In a recent Wawiwa webinar, held on October 29th, 2024, we talked about the growing tech skills shortage in Europe, how reskilling and upskilling can help bridge the tech skills gap, the role of Generative AI in transforming the workforce, and the steps universities and training centers can take to meet the growing demand.
Watch the Webinar recording now!
The Speakers
Nuno Rosado, CEO of TechOf
Nuno Rosado brings a wealth of expertise in IT strategy and operations. With a strategic mindset and solid judgment, he has successfully led efforts to create both long- and short-term goals and objectives for IT initiatives. His specialties include driving IT operational and strategic planning, fostering innovation, and managing complex projects, while efficiently organizing and negotiating resource allocation. His leadership has been instrumental in guiding organizations toward sustainable growth through innovative and effective IT solutions.
Eran Lasser, Founder and CEO of Wawiwa Tech
Eran is a tech education entrepreneur with over 20 years of experience. Eran founded and managed four IT training companies: John Bryce Training (Israel), TRIG (China), JB-IQsoft (Hungary), KocBryce (Turkey). Eran also partnered to establish DAN.IT Education (Ukraine), Techub (Georgia), and more. In addition, Eran managed Mentergy, which provides e-learning and distance learning solutions. Over the years, he was responsible for the reskilling of more than 50,000 individuals now working as tech professionals.
Understanding Europe’s Tech Skills Shortage
The webinar opened by addressing a pressing challenge in Europe: the tech skills shortage, which continues to grow. The European Commission projects that by 2030, Europe will need 20 million tech professionals to keep pace with the digital demands of its economy. However, current statistics suggest that only 12 million people are expected to work in tech roles by then, leaving an 8 million talent gap.
The tech skills shortage in Europe stems from several factors, starting with the rapid pace of digital transformation across industries, which has driven a surge in demand for tech professionals. However, many young people are not pursuing STEM (Science, Technology, Engineering, and Mathematics) studies, leading to a limited talent pool. Traditional academic degrees, which can take several years to complete, often don’t align quickly enough with industry needs – creating a gap between when students enter the field and when their skills are needed. In countries like Portugal, this has led to challenges in recruiting, with companies increasingly hiring international talent due to local shortages.
European countries differ in tech job requirements and training approaches. Developed countries often require academic degrees for tech roles, though there’s a shift toward valuing practical skills. Developing countries are becoming hubs for outsourced tech jobs, emphasizing adaptability. Countries like the UK and Germany also integrate apprenticeships, combining academic learning with industry experience to prepare students with relevant, hands-on skills.
Reskilling: The Solution to the Tech Talent Shortage
Nuno and Eran emphasized reskilling as a vital strategy to address the tech talent shortage. Reskilling programs target individuals from non-tech backgrounds, equipping them with essential tech skills so they can transition into tech roles within six to twelve months. This approach opens doors for people who may not have considered a career in tech, enabling them to get into roles such as software development, data analysis, and cybersecurity without needing prior experience.
This rapid, hands-on training is particularly valuable in a tech industry where new skills are constantly in demand. By providing a direct path into high-demand roles, reskilling offers individuals new career opportunities and helps create a workforce that can adapt to Europe’s evolving tech landscape, ultimately reducing the pressure on employers who struggle to find qualified candidates.
The demand for tech professionals spans a wide range of specialties, with Artificial Intelligence (AI) skills currently at the top of the list. Following closely are skills in IT operations, software development, and cloud computing, all crucial to supporting the digital transformation. Data Analysts and Data Scientists are also highly sought after, as organizations prioritize data-driven decision-making. Cybersecurity has become increasingly critical due to rising cyber threats, pushing the demand for skilled cybersecurity professionals. Additionally, programming languages like Python and expertise in machine learning are gaining popularity, reflecting the growing integration of AI and data science into various industries.
Who Should Address the Tech Skills Shortage in Europe?
The responsibility to close Europe’s tech skills gap doesn’t fall on one sector alone; it requires a combined effort from governments, enterprises, and educational institutions. Governments play a crucial role by offering incentives and investing in reskilling and upskilling initiatives, which can make tech training accessible to a wider population. For example, many European governments provide subsidies for tuition, making tech programs more affordable. Additionally, some governments also subsidize the salaries of junior tech professionals, making it more appealing for companies to hire and train less experienced workers.Through these measures, governments can support a tech-ready workforce that aligns with national economic goals.
Enterprises also have a big interest in addressing this shortage, as it directly impacts their ability to stay competitive. A lack of skilled tech professionals can slow down innovation, reduce revenue, and weaken a company’s position in a global market. Many companies are now investing in in-house training or partnerships with tech education providers to develop the skills they need internally. By taking an active role in reskilling and upskilling employees, enterprises can fill critical roles, reduce hiring costs, and cultivate a more adaptable workforce ready to tackle emerging challenges.
Universities, traditionally the source of talent, also have a critical role in shaping the future workforce. As the demand for practical, up-to-date skills continues to grow, universities are shifting their focus from purely theoretical degrees to incorporating hands-on tech programs and tools like ChatGPT and Midjourney. To remain relevant, universities are increasingly blending traditional academics with practical tech training, creating graduates who are ready to meet the immediate needs of the tech industry. This evolution points to a future where higher education collaborates more closely with the industry to produce graduates equipped with both academic knowledge and practical, in-demand skills.
