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Top 10 Emerging Locations for HR Talent Acquisition in Tech

Team Draup
3
min read
August 10, 2022

Tech talent has become valuable across all industries. In this era, we’ve learned that work can happen anywhere, beyond Silicon Valley, where innovation, investment, and tech talent are rising.

Silicon Valley has long dominated, attracting IT talent and opportunity, with 58% of the region’s GDP in 2019 generated through tech-related businesses. However, HR talent acquisition teams are now exploring a range of global cities, driven by multiple strategic factors.

Rising taxes and rents, increasing prices in mega-talent hubs, tech-focused government policies, and the rise of remote and flexible work have pushed talent to stay put or relocate to emerging tech hubs.

These new hubs help curb brain drain, address talent shortages, and expand access to global labor markets, key priorities for HR talent acquisition teams. Let’s look at a few global cities where companies across sectors are finding tech talent.

Top Hubs for Tech Talent and HR Talent Acquisition

Here are ten global cities that should be on every HR talent acquisition team’s radar, as professionals are moving there to find jobs in technology.

  1. Toronto, Canada

Toronto is one of the fastest-growing tech hubs in North America. Often referred to as Silicon Valley North, it has added more tech jobs than any other hub in the region.

For HR talent acquisition teams, the city offers access to top-tier engineers and developers from premier institutions like the University of Waterloo and the University of Toronto. Additionally, tech talent here costs less than half that in San Francisco and about 50% less than in New York or Seattle.

  1. Mexico City, Mexico

The city ranks high for tech talent and funding, with 171,000 tech workers fueling Mexico City’s economic growth. Besides, many US-based tech companies have looked at tech talent in Mexico City for the past decade. The city gained prominence due to its qualified developers and ICT professionals.

The number of tech jobs is only set to increase

  1. São Paulo, Brazil

São Paulo is an important research and innovation hub in Latin America. It is Brazil’s growth engine, which is why major companies are focusing their HR talent acquisition efforts on the city’s excellent tech talent pool.

Established tech companies like Google, Uber, and Airbnb have their Brazilian HQs in the city. São Paulo is also a startup hub, nurturing some of the country’s largest startups. Real-estate startup VivaReal is based here and, along with other startups, hires from the University of São Paulo and other institutions that produce skilled talent.

The sixth largest IT market in the world is also first in IT investments in Latin America. Brazil, with over 500,000 software developers, is a key focus area for HR talent acquisition in the region.

  1. Buenos Aires, Argentina

Buenos Aires is an IT and software development hub in South America. Due to its tech talent, the city draws investment from US-based companies and sees significant interest in outsourcing jobs here.

It is an emerging IT talent hub, and in 2020, a survey found that 86,722 people were employed in different tech jobs. Young Argentinian unicorns like Libre, Auth0, Globant, and Mercado have provided growth opportunities to local talent. The tech workforce is also helping startups evolve rapidly, making Buenos Aires a focal point for HR talent acquisition targeting both new graduates and experienced professionals.

  1. Manchester, United Kingdom

As per research, Manchester is an upcoming talent hub, and HR talent acquisition teams are increasingly hiring from this city due to its lower cost of living compared to the United Kingdom’s capital. The same research found that London’s tech workers could move to Manchester in the next three years.

Manchester has become Europe’s fastest-growing tech cluster, with rising investments from global companies and emerging startups.

  1. Dublin, Ireland

Over the years, we are seeing the likes of Google, Amazon, Airbnb, and Dropbox hiring tech talent from Dublin. As 10% of Dubliners are developers, it has become a magnet for leading tech firms. Many of them, including collaborative workspace platform Notion, are using Dublin as their EMEA HQ due to its growing talent pool and strategic value for HR talent acquisition across Europe.

  1. Bengaluru, India

The Indian IT industry is renowned for its highly skilled tech talent and English-speaking software engineers and programmers. Its IT industry is projected to reach USD 300 Bn to USD 350 Bn by 2026, growing at 10% annually.

Digital services account for roughly 30% of the industry but are expected to reach 50% within 2026. India is expected to have the world’s largest app developer base by 2024. This growth presents significant opportunities for HR talent acquisition teams seeking tech talent at scale. While India has tech clusters in Chennai, Hyderabad, Pune, Mumbai, and Delhi, Bengaluru is at its heart, with 39 of India’s 100+ unicorns as of July 2022.

Talent from other Indian cities moves here due to affordability and opportunities. It has attracted the attention of investors and corporations alike, making it a powerhouse for tech talent, HR talent acquisition, and investment. The city is host to over century-old technology and science universities, adding to its research and development quotient and ranking it high for knowledge metrics.

  1. Lagos, Nigeria

With 114,536 tech professionals, Nigeria ranks third for the number of developers in Africa, driving the country’s steady tech growth. As per a report in 2019, Fintech and EdTech in Nigeria contributed to this expansion.

The city attracts talent from across the country and is referred to as Africa’s Silicon Valley, making it a key focus area for HR talent acquisition. The Yaba district is among the many thriving tech communities in the city, known for its innovation quotient and the ability of individuals to develop solutions to everyday challenges.

  1. Dubai, UAE

Dubai is an upcoming tech hub and hosts many emerging companies in artificial intelligence, blockchain, and aeronautics. As of 2021, Dubai Internet City, an information technology community, employed around 25,000 people in more than 1,600 companies.

In 2019, over 560 startups received USD 704 Mn in funding with record exits, Uber acquired Careem, a super-app, for USD 3.1 Bn. In 2020, startup investments exceeded USD 1 Bn for the first time. As the city’s tech ecosystem expands, HR talent acquisition efforts will be critical to support the projected 40,000-strong workforce by 2025.

  1. Nairobi, Kenya

Known as Silicon Savannah, Kenya offers promising opportunities for HR talent acquisition. According to a report, Kenya ranks just behind Nigeria in equity funding from VC firms and is one of Africa’s leading tech startup hubs. The presence of offices by Google, Microsoft, Intel, IBM, and Cisco Systems underscores its growing appeal. Its 51 tech hubs support an increasingly connected workforce.

Bonus 1 – Tallinn, Estonia

The Eastern European country of Estonia is fast becoming a European startup hub. Tallinn is full of technical talent and has one of Europe’s largest pools of tech employees per capita. Some successful tech companies, including Skype, have a base in Tallinn.

With a successful ‘digital nomad visa,’ it has attracted tech investments and entrepreneurs from around the world. The city is a hotbed for talent in location services, electronics and hardware, STEM, and cybersecurity, making it an emerging focus for HR talent acquisition in the tech sector.

Bonus 2 – Valletta, Malta

At one time, Malta was known only for its beaches and weather. It is now known as a ‘blockchain island.’ The Maltese government has made laws and regulations favorable for cryptocurrency companies.

Additionally, the University of Malta is popular for producing artificial intelligence and blockchain talent who graduate with AI, technology, and cybersecurity skills. This small country holds a lot of promise in terms of tech talent.

Though not extensive, HR talent acquisition teams can leverage this opportunity to expand their efforts internationally. Talent acquisition must not be limited to the city a company is based in—there are global tech talent hubs where HR talent acquisition teams can hire remotely or establish a local presence.

Draup’s talent intelligence platform enables HR talent acquisition teams to efficiently track multiple locations in real time. Its location intelligence provides talent insights across hotspots in ANZ, APAC, Eastern Europe, LATAM, MEA, North America, South America, Scandinavia, and Western Europe.

To achieve strategic goals, talent acquisition teams can use crucial insights on talent size, cost, ecosystem maturity, and many more. They can extract data on talent characteristics at a given location and adapt to changing times while jumping the diversity bandwagon.

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