June 19, 2021

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IT Outsourcing Germany: alternative options

IT Outsourcing Germany: alternative options


Germany is one of the most technologically advanced countries in Europe. It is the largest economy in Europe and has a constantly growing IT market. Software development Germany is characterized by mature innovation and infrastructure. And IT outsourcing in Germany is popular for its high quality of service and comfortable location.

The local ICT industry is highly developed. In 2018, around 92.7 thousand IT companies were registered here. And there were about 1,550 startups at the same time.

20% of the revenues brought by the ICT market in Germany is generated by product innovations. For example, Germany was believed to be the largest cloud market in the EU by 2020. German nearshoring in Germany also relies heavily on security solutions. The revenue from the ICT market is expected to reach $ 49,205 million by 2021.

But it’s not that easy to find remote specialists here as IT nearshoring for German companies is a common solution. One of the main reasons for the trend of software outsourcing in Germany is that the country experiences a shortage of skilled professionals. Only 4.9% of higher education graduates are future ICT specialists, which is not enough for the current market.

Although many international companies want to invest in IT outsourcing in Germany, there is a lack of manpower to meet the need. The spheres most requested by experts are AI, IoT and Big Data. So the job market for IT outsourcing in Germany is very competitive.

Other technologies in high demand for nearshoring software development in Germany are:

  • Python;
  • Data storage, architecture and analysis;
  • IT security;
  • CRM solutions;
  • Machine learning;
  • DevOps.

Mobilunity’s recruiting team uses only customized approaches to find an ideal developer who will perfectly suit your needs!

Many German companies choose nearshoring software development in Europe or elsewhere because it is easier and more cost-effective in terms of hiring and legislation.

Therefore, while many companies seek IT outsourcing in Germany, local companies are also interested in delegating their tasks outside the country.

Country profile

Time zone: GMT + 2

Average monthly salary: $ 4,957

Largest technology hubs: Berlin, Munich, Hamburg, Stuttgart

Talent pool size: 837,398

Popular technologies: Java, JavaScript, C ++, C, C #, Python, Go

IT Outsourcing in Germany vs Eastern Europe

Fortunately, software development in Germany isn’t the only European destination out there. Nowadays, Eastern Europe is gaining momentum to meet the demand for remote IT services. It is popular for nearshoring IT activities in Germany and other companies around the world.

The main advantages of this region are:

  • Great attraction of talents and high quality of services;
  • Comfortable location and time zones;
  • Good knowledge of the English language;
  • Work ethics and similar corporate values;
  • Reasonable wages.

Let’s now look at four major Eastern European countries for IT outsourcing.

Poland

Poland is conveniently located and has several large IT hubs, such as Warsaw, Krakow and Wroclaw. The ICT market here is developing quite fast and is expected to generate $ 13 billion in revenue by 2022. The talent pool is around 295,000 developers and the average salary per software developer in the country is $ 2,270 per month. .

The most popular technologies in Poland in 2020 were JavaScript, Java and Python.

Bulgaria

Bulgaria has a smaller workforce than Poland, which is estimated at 24,000 experts. But it’s still a great choice for many nearshoring IT companies in Germany. The main IT hubs are Sofia, Varna, Plovdiv and Burgas. According to Clutch.co there are around 180 software development companies. And the average developer salary is $ 1,540 per month.

The IT outsourcing sector is expected to reach 7.9% of Bulgarian GDP. The most popular programming languages ​​here are JavaScript, .NET, PHP, C ++, and Python.

Serbia

Another viable alternative to IT outsourcing in Germany is Serbia. The ICT sector has broad government support and society moves to adopt more e-government solutions. But the use of cloud technologies is still relatively low among local businesses (35%). The ICT sector generates 10% of the country’s GDP.

There are over 2,500 companies in this sector and around 28,000 specialists. The average salary of a software developer is $ 1466 per month, which is cheaper than nearshoring software in Germany. The main IT hubs are Belgrade, Novi Sad, Nis, Subotica and Kragujevac.

Popular technologies here are JavaScript, .NET, PHP, Python, C #, and C ++.

Estonia

Estonia is a fair competitor to German nearshoring software in Eastern Europe. It is one of the top 20 technology countries in the EU. He has a talent pool of 20,700 IT professionals and a solid STEM training.

