as Microsoft, Google, and Elon Musk's Starlink have shown a positive attitude toward active investment in Indonesia.
Potential of the IT Outsourcing Market in Indonesia
IT outsourcing in Indonesia is an effective strategy for securing engineers from a global perspective and accelerating the digital transformation of companies. By maximizing the potential of this country, many companies are expected to solve technical challenges and expand their business.
By companies engaging in IT outsourcing in Indonesia, they can provide cost-efficient solutions and promote technological innovation. Furthermore, by working closely with local engineers, rapid and flexible project execution becomes possible.
The IT outsourcing market in Indonesia offers low-cost and high-quality technical capabilities, making it an attractive option for many companies. Especially for start-up companies and small and medium-sized enterprises, it is positioned as an important means to optimize the balance between cost reduction and technical capabilities.
Other Articles: What Contents Should You Put In Your Company Profile? 7 Necessary Contents You Must Prepare
Disadvantages of IT Outsource in Indonesia
While the Indonesian IT outsourcing market offers many advantages, there are some disadvantages to be aware of when considering system development in Indonesia. When considering IT outsourcing in Indonesia, some unique challenges need to be taken into account. The main problems and their impact are explained below.
Short History of IT Outsourcing
The relatively short history of IT outsourcing in Indonesia compared to China or Vietnam is one of the points to be noted. Experienced development companies and engineers with advanced technical skills are limited compared to other IT outsourcing bases. In addition, some companies may not have established project management and quality assurance processes. These factors can affect the quality and delivery of projects, so careful consideration is required when selecting a development partner.
Areas with Severe Traffic Congestion
In major cities in Indonesia, especially Jakarta, traffic congestion is a serious problem. It can be difficult to arrive at the office on time due to unpredictable commuting times. This can affect the schedule management of the development team and the progress of the project.
Unstable Internet Connection
In some areas, the internet connection can be unstable. This problem is particularly noticeable in rural areas and areas with underdeveloped infrastructure. This can hinder remote work and online communication for engineers working from home, which can lead to project delays and communication breakdowns.
Religious Customs
Indonesia is a country with a large Muslim population, and employees have the custom of praying several times a day. This may cause some interruptions during working hours. It is necessary to understand this cultural background and set flexible working hours and adjust schedules.
Loose and Relaxed Personality
In some parts of Indonesia's work culture, the awareness of time may be more relaxed compared to other countries. This can make project schedule management difficult. Project progress may be delayed due to uncertain adherence to deadlines and attendance at meetings.
As a quality control issue, a personality that does not care about small details can also affect quality control. Insufficient attention to detail can lead to bugs and errors, which can affect the quality of the final product. Strict review and testing processes are required to meet the high quality standards required.
As a communication gap, if the project progress and problems are not reported in detail, communication gaps may occur. This may delay the early detection and prompt resolution of problems. Transparent communication is important.
Job Hopping Culture
In recent years, with the emergence of unicorn startups in Indonesia, job hopping (the culture of frequently changing jobs) has become widespread. Highly skilled personnel are likely to move to other companies in a short period of time, which may threaten the stability and continuity of projects. In order to promote employee retention, it is necessary to provide attractive salaries and career paths, and to improve employee satisfaction.
By understanding these challenges and taking appropriate measures, you can successfully carry out IT outsourcing in Indonesia. It is important to respect the local culture and customs and to carry out flexible and effective project management.
Popular IT Outsource Hubs in Indonesia
1. Jakarta:
Jakarta is the capital and economic center of Indonesia. Many companies have expanded into Jakarta, and it overwhelms other cities in terms of the amount of people and information. For the following reasons, it is popular as a base for IT outsourcing, but there are also many challenges such as rising labor costs and severe traffic congestion.
Well-developed infrastructure: There are many high-speed internet connections and modern office buildings, creating a well-organized business environment.
Abundant human resources: Many excellent IT personnel gather, making development possible in various technical fields.
Business opportunities: In addition to IT outsourcing, there will be many opportunities as large companies and key players are concentrated.
