TALENT POOL Landscape Study () 2 CONTENTS

1 Geographical Location

2 Employment Ecosystem

3 Talent Availability (Graduate Pool)

4 Talent Availability (Experienced Pool)

5 Ease of hiring talent

6 Salary Expectations 3 Scope & Objective of the Research Engagement

Objective To 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 Solution Roles Languages Use a combination of primary and secondary research Digital marketing German, French sources along with our proprietary talent research Content Operations Dutch, Swedish intelligence to validate Language Resource market Customer Support Norwegian, Finnish, information. This will be for client target locations to Technical Support Danish, Arabic initiate/setup new IT/BPO process

Outcome This report provides market information about the Availability of language resources from different language rresources pool acrossabove 4 job roles market players in IT & BPO across in Tallinn city proximity that enable business Hiring and related insights specific to target roles and practices stakeholder to align and finalize hiring decisions 4

Geographical Location

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 5 Tallinn (Estonia) : Talent Eye Estonia Tallinn Population 1.3 Million Population 400,000 Tallinn ICT Pool 28,000 ICT Pool 23,400

Estonia IT Pool* 5,800~6,200 IT Pool* 3700 ~4800

BPO Pool 1,500~1,800 BPO Pool 1,000~1,200 As of 2018 2000 students graduated in As of 2018 ~950 students graduated in Information and Information and communications technology communications technology

“The most common speaking languages Estonian ICT sector is currently in demand of another 7000 professionals in Tallinn are Russian, English, Finnish & German” Estonia has one of the best performing labour markets in the European Union Major Employers in Tallinn (in terms of no.of Employees) Main challenges of Estonia’s productivity growth, low investments in the IT Eesti Energia SEB sector & weak commercialisation of research achievements Telia Ericsson ABB Ranked 7th out of 180 countries by annual survey Economic Freedom of the Eesti Telekom Elisa World Taxify Nortal Arvato Financial Pipedrive Solution 86% of adults speaking at least one foreign language Fujitsu Tele2 kuehne + nagel Tieto Source: visit Tallinn, Tallinn City Government, Invest in estonia, Statistics Estonia, Hirexa Analysis: Primary & Secondary,. Insights in relation to availability of experienced language 6 resources from nearby bordering countries

Insights: Immigrants to Estonia mostly come from Finland (45%), Ukraine (11%) and Baltic Sea Tallinn Germany (2%) In Estonia English, Finnish and Russian are Estonia the most commonly spoken, but many people also speak French, German and Swedish.

Russia <2% Estonian language is similar to 1,500,000 IT-BPO Finnish language Head Count Talent Mobility

Half of the Immigrants to Estonia are people returning to Estonia and one-third Latvia 3~2% people from territory of the former Soviet 8,700 IT-BPO Union (e.g. Russia and Ukraine) and Head Count Talent Mobility one-tenth people from other EU Member States and other one-tenth people from

the rest of the world. Source:, World Atlas, work in Estonia, Hirexa Analysis:, Estonia Human Department, Primary & Secondary, etc. Insights in relation to proficiency of language skills broken down in 7 accordance to European Language Proficiency Scale 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 Baltic Sea Tallinn In Latvia one-third people speak Russian. The majority of pupils in school are learning Estonia English, followed by Russian, German and Russia French Approx. Talent availability (Target Language & Skill) 800 ~1500 All Russian students are mandated to learn Major Language availability two foreign languages before graduation English French Tatar Bashkir since 2015 German Chechen Latvia Chuvash Ukrainian Approx. Talent availability In Russia, among foreign languages studied (Target Language & Skill) 400 - 500 in schools, the English language is primary, Major Language availability while German is second, and French is English Russian German French third. Italian is the most often studied of other European languages, while Turkish and Arabic lead non-European languages Source: Tallinn City Government (facts about Tallinn), N-ix (IT Outsourcing), On Latvia, Research gate, Hirexa Analysis: Primary & Secondary, etc. Name College/Institute Proximity to Educational International University Estonia University Institutions Providing Institute of Theology of the Estonian Evangelical Lutheran Church University Estonian Academy of Music and Theatre College/Institute

