Landscape Study Tallinn (Estonia)TALENT POOL

CONTENTS

Geographical Location

Employment Ecosystem

Talent Availability (Graduate Pool)

Talent Availability (Experienced Pool)

Ease of hiring talent

Salary Expectations

2

1

2

3

4

5

6

Scope & Objective

of the Research Engagement

ObjectiveTo study and benchmark market information about

various language rresources in the geographic location

of Tallinn in Estonia, Employment Ecosystem,

Graduate/Experienced talent pool availability, ease of

hiring talent, salary expectations.

Our SolutionUse a combination of primary and secondary research

sources along with our proprietary talent research

intelligence to validate Language Resource market

information. This will be for client target locations to

initiate/setup new IT/BPO process

OutcomeThis report provides market information about the

language rresources pool acrossabove 4 job roles

across in Tallinn city proximity that enable business

stakeholder to align and finalize hiring decisions

Roles

Digital marketing

Content Operations

Customer Support

Technical Support

Languages

German, French

Dutch, Swedish

Norwegian, Finnish,

Danish, Arabic

Availability of language resources from different

market players in IT & BPO

Hiring and related insights specific to target roles

and practices

3

Insights/POV in relation to availability

of experienced language resources from

nearby bordering countries

Insights/POV in relation to proficiency of

language skills broken down in accordance

to European Language Proficiency Scale.

Proximity to educational institutions

providing access to graduate pool

4

Geographical Location

Tallinn

Estonia

Tallinn (Estonia) : Talent EyeEstoniaPopulation

ICT Pool

IT Pool*

BPO Pool

As of 2018

1.3 Million

28,000

5,800~6,200

1,500~1,800

2000 students graduated in

Information and

communications technology

TallinnPopulation

ICT Pool

IT Pool*

BPO Pool

As of 2018

400,000

23,400

3700 ~4800

1,000~1,200

~950 students graduated in

Information and

communications technology

“The most common speaking languages

in Tallinn are Russian, English, Finnish &

German”

Major Employers in Tallinn (in terms of

no.of Employees)

Eesti Energia

Telia Ericsson

Eesti Telekom

Taxify Nortal

Pipedrive

Fujitsu

SEB

ABB

Elisa

Arvato Financial

Solution

Tele2

kuehne + nagel

Tieto

Estonian ICT sector is currently in demand of another 7000 professionals

Source: visit Tallinn, Tallinn City Government, Invest in estonia, Statistics Estonia, Hirexa Analysis: Primary & Secondary,.

5

Estonia has one of the best performing labour markets in the European Union

Main challenges of Estonia’s productivity growth, low investments in the IT

sector & weak commercialisation of research achievements

Ranked 7th out of 180 countries by annual survey Economic Freedom of the

World

86% of adults speaking at least one foreign language

Insights in relation to availability of experienced language

resources from nearby bordering countries

Insights:

Immigrants to Estonia mostly come from

Finland (45%), Ukraine (11%) and

Germany (2%)

In Estonia English, Finnish and Russian are

the most commonly spoken, but many

people also speak French, German and

Swedish.

Estonian language is similar to

Finnish language

Half of the Immigrants to Estonia are

people returning to Estonia and one-third

people from territory of the former Soviet

Union (e.g. Russia and Ukraine) and

one-tenth people from other EU Member

States and other one-tenth people from

the rest of the world.

Russia1,500,000 IT-BPO

Head Count

<2%

Talent Mobility

Latvia8,700 IT-BPO

Head Count

3~2%

Talent Mobility

Baltic Sea

Estonia

Tallinn

Source:, World Atlas, work in Estonia, Hirexa Analysis:, Estonia Human Department, Primary & Secondary, etc.

6

Insights in relation to proficiency of language skills broken down in

accordance to European Language Proficiency Scale

7

Estonia

Tallinn

Other Insights

5,900 computer science students graduate

every year from Latvian universities.