About 5.9% of the country’s workforce is employed in the ICT sector. Local experts are known for the quality of work and it is easy to do business in Estonia. It is also politically and economically stable. The average salary for a software developer here is $ 2,792 per month. And the biggest IT hubs are Tallinn and Tartu. Popular technologies of Estonia are Python, Java, PHP, VB.NET, C #, JavaScript, Android, C / C +.

Ukraine – Great alternative to IT close to Germany

Ukraine is another perfect destination in Eastern Europe to compete with software outsourcing in Germany. It is known for cost reduction, high quality services, and a large talent pool. The number of IT professionals here is much higher than in Estonia, Bulgaria or Serbia. So, if you are looking for an attractive alternative to IT outsourcing in Germany, consider these benefits Ukraine has to offer:

  • Convenient location and convenient time zone (GMT + 2);
  • Access to experienced professionals. There are around 200,000 IT specialists in Ukraine. Additionally, local universities graduate around 16,000 STEM students annually to meet market demand.
  • Ukraine has a similar corporate ethics and values ​​and it is quite easy to work with local companies.
  • Ukrainian developers are known for the quality of their code. I’m 14th place worldwide, according to TopCoder.
  • Local IT professionals have a good command of English. Many of them have experience in collaborating with other countries and invest in learning English. It guarantees a simple and direct communication.
  • Ukraine has a developed ICT infrastructure. That’s why many industry leaders and Forbes 500 companies here have offices or R&D centers here, including Microsoft, Boeing, and Samsung.

Country profile

Time zone: GMT + 2

Average monthly rate: $ 2000 *

Largest technology hubs: Kiev, Lviv, Kharkiv, Odessa, Dnipro

Size of the talent pool: 200,000 professionals

Popular technologies: Java, JavaScript, C, C #, Python, PHP

* Ukrainian rates are based on data from our internal recruiting team

Outsourced software development in Ukraine and Germany: salary comparison

One of the main reasons why Ukraine is the best choice for many companies that outsource is the budget. Wage rates are lower here while the quality of services is still great. And the local job market is less competitive than in Germany. Here is a comparison table of the salary rates for both countries.

Ukraine – monthly salary Germany – monthly salary
PHP junior $ 1,000 * $ 2,058
Medium PHP $ 2,000 * $ 2,740
Java junior $ 1,000 * $ 2,405
Central Java $ 2,000 * $ 3,207
.NET junior $ 1,000 * $ 2,273
.NET means $ 2,000 * $ 3,040
Junior python $ 1,000 * $ 2,250
Half in python $ 1,800 * $ 3.004
C # junior $ 500 * $ 2,417
C # in the center $ 2,000 * $ 3,231
Javascript junior $ 500 * $ 2,285
Central JavaScript $ 2,000 * $ 3.052
Android junior $ 1,000 * $ 2,285
Android Center $ 2500 * $ 3.052

* Ukrainian rates are based on data from our internal recruiting team

Overall attractiveness of both locations

The choice of the destination of the outsourcing is based on many factors. Of course, the cost is essential. But companies need to consider other circumstances as well.

For example, Germany has more IT professionals than Ukraine, but that doesn’t mean they’re easier to hire. The German ICT sector is more advanced, which is why there is a shortage of employees.

As a result, there are many German companies that outsource to India, Ukraine, Poland or Serbia. So it could be much harder and longer to hire a remote team in Germany than in Ukraine. To compare the overall attractiveness of both destinations, check out the table below.

Mobilunity – Excellent Ukrainian seller near the coast

Once you’ve chosen an outsourcing destination, it’s time to find a credible local partner. Mobilunity is a well-established external staff company with over a decade of experience. We have worked with all types of companies around the world. We have already helped more than 40 international partners to find dedicated developers for their projects.

Mobilunity can help hire the most suitable IT specialists in Ukraine for any type of software development project. Among our satisfied customers are Esurance (Switzerland), Buttonorder (Germany), Paidy (Japan), BYG-E (Denmark), 42 Matters (Switzerland) and 360 Living (Germany).

We are proud to say that our services help clients achieve their goals and take businesses to a new level of success. But don’t take our word for it, listen to what our customers have to say.

“Mobilunity helps us solve important projects with selected professionals with high potential in programming. The work processes are fluid with fast solutions. And all under the family collaboration. We have found a perfect partner to progress in a technical way in our business “

Buttonorder CEO (Germany)

Mobilunity is ready to assist you with any IT project and find top-notch talent quickly and easily.

Are you looking for a perfect alternative to nearshoring software in Germany? Contact Mobilunity!