Navigating Software Engineering Contracts in Europe

Software engineering has become a driving force behind innovation in countless industries.  As technology keeps stretching the boundaries of what's possible, software engineering is more important than ever! Ambitious scaleups and startup companies are eager to implement groundbreaking tech such as artificial intelligence, machine learning, AR, and VR to separate themselves from their competition. Unfortunately, many of them have a bit of a problem: they lack professionals with specialist skills and expertise to make it happen. But there’s no need to fret; Europe has an abundance of talent ready to tap into. 

Software engineering doesn’t sit still, and neither should your recruitment strategies! Dive into our guide to explore how to manage the European software engineering contracts space.  

Current Trends in the European Market 

Technological developments are moving at such a pace, generating a demand for specific skills that few software engineers are equipped with. To try and tackle this challenge, businesses are having to expand their search as part of their software engineering recruitment strategies. Many firms are exploring the growing European market to to find the software engineers who have the niche skills they require to match their growth ambitions.  

A Skills Gap Driven by Emerging Tech 

So, as businesses expand their talent search, what software engineering skills are they actually looking for?  Let’s take a look: 

Artificial Intelligence and Machine Learning 

The technology that EVERYONE is talking about! By finding professionals who are skilled in AI and ML, they will reap many, many benefits. Here’s how: 

• Automation and Efficiency: Businesses utilising AI and ML streamline their operations by automating repetitive and complex tasks. 
• Data-Driven Decision Making: Software engineers can develop algorithms and models that analyse vast amounts of data to create actionable insights. This is integral for business growth. 
• Personalised User Experience: With AI, companies can offer tailored recommendations and bespoke interactions. Hyper-personalisation delivers the highest ROI, and as per a McKinsey report, it’s the fastest-growing aspect of eCommerce marketing. 
• Versatility: Demand for software engineers adept with AI principles spans multiple industries. For example, healthcare institutions rely on AI developments to improve diagnostics, and fintech firms utilise it for fraud detection. 
• Scalability: Companies that invest in software engineers with the latest skills can build scalable AI infrastructure and develop reusable ML models. 

Augmented Reality and Virtual Reality (AR and VR)

Businesses of all sizes are fighting for software engineers skilled in AR and VR because this technology is reshaping industries, constantly pushing boundaries, and giving businesses incredible opportunities to make sizable profits (music to a business owner's ears!). Whilst its full capabilities haven't quite been uncovered yet, with a market forecast to reach around $96.32 billion by 2029, it’s no surprise companies are in a rush to recruit talented pros. 

It's often thought that AR and VR are limited to gaming and entertainment. While this tech is very important to these industries, it’s being adopted in a host of other sectors for lots of different reasons. Here's a snapshot:

• Healthcare: AR and VR are enhancing medical training with surgery simulations. 
• Military: Likewise, the military is implementing it for training. It provides realistic environments that are safe and cost-effective. 
• Education: Students can experience immersive learning environments. 
• Retail and eCommerce: Consumers can try clothes on without visiting a store. A similar principle applies to furniture. 
• Real Estate: Compared to photos and videos, this experience offers prospective buyers a better understanding of properties. 

Here are some stats showcasing just how popular AR and VR have become:

• In 2023, globally, there were roughly 1.4 billion AR personal devices in active use, and it’s anticipated by the end of 2024, this figure could reach 1.73 billion. That’s a lot of software that’s going to be needed! 
• The European AR and VR market could grow to $10.2 billion by 2028, representing a CAGR of 21.9%. 
• In 2029, AR and VR users in Europe could reach 486.5 million. 

Key Regions 

So, why exactly is Europe becoming a hotbed for leading contract software engineers? Apart from being incredible places to live, many European cities have environments encouraging tech innovation to thrive, meaning the demand for specialised software engineering skills rarely drops off. Another benefit is that legal frameworks create great conditions for contract work. Below are some of the countries, many talent tech professionals call home: 

• Switzerland: Famed for its economy and quality of living, many contract Software Engineers choose to operate in Zurich, Geneva, and Zug. 
• Denmark: Digital transformation is central to Denmark’s development as a country. Contract Software Engineers are spearheading that growth.
• The Netherlands: With fintech, AI and cloud computing forming a growing tech scene, many professionals have flocked to Amsterdam and Rotterdam. 
• Germany: Many professionals specialising in mobile, web and backend technologies reside in Berlin, while those interested in gaming are likely to be found in Hamburg. 
• Sweden: Referred to as the ‘Unicorn Factory,’ Stockholm consistently produces fast-growing startups, driving demand for app developers and data engineers. 

