Build your digital workforce

 

In the ongoing global competition for technology talent, sticking to conventional talent sourcing methods and relying on already established talent networks might result in missed opportunities to acquire the talent your business needs. Given the unprecedented demand for tech skills, particularly in emerging fields like Artificial Intelligence (AI), you'll find yourself in competition with organisations worldwide vying for talent within the same limited pool of local resources. 

 
Crafting a comprehensive digital workforce strategy mean you need a holistic perspective, including not only permanent employees but also involving contingent workers and outsourcing projects. This approach will ensure access to a diverse array of skills essential for achieving your objectives. As part of this strategic process, considering the offshoring of certain workforce components becomes essential. However, when embarking on a global quest for talent it’s hard to know where to begin.

 

To get you started, we’ve identified a number of geographical industry clusters, or tech hubs, around the world that can enable you to secure the talent and skills that you need. 

 

Tech hubs are defined by a concentration of technology companies, startups and research institutions within a particular geographical region. These hubs draw in a diverse and highly skilled workforce, comprising engineers, developers, data scientists, and other professionals in the technology sector.

 

While some may have a distinct digital specialisation, such as AI, Cybersecurity, Biotechnology, or FinTech, what they have in common is a network of exceptionally talented individuals, imaginative thinkers, and daring innovators, all driven by a shared eagerness to shape the future.

 

Each of the technology hub's around the world has a unique blend of culture, investment and infrastructure that creates an environment where ground-breaking ideas – and talent – can flourish.
 

One of the biggest advantages of tapping into the talent of a tech hub is the ability to connect with a diverse global talent pool. This access allows you to access a more extensive array of skills and expertise, often at a more affordable cost compared to what is readily available in your current country. 

 

Tech hubs foster collaboration and investment among tech professionals, entrepreneurs, researchers, and even government entities. This synergy results in the creation of novel products, services, and innovations that can have a lasting impact on the world of work.

 

Also known as the Silicon Valley of India, Bengaluru industry tends to focus on software development and IT services, and research and development. Many global technology organisations including Google, IBM and Infosys have offices there.

 

Romania is known for offering outsourced software development solutions. A highly skilled efficient workforce is based here with talent that often complete projects quickly due to their high levels of experience. Nearby Hungary is also a recognised tech hub with excellence in data science.

 

Emerging as one of Europe’s most dynamic technology hubs, Berlin is renown for it’s active start-up culture and creative atmosphere. The strengths you will find here include software development, FinTech and e-commerce.

 

Mexico City ranks really well for tech talent and funding. This north American tech hub specialises in qualified developers and IT professionals. It also offers a strategic location for operations in Latin and North America, due to its proximity to both locations.

 

While Singapore has gained a reputation as an important tech hub, focusing on Blockchain and Biotechnology, it can be a high-cost labour location. Malaysia tends to offer a lower cost alternative with the same quality services.

 

Known not just for it’s technology talents, but also more broadly for shared services, Portugal offers a highly educated community with strong English skills. Talent in this country is noted for it’s ability to share knowledge and build strong working relationships. And with its low cost of living, it offers good cost arbitrage on wages.  

 

What are the risks of using non-permanent and outsourced providers in a tech hub? 

If you’re considering offshoring parts of your workforce, awareness of legalities and tax implications, as well as cultural differences is important.  

 
Engaging skills from outside your country does mean there are significant taxation considerations. Depending on how offshore workers are involved, you might face substantial expenses if their work patterns and engagement preferences classify them as 'employees' under the legal framework of that country. For instance, if contingent workers are mandated to work on-site using the company's equipment and supplies or receive bonuses for successfully completing projects, it could lead to notable tax implications.

 

Another important consideration is validation. If you are engaging somebody based in another country to do a piece of work, how do you validate they are who they say they are, and that they don’t have any malicious intent?  

 
It's essential to consider the pros and cons of offshoring to specific locations, taking into account cultural nuances. For instance, in countries with a more formal and hierarchical workplace culture, tech workers may be inclined to follow instructions without raising potential issues or questioning the brief. If the project demands critical or creative thinking, exploring alternative geographic locations should be considered.

 

While we’ve focused on the opportunities for engaging talent from external networks, it is important not to neglect the tech talent already at your disposal. Organisations should review the skills required to deliver their services and consider filling skills gaps by investing in upskilling their existing workforce.

 

While it’s exciting to contemplate the possibilities of tapping into external talents networks, don’t overlook the tech talent already within your reach. Organisations should assess the skills necessary for the service delivery and contemplate addressing skill gaps by dedicating efforts to upskill their current workforce.

 

Take the time to get the balance right. Look for talent in far reaching places to supplement the workforce channels you have already developed.

 

Hays is your total workforce management partner and we can advise on recruitment, training, and outsourcing. Get in touch to speak with one of our experts to find out how we can help.