The Population of Russians in Estonia is

estimated to be at 320,000

In Latvia one-third people speak Russian.

The majority of pupils in school are learning

English, followed by Russian, German and

French

All Russian students are mandated to learn

two foreign languages before graduation

since 2015

In Russia, among foreign languages studied

in schools, the English language is primary,

while German is second, and French is

third. Italian is the most often studied of

other European languages, while Turkish

and Arabic lead non-European languages

English

Tatar

German

Chuvash

French

Bashkir

Chechen

Ukrainian

Russia

Approx. Talent availability

(Target Language & Skill)

800 ~1500

Major Language availability

Approx. Talent availability

(Target Language & Skill)

400 - 500

Major Language availability

English Russian German French

Latvia

Baltic Sea

Source: Tallinn City Government (facts about Tallinn), N-ix (IT Outsourcing), On Latvia, Research gate, Hirexa Analysis: Primary & Secondary,

etc.

Proximity to Educational

Institutions Providing

Access to Graduate Pool

All the universities, Colleges/Institutes are located

in Tallinn within 5 miles.

Note: 6-8 Universities are located in Tartu City (120 Miles away

from Tallinn) as next graduate talent catchment area

Name

Source: uniRank (4ICU - 4 International Colleges & Universities), Hirexa Analysis: Primary & Secondary, etc.

Less than 10 miles

1-2 miles

2 -3 miles

3 - 5 miles

International University Estonia

Institute of Theology of the Estonian Evangelical Lutheran Church

Estonian Academy of Music and Theatre

University

University

College/Institute

Tallinn University of Applied Sciences University

Estonian Business School College/Institute

Estonian Academy of Art College/Institute

Tallinn University University

Baltic Film and Media School University

Estonian School of Diplomacy College/Institute

Eesti Metodisti Kiriku Teoloogiline Seminar College/Institute

Baltic Methodist Theological Seminary College/Institute

Estonian Entrepreneurship University of Applied Sciences College/Institute

Euroacademy University

Tallinn Health Care College College/Institute

Audentes University University

Estonian Maritime Academy University

Estonian Academy of Security Sciences University

Viru College of Tallinn University of Technology University

Tallinn University of Technology University

TalTech University University

Estonian Information Technology College University

8

College/Institute

Main employers, all sectors Total employed pool, all sectors

Main employers, business services sector Total # of employees, business services sector

Total number of business services centres

(SSC, BPO, IT, R&D, etc.)

Employment Ecosystem

9

Main Employers Across Major Employment Sectors

Processing &

Engineering

Industry*ABB

Fujitsu

Ericsson

BLRT Grupp

Tondi Elektroonika

Nordic cake

MVL Trade Company

Optimer AS AUTRA

Estre

ORG Invest OU

Energy &

Utilities

Alexela Eesti

Energia Eesti

Gaas Elering

Olerex Nelja

Energia

Viru Keemia Grupp

Fortum

Nordic Power

Management

Statoil

TelecomViasat Telia

Eesti AS

Starman

Elisa Tele2

STV

Norby Telecom

TravelSim

Levira

CITIC Telecom CPC

10

Information

Technology

/ SoftwareMicrosoft

SAP

Dell EMC

Tieto

Nortal

Symantec

Arvato

HCL

Citizen OS

Pipedrive

Parallels

Acronis

Cloudberry lab

Axinom

Cybernetica

Linnworks

Twilio

Proekspert

Brainbean Apps

Thorgate

Raccoon Gang

Helmes

Guardtime

Media &

Entertainmen

Adcash AdGoals

Mediacom

SmartAD

Estonian Record

Productions Sky

Media Group

AirlinesAirest

Avies

Copterline

Nordica

SmartLynx Airlines

Enimex

BankingBigbank

Bondora

Monese

Swedbank

Tallinn Business

Bank

SEB Bank

Coop bank

Inbank AS

Versobank SA

Citadele Banka

Danske Bank

OP Financial Group

Svenska

Handelsbanken AB

LHV Pank Tallinna

Äripank Luminor

Retail &

wholesale

Baltika Group

Selver

Lemona Eesti

Maxima Eesti OU

Tallinna Kaubamaja

Rahva Raamat

Prisma Peremarket

Stockmann

*Processing Industry: It includes manufacturing facilities for

automotive, engineering, power, defence, aerospace, consumer

electronics, auto ancillaries, agriculture & forestry industries etc.

