Home of the Wi-fi, Bluetooth, and the stock market, among others, the Netherlands has a long-standing culture of embracing innovation. The country is ranked in top global and European positions for digital environment ecosystems.
Here are some key points about the Netherlands:
- The Netherlands is 5th in the Global Innovation Index 2022.
- The country ranks 4th in the European Innovation Scoreboard 2022 (EIS).
- It is also the most globally connected country, according to the DHL Global Connectedness Index 2021.
- The Dutch host one of the top internet exchanges worldwide (AMS-IX) and holds a digital infrastructure that covers 98% of fast broadband coverage, as well as 99% of 4G coverage.
- The Netherlands ranks 6th in the IMD World Digital Competitiveness Ranking 2022, up with 1 position in comparison with 2021, showing the readiness of the economy to adopt and explore digital technologies.
- The Netherlands is a digital frontrunner in the 2020 EIBIS Digitalization Index, elaborated by the European Investment Bank and based on companies’ digital technology adoption and assessment of digital infrastructure and investments. It is also rated as the country with the best digital intensity proving the availability of sectors like services and infrastructure to adapt to new technologies.
Dutch Digitalization Strategy
Launched in 2018 by the Dutch government, the Dutch Digitalization Strategy aims to enhance the country’s aspirations in becoming Europe’s digital leader. It is focused on boosting digitalization in sectors like education, healthcare, industry, agriculture, trade, and government. A range of priorities were also set for the upcoming years, counting artificial intelligence (AI), data science for social issues and economic growth, digital inclusion and skills, digital government, digital connectivity, and digital resilience.
Tech talents
When it comes to talent, the Netherlands ranks 6th globally for talent competitiveness. The country has one of the top 3 university systems in Europe and has the best English Proficiency in the world among non-native English speakers.
According to a 2022 online survey observing the software developers community of the country:
- 2 out of 3 developers are foreigners relocated in the Netherlands.
- Top 3 most used programming languages are JavaScript, Python, and TypeScript.
- The most wanted programming languages are Python, Go, and TypeScript.
- 1 in 5 backend developers want to work with React.
- AWS is the most used cloud platform, followed by Azure and Google Cloud Platform.
- Senior developers earn an average monthly salary of 5330 EUR.
The Dutch tech talents have built a leading software development hub being placed first in the European Union with the highest number of developers per capita. However, the talent shortage faced by the country in the last few years is strongly mirrored in the IT sector, as well. Even after a 7% decrease in talent shortage in 2022, IT professionals lead the top 5 in-demand roles in the Netherlands.
The tech talent shortage is one of the main factors that determine companies to look for nearshore or offshore IT professionals and outsource.
Software companies in the Netherlands
The ongoing demand of digital solutions and products boosted the growth of the IT sector. Between 2022-2027, the Netherlands IT Services Market is forecast to grow at a CAGR (Compound Annual Growth Rate) of 3,93% and reach $14,63 billion by 2027 (up from $11,87 billion in 2021). Among the factors that are driving growth is the focus of the market on expanding its in-house services towards the Eastern Europe and outside Europe through outsourcing, as well as the increasing demand of IT services for AI, Machine learning, block chain, IoT (where IoT plays an essential role in the Dutch IT Services).
Crunchbase lists 5,064 Dutch companies that provide software services, the most of which count between 1 and 10 or 11 and 50 employees.
At the same time, in December 2022, there are 6,131 software developers’ vacancies listed on Glassdoor, and 16,724 on LinkedIn.
The high demand of software developers encourages Dutch companies to look for talents outside the Netherlands. The Eastern Europe is one of the emerging regions where companies expand for business growth.
Why to look for tech talents in Moldova?
Moldova is located just in the neighborhood of the European Union, within 1-3 hours from the main European hubs and with a local time zone that perfectly fits the schedules of countries from the EU to the Middle East. Recent data showed that the IT industry represented 3.6% of the GDP in 2020, with a volume of exports of ICT products and services exceeding $304 million.
As one of the Eastern European targeted markets, Moldova is a digital hub that offers valuable benefits for tech companies, including but nor limited to:
- University educated talents with top-notch skills;
- Dynamic IT community;
- Moldova IT Park – a unique concept implemented in the Central and Eastern Europe, aimed at reducing tax burden, simplifying visa procedures, and creating virtual communities for IT companies. It currently gathers 1,280 active residents, more than 17,200 employees, and 203 companies with foreign capital from 41 countries.
- Significant growth of the industry;
- Great understanding of the Western and Eastern cultures.
Read more about the reasons that make Moldova a destination worth exploring for business growth here.