As the IT industry continues to grow and become more global, it can be challenging for companies to attract and retain top talent. One solution for businesses is to establish IT hubs in strategic locations. But with so many options available, it’s important to carefully consider which European country will best meet your company’s needs.
In this article, we will make a comparative approach between four potential locations in Europe for an IT Hub: Portugal, Poland, Ukraine, and Romania.
We will analyze key factors such as the availability of skilled software engineers and the technology expertise in each location. Thereby you can make informed decisions on where to establish your Tech Center.
Important factors to consider before establishing an IT Hub
Talent Pool
When it comes to the talent pool, all four countries – Portugal, Poland, Ukraine, and Romania – offer a good supply of qualified software engineers at affordable rates. According to LinkedIn data, these are the number of developers in each country:
| Country | Nº Software Dev. |
|---|---|
| Poland | 310.000 |
| Ukraine | 246.000 |
| Romania | 116.000 |
| Portugal | 92.000 |
When it comes to qualifications, the percentage of graduates among software engineers in each country is as follows:
| Country | Nº Software Dev. |
|---|---|
| Poland | 310.000 |
| Ukraine | 246.000 |
| Romania | 116.000 |
| Portugal | 92.000 |
These percentages give an indication of the software engineers’ education and training levels. Although Portugal is the smallest country in terms of population, it has the highest percentage of graduated software engineers, followed by Romania.
Technology expertise
According to the data that we found on LinkedIn – Java, #C, SQL, Javascript, and React – are some of the most common and widely used programming languages in Europe.
In the following graphics, you can find the total number of software engineers per country and the percentage of them that are skilled in these programming languages.
Although Portugal has the lowest number of software engineers, it has the bigger number of engineers per skill, followed by Romania. With exception of React skills where Ukraine is in first place, followed by Portugal.
English language skills
Effective communication is an important consideration when establishing an IT hub, as it can impact the efficiency and productivity of your team. According to the EF English Proficiency Index 2022, all four countries – Portugal, Poland, Romania, and Ukraine – have a good level of English proficiency.
In terms of rankings, Portugal stands out as the top option, with an overall ranking of 7th globally. Poland, Romania, and Ukraine also have good rankings, with Poland coming in at 13th, Romania at 17th, and Ukraine at 35th.
It’s also important to consider the level of English proficiency required for your business-specific needs. Depending on the type of work that your IT hub will be doing, you may need software engineers with more advanced English skills. It might be helpful to conduct language assessments or interviews with potential hires to ensure that they have the necessary level of English proficiency that meets your business needs.
Salary Costs
The demand for skilled software engineers has always been high and salaries reflect that demand. The Covid-19 pandemic has further accelerated the trend towards remote work and an even more global job market for IT professionals. As a result, salaries for software engineering roles have continued to increase, with many companies competing for top talent around the world and offering a range of benefits to attract and retain employees.
In this global job market, it can be challenging to determine accurate salary costs for software engineering roles across different countries, as salaries can fluctuate significantly based on a range of factors. We consulted several recent sources and found different values, making it impossible to present reliable numbers.
Additionally, based on our experience recruiting in several countries – including Poland, Ukraine, Romania, and Portugal – we have observed significant fluctuations in salaries for software engineering roles, with variations of up to 20% compared to the previous year.
After consulting different and recent sources of salary information for software engineering roles, we have observed that salaries tend to be quite similar in Portugal and Poland, depending on the seniority level. We have also noticed that salaries tend to be lower in Romania and, particularly, Ukraine. However, it is worth noting that, at least for some technologies, there is not much difference in salaries between these countries. These tech roles are becoming more globalized each day.
This highlights the dynamic nature of the software engineering job market and the importance of considering a range of factors beyond just salary. Such as living cost, availability of skilled labor, quality of life, and the local business environment. These factors can all impact the overall attractiveness of a location for IT companies and professionals.
A Look at the Already Established Companies
Several multinational corporations, including Google, Revolut, BMW, Teamviewer, Talkdesk, and Volkswagen have chosen to establish their IT hubs in Portugal due to the availability of qualified talents at competitive costs, according to the Business Service Centres in Portugal 2022 report (AICEP & IDC).
Poland is also a popular location for investors due to its technical skills and proximity to Central Europe. Companies such as Amazon, Volkswagen, Samsung, Microsoft, and Apple have established operations there.
Ukraine is a top location for education and cost-effectiveness, although its long-term future may be uncertain due to current instability. Companies like Huawei, Siemens, Oracle, Samsung, IBM, and Skype have operations in Ukraine.
Like Ukraine, Romania is also chosen for being a low-cost location with a very dynamic market. Amazon, Microsoft, Siemens, and Oracle are some of the companies that are established there.
Conclusions
In conclusion, establishing an IT hub in Europe can be a great way for businesses to access a large pool of qualified talent at affordable rates. All four of the countries we considered – Portugal, Poland, Ukraine, and Romania – offer strong talent pools and technology expertise, as well as good levels of English proficiency.
When deciding which country is the best fit for your Tech Center, it’s important to consider a range of factors such as the talent pool, technology expertise, English proficiency, and costs. Portugal stands out as having the highest percentage of graduated developers and a strong place on the EF English Proficiency Index. While Poland, Ukraine, and Romania also have strong talent pools and technology expertise.
One of the challenges when comparing salary costs across different countries is the increasingly global nature of the software engineering job market and the prevalence of remote work. It can be difficult to determine accurate salary ranges for software engineering roles. Nevertheless, if you want to know more about the salaries in these countries, please click here to be the first one to receive this information.
Ultimately, the best location for your IT hub will depend on your specific business needs and goals. Careful research and planning will be key to ensuring that you make the right choice for your company.
