Looking to outsource software development in 2025? Or maybe you’re a software developer in Vietnam or the Philippines wondering what your skills are really worth?
Either way, now’s a great time to talk numbers.
According to the Bureau of Labor Statistics, the median salary for software developers in the U.S. hit $132,270 in May 2023. That’s a big motivator for companies to explore offshore development teams — especially in cost-efficient, high-talent markets like Vietnam and the Philippines.
But here’s the kicker: while outsourcing reduces costs, the salary expectations in top outsourcing hubs are rising, too.
Recent data from Glassdoor and local tech job boards shows that experienced developers in Manila or Ho Chi Minh City with strong programming, QA, or security software backgrounds are earning between $12,000 and $25,000 USD annually — with some niche roles like AI engineers and quality assurance analysts commanding even higher rates.
That gap between U.S. and Southeast Asian developer pay is still significant — but it’s closing fast.
The demand for developers with solid technical skills, strong communication, and a knack for application performance is heating up. And the job outlook is strong in both regions, especially for those who can build for global platforms and work across programs, devices, and networks.
So whether you’re looking to hire or get hired, it’s time to understand what a software engineer, tester, or QA analyst is really worth — and what factors influence those numbers in 2025.
What Does a Software Developer Do in 2025?
The role of a software developer in 2025 isn’t just about writing lines of code — it’s about building adaptable, secure, and scalable applications that solve real-world problems.
In outsourcing hubs like Vietnam and the Philippines, developers are expected to wear multiple hats. That might include:
- Designing user-centric software for web or mobile
- Writing clean, maintainable code in languages like JavaScript, Python, or Java
- Collaborating remotely with international teams
- Participating in agile sprints or DevOps workflows
- Ensuring software quality through testing and QA processes
- Integrating AI-powered features or managing cloud-based infrastructure
Whether they’re working on consumer electronics, enterprise applications, or mobile programs, many software developers are now judged not just by how they build, but how they communicate and solve problems within distributed teams.
Bonus points (and higher paychecks) go to developers who understand security requirements, optimize performance, and bring programming and project management skills to the table.
Software Developer & QA Analyst Salary Trends (2024–2025)
So let’s talk numbers.
In the U.S., as per the Bureau of Labor Statistics, the average software developer salary is well into six figures — over $132K, and even higher in roles like software engineering managers and security-focused developers.
Now compare that to average earnings in top outsourcing hubs:
Vietnam:
- Junior Developer: $6,000 – $12,000/year
- Mid-Level Developer: $12,000 – $18,000/year
- Senior Developer / Engineer: $18,000 – $30,000/year
- QA Analyst or Tester: $7,000 – $15,000/year
(Source: TopDev, ITviec, Glassdoor Vietnam)
Philippines:
- Junior Developer: $5,000 – $10,000/year
- Mid-Level Developer: $10,000 – $20,000/year
- Senior Software Engineer: $20,000 – $35,000/year
- Quality Assurance Analyst: $8,000 – $18,000/year
(Source: Jobstreet, Payscale Philippines, Glassdoor)
The average salary gap between U.S.-based and offshore developers is still significant, but it’s shrinking as developers upskill and specialize. Especially in fields like AI, cybersecurity, and QA automation, clients are paying more for proven expertise — regardless of location.
Companies are also offering flexible bonuses, better infrastructure, and even equity options to retain top talent in offshore locations. And developers who understand DevSecOps, containerization tools like Docker/Kubernetes, or who can mentor junior team members? They’re moving into premium salary brackets.
What’s the Average Salary in the Philippines in 2025?
