Kenyan-German working group examines IT outsourcing and labour market trends

Complementary demographic developments

According to Maggie Ireri, TIFA, the study provides closer insight into Kenya and Germany's largely complementary demographic developments. Due to an ageing population, Germany is expecting significant shortages in its ICT labour market. Meanwhile, Kenya has a young, tech-savvy, English-speaking workforce that is continuing to grow. To harness this potential, adequate information about the cost and skills needed in both ICT labour markets is crucial.

Kelvin Masika, TIFA, interpreted the data that the survey collected from job sites such as LinkedIn in Germany and Kenya. It focused on ICT jobs, salaries, and required skills. The researchers found that in both countries, most open jobs were in software development. In Germany, a more balanced distribution across development operations and IT support was noticeable due to a more diversified tech ecosystem.

Kenya's cost-effective and high-quality ICT workforce

The participants also shared that Kenya is a cost-attractive location compared to German salaries. Companies can save substantially on salaries for software developers, as these costs are roughly half of what they would be in Germany. This makes Kenya a mid-cost workforce option in international comparison. The study concludes that the Kenyan ICT workforce is competitive enough to meet German market demands.

Knowing who to ask for help

For German companies, a valuable avenue towards recruiting Kenyan talent can be a collaboration with Kenyan BPO service providers. Such local players can help in understanding local dynamics and market dynamics, including costing ranges. When recruiting Kenyan professionals directly, it can be advisable to work through local headhunters or to approach talent working at mid-sized tech companies, as they are most open to new opportunities.

During the Q&A part of the webinar, it was reiterated that 37 % of German IT job postings are remote, compared with 12 % of jobs in Kenya. This proves again that hiring international talent is a concrete avenue to fill roles that are currently in demand in Germany.

The webinar concluded with a short outlook on upcoming events and opportunities offered by the Kenyan-German Digital Dialogue. If you would like to be a part of the working group and get updates and news first-hand, simply email digital-dialogues@giz.de.