Almost every fourth German company is looking internationally for new IT specialists

Remote, a company that helps build, manage and support globally distributed teams, has investigated how German companies are dealing with the IT skills crisis. The survey shows that almost one in four companies (23%) has now expanded the search for tech talent globally to overcome the lack of suitable employees in Germany.

Almost two thirds (64%) of German companies prefer to rely on specialists from the established tech hubs: New York, Paris, London, San Francisco – and Berlin: One in five companies (20%) indicate that there is still a lot in Berlin. of technical talent to be found. 38 percent of German companies are already looking for suitable employees in the upcoming technology centers in Buenos Aires, Helsinki and Guadalajara. An important step, because according to the German Economic Institute, the shortage of skilled IT professionals is greater than ever.

The demand for IT specialists significantly exceeds the supply

This mismatch between supply and demand extends over almost all of Europe. Gartner Inc.® recently released a report on Emerging IT Talent Hubs in 2022 that provides insight into the “Top Existing and Emerging IT Talent Hubs.” As a result, London has a supply/demand ratio of 2, while Mexico City, as a burgeoning tech hub, has a supply/demand ratio of 8 by comparison.[1] While Gartner Inc.® says Mexico City has a higher supply/demand ratio, remote data shows that only 7 percent of UK businesses would hire in Mexico City. This is true across several European nations and underlines the prevailing mismatch between where companies are actively hiring and where there is a significant supply of technical talent.

Across Germany, at least 42 percent would hire in Mexico City. The Tech Talent survey from Remote also shows that almost every fourth German company (24%) has already ventured into the international talent pool. There are various reasons for hiring globally: 23 percent see this as an opportunity to combat the lack of skilled labor, 36 percent of local companies strive to diversify their teams and 43 percent use the international talent pool as a strategic test of new markets . 28 percent saw the increasing shift to location-independent working models during the pandemic as an opportunity to expand their search for suitable employees.

Missing branches and fear of the unknown

When asked why German companies are still reluctant to hire applicants from up-and-coming tech hubs, 24 percent said the lack of a local branch was the reason. 14 percent hesitate because they have never hired in these markets, and 13 percent worry about language barriers. Seven percent shy away from legal requirements and have concerns about cultural differences or the different time zones.

“When you think about the many opportunities that an international talent pool offers, the challenges that companies face suddenly seem very small,” says Job van der Voort, CEO and co-founder of Remote. “Our survey shows that companies must go further and look beyond their own market to fill the gap in IT skills. Because the technical talent hasn’t gone away, it’s just spread all over the world.”

Where are German companies most likely to hire?

The table below shows how German companies currently feel about the existing and new tech hubs. They were asked to use a 5-point scale to rate how likely they are to hire: very likely, somewhat likely, uncertain, not likely, definitely not.

Tech Hubs

A message: The ratio between supply and demand indicates the number of available specialists per job posting. Talent supply is divided by talent demand and then presented as a ratio. A place with a higher supply/demand ratio is cheaper than a place with a lower supply/demand ratio.

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