Like many other countries these days, Belgium, Luxembourg and the Netherlands are faced with a tech talent gap.
The global talent gap amounted to 40 million job positions in 2021, and is expected to reach 85.2 million by 2030. Data analytics, IT, mobile and web development are some of the business areas that risk the biggest setbacks.
Recent trends indicate that the Benelux countries are increasingly open to solving this issue by working with remote development teams.
In fact, companies in the Netherlands are so enthusiastic about hiring remote tech talent that they are setting an example for all of Europe when it comes to solving the tech talent shortage.
Outsourcing Trends in Benelux Countries
It has become increasingly difficult for startups and midlevel businesses to find local tech talent due to the fact that major international corporations snatch up talented workers with highly-competitive salaries.
Another reason for this is that the COVID-19 pandemic has accelerated the digitization process in many spheres of public and private life, and now companies are struggling to keep up.
This is why companies are hiring remote software development teams. Let's look at the trends in Belgium, Luxembourg and the Netherlands to understand how they’re dealing with this issue.
- Belgium and Luxembourg
- The Netherlands
Belgium and Luxembourg
According to Whitelane Research’s 2021 survey, 83% of companies in Belgium and Luxembourg plan to continue IT outsourcing at the same rate or higher in the coming years.
93% said that they were satisfied overall with the work done by tech professionals in remote development teams. 67% of companies are pleased with innovation and transformation quality.
39% of companies in Belgium and Luxembourg are outsourcing cybersecurity services. While that number is relatively low, an overwhelming 94% of them are satisfied with the overall result.
However 63% of companies outsourcing cybersecurity services state that improvements need to be made in the coming years when it comes to management skills.
Despite the COVID-19 pandemic and all the complications it brings to the business world, companies in Belgium and Luxembourg saw no negative impact on either the quality or delivery of services.
In the Netherlands, a total of 80% of companies surveyed stated that they plan to continue IT outsourcing in the coming years. 48% of those companies plan to increase their level of cooperation with remote tech professionals. This is the highest rate among European countries.
With this in mind, it comes as no surprise that the Dutch market is less enthusiastic about hiring in-house IT talent, with a decrease from 16% to 8%.
Overall, 89% of companies have had a favorable experience outsourcing tech professionals.
Almost 1 in 2 Dutch companies outsource cybersecurity services, and out of those companies, 65% are either satisfied or very satisfied with the result.
In terms of industries, the Dutch financial sector is predicted to rely the most on remote tech talent in the near future, with 64% of companies planning to outsource.
Why are Benelux Companies Outsourcing Tech Talent?
First and foremost, hiring remote workers can save you money. For startups and small businesses in the Benelux countries with big ambitions, this can be a gamechanger.
However, there are many more reasons to hire a remote development team.
- Save on Costs
- Focus on Core Business
Save on Costs
Working with a remote development team in Eastern Europe gives you access to a highly-qualified team of tech professionals for a better price.
In Eastern Europe the average hourly rate ranges between $30-$65 per hour. The hourly rate in Latin America is between $35-70.
Cost reduction is the reason 45% of companies in Belgium and Luxembourg have chosen to outsource IT professionals. In the Netherlands, it is a motivating factor for 47% of companies.
While these numbers indicate that cost reduction is not the most important reason for companies in Benelux to outsource tech talent, it is nonetheless worth considering.
Focus on Core Business
57% of companies in Belgium and Luxembourg state the desire to focus on core business is a reason for outsourcing tech talent. In the Netherlands, the total amount comes out to 48% of companies.
Your core business includes your product, your customers, distribution channels and geographic areas that can give you the biggest return on investment.
In the tech world, time is money. Building a software development team in-house can take upwards of several months - sometimes even longer - if you need someone with rare and specialized skills.
A remote services provider takes on most of the hassle of recruitment and HR management, so that you can focus on other factors, such as expanding your core business.
A successful business is able to respond quickly and efficiently to the needs of customers. If your company is unable to handle increased market demand you risk losing not only profits but customers, too.
For Dutch businesses which plan to outsource tech services more in the near future, scalability to business needs is the biggest motivating factor to outsource tech talent, 61% compared to 46% last year.
Most remote service providers allow you to upscale or downscale your team with only a month’s notice. This allows you to adapt your project to the needs of the market even while still in the development phase.
Work With Grid Dynamics Today
Grid Dynamics is a digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. The company has 15+ years of experience in digital transformation and software innovation, most notably open-source cloud-native programs.
Our clients have the option of choosing the engagement model which best suits their requirements, including team extension, dedicated teams, pod teams, and remote development centers. Grid Dynamics has offices in the US, Ukraine, Mexico, Serbia, Poland and Moldova, meaning that we have the resources to cater to the needs of companies of any size, no matter where they are located.