In just the first 3 months of 2023 there were already over 180,000 layoffs in the tech industry.
The U.S. has seen an upturn in layoffs because of the current recession, many companies just simply can't afford to pay for as many employees as they once could. However, instead of cutting back on employees, what if hiring wasn't as expensive? At times when the cost of labor outpaces profit, hiring overseas can be a saving grace for many American companies.
Several European countries are experiencing major growth in the tech industry, especially with outsourcing, because of the economic potential and abundance of talent. Poland, for example, has become home to 131,000 technology companies with many tech giants such as Google and Microsoft investing in the country. With flexibility and experience in customer relations and technological development, American collaborations with Polish talent are an appealing choice.
Barcelona has also emerged as an important tech hub, attracting investment from multinational tech giants as well as its own thriving start-up scene. Amazon even described Barcelona as the "ideal city" to set up a research and development center. With a highly educated workforce and fast evolving digital ecosystem, many companies are being drawn to Spain. Across Europe, these Tech-Hubs are rapidly emerging and proving their value to the world.
What makes these European hiring hot-spots even hotter is the affordability of it all. While the cost of living and median income in America is quite high, many countries in Europe are far lower. The median income in Spain is 39% lower than in the U.S., and the cost of living is 123% less on average. A lower cost of living in Spain married with increased accessibility results in a higher supply of workers willing to work for less than a typical American employee. While the Spanish employee gets a higher paying job, the American business saves money on wages, it's a win-win.
Outsourcing through an Employer of Record with a Talent agency brings opportunity in uncertain or difficult times. Talentvibe, Deel, and other third-party agencies provide flexibility and experience to help your business find the best talent in the market without breaking red. These businesses take care of the compliance aspects of hiring foreign. The whole experience is simple and easy to implement; with the click of a button and one phone call your hiring process becomes much simpler and cost-effective. If you're interested in learning more about the benefits of outsourcing in Europe, feel free to subscribe to our newsletter or book a call with us; we're more than happy to talk.