A leading engineering business has warned a shortage of software skills is posing a threat to the growth of the sector in Germany.

According to a representative of the German Engineers' Association (VDI), the talent gap is causing companies to consider moving operations overseas, Deutsche Presse-Agentur reports.

Speaking at the CeBIT trade firm in Hanover he noted IT jobs in Germany are lying vacant as there are not enough skilled software engineers in the country.

Dieter Westerkamp explained offices could be moved overseas unless an estimated shortage of 16,500 IT specialists is addressed and more is done to ensure students complete degrees in the subject.

His remarks were based on a VDI survey of 450 engineers working for firms in Germany, who predict further demand will be seen for experts in the field as it continues to expand.

Recent data from the German Federal Statistical Office (Destatis) showed a further drop in joblessness was seen in the country in February 2011.

Posted by Sarah Dixon