Denmark's Digital Future: Growth or Stagnation Amid IT Talent Shortage
14. February 2024
Denmark faces a crucial challenge in its digital transformation, with significant economic implications.
Denmark faces an urgent challenge in its digital transformation, one with significant economic implications. The Confederation of Danish Industry has estimated that, in just the third quarter of 2023, Danish companies missed out on DKK 31 billion in revenue due to a lack of qualified labor. The IT Industry’s IT Barometer from 2023 indicates that 74% of companies are seeking specialists in software development, a need that becomes more pressing as 47% have had to abandon filling vacant IT positions due to skills shortages.[1].
This critical shortage of IT specialists is costing the Danish economy dearly. Without the necessary talents in place, the country is missing out on innovation and growth opportunities. The European Union forecasts that by 2030, 20 million IT specialists will be needed in Europe to meet the demand for digital skills. Denmark needs to find an additional 200,000 IT specialists, on top of the approximately 160,000 already employed in the sector, to keep up with this estimate.[2].
Torsten Bielefeldt Schlägelberger, CEO of Conscensia, underscores nearshoring as a key part of the solution to Denmark’s talent challenge. Conscensia has demonstrated growth and continued development in its division in Lviv, Ukraine, even in light of the country’s current conflict, showcasing the organization’s strength and ability to maintain momentum under difficult circumstances. In Warsaw, Poland, the situation is similarly positive, with Conscensia’s hub thriving as a center for technological expertise.
Torsten emphasizes that the teams based in Lviv and Warsaw are not peripheral units but rather integral growth engines woven into the company’s foundation.
Our nearshore teams are an essential part in realizing our clients’ IT projects.
To address concerns that may prevent some companies from investing in nearshoring, Schlägelberger debunks common myths.
In today’s globalized world, nearshoring is not just feasible; it’s crucial for ensuring growth and competitiveness.
It’s time to act if Denmark is to secure its digital future and not fall behind in the international tech race. With a well-thought-out strategy and strong partnerships, Danish business can overcome the current IT talent crisis and secure a strong position on the global stage. He points out that large companies such as Kamstrup, Saxo og Systematic have for years operated their own software teams in Poland and Ukraine – with great success.
Conscensia is set to publish a series of articles debunking the myths surrounding nearshoring over the next six months – stay tuned for insights that could prompt German companies to take decisive steps toward harnessing nearshore capabilities to fuel their digital ambitions.
