Singapore Technology

Q3 2024 Salary Index

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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?

Digital transformation in Financial Services:  The insurance industry is undergoing significant digital transformation, highlighted by senior appointments at companies like Chubb, Prudential, HSBC Life, and Dai-ichi Life, which will drive recruitment efforts.

Focus on Data centers, Cybersecurity, and Cloud.  Recent discussions at Tech Week emphasized the critical role of data centers and cloud infrastructure in the region. Major investments from companies like AWS and Google aim to enhance capacity to meet rising cloud service demands. Hybrid and multi-cloud solutions are also gaining traction as businesses seek to optimize performance and manage costs.   

Growing opportunities in AI: OpenAI plans to open an office in Singapore this year to support its regional expansion.  Initiatives like AI Singapore are fostering AI integrations and cultural inclusivity in tech.  We are also witnessing increasing AI adoption in the semiconductor and manufacturing sectors.

Macro-Economic Influences:  The U.S. Federal Reserve recently cut rates by 50 basis points in September, with an additional 25 basis points expected soon. Similarly, Korea has cut rates by 25 basis points, and Japan may follow. Lower interest rates generally stimulate lending, encouraging local corporations to expand.

Impending U.S. Elections:   The U.S. election in early November is anticipated to influence market dynamics.

Uncertain outlook in China: Over the past two years, the tech sector has benefitted from Chinese giants expanding in Singapore. However, recent compliance issues, regulatory challenges, and reduced investment have stalled growth. The effects of government stimulus measures are yet to be seen.

Senior Hiring and Decision-Making in Singapore:  Much of the regional senior hiring and decision-making is taking place in Singapore, while clients are also investing in cost-effective offshore centers in countries like China, Malaysia, and India.

Stricter Hiring Approvals:  The approval process for permanent headcounts in local banks has tightened. In response, hiring managers are obtaining funding to employ contingent workers for key projects, helping to meet deadlines effectively.

Anticipated Drivers of the Q3 Talent Market

Year-End Bonuses: The timing of year-end bonuses is impacting candidate availability, with many preferring to interview for new positions in the new year after receiving their bonuses. Some clients are already planning for 2025 hires.

Salary Trends: Salary increments are returning to pre-COVID levels, averaging 12-15% of base salary. Consequently, organizations are focusing on non-monetary perks, such as flexible work arrangements, to attract talent, despite candidates expecting raises of around 20-25%.

Increased Demand for Contractors: As many companies approach the end of their fiscal years, there’s a noticeable increase in demand for short-term contractors while 2025 budgets are being finalized.

Importance of COMpass: The hiring process remains centered around the COMpass framework, with companies favoring local candidates but considering other nationalities when local talent is unavailable. Currently, 56% of placements are local candidates.

IT Service Providers Under Scrutiny: Heightened scrutiny of IT service providers has prompted many to temporarily offshore headcounts as a short-term strategy to navigate these challenges.

Insights by Area of Specialism

Infrastructure

Q3 for Infrastructure hiring drops from an average of 23.15% to an average increment of 4.7%.

Software Engineering

There was a significant drop for Software Engineering, with average increase at 6.67%. This is the lowest in the last 4 quarters.

Cyber Security

Last quarter's top performer, maintained it's position with average increments steady at 34.36%.

Cloud & Dev Ops

The average increments held steady for this skillset at 16.56%.

Projects

There was a slight drop for Project hires to land at 9.22% vs 11.84% the last quarter.

Overall

We saw an average growth of 14.32% across the market.

Line Graph - Q3 2024
Bar Graph - Q3 2024

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