How Offshore Teams Drive Denmark’s Thriving Tech Sector

Authored By: Invedus
Presented by the Marketing and Communications Team at...

Denmark has successfully establishing its position as a leader in the global tech landscape. Its digital economy is contributing over 6% of the country’s GDP, and tech companies are experiencing an average annual growth rate of 7%.

What is the driving force behind their increasing competitive edge in sectors like fintech, green tech, and artificial intelligence? How do they integrate innovation and marketing to effectively foster growth? And, as the demand surges, what are the significant challenges… 

In the following blog, we’ll outline how Danish tech firms are accelerating the tech industry and how collaborating with offshore teams can significantly shape the future of the emerging digital economy.

Let’s explore.

Denmark’s Booming Tech Industry

Do you know that about 4,300 scale-ups and start-ups are spread across Denmark? 

Yes, they are thriving with an ecosystem value of $3.2 billion. With top-notch digital infrastructure, incentives, and talented business communities, Denmark has witnessed a boom in tech startups, especially in fields like:

1. Artificial intelligence: Denmark recently rose to the top of the EU’s digital performance leaderboard, ranking fourth in the Digital Economy and Society Index. AI has the potential to increase GDP by 35 billion DKK a year by 2030.
2. Fintech: Since 2016, the Fintech industry in Denmark has grown by 144%, demonstrating its remarkable expansion in recent years. The market players range from Danish start-ups and scale-ups to fully matured companies with hundreds of thousands of customers.
3. Green technology: Denmark’s electrical system is expected to be entirely fossil fuel-free by 2030.

However, the challenges faced by the tech industry are limiting its growth. These hinder the process of transformation and the ability of the businesses to take part in the global race.

Some of the most significant challenges are: 

• The Danish market faces an increasing issue of employee shortages, particularly skilled ones. The need is especially high for science, engineering, healthcare, teaching, IT, and finance professionals who are educated to degree level.
• The never-ending loop of setting up operations for new recruits, their training, and laws are extremely strict and high in European countries. 

What Are Offshore Teams?

Offshore teams are groups of skilled professionals based in a different country than the company they work for. Businesses often hire them to gain the benefit of cost advantages, access diverse talent pools, and enhance operational efficiency. 

These teams function as an extension of the organization, collaborating seamlessly across time zones.

Offshore teams work virtually, supported by robust communication tools and project management software. Clear goals, regular meetings, and defined workflows ensure alignment with the company’s objectives. 

Why Offshore Teams Are a Perfect Fit for Denmark

Offshore teams are increasingly becoming a valuable resource for Danish businesses. With Denmark’s strong focus on innovation and efficiency, utilizing offshore talent allows companies to remain competitive.

Below are the significant advantages of hiring virtual employees:

1. Access to Top Talent: Companies can access a wide range of highly qualified professionals. This is particularly beneficial for sectors like IT, engineering, and customer support, where highly specialized talent is often in short supply locally. Even with routine tasks such as bookkeeping, data entry, etc., virtual employees have expertise in advanced software.
2. Cost Efficiency: We are all aware of the high operating costs in Denmark. But with an offshore team by your side, businesses can cut costs without compromising quality. This approach makes it possible for companies to reinvest in important fields like R&D.
3. 24/7 Productivity: Danish companies can attain round-the-clock productivity by delegating tasks to offshore teams that operate in different time zones. This is a major advantage for industries requiring quick turnaround times and continuous operations.
4. Scalability and flexibility: Offshore teams provide the flexibility to scale operations up or down based on demand, helping businesses adapt to changing market conditions with ease.

Popular Offshore Destinations for Danish Companies

Here is a list of the top countries Danish firms are outsourcing to:

India

India combines affordability with innovation. They have a huge talent pool who have excellent expertise over emerging technology. Danish firms can find expert IT and Non IT expert like Developers, 3D Artist, accountants, virtual assistants, and bookkeeping professionals for the emerging sectors like green energy, healthcare, and IT.

Denmark and India have a time difference of 4 hours and 30 minutes. Which makes them an ideal partner. Less time difference is an added advantage.

Vietnam

Vietnam is considered a good outsourcing destination due to its large pool of skilled and relatively affordable IT talent and a young & growing tech workforce. Making it a cost-effective and flexible option for countries like Denmark, France, UK, and the USA. 

However, no proper data protection law and a low level of fluency in English poses a hindrance for companies. 

Brazil

Outsourcing to Brazil can help you design applications for your company, perform staff outsourcing, handle website management, promote architectural outsourcing, etc.

They too offer reduced operational costs and flexible solutions. However, they are an emerging destination and do not provide expertise in niche sectors.

Switzerland

Switzerland is considered a good outsourcing destination due to its educated and multilingual workforce, excellent infrastructure, and reputation for neutrality.

Major services outsourced are finance & banking, consulting, etc. However, their cost is really high, and their laws are rigid. This in turn affects the business processes. 

Are there any challenges to outsourcing? 

Offshore teams provide the perfect solution to scalability and expansion; however, sometimes there can be certain challenges here and there. They can be easily eliminated with robust planning and execution.

Let’s have a look at the challenges:

1. Communication: Language can sometimes pose a barrier to collaboration. It can hamper proper understanding of projects or demands of the clients. However, virtual employees from India are fluent in English and have a good command over soft skills. Using tools like Slack, Microsoft Teams, Asana, Trello, or Jira, you can also manage communication and track tasks.
2. Legal and compliance risks: Though companies have a comprehensive system of legal and technical compliance, you should also ensure that your domestic laws, like the General Data Protection Regulation (GDPR), are also covered.
3. Clear goal and expectations: Communicating the requirements, vision, and deadlines from the very start will no leave scope for misinformation
4. Choosing the right partner: Thorough research and transparent processes will help you in choosing your right partner. Analysis of candidates for their skills will ensure that you get the right expert.

Effectively planning and communicating with offshore teams will turn these challenges into opportunities.

How Can Invedus Virtual Employees Help Danish Tech Companies?

The business arena is constantly evolving and needs quick on-hand solutions. By incorporating virtual employees, businesses can significantly enhance their operations and maximize their production. In addition to cutting costs, outsourcing gives businesses the ability to overcome local talent shortages and speed up project timelines.

By partnering with Invedus, Danish tech companies can benefit from global expertise while maintaining the flexibility to adapt to growing industry demands. This approach ensures they stay competitive and innovative in Denmark’s fast-growing tech sector.

Popular outsourcing services provided by Invedus among European clients are IT outsourcing, web designing, finance & accounting, and medical services. Collaborating with us, you get to customize the hiring process and a tailored solution to all your business requirements.

Ready to elevate your business?

Complete this form to discover the advantages of offshore teams with Invedus and stay ahead in Denmark’s thriving market.