Curious about the average salary in the Philippines for 2025? Salaries are projected to rise by 5.5%, with the average monthly income reaching approximately ₱44,800 (around $780). Dive into the full article to explore detailed salary trends and insights
Salary Comparison: Hiring Software Developers in the US vs Philippines vs Vietnam
| Role | United States (USD/year) | Philippines (USD/year) | Vietnam (USD/year) |
|---|---|---|---|
| Junior Software Developer | $80,000 – $100,000 | $5,000 – $10,000 | $6,000 – $12,000 |
| Mid-Level Developer | $110,000 – $130,000 | $10,000 – $20,000 | $12,000 – $18,000 |
| Senior Software Engineer | $140,000 – $160,000+ | $20,000 – $35,000 | $18,000 – $30,000 |
| QA Analyst / Tester | $70,000 – $90,000 | $8,000 – $18,000 | $7,000 – $15,000 |
| Security Software Engineer | $150,000 – $180,000+ | $20,000 – $30,000 | $18,000 – $28,000 |
Median Salaries by Role: Developers, Testers, Engineers
While average salary tells part of the story, median salaries help paint a more realistic picture — especially in outsourcing markets where outliers can skew averages.
Here’s a breakdown of median salaries by role, drawing from both local job boards and global platforms like Glassdoor:
Vietnam – Median Annual Salaries (USD)
- Software Developer: $13,000
- QA Analyst / Tester: $10,000
- Software Engineer (mid-level): $16,500
- AI/ML Engineer: $22,000
- Senior QA Automation Engineer: $18,000
Philippines – Median Annual Salaries (USD)
- Software Developer: $12,000
- Quality Assurance Analyst: $11,000
- Software Engineer (mid-level): $17,000
- Security Software Engineer: $20,000
- Test Automation Specialist: $15,500
These numbers vary depending on technical skills, years of experience, programming language proficiency, and industry — with roles in fintech, healthtech, and AI-based platforms often commanding a premium.
For hiring managers, this means it’s still possible to access high-quality technical talent at a fraction of the cost compared to hiring locally in the U.S., Canada, or Europe — but expect to pay more for developers with niche or in-demand expertise.
Understanding the Average US Salary in 2025: What It Really Takes to Live Comfortably
This article breaks down the key expenses affecting Americans today, and explores how strategies like outsourcing can help businesses manage rising costs and stay competitive.
The Job Outlook for Software & QA Professionals
If you’re wondering whether outsourcing software development is a long-term strategy — the numbers say yes.
According to the Occupational Outlook Handbook, employment of software developers is expected to grow 25% from 2022 to 2032, much faster than the average for all occupations. The outlook for QA analysts and testers is strong too, as companies shift toward automated testing, continuous integration, and more secure coding practices.
But here’s the outsourcing angle:
As the demand for developers explodes globally, U.S. and European companies are increasingly turning to outsourcing hubs — not just to save costs, but to scale quickly and tap into 24/7 development cycles.
What’s Driving This Demand?
- Accelerated digital transformation post-pandemic
- Growing reliance on cloud infrastructure and AI-driven platforms
- Pressure to release products faster and more securely
- The global shortage of senior-level technical talent
For software developers in Vietnam and the Philippines, that means more international job opportunities, better pay, and more remote-friendly work environments than ever before.
And for companies outsourcing? Now’s the time to lock in top-tier engineers and testers before wage inflation catches up across all markets.
How AI Is Reshaping Software Development Careers
The age of AI isn’t coming — it’s here, and it’s already rewriting job descriptions.
From code generation tools like GitHub Copilot to AI-powered test automation, artificial intelligence is changing what it means to be a software developer, QA analyst, or engineer in 2025 .
So what does this mean for outsourced developers in Vietnam, the Philippines, and beyond?
1. AI Isn’t Replacing Developers — It’s Requiring Them to Level Up
AI tools can help with boilerplate code, bug detection, and testing — but they still need human oversight. Developers who know how to use AI as an assistant (not a crutch) are becoming more valuable.
2. QA Is Getting Smarter — and More Specialized
Testers and quality assurance analysts are now expected to work with AI-driven test suites and predictive analytics. Manual testing alone isn’t enough anymore.
3. New Roles Are Emerging
Think AI integration engineer, ML ops developer, or even prompt engineer — all of which require foundational coding knowledge plus new AI-specific skills.