Energy & Utilities: It includes any upstream,downstream and

mid stream players across oil & gas industries.

Banking: It includes local and MNC banking sectors, financial

and insurance services players, stock exchange /any monetary

administration units.

IT/Software: It includes information technology services

companies, Shared services centers/global in-house centers,

ICT relevant R&D centers, BPO services.

Telecom: It includes telecom network service players and

mobile operators.

Media & Entertainment: It includes digital and print media,

television/cable operators, Dish/Internet TV, gaming industries.

Airlines: It includes local and international airline service

providers

Retail & Wholesale: It includes Suppliers, Distributers, Sales

Channel providers..

Note: Main employers are based on the total employee size /

key contribution to the local economySource: Europages, Goaleurope, Doing business in Estonia (PWC), Hirexa Analysis: Primary & Secondary, etc.

Total Employed Pool Across Major Sectors

3760033500

23800 2340021700

1940016900

75300Technological

activities

Tallinn City

Retail & Wholesale: It Includes retail chain of fashion & clothing, consumer electronics, supermarket, furniture & decoration, home ware, footwear, etc.

Processing industry: It includes manufacturing electronic & electrical equipments, timber and paper production, food production, chemical & metal production units.

Transport & Warehousing: It includes logistics, warehousing and customer operations.

Information and communication: It includes information technology services companies, Shared services centers/global in-house centers, ICT relevant R&D centers, BPO services,

Construction: It includes civil engineering, repair, reconstruction work.

Public Administration: Includes central government, state government institutes, defence & security.

Professional & scientific: It includes science, innovation & biotechnology. Healthcare:

It includes public & private health care center, healthcare programme, etc. Education :

It includes state, municipal educational institutions / universities / colleges.

Others: It includes Finance, insurance activities, real estate, oil & gas, arts, entertainment, etc.

Source: Tallinn City Government (facts about Tallinn), Hirexa Analysis: Primary & Secondary, etc.

16000 14300

Social Welfare

Retail & Processing Transport & Information & Construction Public Professional, Health care Education OthersWhole Sale Industry Warehousing communication Administration Scientific, &

11

2,67,600 people are employed in Tallinn

12

Supply chain, HR and process automation

are growing among Business Services

Sector. Estonia is Ranked first in Europe

for entrepreneurial employee activity and

competitiveness. Estonia is at the cutting

edge of GBS innovation and widely utilize

Chabot's and social media in customer

service and robotic process automation

in finance.

Main employers by business

services sector (ITO, BPO, SSC

and R&D/Product Development)

200~300 R&D/Product Based 2700~3000

1000~1200

IIT Service (ITO)

BPO Players 1200~1500 Shared Service Centre

13

Total number of employees in business services sector (ITO & BPO)

8000

6200

1800

60004800

1200

Estonia Tallinn City

Total BPOTotal ITBPO Total ITO

Major Estonian IT hubs are in Tallinn (67.5%) and Tartu (12.5%)

Estonia is the host country for NATO’s Cooperative Cyber Defence Centre of Excellence. Estonia have a major growth in

Cyber security centres,Security software development, Defence software and systems integration, Mobile security,

Wireless security.

Estonia can operate as a global hub, supported by foreign language ability within its ICT sector. English represents one of

the four most highly spoken languages amongst the ICT workforce.

Typical tasks in Customer Service include customer care, technical support, sales support, loyalty programs and master data

management and in typical tasks in IT services include software development, technical support, network management and

R&D.

