Denmark has the progressive global internet economy, according to the 2015 Boston Consulting Group e-intensity index. In 2014, Danish R&D companies had gross profit increase of 198% according to Bisnode. Worldwide companies usually test their new products on Nordic markets as local clients are open for the innovations and highly sophisticated.
Moreover, Denmark is number one in Europe for digital productivity. This is the main reason why it attracts tech giants like Microsoft (its biggest European development center is in Denmark) and IBM. However, according to the Hays Global Skills Index 2016, the Nordic region has a shortage of tech employees. For instance, experts predict that it will grow to approximately 19,000 IT experts by 2030. Nowadays, up to 50% of organizations in Denmark struggle to find needed tech professionals.
Overview of Danish IT Industry
According to the World Economic Forum, Nordic countries involving Denmark have implemented the innovative digital technologies to refine productivity. In general, the main 15 vendors captured 3.2% of the IT services market, increasing the market share to 60.3%.
Danish IT industry is the third fast-growing industry with a profit growth of 37%. Nowadays, IT area in Denmark involves more than 8,000 companies in general. Accenture figured out that that investments in fintech companies in Denmark from 2012 to 2015 grew from $8 million to $168 million.
There are 5 main business segments in Denmark:
- research and development
- natural gas, energy, and district heating
- information technology
Danish IT industry is quite fruitful. Turbo-Pascal, C++, C#, and Visual Prolog are a few of the programming languages made by Danish developers.
The Key Danish IT Companies
It’s better to use examples to explore Danish IT landscape. There are many companies that Denmark is proud of. So, let’s consider their expertise and solutions that they deliver.
Falcon.io brings a multifunctional social media marketing solution. The SaaS website provides companies with tools to provide social media listening, as well as to engage their audiences, publish content, and handle customer data. It has well-known customers involving Columbia University, Coca-Cola, Carlsberg, and Momondo. This is the most-reviewed Danish product on G2 Crowd.
Budgeting: $40.7 million.
Templafy is an interactive template system that can solve the document flow for the companies. The software allows compliance, the branding, and IT teams in big companies driving and improving the way their workers create content in order to make it engaging and professional.
This is a useful tool to manage and upgrade, share document templates and brand stuff with team members. Communications and Compliance teams may easily manage all processes.
This solution allows creating faster presentations, reach needed content and cooperate more productively with different departments. The software syncs with the apps that company already uses and applies existing document templates to save one style.
Users may provide easier content governance with this tool. Large organizations with multiple branches, brands and languages are the main audience for this product.
Budgeting: $21.4 million.
Archii uses artificial intelligence to automate the control of business documents. It helps to save time and eliminate misplacement and gap of valuable data.
Machine and deep learning, natural language processing brings contextual and an understanding of the documents. It helps to recognize, understand and manage business documents quicker than manually.
Queue-it delivers a virtual waiting room not to lose the sale and keep a platform up and running. It helps to manage the significant number of queues through the website. This tool is used in online retail, education, ticketing, and the public sector.
Budgeting: $428,480 million
Traede helps to boost B2B communication and sales. This tool optimizes the sales operations and delivers CRM, inventory, and invoicing features. It is used in 80 countries and by more than 20,000 brands.
Budgeting: $3.2 million
ChurchDesk helps to improve church management by freeing up church staff and volunteers and boost their productivity. The cloud-based website decreases time spent in managing church activities by optimizing processes and delivering greater coordination between various team members. This solution also helps churches raise needed funds.
This tool helps to use calendar more productively and categorize events. Users may add public information and enter information once to use for different purposes. Besides, different people may share content and cooperate within the platform.
Budgeting: $3.3 million.
Software Engineer Salary in Denmark
Three Nordic countries are in the top 10 due to high salary expectations of the young professionals. Denmark ranks second: approximately $80 000 per year. The statistics show that Denmark offers the most competitive salary levels.
The salaries in IT area aren’t the highest. Their software developers may earn (£27,909 - £75,507) $38,805 - $104,994. Other resources found out that their web developers get (£12,790 - £53,611) $17,784 - $74,540.
According to PayScale, the average Denmark software engineer salary is $70K, depending on skills and experience (wages in Denmark are the global third-highest). Denmark software engineer salary is high comparing to Norwegian IT engineer salary of $65K (4th place in the global rank) and the software engineer salary in Sweden of $55K (6th place in the worldwide salaries rank).
Related article: How High Is Norway Software Engineer Salary?
Software developer salary UK
The software engineer salary in USA
The average software engineer salary in USA starts from the $59227 while software developer salary UK is $31565 annually. The salaries may be much higher for the senior web developers and professionals with the unique experience.
Whitelane Research 2017 about the outsourcing in the Nordic countries informs that the companies increase their interest to delegate IT service to the overseas companies: up to 44% of respondents desire to use it more.
As we mentioned before, Denmark feels the shortage of IT talents. Besides, they see a growth of IT companies and customers that want to get IT services. This country is very reliable and easy to run a business, so it is not surprising that new enterprises appear very quickly and more and more investors want to fund their startups.
With the growing need to satisfy customers’ needs, Danish IT companies outsource many services and use a help of a huge pool of web developers presented in Eastern Europe. Such countries like Ukraine, Poland, Belarus, Bulgaria, Hungary, Poland, Romania have a huge potential to meet clients’ needs with cost-effective IT solutions.
Growing IT Market
Denmark is trying to fulfill the gaps in their talent pipeline in different ways. They popularize IT educational programs, and the admissions to their software courses increased by 62% in 2016. The most popular programs are big data, artificial intelligence, and machine learning.
Mads Tofte, the rector of the IT University of Copenhagen, shares that they finance the growing expansion by themselves due to the actual need for software graduates.
Moreover, the financial sector is maintaining the Danish IT industry. Copenhagen presents itself as the new fintech hub which can gather the best IT programmers for the financial sector. For example, Tradeshift got an investment of $75 million. Accenture figured out that the entire investments in Danish fintech enterprises from 2012 to 2015 grew from $8 million to $168 million.
As we see, the Danish IT industry is growing fast and attracts investors and customers all over the world. They offer high salaries to the employees but still experience the biggest shortage of IT talents. That’s why they used to outsource IT services and work on the attracting young people to gain IT education.
Their IT landscape has many examples of innovative and useful solutions. Research and development, information technologies are their main business sectors. And the financial sector helps Denmark to become a hub of talented IT professionals.