One key learning from the Covid-19 pandemic is that market shocks are better weathered with more diverse and resilient organisational positioning internationally. Nearshoring is a solid way to diversity an organisation’s international footprint and grow such resilience. The Central and Easter European (CEE) market is often overlooked but we believe it’s perfect for nearshoring.

CEE is the new hot market for hiring SAP talent in Europe. We’ve seen year-on-year growth in the CEE jobs we’ve advertised, even in the midst of the pandemic, having had 11% growth from 2019 to 2020. In 2021, we’ve already matched our success of 2020 and we’re only halfway through the year. What is behind this sharp rise in CEE-based SAP and tech roles in the recent years?

Tech has grown exponentially across Europe recently, specifically the Central and Eastern European market. Accordingly to Globsec, 2019 saw an emergence of 12 unicorns in the CEE market with a combined value of €30 billion and 2020 was a year of record venture capital investment. Several countries, such as the Czech Republic and Poland are becoming the new hot spots for certain tech skills and the mentality in the market is shifting to become increasingly forward-thinking.

The CEE economy has stood the test of Covid-19, showing good resilience. In fact, Poland’s economy is recovering from the Covid crisis at a faster pace than other countries in Europe. The European Bank of Reconstruction and Development has predicted that Poland’s economy would grow by 3% in 2021 which would make Poland the only country in Europe to recover to pre-crisis levels in 2021.

Whether you’re based in CEE already and are looking to hire SAP and tech talent, or are considering relocating your business and hiring in CEE, take a look at the top 5 reasons why now is the time to hire SAP and tech professionals in the CEE market.

1. Increased interest in nearshoring to CEE

With the rise in talent costs in Western Europe as well as political reasons, such as Brexit, organisations are often looking to invest in talent in other markets where the professionals are more easily accessible. The close proximity to Western Europe and cultural similarities make CEE an attractive market to seek top class SAP and tech talent, in other words, nearshore to CEE.

Poland has become a major player in software development, being home to about 25% of developer talent across CEE. The Czech Republic has also become known as a leading market in tech roles, particularly software development, representing over 100,000 professionals in the country. Would an established organisation benefit from nearshoring to the CEE? We strongly believe so!

On the production side, CEE is fast becoming a market with strong automation. It is predicted by The International Federation of Robotics that the use of industrial robots in CEE will rise by 21% from 2019 to 2021, which compares to 5% in Germany. This means in the case of future lockdowns, the market might be more prepared to withstand shocks. All around, the CEE seems like a very attractive market to nearshore from the Western markets.

2. Access to top SAP and tech talent

CEE professionals have been known to excel in tech and with increased investment into the market and increased digitalisation of workplaces, tech talent will only strengthen in the future. HackerRank has placed Polish programmers and developers 3^rd in terms of excellence in the world. Furthermore, tech talent in Poland is being developed at an exciting pace. There are currently 70,000 Poles studying Computer Science in prestigious universities in tech centres such as Krakow and Warsaw.

Be prepared to potentially dig a little deeper into the pockets than previously though. In the past companies would seek out talent in the CEE region as a means to cut on talent costs, this is only true to some extent. With major corporations relocating to CEE, the drive for top talent is on the up and talent costs have risen. Despite this, the market is still attractive and positioned for strong growth.

3. Poland’s sustainable growth as an emerging leader in the European economy

Poland has consistently grown its economy, especially in the years following Brexit. KPMG reports that after Brexit, Poland’s economy has grown to be the 6^th largest in the European Union, growing by 3.6% per year on average between 2009 and 2019.

KPMG explains that Poland’s economic expansion is fuelled by demand within the domestic market, private consumption, which leads to decreased unemployment and increased salaries. This shows that Poland is becoming not only an important market on the international scope, but domestically as well which makes it a beyond attractive market to invest in and grow your business.

4. Attractive geographic positioning of the market

Central and Eastern Europe has a fortunate geographic location, being close to Germany and the DACH region as well as the Nordics. If your organisation has offices in surrounding European areas or is looking at expansion opportunities, having a base close by is a great advantage. It is also easier for talent to migrate and relocate if you had a requirement in either the DACH or the Nordic region so consider hiring your SAP talent in CEE for geographic flexibility.

5. Forward thinking mentality

CEE is a fast-developing market, which means there is immense excitement and drive to succeed among the SAP and tech professionals. With increasing competition for the top positions, the talent is willing to go the extra mile to excel at their roles as well as keep up to date with the latest developments in their industry.

CEE is quickly becoming a more cosmopolitan part of Europe with a forward-thinking international outlook. This means better support with the English language, helping and encouraging CEE professionals compete in the international jobs market.

If you’re looking to hire talent in the CEE region, RED’s CEE team can advise you accordingly. With a CEE specific team, we understand the nuances and regulations of hiring in this region. Our team are mostly from CEE and therefore have a personal understanding of the culture, loations and how best to communicate with the talent.  Click here to get in touch with one of our expert recruitment consultants to arrange a confidential discussion.

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