Access to Graduate Pool of Applied Sciences University

Estonian Business School College/Institute All the universities, Colleges/Institutes are located Estonian Academy of Art College/Institute in Tallinn within 5 miles. 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 Less than 10 miles Estonian Maritime Academy University 1-2 miles Estonian Academy of Security Sciences University

2 -3 miles Viru College of Tallinn University of Technology University

3 - 5 miles Tallinn University of Technology University TalTech University University

Note: 6-8 Universities are located in Tartu City (120 Miles away Estonian Information Technology College University from Tallinn) as next graduate talent catchment area Source: uniRank (4ICU - 4 International Colleges & Universities), Hirexa Analysis: Primary & Secondary, etc. 8 9

Employment Ecosystem

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.) 10 Main Employers Across Major Employment Sectors

*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 Energy & Processing & Information Banking Retail & mid stream players across oil & gas industries. Engineering Utilities Technology Bigbank wholesale Bondora Industry* Alexela Eesti / Software Monese Baltika Group Banking: It includes local and MNC banking sectors, financial Energia Eesti Swedbank Selver ABB Microsoft and insurance services players, stock exchange /any monetary Fujitsu Gaas Elering Tallinn Business Lemona Eesti SAP Ericsson Olerex Nelja Bank Maxima Eesti OU administration units. Dell EMC BLRT Grupp Energia SEB Bank Tallinna Kaubamaja Tieto Tondi Elektroonika Viru Keemia Grupp Coop bank Rahva Raamat Nortal Nordic cake Fortum Inbank AS Prisma Peremarket IT/Software: It includes information technology services Symantec MVL Trade Company Nordic Power Versobank SA Stockmann Arvato companies, Shared services centers/global in-house centers, Optimer AS AUTRA Management Citadele Banka HCL Statoil Danske Bank ICT relevant R&D centers, BPO services. Estre Citizen OS ORG Invest OU OP Financial Group Pipedrive Svenska Parallels Telecom: It includes telecom network service players and Handelsbanken AB Acronis LHV Pank Tallinna mobile operators. Cloudberry lab Äripank Luminor Axinom Cybernetica Media & Entertainment: It includes digital and print media, Linnworks television/cable operators, Dish/Internet TV, gaming industries. Telecom Media & Twilio Entertainmen Proekspert Viasat Telia Brainbean Apps : It includes local and international service Eesti AS Adcash AdGoals Thorgate Starman Mediacom Raccoon Gang Airlines providers Elisa Tele2 SmartAD Helmes STV Estonian Record Guardtime Retail & Wholesale: It includes Suppliers, Distributers, Sales Norby Telecom Productions Sky TravelSim Media Group Channel providers.. Levira SmartLynx Airlines CITIC Telecom CPC Note: Main employers are based on the total employee size / key contribution to the local economy Source: Europages, Goaleurope, Doing business in Estonia (PWC), Hirexa Analysis: Primary & Secondary, etc. 11

Total Employed Pool Across Major Sectors 2,67,600 people are employed in Tallinn

Retail & Processing Transport & Information & Construction Public Professional, Health care Education Others Whole Sale Industry Warehousing communication Administration Scientific, & Technological Social Welfare 75300 activities

37600 33500

23800 23400 21700 19400 16900 16000 14300

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. 12 13 Main employers by business 200~300 R&D/Product Based 2700~3000 IIT Service (ITO) services sector (ITO, BPO, SSC and R&D/Product Development)

Supply chain, HR and process automation are growing among Business Services Sector. Estonia is Ranked first in Europe for entrepreneurial employee activity and 1000~1200 BPO Players 1200~1500 Shared Service Centre 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. Total number of employees in business services sector (ITO & BPO) 14

8000

6200 6000 4800 1800 1200

Estonia Tallinn City

Total ITBPO Total ITO Total BPO

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.. 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) 16 Number of universities/relevant education institutions and Graduate supply from Tallinn

14 No of Universities are in Tallinn (within 5 miles) From the overall graduate talent supply of 7350, there will be about 30%~40% of population 15,000 Total Number of Students Enrolled every year in Tallinn Universities know one or multiple languages among target 7,350 Number of Graduate talent supply from Tallinn YoY 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, 7 Russian, and German.