Source: Goal Europe, Estonian Chamber of Commerce and Industry (ECCI), Hirexa Analysis: Primary & Secondary, etc..

14

15

Talent Availability (Graduate Pool)

Number of universities/relevant education institutions

Total number of graduates

Number of graduates in Digital Marketing, Business, IT and Management

Number of language graduates)

Number of universities/relevant education institutions and Graduate supply

from Tallinn

14

15,000

7,350

No of Universities are in Tallinn (within 5 miles)

Total Number of Students Enrolled every year in Tallinn Universities

Number of Graduate talent supply from Tallinn YoY

From the overall graduate talent supply of 7350,

there will be about 30%~40% of population

know one or multiple languages among target

list. In this Germany and French are the highest.

Foreign Language Talent Supply Generated by Language Schools in Estonia/Tallinn

The most common foreign languages learned by Estonians are English,

Russian, and German.

Most prestigious schools in Estonia, follow to study French language as first

foreign language and Upper secondary schools offer German, Finnish, Swedish,

Danish, Norwegian, French, Italian, Spanish, Latin, Japanese, or Chinese

language as third foreign language

The majority of students study English as their first foreign language.

Source: Estonian Ministry of Education and Research, commercial real estate service, Hirexa Analysis: Primary & Secondary, etc.

16

A number of basic schools have started to teach Finnish as the second foreign

language. Other foreign languages taught at schools are Hebrew, Chinese,

Spanish, Italian, Japanese, Latin and Swedish.

By the time of graduation, students should have achieved the level of an

independent user (B-Level) in at least two foreign languages.

Overa

ll 2

7 F

ore

ign

Lan

gu

ag

eS

ch

oo

ls*

24

1110

8

6

7

English

French

Russian

German

Finnish

Others*The same school offers multiple language course

Number of graduates in Digital Marketing, Business, IT and Management

Arabic, Mandarin, Korean, etcSource: Tallinn City Government (facts about Tallinn), Statistics Estonia, Hirexa Analysis: Primary & Secondary, etc.

17

Graduate Talent Supply (YoY) Tallinn Estonia

Total number of graduates 7,350 9,700

Number of graduates in Business, management and law ~1,700 ~2,250

Number of graduates in Technology, manufacturing and construction ~1,100 ~1,450

Number of graduates in ICT ~950 ~1300

Number of graduates in Foreign Languages (Humanities & Arts) ~550 ~750

Others Graduates: Health, welfare, Social sciences, journalism ,

mathematics, statistics, Agriculture, forestry, fishing & veterinary science~3,050 ~4,100

By 2020, depending on the sector’s growth scenario, an estimated 7000 additional workers are needed in the Estonian ICT sector. About

22% of women are studying in IT field like consultants, trainers, technicians, user support, sales specialists, analysts, architects, testers &

programmers. 89% of foreign students studying in Estonia are satisfied with the higher education.

At Estonia, 1,000 students graduate with degrees in computer science. In the next four years, the Estonian government plans to train

additional 500 people with no IT background to become junior .NET and Java specialists..

Business, management and law: Any relevant business management degree in finance, HR, sales & marketing, general business

management, strategic business, etc

Technology, manufacturing and construction: Any non ICT streams like Mechanical engineering, Chemical, Electrical, Bio-Technology,

Nuclear, Power, etc

ICT graduates: Graduating ICT relevant fields like information technology, Software, IT hardware, Telecom and Networking, etc

Foreign languages (Humanities & Arts): Graduating specific to any foreign languages which includes German, French, Russian, Spanish,

Number of language graduates supply

from Tallinn

Language graduate talent supply : ~6500

Foreign LanguageApprox. Graduate

Talent Supply*

French

German

~3000

~6500

Others* ~500

*Above numbers includes talent mix who knows multiple languages

**Others: Finnish, Swedish, Danish, Norwegian, Italian,

Spanish, Latin Japanese, Chinese etc

Other graduates with language proficiency: Graduates from engineering,

economics, ICT, management, arts & science, etc cum with native/bi lingual in

one or multiple foreign language or with certifications done who manage to

speak/read/write. It exclude local /regional EE countries national languages

and English

Source: Hirexa Analysis: Primary & Secondary, etc..