Good access: There is an international airport, making access from all over the world easy.
2. Batam:
Batam is close to Singapore and is popular as an IT outsourcing base for Singaporean companies. The Indonesian government is also strategically and actively promoting the development of Batam, which is close to Singapore.
Geographical advantage: It is about 1 hour away from Singapore by ferry, making access very convenient.
Cost efficiency: The cost of living and labor costs are lower than in Singapore, and cost reduction can be expected.
Special economic zone: Batam is designated as a free trade zone, with tax benefits.
3. Bandung:
Bandung is known as the center of education and technology in Indonesia. It is relatively close to Jakarta, and labor costs and living expenses are still lower than in the suburbs of Jakarta, making it popular as a base for IT outsourcing.
Educational institutions: There is the famous Bandung Institute of Technology (ITB), which produces many excellent IT personnel.
Startup culture: Many startup companies exist and innovation is active.
Comfortable climate: The climate is milder than in Jakarta, and the living environment is good.
4. Yogyakarta:
Yogyakarta, an ancient city with a strong palace culture, is known as a city of culture and education. Many universities exist and labor costs are low, so many companies use it as an outsourcing base.
Rich cultural heritage: There are many historical buildings and cultural facilities, providing an attractive living environment.
Concentration of educational institutions: There are many educational institutions, including Gadjah Mada University (UGM), and excellent personnel gather there.
Low cost: Living expenses and minimum wages are relatively low, making cost-effective development possible.
5 . Bali:
Bali is famous as one of the world's leading tourist destinations, but it is becoming popular as a development base as many excellent and diverse human resources gather there because of its beautiful island and climate, and it has been selected as the world's most popular destination for nomad workers.
Attractive living environment: There is a beautiful natural environment and a rich culture, and the quality of life is high.
Base for digital nomads: Many digital nomads and startups gather, creating an international business environment.
Holding of IT events: Many international IT events and conferences are held, providing many networking opportunities.
Each city has its own strengths and is a very attractive option for IT outsourcing in Indonesia. By selecting the best base for their needs, companies can achieve efficient and effective development.
Other Articles: How Mobile Apps Transformed Business for Pande Putri and OrangeCare Taiwan
To Succeed in IT Outsourcing in Indonesia
When conducting IT outsourcing in Indonesia, there are several important challenges. To address these challenges and ensure a successful project, consider the following solutions:
Placement of a Reliable PM or Bridge Engineer
Placing a reliable project manager (PM) or bridge engineer is essential for project success. Ideally, this person should not only understand the cultures and ways of thinking of both the client's country and Indonesia but also be multilingual. Their role is to facilitate communication between the company and the Indonesian development team and bridge any cultural gaps. By managing the progress of the project and quickly responding to problems that arise, the PM or bridge engineer supports the smooth progress of the project.
Importance of Ordering to a Proper Company
Ordering to a reliable company, rather than a freelance individual, is important to ensure the stability and quality of the project. Projects that are outsourced to individuals who then abandon the project due to illness or job changes are often seen. Also, in the case of individuals or small companies that are not well-established, financial management is also complicated, so there is a risk of the ordering party getting caught up in trouble. In the case of a company, the infrastructure and support system are in place, so it is possible to secure development resources and respond quickly to sudden troubles. In addition, since companies usually have established quality control and project management processes and governance, stable results can be expected.
Importance of Strict Project Management
Strict project management is essential for project success. By setting clear schedules and deadlines, and regularly requiring detailed progress reports, the project progress is firmly managed. In addition, thorough risk management and issue management are carried out to ensure that the project proceeds as planned. It is also important to educate members through the project, such as by having them work overtime to handle tasks that have not been completed, in order to educate them on how to think about time.
Importance of Quality Control, Testing, and Checklists
Quality control is important to maintain the high quality of project deliverables. It is necessary to implement a strict testing process and to discover and correct bugs and defects early. Providing detailed feedback is crucial, even if it seems like the recipients might be hesitant at first. Different cultural backgrounds can lead to varying perspectives on what constitutes a problem or issue. Using checklists is also a valuable practice, as it helps ensure that all necessary tasks are completed thoroughly at each stage of development.