Schools* Most prestigious schools in Estonia, follow to study French language as first 6 24 foreign language and Upper secondary schools offer German, Finnish, Swedish, Danish, Norwegian, French, Italian, Spanish, Latin, Japanese, or Chinese 8 language as third foreign language

English The majority of students study English as their first foreign language. French 10 A number of basic schools have started to teach Finnish as the second foreign 11 Russian language. Other foreign languages taught at schools are Hebrew, Chinese, German Spanish, Italian, Japanese, Latin and Swedish.

Overall 27 Foreign Language Foreign 27 Overall Finnish By the time of graduation, students should have achieved the level of an *The same school offers multiple language course Others independent user (B-Level) in at least two foreign languages.

Source: Estonian Ministry of Education and Research, commercial real estate service, Hirexa Analysis: Primary & Secondary, etc. Number of graduates in Digital Marketing, Business, IT and Management 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 , ~3,050 ~4,100 mathematics, statistics, Agriculture, forestry, fishing & veterinary science 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, Arabic, Mandarin, Korean, etc Source: Tallinn City Government (facts about Tallinn), Statistics Estonia, Hirexa Analysis: Primary & Secondary, etc. 18

Number of language graduates supply Approx. Graduate Foreign Language from Tallinn Talent Supply*

Language graduate talent supply : ~6500 English ~6500

500 Russian ~5100 3000 French ~3000

6000 German ~2000

Others* ~500

*Above numbers includes talent mix who knows multiple languages Graduates in foreign language Other graduates with language proficiency: **Others: Finnish, Swedish, Danish, Norwegian, Italian, Graduates in foreign language – Graduating specific to any foreign languages Spanish, Latin Japanese, Chinese etc which includes English, Russian, French, German, etc in 2-3yrs of course curriculum

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.. 19

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) 20 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 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 Digital 80~100 marketing 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 Review flagged content and enforce community standards as per policy and guidelines WITH THE OBJECTIVE OF improving platform health and user safety Content 120~180 operations 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

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 Customer 1,000~1,400 • Experience working in a B2B environment and active use of Digital/Internet and CRM systems Support • Experience working in a multi-channel support environment supporting digital products")

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 Technical and increasing customer satisfaction support 800~1,000 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

Total Installed Pool 2,200-2,700

Source: Hirexa Analysis: Primary and Secondary, Primary and secondary sources from Estonia and Tallinn, etc. 21 Further broken down per role by in-scope languages (French, German, Swedish, Norwegian, Danish, Dutch,Finnish, Arabic)

~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.

Role German French Dutch Swedish Norwgian Finnish Danish Arabic Total PooL by Skilll

Digital 40~60 30~40 <10 20~30 <10 30~50 <10 <10 160~220 Marketing

Content 80~100 100~120 <10 30~50 20~30 50~80 <10 <10 310~410 Operations

Customer <30 30~50 <30 820~1,120 Support 300~400 200~300 <30 50~80 150~200

Technical 300~400 200~250 <10 30~50 <10 <10 <10 690~890 Support 120~150

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

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

Source: Hirexa Analysis: Primary and Secondary, Primary and secondary sources from Estonia and Tallinn, etc. 22

Ease of hiring talent Display a grid showing relative ease (easy, medium, hard) to hiretalent (increments: 5, 10, 25, 50 FTEs) within 3 months 23 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 French Dutch Swedish N orwgian Finnis Danish Arabic h Digital Marketing 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 10 25 50 5 50 5 10 25 50 5 10 25 50 10 25

Content Operations 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

Customer 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 Support

Technical 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 Support

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. 24

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 Market average salary for entry-level professionals (i.e., experience level of 25 1-3 years) for native language delivery for in-scope roles

Market average salary for entry-level professionals Skill Areas (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

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

Additional Bonus For 1-3 Yrs. Skill Areas (In Euro/Month)

Digital Marketing 280~320

Content Operation 220~270

Customer Support 180~220

Technical Support 220~250

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

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