Where and How to Hire Remote Developers in 2023: Trends Research

What are the most expensive devs out there right now? Is there any chance for an employer to save and find more affordable but still skilled remote engineers in specific locations? How to approach hiring IT talent in 2023 and which channels to use?

I had a chance to sit and talk with Alex Chepovoi, a CEO at Expertremote.io - a marketplace to hire vetted developers . I've been able to squeeze some insider information and statistics to answer the questions above.

The most cost-effective remote destinations for employers

Currently, there are 400+ IT experts available to hire through Expertremote.io that represent 30 countries. Here is the data for top 10 countries by number of engineers:

The chart showcases average rates for each country and average rates per developer level. It only includes developers that have passed the vetting process, meaning there are no junior engineers, only middle/senior/leads. The data has already been calculated to include the commission charged by the marketplace.

We see that popular IT outsourcing destinations like Poland are overheated, and there are countries that can offer the talent of the same expertise level and 30-40% discount. Also, another interesting fact: in some countries there are almost or no price difference between senior and lead engineers!

Countries with the most skilled devs

Talent cost is an important factor. But what about real expertise? What countries can offer the most skilled developers for remote hire? Marketplaces like Expert Remote go through a rigorous vetting process that includes an extensive tech interview. This means that there is a funnel: from a large number of applicants only a few are selected and are available to hire on the platform. Thus, the conversion rate from application to a passed vetting is a good indicator of an expertise.

Higher Conversion rate means more developers pass the vetting process, hence those developers have better Tech Skills, Soft Skills and English Level. Below is a table that includes the info on a number of applications from a specific country and an overall passed vetting conversion rates.

An important note: this rating also takes into account developer rates, if we think the developer's ask is too high, we disqualify him from the platform, hence some countries like USA have low acceptance rates.

As we can see, countries like Serbia or Armenia have lots of developers who pass the vetting and a high overall conversion. Again, those metrics are way better than popular countries for IT outsourcing like Poland or India demonstrate.

This is good news for employers: you can find locations with a large talent pool and good quality. Check out countries like Serbia, Armenia, North Macedonia, Azerbaijan, Turkey.

Most in-demand technologies in 2023

According to the marketplace data, the most in-demand IT specialists these days are AI/ML Engineers and Data Scientists, Product Managers, DevOps, Engineering Managers. However, there is not one-size-fits-all ML engineer or ML job. The current AI landscape reminds of the early days of web dev: 20–30 niches and every company is looking for a special ML expert that is good at what they need right now, like LLMs or Computer Vision.

This data corresponds with other developer analysis. For example, according to Stack Overflow developer survey 2023, 70% of all respondents are using or are planning to use AI tools in their development process this year.

In today's landscape of enterprise development, the demand for experts in SAP or D365 is incredibly high. In turn, for front-end devs, it is not the best time.

On the other hand, the financial crisis and big tech layoffs have cooled the market down. The balance between employers and employees has shifted towards the formers, and this gives companies a chance to become more picky and only invest in perfectly matching candidates. A year or two ago, they would have been picking faster and less thoroughly. But the time has changed.

Self-sourcing vs vetted developer marketplaces

Another interesting topic is whether it is more cost-efficient for businesses to build their own sourcing process or refer to marketplaces? Do the sources of information differ for different types of developers? Data shows that it is true. For instance, Expertremote.io recruiters analyze thousands of developer profiles monthly and they've discovered an interesting correlation:

1. AI/ML/Data Scientists come mostly from Facebook Posts.
2. Front-end developers come mostly from Instagram Stories & Reels.

ML and Data Science experts clearly consume and react to different types of content compared to front-end devs.

Potentially, this might mean that companies can invest in marketing for specific platforms and build their own talent acquisition pipeline that can be more cost-effective and scalable than traditional LinkedIn outreach and job boards. However, it takes a lot of effort, time, resources and expertise to build this global talent sourcing & vetting machine.

It is easier for companies to just go directly to a marketplace to be able to choose from a vetted pool of engineering talent i.e. use the outcome of this sourcing and vetting machine that experts have already built. For example, Expert Remote ensures that candidates possess a minimum of 3 years of commercial experience, analyzes hard skills during a series of tech interviews, and pays attention to soft skills and English proficiency as well.

For Senior roles the marketplace vettes candidates to have experience building projects from scratch, making architectural decisions, solving complex problems, as well as managing teams.

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The world is changing, with an increasing number of companies embracing remote work. Vetted developer marketplaces represent a new and improved way to scale engineering teams globally. Compared to traditional outsourcing and recruiting models, this approach is faster, easier, and more cost-effective.