Importance of Document Management
Appropriate document management increases the transparency of the project and facilitates subsequent development and maintenance. Detailed documents are created at each stage of development to maintain consistency throughout the project. Documents also function as a communication tool, allowing all stakeholders to share the same information. With the recent emergence of Notion and ChatGPT, it has become easier to efficiently manage document management in multiple languages.
Importance of Cultural Understanding and Education
Understanding and adapting to Indonesian culture and business customs is important for project success. It is recommended to conduct education and training to respect cultural differences and build cooperative relationships with local teams. Indonesians can be lax at times, but they are basically obedient, and if you have a good relationship with them, they will listen to your unreasonable requests. Project productivity can also be increased by valuing the relationship with the local team without ignoring their motivation.
Importance of a Long-Term Perspective
IT outsourcing is not just about short-term cost reduction, it is important to build long-term partnerships. Sustainable success can be achieved by building trust and aiming for continuous improvement and growth. Investment and planning that consider not only short-term profits but also long-term strategies are required. It is important to treat them not just as a development outsource destination with cheap labor costs, but as partners who will grow the business together.
Situation in Countries Other Than Indonesia
IT Outsource Situation in Vietnam
Vietnam is a very popular IT outsourcing destination for companies. This is due to the friendly nature of the people, the hardworking workforce, the geographical proximity, and the relatively low cost. In recent years, the Vietnamese government has been focusing on developing IT human resources, creating an environment where it is easy to secure resources. Furthermore, increasing language skills are expanding the pool of talent capable of handling complex projects like advanced system development, AI, blockchain technology, and package software development. However, economic growth is driving up labor costs, eroding some of the previous cost advantages. The expansion of IT outsourcing companies beyond major urban centers to smaller cities is creating a wider range of options in terms of both cost and specialized expertise. With growing interest from European and American markets, the IT development sector is poised for even greater expansion and attention.
IT Outsource Situation in Myanmar
In Myanmar, democratization progressed in 2016, and foreign investment increased. As a result, IT infrastructure was developed, and it gained popularity as an IT outsourcing base offering cheap labor. However, due to the coup in 2021, political instability has increased, and companies are increasingly avoiding risk. Even so, local IT outsourcing itself is operating, and there is a possibility of enjoying cost benefits. While keeping a close eye on future political developments, Myanmar continues to have potential as a promising IT outsourcing destination.
IT Outsource Situation in China
In China, the share of new orders is decreasing year by year. However, many companies still use Chinese IT outsourcing companies, and the market size remains large. Considering country risk and rising unit prices, a medium- to long-term strategy is necessary. Companies with bases in China are considering new IT outsourcing while considering collaboration with existing bases.
IT Outsource Situation in the Philippines
The Philippines and India are expanding their share of IT outsourcing as countries where English is spoken fluently. The Philippines is very attractive to companies that want English as the communication language for projects. As Japanese companies become more globalized, the demand for IT development in English is increasing, and the Philippines is growing in response to this need.
In each country, IT outsourcing has its own merits and demerits. Companies need to comprehensively consider factors such as cost, language ability, political stability, and technical capabilities to select the optimal IT outsourcing base.
Other Articles: Why Website Speed is Important? How to Check a Website Speed by Yourself
How to Choose a Recommended IT Outsourcing Company in Indonesia
When conducting IT outsourcing in Indonesia, choosing a reliable partner company is very important. By considering the following points, you can realize a successful IT outsourcing project.
1. Choose a Large Company with Trust and Achievements:
It is not necessary to be a large company, but it is desirable to choose a company with many project achievements and reliability of 50 or more employees. Especially when ordering as a company, it is necessary to choose a reliable company not only in terms of project stability and quality but also in terms of security. In addition, reliable companies have successful past examples and good evaluations from clients, so it is a good idea to ask about them.
