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Don’t forget Europe advises Australian Entrepreneur

Talent is warning Australian businesses to look beyond Asia in their expansion options.

Despite pulling out of a proposed takeover bid for London-based recruitment firm Nakama Group Plc, Global Recruitment Leader Talent International is aggressively pursuing European acquisitions as part of its ambitious expansion plan; and advises Australian businesses to look beyond Asia.

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The Sydney based IT&T Recruitment Specialist with offices in Asia, UK, Australia and New Zealand said that while Asia is seen to be an lucrative market, Europe is now showing signs of being a highly attractive region for those willing to invest given it’s emergence from recession in the second quarter of 2013.

Although a report from the United Nation’s Development Policy and Analysis Division suggests that Europe will go through a painfully slow growth period the IT&T sector remains less damaged with both job and start-up growth booming.

Richard Earl, Managing Director and Founder of Talent International said that over the last six months there’s been an “overwhelming sense of confidence in the technology sector in Europe” not seen since before the Global Financial Crisis.

“With a gradual emergence from the harshest of recessions there are no doubt tremendous opportunities for those prepared to invest,” he said.

Having spent considerable time in Europe in the past few months, Earl confirmed that he was currently reviewing two other European opportunities on the table.

“One opportunity provides a broader UK offering, across multiple locations, whilst the other prospect is another digital-specialist based out of London with a full global network,” he said.

He added that the European market can offer Australian companies a greater earnings capacity and that given developments in communications the European Trading Zone is closer than one might think.

“The UK and Europe is highly attractive given that there is a large high contingent non-PSA contracting market, with margins two to three times larger than what can be achieved in Australia.”

He warned that ignoring opportunities in Europe in favour of Asia would be unwise for organisations wanting to grow their business and capitalise on global emerging markets.

“Within the EC there is an estimated 4.3 million ICT workers which has grown at 2% per annum over the last three years” said Earl.

He also pointed to “exciting opportunities” in Germany and Switzerland as well as developing markets in Eastern Europe such as the Czech Republic, Poland, and Russia.

Within the 47 European nations Earl highlights the sheer volume, development and business opportunity in the region.

“There is a combined population of 733 million – people that’s much larger than the population of the entire North American continent and of that, there are 28 members of the European Community, many of those using the one common currency. It’s a powerful trading zone that should not be overlooked”

Controversially, The United Kingdom could experience somewhat of an economic renaissance with a growing population, low taxes and some insulation from the worst of the Eurozone’s problems.

According to the annual world economic league tables from the Centre for Economic and Business Research (CEBR), Germany, for decades Europe’s powerhouse economy, will have a smaller economy than the UK by about 2030.

Although strong growth by emerging economies such as India, Brazil and Russia mean that the UK will slip down the global rankings over the next two decades, the CEBR said it would be the second most successful western economy after the US.

Earl lists other pull factors to the economic region; “The reported skills shortage in Germany, competitive Eastern European start-ups, declining M&A exit valuations, and re-established interest from the USA in European M&As all make for a very exciting time in Europe,” he said