Hong Kong tech firms look outside for dev hiring

More than 90% of companies want to hire the best foreign talent.

More tech companies are shifting staff and operations outside Hong Kong to cut costs and stay ahead of the game, despite the city’s efforts to retain them.

“With the increasing demand for specialised tech talent, Hong Kong companies are tapping into global talent pools to fill the gaps [with] Malaysia, the Philippines, and India — the top countries where Hong Kong companies are sourcing talent,” Karen Ng, regional head of expansion for North and South Asia at Deel, Inc., told Hong Kong Business.

A 2024 report by the California-based payroll and human resource company found that 94% of business decision-makers want to hire the best foreign talent.

“They remain upbeat regarding the city’s talent landscape, citing its global reputation as a key factor that makes it an appealing destination for top talent,” Ng said in an emailed reply to questions.

Local demand for software developers plunged 90% from 2022 to 2024, but only because these companies are choosing to hire offshore, according to recruitment firm Hays Hong Kong.

Melissa Lau, director at Robert Half Hong Kong, said many local banks and non-financial service firms have relocated their dev teams from Hong Kong to Vietnam, Malaysia, the Philippines, and mainland China.

“Our conversations with businesses have revealed Singapore is experiencing a similar shift in developer demand, with some roles relocating to Malaysia due to its proximity and lower operating costs,” she said in an emailed response.

Software developers and engineers are the most in-demand amongst local firms hiring globally, whilst overseas demand for Hong Kong tech talent continues to rise.

“There’s been a 47% year-on-year increase in the number of Hong Kong professionals hired by US companies,” Ng said. “We are seeing Hong Kong developers go global.”

Amidst stiff competition, Hong Kong firms are investing in upskilling particularly around artificial intelligence (AI). “The shift is less about switching industries and more about adapting for the future of work,” she added.

“This means that employers must also step up their hiring strategy and workplace offerings to be more in line with global practices to attract talent locally and globally, especially as Gen Zs enter the workforce,” she added.

Deel’s 2024 Rakuten survey found that 18% of workers take into account career growth, whilst another 18% look at company values. Sixteen percent of workers also consider benefit packages when choosing to apply for or stay on the job.

Lau said AI has helped software developers automate mundane tasks, letting them focus on more complex and creative work.

Demand for AI engineers more than quadrupled, and hiring of AI directors rose threefold from 2023 to 2024, according to the Deel report. AI-related roles have a median salary of $573,100 (US$73,000), which is more than double the average of all job positions.

AI also introduced new roles such as AI engineers and developers, who focus on creating and implementing AI algorithms. There's also a growing demand for highly specialised developers with strong business knowledge.

“Developers should prioritise upskilling and reskilling to future-proof their careers and increase their market value,” Lau said.