Blog title V2

BLOG

 
 

Asset Publisher

null The hubs to help you find and hire tech talent

The hubs to help you find and hire tech talent

As the global battle for tech talent rages on, relying on traditional sourcing strategies and the same trusted talent pools could mean you’re losing out on business-critical talent. With tech skills, especially those in emerging fields such as Artificial Intelligence (AI), in unprecedented demand, you are likely to be competing with thousands of organisations looking to recruit from the same small network of local talent.
 
Shaping your digital workforce strategy requires a holistic approach that includes permanent employees, engaging contingent workers and outsourcing projects to make sure you have access to the widest range of skills needed to deliver your objectives. As part of that process, you might need to consider offshoring some elements of your workforce, but knowing where to begin this global search for talent is challenging.
 
To get you started, we’ve identified a number of emerging tech hubs and established ‘offshoring’ locations around the world that will enable you to secure quality resource at a lower cost than you may access locally.
 
 

What is a tech hub?

Tech hubs are characterised by a high concentration of technology companies, start-ups and research institutions within a specific geographic area. They attract a skilled, diverse workforce including engineers, developers, data scientists and other technology professionals.
 
Some may have a specific digital specialisation, such as AI, Cybersecurity, Biotechnology, or FinTech. What they all have in common is a network of highly skilled individuals, creative minds and risk-takers, all eager to shape the future.
 
One of the biggest advantages of using a tech hub is the opportunity to tap into a diverse network of global talent, accessing a broader range of skills and expertise than is readily available at an affordable cost in your current country.
 
 

How do ‘hubs’ differ to offshoring?

A tech hub is a region defined by its dense concentration of companies and start up organisations. These hubs often encourage collaboration and investment among tech professionals, entrepreneurs, researchers and even governments, which leads to the development of new products, services and innovations that have a long-term impact on the world of work.
 
Offshoring, on the other hand, is the physical relocation of a process or service to another country. It’s proven popular in the IT industry, with organisations benefiting from cost efficiencies, the ability to scale operations at pace and a greater network of talent.
 
Both methods have their merits and should be considered as key elements of a wider digital workforce strategy.
 
 

Emerging tech hubs worth considering

There are several well-established tech hubs across the globe that deserve attention. Silicon Valley remains the ‘home’ of all things innovation, with a strong presence from tech giants such as Google, Meta and Apple. The United States can also claim tech expertise in locations such as San Francisco, Seattle and New York.
 
Looking further afield, Tel Aviv in Israel has emerged as the ‘Startup Nation’, with the city a nucleus of innovation in sectors such as cybersecurity and Artificial Intelligence. Asia can also stake it’s claim as an integral ‘hub’, with Singapore and China home to booming tech industries – and vast networks of tech talent.
 
But have you considered some of these more emerging locations, which can offer the same skills, but potentially at a lower cost to your company?
 
Bengaluru
 
Often referred to as the Silicon Valley of India, Bengaluru focuses on software development and IT services, and research and development. Many major tech companies including Google, IBM and Infosys already have offices there.
 
Berlin
 
Berlin has emerged as one of Europe’s most dynamic tech hubs, renowned for its vibrant start-up culture and creative atmosphere. Its strengths lie in software development, FinTech and e-commerce.
 
Malaysia
 
In Asia, while Singapore has emerged as a significant tech hub, focusing on Blockchain and Biotechnology, it is a very high-cost labour location. Malaysia is a lower cost alternative that offers the same quality services.
 
 

Offshoring locations that deserve a place on your radar

 
Latin America
 
Argentina and Brazil boast a good balance of cost-effectiveness and skills. Mexico City ranks highly for tech talent and funding, specialising in qualified developers and IT professionals. These locations also serve as a strategic need for operations in the United States, due to its proximity.
 
Discover the different talent options and relevant labour legislation across this region in our latest Tech Talent report. 
 
Central Europe
 
Popular not just in technology, but also more broadly for shared services, Portugal’s highly educated community - with strong English language skills - is an attractive option. Noted for its cooperative working environment, Portuguese talent is used to sharing knowledge and building strong working relationships. And with its low cost of living, it offers good cost arbitrage on wages.
 
Eastern Europe
 
Romania is well-known for providing outsourced software development solutions. Home to a highly skilled efficient workforce, these workers often complete projects at pace due to their level of experience. Eastern Europe in general is a good hotspot for nearshoring, with Hungary and Poland also recognised for excellence in data science.
 
Southeast Asia
 
Bangalore in India and cities like Hyderabad, Pune, and Chennai offer a wealth of tech talent, equipped with good infrastructure and established IT communities. Vietnam, Philippines and other Southeast Asian nations remain strong contenders.
 
 

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

 
When offshoring elements of the workforce, organisations need to be aware of the legalities and tax implications, as well as the impact of cultural differences of operating across borders.
 
There are serious taxation considerations if you are engaging resource outside of your country. Depending on the scope and approach to offshore workers, you could be left with a significant bill if their working patterns and engagement preferences deem them ‘employees’ in the eyes of the law. For example, requiring contingent workers to work on site using the company’s equipment and supplies, or offering bonuses for successful project completion.
 
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 also worth bearing in mind that there are pros and cons to offshoring to certain locations based on cultural nuances. For example, tech workers in countries where the workplaces culture is more formal and hierarchical are more likely to carry out instructions, without flagging potential issues or challenging the brief if something looks wrong. If the project requires critical or creative thinking, it may be worth considering other geographics.
 
 

Getting the right balance with your digital workforce strategy

 
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.
 
It’s a matter of getting the balance right – casting your net further and wider, to supplement the workforce channels you have already nurtured and 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.

 

AUTHORS

James Milligan
Global Head of Technology, Hays

James Milligan is the Global Head of Hays Technology, having joined in 2000. In his role, he is responsible for the strategic development of Hays’ technology businesses globally.

Other content we thought you'd be interested in