Skills
requirements on how and where data is stored. So, despite the big vision, some heſty challenges and hurdles must be overcome to achieve it. Along with compliance and stricter privacy regulations,
the current IT skills crisis in Europe tops the list of hurdles for tech-inclined businesses to overcome. Demand for tech implementation outstrips the supply of relevantly skilled workers, with cybersecurity, blockchain, and AI skills being the most in- demand yet also the most scarce. Tis means that those companies wanting to build technology infrastructure in Europe will need to either invest in or gain access to a large and diverse IT talent pool.
Partnerships and collaboration are paramount As the effects of IT skills shortages on businesses grow, technology leaders are looking at new ways to overcome the issue with strategies that include upskilling their current, over- stretched engineering workforce with training or loosening their recruitment criteria to remove barriers to entry. Hiring an in-house development team can be expensive, especially when considering salaries, benefits, office space and equipment. Coupled with this dilemma, soſtware development projects can take months or even years to complete. A more strategic, long-term, and efficient solution could be
a team augmentation approach, which is commonly used to quickly onboard expertise. Team augmentation is a strategic approach to engaging with expert partners that already nurture an existing pool of IT talent across the continent. Tis is a great starting point for European tech scale-ups who want to innovate quickly but lack the skillsets in-house to do so. By leveraging the expertise of external soſtware engineers, companies can gain access to a broader talent pool of the best technologists who can be placed into companies quickly and seamlessly. Tis can also reduce operational costs by up to 30% compared to building an in-house team. Tis approach allows companies to quickly scale their technical
resources up or down, depending on the project’s needs, and plug any capability gaps within their teams. Collaboration on the development and shaping of technology in Europe will be crucial to the success of businesses. ‘Renting’ specific talent from specialist companies enables businesses to scale their tech team and projects flexibly without the risks of growing an in-house team of project managers, business analysts, product designers, soſtware developers and automation testers. It provides companies with access to a diverse range of skills and expertise that may not be available in-house. Building resilient digital infrastructure, such as cloud-
based data platforms used to train AI models, can help strengthen digital autonomy. Resilience is a key aspect of IT, and given the current geopolitical tensions, clients should reduce some of their dependence on US tech, where possible, by investing in local alternatives. To achieve IT resilience, European tech companies
should benefit from transformation consulting, delivery capability and ongoing support. Tis will enable them to take more control by engaging further in scaling up
www.pcr-online.biz May/June 2025 | 21
strategic technologies, such as AI and Cloud, faster. Teaming up with larger partners to lend technology talent and strategic expertise will help them to navigate investment funding, compliance, policy support and cross-border strategies.
Rethinking cross-border strategies Forward-looking European tech companies are currently rethinking their cross-border strategies, particularly for regulated industries. Cost increases, data privacy regulations, security, and national resilience are forcing companies to review their technology and data strategies at a time when local presence is becoming ever more important. Te EU’s focus on funding and supporting key technologies like
AI, space tech, quantum computing, and semiconductors to help reduce reliance on foreign suppliers presents a strong opportunity and will boost local innovation. European tech companies should rethink cross-border strategies
by strengthening their digital infrastructure, reducing reliance on US tech giants, and collaborating with international partners while upholding EU values. Tis includes establishing critical digital platforms within the EU, fostering innovation, and adapting to the EU’s regulatory landscape, particularly regarding data sovereignty and digital public services. Both public and private buyers are increasingly choosing
providers that offer clear data control and EU-based infrastructure. Consider partnerships that align with sovereignty goals and work with providers offering transparent data handling, EU-based hosting, and open standards that can also support sovereignty while improving resilience and sustainability. Tis could give local startups and European cloud services the required boost to put Europe back on the map. Innovators should prioritise values like privacy, sustainability, fairness, and transparency in the development and deployment of new technologies, with the big picture vision of EU digital sovereignty firmly in mind as an end goal. With Europe actively working towards achieving digital
sovereignty by 2030, it’s no longer a question of whether Europe realises its aims. It comes down to whether your business is already a part of it.
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