For outsourcing firms, this shift means rethinking hiring criteria. Instead of just looking for someone who can “build an app,” clients are now seeking engineers who can collaborate with AI-enhanced platforms, design intelligent applications, and secure them against evolving threats.
How to Solve the AI Skills Shortage with Smart Outsourcing Strategies
As the race to harness artificial intelligence intensifies, companies are realizing they can’t do it all in-house. In this article, we explore why the demand for outsourced AI development is rising—and what it means for the future of tech.
Technical Skills You Need to Stay Competitive in 2025
Whether you’re a developer looking to land more international clients — or a company scouting offshore talent — knowing the technical skills in demand can make or break the partnership.
Here’s what’s hot in 2025 :
Core Programming Languages Still Matter
JavaScript, Python, Java, and TypeScript continue to dominate. C# and Go are also gaining traction in specific industries like gaming and fintech.
AI & Machine Learning Fundamentals
You don’t need to be a data scientist, but having experience with TensorFlow, PyTorch, or even just integrating OpenAI APIs can give you a serious edge.
Test Automation
Tools like Selenium, Cypress, Playwright, and AI-enhanced platforms are now basic requirements for most QA roles.
Cloud & DevOps
AWS, Azure, and GCP are table stakes. Combine that with Docker, Kubernetes, and CI/CD pipelines, and you’re speaking the language of modern software deployment.
Security Awareness
With rising cyber threats, developers with secure coding practices, vulnerability testing knowledge, and security software implementation experience are highly valued.
Soft Skills & Remote Collaboration
Clear communication, proactive problem-solving, and cross-time-zone teamwork aren’t just “nice-to-haves” — they’re essential. And yes, your English proficiency matters.
Work Environment in Software Engineering Today
Let’s be real — the work environment for a modern software developer looks very different in 2025 than it did even two years ago.
Remote work isn’t just a perk. It’s the default.
Outsourced developers in countries like Vietnam and the Philippines are now integrated directly into product teams across the U.S., Canada, and Europe. From daily stand-ups on Zoom to managing computer networks and pushing updates to production environments — geography no longer limits impact.
In this distributed work model, success comes down to more than just coding chops. Developers must be:
- Comfortable with collaborative tools (e.g., Jira, GitHub, Slack)
- Fluent in async communication
- Aware of cross-cultural dynamics
- Able to self-manage across time zones
Whether you’re building applications, managing a complex database, or optimizing operating systems, the job duties of a software engineer now span much more than a desktop.
For developers: Think of your workspace as global.
For clients: Think of your team as borderless.
Why Now Is the Time to Invest in Global Talent
If you’re considering outsourcing software development, the timing couldn’t be better.
The data from the Bureau of Labor Statistics and the Occupational Employment and Wage Statistics (OEWS) shows a steady climb in the average software developer salary in the U.S. — along with a growing shortage of available talent, especially in roles like quality assurance analysts, AI specialists, and security-focused software engineers.
At the same time, outsourcing hubs like Vietnam and the Philippines are home to a booming population of skilled, English-speaking developers. Many hold a bachelor’s degree in computer science or a related field, have experience with global computer systems design projects, and are ready to take on new challenges in consumer electronics, mobile apps, and complex backend systems.
That’s where iScale Solutions comes in.
Whether you’re scaling a startup, expanding a product team, or building a dedicated offshore engineering squad — iScale Solutions helps you find and manage top-tier developers, testers, and QA professionals. With deep expertise in the region, a strong talent pipeline, and a proven outsourcing model, they make it easy to outsource software development without sacrificing quality.
- Pre-vetted talent
- Transparent pricing
- Seamless integration into your workflows
- Local support in key metro areas
- Flexible hiring models for contractors, full-time, or hybrid teams
In short?
The demand for developers is rising. The competition for talent is global. And the smartest teams in 2025 will be those that know how to outsource smart — without compromising on culture, communication, or code quality.
So whether you’re hiring or hoping to become a software developer for international clients, the future is bright — and it’s borderless.
Need help hiring? Start building your global tech team with iScale Solutions. Contact us to get started!
