Trouble finding the right people for your IT project?

More and more companies have trouble acquiring IT talent, which slows down projects, deliveries and ultimately the business. But being bold and looking abroad, can provide the company with the possibility to leverage the skilled IT specialists that are found in neighboring regions.

Lack of IT resources is a growing issue in Scandinavia

It is generally known that Scandinavian companies are facing increased challenges in acquiring the IT skills they need. In Denmark, it is estimated that by 2030, there will be a shortage of 19,000 IT specialists, and the situation will be even worse in Sweden, where the projected number is 70,000 IT specialists by 2022! Furthermore, in Norway, 38% of companies in 2017 experienced vacant IT positions that were never filled. The shortage of IT competences in the Scandinavian companies are therefore not only a contemporary issue, but will also be problem in the future, greatly impacting the growth and development of companies.

Read: Things you need to know about nearshoring

It is expensive

The above-mentioned problem in the daily work becomes particularly evident to department managers and program and project managers, who struggle to stretch resources and deliver the expected projects, solutions and results. But there are also clear negative consequences for the entire business operation. In Denmark and Norway, respectively, 42,7% and 46% of companies have either refused an order, put market expansion plans on hold or postponed development and innovation as a direct consequence of the shortage of appropriate IT competences. In Sweden, it also appears to be the biggest challenge for continued growth in the digital sector.

"In Denmark alone, a study estimates that Danish companies will miss out on around DKK 190 billion over the next three years in revenue, which corresponds to a turnover loss of 5,8%"

In Denmark alone, a study estimates that Danish companies will miss out on around DKK 190 billion over the next three years in revenue, which corresponds to a turnover loss of 5,8% as a result of digitization, where, in particular, a lack of IT competences is one of the biggest barriers.

In other words; it is expensive for Scandinavian companies to need the appropriate IT competences.

Reluctance to look abroad

Even though the issue is growing in the Scandinavian companies and the consequences are great, we still experience that companies hesitate when it comes to looking abroad, where the pool of IT talent is increasing. For instance, in Denmark and Norway only 22,5% and 17% of the companies, that have unsuccessfully tried to recruit IT resources, have chosen to outsource and/or move parts of the company abroad (such as nearshoring or offshoring). And those statistics may seem odd when the alternative is to abandon development and orders. But what makes companies so hesitant about looking abroad?

Read: Nearshoring vs. Offshoring – How do you choose?

On the topic of nearshoring, the major hesitation can, in our experience, be caused by a misconception of what it requires to take advantage of the great potential, that is available just beyond the border. Many mistakenly assume that nearshoring is a long and arduous process, where a long time must pass, before one can begin to reap the benefits. This is not necessarily the case. In fact, with an established and professional supplier it is relatively simple and can take between 30-45 days, before you have a team ready to execute and deliver results.

Massive volume of software specialists in Poland

Software specialists are in high demand everywhere. Poland especially can meet some of this demand, since there is a large availability of competent software developers. More than 15,000 new Polish IT engineers are educated every year and they account for 10% of the total output of newly educated IT engineers within the EU. The volume alone is much greater compared to what we are accustomed to in Scandinavia.

Poland is synonymous with IT competences at the highest level and being either an IT engineer or software developer in Poland comes with status and prestige. Furthermore, this also means that it is the most talented and brightest part of the Polish youth who obtains a professional IT education.

At the same time, there is a long tradition of engineering and IT education at the Polish universities, which means that the education programs today are among the best in Europe. More and more international companies, including leading banks, have established themselves in Poland, which has increased the number of experienced and heavy-duty consultants. The technical skills of the IT consultants in Poland are therefore among the absolute best in the world.

Here you can read more about why Poland is our favourite nearshoring destination.

Sources used in the article

Erhvervsstyrelsen Danmark.

IT-kompetensbristen – IT&telefomförtagen

IKT Norges kompetanseundersøkelse 2017

IT barometer 2018 – IT-branchen Danmark

IT i praksis - Rambøll

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