2. Choose a Company with a Staff Member in Charge Who Can Speak Your Language:
Choosing a company with staff who can speak your language and understand your business culture will make communication smoother. This allows detailed requirements and progress reports of the project to be made in your language, reducing mistakes and misunderstandings, and enabling efficient project management. Ideally, it would be best to have a person in charge who can speak more than two languages and deeply understands both your country and the other country. The presence of a person in charge who understands the cultural differences between the two countries and can respond appropriately is very valuable.
3. Check the Technologies They Can Handle:
It is important to check the technologies and services that the company can provide. In particular, choosing a company with the technical skills necessary for your company's project will ensure high-quality deliverables. It is required to clearly confirm the technology stack (programming languages, frameworks, tools, etc.) and specialized fields (for example, AI, blockchain, business systems, web systems, mobile app development, etc.).
4. Look at Photos and Videos of the Company's Office:
By checking the company's office environment, you can judge the company's reliability and professionalism. Companies with well-maintained offices tend to have a good working environment and high employee productivity. By viewing photos and videos of the office on Google Map or the website, you can understand whether the company is trustworthy, the company culture and how people work.
5. Visit the Site:
If possible, visit the site to check the company's atmosphere and actual work environment. A local visit is also effective in building a trusting relationship with the company. By visiting the site, you can directly feel the company culture and how people work, and you can gain a sense of security about the progress of the project by directly seeing the faces of the people working at the company. In addition, by understanding the local infrastructure and living environment, you can understand the actual practical issues and advantages in actual work.
6. Check the Minimum Wage in That Area:
By researching the minimum wage in various parts of Indonesia, you can understand the appropriate salary level and avoid excessive costs. It is important to understand the minimum wage information and inflation in that country as part of cost management. In addition, by paying appropriate salaries, it is possible to secure excellent human resources and maintain employee motivation.
7. Check the Unit Price of Engineers with the Relevant Company:
Check the unit price of specific engineers with the company. It is important to have a detailed cost estimate for project budget management. Since the unit price is affected by skill level, years of experience, overtime, emergency response, etc., ask for a detailed explanation. By grasping the appropriate unit price, it is possible to realize high-quality development within the budget.
8. Ensure That the Company Has Solid Internal Workflows and Checklists:
Check that the company has solid business flows and quality control processes. This ensures that the project proceeds as planned and that high-quality deliverables can be expected. It is important to check for the presence of standardized processes and checklists. For example, by checking whether check points and review systems are in place at each stage of the development process, you can confirm that project quality control is being carried out reliably.
When conducting IT outsourcing in Indonesia, choosing a reliable company is the key to success. It is a reality that there are many small companies that have skillfully disguised themselves on paper but have no quality control at all. Evaluate companies based on the above points and find a suitable partner to achieve high-quality development. It is important not only to think about cost reduction but also to select a company that meets the needs of the project and to ensure smooth communication and efficient work flow. By conducting local inspections and detailed confirmations, you can make an appropriate choice and realize a successful IT outsourcing project.
Timedoor Indonesia: 10 Years of Development Experience in Indonesia
Let us also promote our company here.
Our company, Timedoor, has been developing systems in Indonesia for 10 years, and has handled many outsourcing development projects for companies not only in Indonesia but also in other countries, including Japan. Our Japanese staff members act as intermediaries between our clients and Indonesian engineers, so you can rest assured that your project will proceed smoothly without any language concerns.
With a monthly salary per person of $1,350 to $1,680 USD, you can use web and app front-end and back-end engineers as your project team in a lab-type development format, as needed. We will flexibly build a dedicated team structure for your company according to your requests. We can also help you with everything from hiring and training personnel to developing your company's system.
Our company provides IT outsourcing services in Bali, Indonesia. Bali, one of the world's leading resort destinations, is very popular not only with tourists but also as a resort work destination where programmers and nomad workers can work comfortably due to its excellent environment. In our company, we strive to provide the best possible office environment for our employees in the best environment of Bali so that they can do creative and effective design and system development work every day.
