Sweden Software Development Hourly Rates
Sweden is a popular technology hub and the strong software development industry is known for its innovation and startup culture. Out of all 26 EU countries, the industry is ranked fourth in Europe in 2023.
The capital city of the country is particularly well-known for its software development opportunities and tech talent. There are many reasons why the country is regarded as a popular technological hub.
It includes the improved educational system, which led to a tech savvy workforce, government initiatives that supported the industry, and strong venture capital that attracted R&D investments and foreign capital.
In Sweden, there is a shortage of programmers despite the high demand for them, which obviously means they are paid fair hourly rates for software development services. Learn more from the article.
Swedish Software Development Statistics
Sweden is a nation that places a high importance on innovation and technology. Despite having one of the fastest-growing economies in Europe and a high standard of living, this wealthy and developed nation is officially ranked seventh on the Human Development Index. The country’s economy can be better understood by looking at the following software development statistics:
- The market size is €16.7bn as of 2023.
- From 2018 to 2023, the market’s size shrank by 5.0% year over year.
- As of 2023, software development employs 39,922 people.
- In the software development industry, the average company now employs more people than it did five years ago.
- The market share concentration in the software development industry is low, with no companies presently holding a share greater than 5% of the market.
Reasons for the Shortage of Developers
Known for being one of the most innovative countries in the world, Sweden is home to several innovative companies, including Skype and Spotify. The high demand for qualified IT professionals across the country is partly due to its large concentration of international software development companies, technology parks, start-ups, and research and development institutions.
- As was previously mentioned, Sweden is facing a serious software developer shortage.
- However, the problem must be fixed because it makes it more difficult for businesses to compete on a global scale and provide stable jobs for their workers in high-tech industries.
- The inability of the educational system to adjust to the demands of the labour market, challenges in matching skills with job openings, and mounting wage pressure are some of the factors contributing to the country’s developer shortage.
- Moreover, the Swedish labour market is configured in a way that makes employees less willing to switch jobs and creates barriers for junior professionals to join the workforce, despite the shortage of resources.
How Much Can Programmers Earn in Sweden?
The salaries offered to software developers in various industries tend to vary in Sweden. It means developers in the finance industry earn more than in gaming or telecommunications. The two most sought-after technologies in the country are Python and Java.
Additionally, their pay can differ by city, with the capital, Stockholm, paying the highest. The average developer salary is 76,117 SEK (SEK = Swedish Krona) or 6,541 Euro per month. This makes a yearly salary of around 9,13,404 SEK/ 78,452 EUR and a hourly rate of around 475 SEK or 40 EUR. There could also be additional compensations, which average around 30,029 SEK (around 2,579 EUR) per month.
- With tips, bonuses, and overtime pay included, the average compensation for an entry-level developer with less than a year of experience is 41,000 SEK or 3,521 EUR per month. Hourly Rate: 256 SEK/ 21 EUR
- Senior software engineers will earn around 63,000 SEK or 5,409 EUR per month. Hourly Rate: 393 SEK/ 33 EUR
Freelancer Hourly Rates
Freelancers typically charge between 700 SEK/ 60 EUR and 1700 SEK/ 145 EUR per hour. However, there are a number of advantages that come with being a freelancer in Sweden.
These advantages include:
- You do not need to work as many hours to support yourself because the hourly compensation is higher.
- Since most freelance work is project-based, taking as much time off as you would like in between projects is not too difficult.
- In most cases, you and the client agree on the terms directly, and you have much more freedom to bargain for the things that are important to you.
So, the article discussed the software development industry statistics in Sweden, the hourly rates programmers earn and others. The country has excellent tech expertise, a large tech talent pool, and an attractive business climate. However, because of the high demand for programmers and the scarcity of them, the labour market is difficult. Recruiting and hiring developers might be challenging in this country.
Companies that are having difficulty finding qualified candidates in the country should consider outsourcing their software development needs.
It will enable them to access talent pools quickly and efficiently. Additionally, companies should also consider investing in training and development programmes to ensure that the local tech workforce remains competitive.
Hi, my name is Rahil. I work at YUHIRO Global and I help web agencies and software companies from Europe to build developer teams in India.