Benefits of Hiring Contact Software Engineers 

Effective software engineering recruitment is vital to your business's growth, and companies exploring Europe for their next contract hire could unearth a hidden gem ready to drive the next generation of innovation. So what does Europe offer? Let's see: 

High-Quality Talent 

Educational institutions in Europe are leaders in STEM fields, which are vital in producing the next generation of skilled software engineers. This is particularly true in Central and Eastern Europe, which boasts an incredible 800,000 professionals! Software contractors are brimming with specialised skills often unavailable in an existing workforce. Also, EU professionals are familiar with GDPR and ISO certifications, which are a must for data protection. 

Time Zone Benefits 

If you have remote software engineers on your team (an increasingly common demand in tech), collaboration with the global market is made much easier with European contractors. EU professionals may work in time zones that overlap with the U.S. and Asia, allowing for seamless and effective communication throughout the business. 

Cultural Compatabiltiy 

When debating the pros and cons of recruiting a contract software engineer, there’s an argument that comes up a lot that contractors may not align with a company’s culture and values - especially when compared with your full-timers. However, if your business prides itself on a work ethic and an ability to meet deadlines, there’s not much to lose! Furthermore, EU Software Engineers tend to be fluent in multiple languages, which really helps communication between diverse and international teams. 

Cost Efficiency 

Compared with permanent hires, software contractors represent a cost-effective solution for companies, which can be very handy if running on a tight budget. Full-time employment means paying for benefits, taxes, training, and other overhead expenses. Support your business, we've created a contract salary guide to provide you with an overview of the costs associated with a host of software engineering jobs: 

• Junior Engineer: The day rate outside IR35 for remote and hybrid roles is £300 - £350. Inside IR35, it’s slightly more at £350 - £400. 
• Mid Engineer: Outside IR35, for remote positions, the day rate is £400 - £450. For remote roles, it’s £400 - £500. Inside IR35, remote roles are £450 - £500, and hybrid are £450 - £550. 
• Senior Engineer: Recruiting for a remote role outside of IR35 could cost £500 - £600 a day, while hybrid is £550 - £650. Inside IR35 is £650 - £700 for a remote position and £700 - £800 for a hybrid role. 
• Lead Engineer: Remote and outside of IR35 will be between £550 - £650, with hybrid costing companies £650 - £750. Inside IR35 is £700 - £800 for remote, while hybrid is £750 - £850. 
• Head of Engineering: The day rate outside for a remote position is IR35, which is £750 - £800, and hybrid could be more than £800. Inside IR35, a remote role is £800 - £900, and a hybrid position is £900 - £1000. 

Is your startup or scaleup business looking to hire your next software engineer to boost your growth potential? Talk to our expert and friendly team today and discover how we can put you on the road to success.

Challenges of Different Market Cultures 

Navigating a host of markets with a host of diverse cultural differences can be a headache for many reasons. Here are some examples highlighting why: 

• Varying Cultural Norms: Cultural differences can have a big impact on communication styles. Some countries value a direct approach, which might come across as blunt or even rude to others. Workplace values vary, too, some cultures lean towards strict hierarchies, while others prefer a more collaborative setup. Even something as simple as an interview can feel completely different depending on where you are, from the level of formality to what’s considered appropriate attire. Understanding these nuances can make all the difference in building strong professional relationships.
• Qualification Standards: In some markets, formal education is vital, with degrees from reputable institutions preferred over practical experience. 
• Legal Considerations: Where a company looks for software engineering talent can make a huge difference in the hiring process. Employment regulations vary widely - what’s standard practice in one country might be completely different in another. And then there’s tax! Depending on where someone is based, the costs and obligations can shift significantly. Unfortunately, it’s not as simple as just about finding the right person for the job, it’s also about understanding the rules that come with hiring them.

Final Say: Navigating the EU Contract Software Engineering Market

With technology advancing quickly, companies are casting a wider net to find skilled software engineers. Expertise in tech such as AI, ML, AR, and VR is becoming increasingly valuable, but securing the right talent isn’t always easy.

Bringing in contract software engineers from Europe can be a smart, cost-effective way to access specialised skills. But with such a diverse market, navigating cultural differences can add an extra layer of complexity.

Businesses that embrace contract software engineers give themselves the flexibility to make informed, data-driven hiring decisions while staying ahead of tech advancements. Whether you’re scaling up or bridging a skills gap, tapping into Europe’s talent pool could be the key to driving innovation and growth. Are you ready to grow your business with contract software engineers? 

Your Go-to Software Engineering Recruitment Solutions Provider

You might be able to tell, but at Propel, we love software engineering! Our expert consultants have extensive industry knowledge that’s matched by a community of candidates that we’re proud to share with you - because our network is your network. 

Let us support your search for a candidate who’s got the right skills and is the right cultural fit for your scaleup, startup, or next project. Check out our functions page to see how we can help you, or contact us today to speak with our team. Together, we'll grow.