Singapore Technology

Q2 2024 Salary Index

Data box

Explore our latest quarterly insights report to learn more about the ever-evolving dynamics of the recruitment landscapes in Singapore and Southeast Asia.  This report leverages our real-time Salary Index data, alongside an in-depth analysis of actual placements since 2020, to provide you with actionable insights that you can use to stay ahead of the curve.

Our report covers:

  • Market pulse.  We explore the key trends driving demand across various industries in Singapore while highlighting the growing cost-efficiency considerations leading companies to explore Southeast Asian talent pools.
  • Demand drivers: Gain a deeper understanding of the factors currently shaping the market, including the rise of contingent workers, increased focus on data centre capabilities, and the resurgence of the blockchain market.
  • Looking ahead: We anticipate the impact of global events, the evolving hiring process, and the return of pre-pandemic salary increments.  Our report also explores the continued importance of COMpass compliance and the strategic use of offshore resources.

What is driving demand?

There are positive signs in the Singapore technology job market, with green shoots observed across several industries.  Much of the decision-making and senior hiring are being conducted in Singapore, while clients have started establishing cost-effective offshore centres in other Southeast Asian countries.

Recently, the process of obtaining approval for permanent headcounts within local banks has become more stringent.  To circumvent this, hiring managers are securing funding to utilise contingent workers for key projects, which has proven effective in meeting project deadlines.  

Japanese banks have benefited from higher interest rates, resulting in increased profits and healthy performance bonuses. 

AWS's commitment to invest SG$12 billion in its cloud infrastructure has created a ripple effect across several industries.  Singaporean telcos have been the major beneficiaries, directing these investments towards expanding their data centre capacity to leverage 5G capabilities, prepare for 6G, and enhance their AI infrastructure.

Blockchain regulation policies in Southeast Asia are advancing, contributing to a rebound in this market. 

Anticipated Drivers of the Q3 Talent Market

The uncertainty caused by elections in over 80 countries this year has affected the global financial system.

In a hyper-competitive job market, clients are scrutinising candidate profiles extensively before interviews, particularly assessing job tenure, relevant industry experience, and technological expertise.

Salary increments are returning to pre-COVID levels, with average increments approaching 12-15% of base salary. Therefore, organisations emphasise non-monetary perks and promotion criteria to attract talent, despite candidates' expectations hovering around 20-25%.

The importance of COMpass in the hiring process remains significant. Companies prefer hiring local candidates but are open to other nationalities meeting COMpass criteria if local candidates aren't available, with 56% of placements being local candidates.

Additionally, IT service providers are facing increased scrutiny, prompting many to temporarily offshore headcounts as a short-term strategy to navigate these challenges.

Insights by Area of Specialism

Infrastructure

Continuing to strengthen from Q1's 16.94%, Q2 jumped to 23.15%.

Software Engineering

Following an upward trend for the past 3 quarters, Software Engineering increased to 28.21%.

Data

Aligned with demand, Data grew to 22.18%.

Cyber Security

Cyber Security, last quarter's top performer, maintained its position with average increments steady at 29.06%. We are observing steady demand for this skillset, with clients creating new headcounts in this space.

Cloud & Dev Ops

Q2 for Cloud & DevOps dropped to 15.15%, indicating a decline for this skillset

Projects

Projects returned with a modest 11.84% increase.

Overall

Cyber Security and Software Engineering had the highest increments for us, reflecting our clients' creation of new headcounts in these domains. We saw an average of 21.60% across the market, a positive conclusion for H1 2024.

Copy of Tech Increments Q2 2024 - Hudson Singapore Page 01
Copy of Tech Increments Q2 2024 - Hudson Singapore Page 02

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