A closer look at software outsourcing companies in Thailand for Canadian businesses

Don’t have the expertise to handle your software operations? Ever considered software outsourcing companies in Thailand or their independent contractor counterparts?

Thailand has become a hotspot for both the self-employed and for outsourcing companies that are pros at taking over software operations. We’ll be talking about how businesses can harness the expertise they need, all while cutting down on costs.

Concerned about cross-currency costs? Wise is the best way to run payroll for an international team while reducing fees and getting your accounting processes organized.

Types of software outsourcing options in Thailand

With its low cost of living, warm tropical beaches, and welcoming culture, Thailand has certainly lived up to its name as the Land of Smiles. But beyond delicious Pad See Ew and the laid-back lifestyle, it’s become a buzz with tech companies that are transforming businesses around the globe.

There are two software outsourcing options in Thailand: hiring an independent contractor or working with an outsourcing company.

Option #1: Independent Contractors – Independent contractors are essentially freelancers who lend their expertise to companies for short-term or one-off projects. They can be found on marketplaces such as Upwork, freelancer.com, and Fiverr or through more traditional channels such as through networking opportunities or LinkedIn. Alternatively, staffing companies can help you get connected with the right talent for your needs.

An important thing to note when working with contractors is that they differ from employees. Just like in many other countries, Thailand has employment classification laws that exist to protect workers and hold businesses accountable.

Contractors have a lot more freedom to decide how much they get paid and when and where they work, while employees are usually under the control of the employer when it comes to those aspects. Make errors in classification, and you could be looking at hefty taxes and fines you wouldn’t have had to pay in the first place.

Option #2: Outsourcing Companies – If you’re looking for a more official structure, outsourcing companies are the perfect option. Outsourcing companies are made up of a range of specialists, with software experts who can take over every aspect of your project and get it done. These companies are suitable if you have a comprehensive project and want scalability.

Let’s look at a few recruitment companies in Thailand to meet your needs.

Recruiting with Michael Page in Thailand from Canada

Michael Page has been a standout recruitment company for over 40 years. They grew from a two-man operation in the mid-70s into a global company for international recruitment and hiring, spanning 36 countries – including Thailand.¹ Beyond software and IT, they specialize in HR, marketing, sales, finance, engineering, executive search, and supply chain. The company has a 4.9-star rating from 692 Google reviews.

Businesses can contact Michael Page’s Thailand branch by phone or email through their Contact page⁵.

Hiring with Manpower in Thailand from Canada

Manpower has 70 years of experience matching organizations to top talent. With 100,000 clients worldwide and 600,000 associates on assignment every day, they have a serious variety of staffing services, including contract-to-permanent solutions and work permit services.² They offer expert consultants in FMCG, retail, finance, tech, manufacturing, healthcare, engineering , and energy .

Interested in reaching out? Fill out Manpower’s requisition form⁷ on their website.

Hiring with RGF International Recruitment from Canada

RGF is a Hong Kong-based international recruitment company with locations in China, Japan, Thailand, Singapore, and other countries in Asia. They’ve provided complete recruit solutions for more than 25 years as a part of Recruit Group, a company with over 62 years of experience in global HR services.³

RGF has two Thailand offices ,one in Chonburi and another in Bangkok. You can contact either office by phone number⁷ or contact form⁸.

Hiring in Thailand with JobsDB by Seek

If you’d rather take the reins in your hiring process, JobsDB by Seek⁹ is a great place to start. Their employer portal gets you access to over a million searchable profiles after posting a job ad and helps you match with relevant candidates.

Things to note before outsourcing work to Thailand

To avoid any legal issues , you’ll want to brush up on your knowledge of labour laws and compliance requirements for international hiring. From cultural nuances to payment cycles, there could be aspects that you might not have been aware of.

Cultural differences

When you outsource to another country, having a good understanding of the country’s culture will help you navigate a better working relationship with a contractor or company.

Thai culture is all about respect and hierarchy, which means you’ll likely experience less directness and assertiveness than you would in the Canadian workplace. Thai workers may see open feedback and constructive criticism as confrontational and overly straightforward, so you’ll have to find ways to navigate these aspects of work.

Work ethic/time zones

Thailand is known for having a diligent and committed workforce, but since Canada and Thailand are literally day and night, you’ll have to successfully plan out a work schedule for any conference calls well in advance. Of course, this time difference also comes with the advantage of essentially having a 24-hour operation going on, where your contractor or outsourcing company will be working while you’re sleeping. So long as you set your expectations for deliverables and working hours, you shouldn’t have an issue.

Compliance with legal requirements

International hiring comes with some extra laws that you’ll need to understand and respect on both sides of the equation. Canadian businesses that want to hire in the Thai market need to read up on the Thailand Labour Protection Act, which includes all you need to know about work agreements, payment, and the difference between contractors and employees. Since marketplaces and outsourcing companies typically have compliance systems in place to handle these issues, businesses will often have to figure out taxation.

Payment cycle for Thai employees

Thailand traditionally runs on a monthly pay cycle, which is similar to Canada. If you’re hiring a contractor, however, that payment cycle could be more flexible, potentially converting to a weekly, bi-monthly, or even pay-upon-project completion situation. Be sure to also brush up on the minimum wages in Thailand⁴ depending on the location of your contractor as this will ensure you’re not overpaying or underpaying your contractor.

Labour laws for outsourcing work to Thai employees

Both Canada and Thailand have well-defined labour laws, which make an outsourcing relationship between the two countries a fruitful one. Luckily, because you’ll be hiring a contractor or outsourcing to a company and not hiring a full-time employee, things are a lot less complicated.

While there aren’t many official requirements when hiring contractors, keep in mind that there are standards:

1. overtime of 1.5 to 3 times the hourly wage
2. a minimum 1-hour rest period after working for 5 consecutive hours
3. working hours shouldn’t exceed 7 hours a day or 42 hours a week.⁴

Currency conversion from CAD to THB when paying salaries

When it comes time to pay your contractor or outsourcing company, you might be thinking, “Won’t the fees be overkill if I’m constantly converting CAD to THB?” It’s true that international transactions can be stressful to manage, especially since most banks and money transfer services promise low to zero fees only to provide expensive exchange rates and markups. With added costs from the SWIFT network, this can mean less revenue for your business .

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in over 40 currencies such as Canadian dollars, Thai baht, Indian rupees and more. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to over 160 countries.

Open a Wise Business account online

To sum it up

Outsourcing your software operations to Thailand has its perks. And when you read up on your compliance requirements and use Wise as your financial sidekick, expanding your business operations overseas becomes much simpler than you think.