500

3000

6000

Graduates in foreign language Other graduates with language proficiency:

Graduates in foreign language – Graduating specific to any foreign languages

which includes English, Russian, French, German, etc in 2-3yrs of course curriculum

English

~5100Russian

~2000

18

Talent Availability (Experienced Pool)

Talent availability (experienced pool) broken

down across 3 clearly defined job descriptions

Digital Marketing, Content Operations,

Customer Support, Technical Support

Further broken down per role by in-scope

languages (French, German, Swedish,

Norwegian, Danish, Dutch, Finnish, Arabic)

19

Talent availability (experienced pool) broken down across 4 clearly defined job descriptions

- Digital Marketing, Content Operations, Technical support and Customer Support

Role Descriptions Total Pool

Digital

marketing

Bid and Keyword Management. Analysis of Cost Per Click, Conversion Data and Ad Expenditure WITH THE

OBJECTIVE of developing, monitoring and improving digital campaigns Digital campaign optimization for

different platforms; Report Creation and analysis in support of ad optimization strategies; Management of

Keywords packs, bids and ad budgets WITH THE OBJECTIVE of improving campaign ROI and increasing

customer revenu Review flagged content and enforce community standards as per policy and guidelines

WITH THE OBJECTIVE OF improving platform health and user safety

80~100

Content

operations

Review flagged content and enforce community standards as per policy and guidelines WITH THE OBJECTIVE

OF improving platform health and user safety

Triage enquiries and escalations from multiple sources, reviewing the content and allocating issues to the

correct area for resolution. Communicating with original source of the outcome of the investigation WITH

THE OBJECTIVE OF supporting clients, improving platform healthand user safety

120~180

Customer

Support

Fluency in the Supported Language plus the ability to read, write, comprehend and have conversations in English

• 2+ years of customer interaction experience via customer support or sales

• Experience working in a B2B environment and active use of Digital/Internet and CRM systems

• Experience working in a multi-channel support environment supporting digital products")

1,000~1,400

Technical

support

Respond to customer issues across multiple communication channels (voice, chat, email, VC) in a helpful,

timely, and empathetic manner WITH THE OBJECTIVE OF identifying new issues, resolving ongoing concerns

and increasing customer satisfaction

Resolve technical queries and troubleshooting for hardware, ad platforms across consumers, B2B clients,

partners and internal clients WITH THE OBJECTIVE OF identifying new issues, resolving ongoing concerns

and increasing customer satisfactions

800~1,000

Total Installed Pool 2,200-2,700

Source: Hirexa Analysis: Primary and Secondary, Primary and secondary sources from Estonia and Tallinn, etc.

20

~2,400 installed talent market for target roles across languages with major contribution of 47% and 24% from customer support

and technical support respectively. 68% of these target pool are having native/bi lingual language proficiency in German and

French, other languages are very limited.

Source: Hirexa Analysis: Primary and Secondary, Primary and secondary sources from Estonia and Tallinn, etc.

Further broken down per role by in-scope languages (French, German, Swedish, Norwegian,

Danish, Dutch,Finnish, Arabic)

Highlighted skill areas found to be very negligible talent supply/Nil.

21

Role

Digital

Marketing

Content

Operations

Customer

Support

German

40~60

80~100

300~400

French

30~40

100~120

200~300

Dutch

<10

<10

<30

Swedish

20~30

30~50

50~80

Norwgian Finnish

30~50

50~80

150~200

Danish

<10

Arabic Total PooL by Skilll

160~220<10 <10

20~30

<30

<10 <10 310~410

30~50 <30 820~1,120

Technical

Support300~400 200~250 <10 30~50 <10 120~150 <10 <10 690~890

Total Pool by

Language 720-960 530~710 ~60 130~210 70~80 350~480 60~80 ~60 2,000~2,650

Ease of hiring talentDisplay a grid showing relative ease

(easy, medium, hard) to hiretalent

(increments: 5, 10, 25, 50 FTEs)

within 3 months

22

Ease of hiring for entry level resources (1-3yrs) across target roles

with language proficiency

Based on the talent availability, German, French and Finnish are the language resources are feasible to

attract incremental 10~25 hires.