[embed]https://youtu.be/OomMjmpAp2M[/embed]
Our Strengths
Having been established in Bali, Indonesia for 10 years, we have cultivated many things from these 10 years of experience, successes, and failures, and we are able to provide high-quality services to our international clients.
We are particularly focusing on the following three points as our strengths.
1. Focus on Hiring:
We have MOUs with more than 5 local science and engineering colleges and universities, accept many students through internships, and most of those who have been able to confirm their technical level and mindset become our full-time employees. At the time of joining the company, they have at least 4 to 7 years of programming experience.
2. Quality Control and Management System by Japanese Staff:
We thoroughly implement quality control within the company, and services are launched after passing more than 100 checklists. We also have Japanese bridge SEs and Indonesian staff who can speak Japanese to help minimize communication and language problems for our clients.
3. High Employee Retention Rate:
We do business in a special culture and environment in Bali, Indonesia, and we thoroughly strive to create a company with internal events, outings, and a good atmosphere, and we have been able to secure stable human resources with a turnover rate of less than 10% in developing countries where the culture of job change is developing.
We are not yet a perfect IT outsourcing company, but our Japanese and Indonesian staff have worked hard for 10 years to meet the expectations of our clients. If you are interested in working with Timedoor and IT outsourcing in Indonesia, please feel free to contact us.
Click here for inquiries
Summary
With the shortage of IT engineers and the increasing demand for IT outsourcing, Indonesia is attracting attention. Indonesia is attractive for its low labor costs, improved technical capabilities, and abundant young workforce, and it is promising as a base for cost-effective IT outsourcing. In particular, the low unit price of engineers and the progress of technical education make it an ideal choice for many companies considering securing IT human resources in the future.
On the other hand, there are also disadvantages such as the short history of IT outsourcing and the small number of IT outsourcing companies. Why not try IT outsourcing in Indonesia by selecting a reliable partner company?
Other Articles: 2025 Edition: Complete Guide to Indonesia’s Minimum Wages by Province
Explanation of Terms Used in This Article
IT Outsourcing:
IT outsourcing refers to the practice of a company contracting out software development or IT services to a company in a country other than its own. This is mainly done for the purpose of reducing costs, using advanced technical skills, and realizing rapid development cycles. For example, it is common for companies to outsource development work to countries with relatively low labor costs such as Indonesia and India. The advantages of IT outsourcing include reducing development costs, developing 24 hours a day, and utilizing local advanced technical resources. However, it is also necessary to consider time differences, cultural differences, and communication challenges.
Lab-type Development:
Lab-type development is a development model in which a dedicated development team is formed for a specific project or company, and that team works consistently on the project. In this model, the client company directly manages and closely cooperates with the development team. Lab-type development is suitable for long-term projects and continuous software improvement, and it is highly flexible because it allows clients to quickly change requirements or add new functions. In addition, high-quality results can be expected because the team has a deep understanding of the corporate culture and development process.
Making Indonesia 4.0:
"Making Indonesia 4.0" is a national program by the Indonesian government to innovate the manufacturing industry through the Fourth Industrial Revolution. This program includes measures to promote the introduction of smart technologies, digital transformation, and sustainable industrial development. Specifically, it aims to improve the productivity and competitiveness of the manufacturing industry by utilizing advanced technologies such as IoT (Internet of Things), big data, and artificial intelligence (AI). Infrastructure development, human resource development, and deregulation are also important elements, and Indonesia aims to grow as a technology hub in Asia.
Nadiem Makarim:
Nadiem Makarim is an Indonesian politician and currently serves as the Minister of Education, Culture, Research, and Technology. He is also the founder of Gojek, a major ride-sharing service in Indonesia. Makarim is using his experiences as a founder of a startup company to promote educational reforms. His policies focus on promoting digital education, improving the quality of education, and developing the abilities of teachers, and aim to innovate the entire Indonesian education system. Under Makarim's leadership, digital transformation and reforms in the education sector are progressing.
