Despite last year’s tech crash and massive job losses across the tech industry, the UK alone has generated 350,000 technology jobs in the past three years, with 92,000 created between July-September of last year. Additionally, according to the Nash Squared Digital Leadership Report for 2022, 56% of digital leaders anticipate that their technology workforce will expand in 2023, and 52% are expecting an increase in their technology budget. This means that the tech industry is expected to experience considerable talent shortages. The industry trends point at the need to fill the drained talent pools, and that is where you may want to turn to team extension as the solution to talent shortage. Today, we are going to take a look at some of the top 10 destinations for team extension outsourcing services in Europe and provide a brief overview of the best countries you may want to consider for outsourcing. The countries are listed in no particular order, as each destination has its specifics.
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Poland
Poland is an excellent option for team extension in Europe due to its growing economy and increasing number of software developers and tech experts. This makes the country an ideal destination for numerous international organizations to outsource their software development projects. The country has a talent pool of 450,000 IT professionals, with about 40% of them employed by IT outsourcing companies. Poland offers a great combination of cultural and geographic proximity to all European countries making cooperation with the local talent comfortable and seamless.
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Czech Republic
In the Czech Republic, there are 199,000 professionals employed in the information and communication sector, with around 4,000 new technology and engineering graduates joining the market each year. Companies such as Google, Microsoft, Oracle, and IBM have chosen the country for direct investment, outsourcing, and team extension services. Additionally, some of the world’s most reputable IT brands, such as Avast, AVG and Socialbakers, have their roots in the Czech Republic, making it one of the top European locations for IT-related team extension outsourcing services.
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Ukraine
Ukraine is home to more than 1,000 IT companies, employing a total of over 230,000 high-end professionals to meet the demands of customers both domestically and abroad. Among these firms, roughly 100 are research and development branches of international corporations working on various IT-based fields like software engineering, video gaming, and electronic commerce. Highly-skilled and available talent makes Ukraine a great choice for any team extension company. An important note here is that Ukraine is currently dealing with the Russian full-scale invasion, which made cooperation with the companies located in the eastern regions of the country problematic. However, companies in the central and western regions have managed to maintain their pre-war performance.
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Bulgaria
The Bulgarian IT market currently employs more than 100,000 tech specialists. Each year, around 2,000 tech graduates enter the IT sector, with over 220 educational institutions offering technical training. Furthermore, multinational IT corporations such as HP, SAP, Oracle, VMware, CISCO, ProSyst, and Atos all have research and development facilities in the country. Bulgaria is a growing economy that makes a strong emphasis on the development of digital technologies making it one of the best destinations for team extension in the region.
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Estonia
In Estonia, the IT sector employs approximately 53,000 specialists, with less than 1,000 people graduating with degrees in technical disciplines each year. Considering its smaller talent pool, Estonian tech companies put an emphasis on the quality of delivered services, especially when it comes to team extension and technology outsourcing. Estonia is known as the country of origin for major tech companies such as Skype, TransferWise, Pipedrive, Cloutex, Click & Grow, Grabcad, Erply, and Fortumo. Additionally, Microsoft, SAP, Acronis, and Parallels have all established their Research and Development centers in the country. Estonia is the example of a smaller talent pool that offers exceptional quality of team extension outsourcing services.
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Latvia
The IT services have become the third largest export in Latvia, behind the timber and food products sectors, due to the more than 32,000 specialists it employs. With the addition of 700+ computer science graduates each year, the IT services turnover grows at a steady pace. This growth has enabled the emergence of numerous local IT service providers, including Tieto, Evolution,, and Lattelecom Technology. Additionally, several international companies, such as IBM, PwC, KPMG, and Siemens, have established Research and Development centers in Latvia.
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Moldova
Moldova’s IT industry is a major player in the nation’s economic landscape and the government has made it a priority to grow and develop it. Currently, there are 29,000 IT specialists with 1,700 students graduating yearly with degrees in computing or a related field. The country is interested in further boosting the popularity and international recognition of its IT services through government incentives and further investment into the sector. That is why Moldova is growing as one of the popular destinations for staff augmentation and team extension in Europe.
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Hungary
The Hungarian software development industry is a highly dynamic sector, with 175,000 specialists employed in the IT sector. Numerous multinational corporations, such as Siemens, Microsoft, Deloitte, Ericsson, Nokia, and TATA, have created R&D hubs in the country and thousands of smaller tech companies benefit from team extension services delivered by Hungarian companies. With continued support from the government and further international investment, the country’s team extension and IT service sector is bound for future growth and development.
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Lithuania
In Lithuania, there are 50,000 IT professionals and roughly 800 new tech graduates every year. Such global technology and business giants as Google, AIG, and Nasdaq have established their presence in the country. Furthermore, Uber, IBM, Wix, HP, Virtustream, and Unity have also established their R&D and IT development centers in Lithuania. IT companies in Lithuania have seen considerable investment in recent years, allowing for expanding of the IT industry in the country.
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Romania
Romania’s IT sector has flourished due to its capability to outsource IT talent across Europe and the whole globe, providing an immense boost to its GDP. This sector has employed approximately 95,000 specialists, and includes global corporations such as Hewlett-Packard, Microsoft, and Oracle. Further expansion of the IT sector will lead to the emergence of the new Romanian companies that offer team extension in Europe.
Final Thoughts
In conclusion, Europe offers a good selection of destinations for nearshore outsourcing and team extension due to its diverse range of countries with strong economies and highly skilled labor. Organizations looking to outsource should consider the advantages of each destination and evaluate the costs, benefits, and risks associated with each. By doing so, you will be able to make the most out of your investment, while ensuring their products and services are of the highest possible quality.