German

5 10 25 50 5

Fr

10

en

25

ch

50 5

Dutch

10 25 50 5

Swedi

10 25

sh

50

N

5

orwgian

10 25 50 5

Finnis

h

10 25

50

D

5

anish

10 25 50 5

Arabic

10 25 50

5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50

5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50

5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50

Ease of Hiring to hire talent (Increments: 5, 10, 25, 50 FTEs) within 3Months Easy Medium Hard

Source: Hirexa Analysis: Primary and Secondary, Primary and secondary sources from Estonia and Tallinn, etc.

Digital

Marketing

Content

Operations

Customer

Support

Technical

Support

23

Salary Expectations

Market average salary for entry-level professionals (i.e., experience level

of 1-3years) for native language delivery for in-scope roles

Bonus percentage needed to be paid toattract in- scope languages

24

Market average salary for entry-level professionals (i.e., experience level of

1-3 years) for native language delivery for in-scope roles

The minimum monthly wage in Estonia is 500 euros. In the 2nd quarter of 2018, the average monthly gross wages and salaries in

Estonia were 1,321 euros. The Average Monthly Net Salary is 1,040 € in Tallinn and 978 € in Tartu

If the working hours are at night (from 10:00 pm to 6:00 am), employers shall pay wages exceeding the normal wages by 1.25 times,

unless it has been agreed that the wages include remuneration for working at night. Work during public holidays may be compensated

either by offering time off or by paying 2 times the wages for the work.

Payment for overtime – additional remuneration per hour of overtime is at least 50% of the rate of the hourly wage.

Estonia is one of the fastest growing economies in the European Union, and the richest of the Baltic States.

Source: Wages and Salaries Statistics Survey, Hirexa Analysis: Primary & Secondary, Primary and secondary sources from Salary Survey, etc..

Skill AreasMarket average salary for entry-level professionals

(1-3 Yrs.) (In Euro/Month)

Digital Marketing 2,000~2,200

Content Operation 1,500~1,800

Customer Support 1,200~1,500

Technical Support 1,600~2,000

25

Bonus percentage needed to be paid to attract in- scope languages

BPO companies and location IT companies which attract candidates with 2-3times of normal bonuses for customer and technical support

languages like Norwegian, Swedish, Danish and Dutch. Its being compelling driver among services players, for reason that market demands

these language resources for short time or low total contract value (TCV)

According to Statistics Estonia, the average monthly gross wages and salaries were €1,220 in January, €1,213 in February and €1,295 in March.

Compared to the previous quarter, average monthly gross wages and salaries decreased by 2.2%, mainly due to a decrease in irregular bonuses

and premiums. Without irregular bonuses and premiums, the average monthly gross wages and salaries decreased by 1.1% compared to the

previous quarter. In the first quarter of 2018 compared to the fourth quarter of 2017, irregular bonuses and premiums decreased by 22% per

employee and increased by 24% per employee compared to the first quarter of 2017. These irregular salaries/bonuses influenced by consumer

price index (CPI) in Estonia.

Source: Hirexa Analysis: Primary & Secondary, Wages and Salaries Statistics Survey, etc.

Skill AreasAdditional Bonus For 1-3 Yrs.

(In Euro/Month)

Digital Marketing 280~320

Content Operation 220~270

Customer Support 180~220

Technical Support 220~250

26

Thank You for your time.If you need more details, please reach out to us.s

info@hirexa.com

+44–203–8652540