Nusantara (New Capital of Indonesia):
Nusantara is a city designated as the new capital of Indonesia, and plans are underway to relocate it from the current Jakarta to Borneo Island. This relocation plan was devised to solve problems such as overcrowding, traffic congestion, and land subsidence in Jakarta. Based on a sustainable urban plan, the new capital is being developed with environmentally friendly infrastructure. Smart city elements are also being incorporated, aiming for efficient city management using the latest digital technologies. Nusantara is expected to promote economic multipolarization and serve as a new base for regional development.
Bali Island:
Bali Island is widely known as a tourist destination in Indonesia, but in recent years it has also been focusing on the development of the IT industry. In addition to its beautiful natural environment and cultural attractions, it is also popular as a place where digital nomads and startup companies gather. Many IT companies have bases in Denpasar, the main city of Bali, and it is also attracting attention as a base for IT outsourcing. Through the fusion of tourism and the IT industry, Bali plays an important economic role.
Smart City:
A smart city refers to a city that uses information and communication technology (ICT) to enhance urban functions and realize efficient and sustainable urban management. The elements of a smart city include upgrading transportation management, energy management, waste management, disaster prevention, and medical services. It aims to optimize the resources of the entire city and improve the quality of life for citizens by making full use of sensors, data analysis, and IoT technology. In Indonesia, the construction of smart cities is also progressing as part of the Nusantara new capital project and "Making Indonesia 4.0". This greatly improve the efficiency and livability of cities.
FAQ
Q: What are the advantages of IT outsourcing in Indonesia?
A: The advantages of IT outsourcing in Indonesia include low engineer unit prices, easy access to resources, substantial technical skills and education, and high affinity with people from other countries.
Q: What are the disadvantages of IT outsourcing in Indonesia?
A: Disadvantages include a short history of IT outsourcing, traffic congestion and unstable internet connections, religious customs, a loose and relaxed personality, and a job-hopping culture.
Q: How much does it cost to live in Indonesia?
A: The cost of living in Indonesia varies by region, but the minimum wage is around Rp 4,500,000 to Rp 7,500,000 per month. There is a salary difference between urban and rural areas, with urban areas being higher and rural areas being lower.
Q: Which cities are suitable for IT outsourcing in Indonesia?
A: Cities suitable for IT outsourcing in Indonesia include Jakarta, Batam, Bandung, Yogyakarta, and Bali. Each city has its own strengths.
Q: What is the unit price of engineers in Indonesia?
A: The average monthly salary per engineer in Indonesia is about $1,680 USD (Rp 27,182,148). It varies between urban and rural areas, with urban areas being higher and rural areas being lower.
Q: How much potential does the IT outsourcing market in Indonesia have?
A: Indonesia is an attractive IT outsourcing market for many companies because it provides low-cost, high-quality technical skills. Especially for startups and small and medium-sized enterprises, it is an important means to optimize the balance between cost reduction and technical capabilities.
Q: What should I do to succeed in IT outsourcing in Indonesia?
A: It is important to have a reliable PM or bridge engineer, order to a reliable company, strict project management, thorough quality control and testing, proper document management, cultural understanding and education, and a long-term perspective.
Q: What are the advantages of IT outsourcing destinations other than Indonesia?
A: Indonesia's advantage is that it can provide low-cost and high-quality technical skills compared to other Asian countries. The minimal time difference and ease of communication are also significant advantages.
Q: What are the points to consider when choosing an IT outsourcing company in Indonesia?
A: The points are: a company with trust and achievements, a company with a country representative, confirmation of technologies they can handle, confirmation of office photos and videos, local inspection, investigation of the minimum wage, engineer unit price confirmation, and establishment of a business flow and checklist.
Q: What are the strengths of timedoor indonesia in IT outsourcing in Indonesia?
A: Timedoor Indonesia's strengths are its talented personnel with a focus on hiring, quality control and management system by Japanese staff, and high employee retention rate. With 10 years of development experience, we provide high-quality services to our clients.
Looking for E-commerce MobileApp for your Retail Business? Learn more on APPMU.id
Read more
