Software Development Outsourcing to Germany: Is It Worth It?

Germany is one of the most advanced and technologically-driven countries in Europe and globally. It is home to companies such as Siemens and SAP that have contributed towards digital transformation, tech advancements and enhanced productivity in enterprises and houses. It is no surprise that the country owns one of the biggest software development networks. You will find some bigwigs in development and highly experienced developers boarding your software requirements.

You will also find yourself wrapped in the latest and advanced technologies to help release your solutions into the market before your competition thinks of them. Quality is synonymous with the country and its people, so you will always get the best quality and high-performing application.

While we have introduced a few reasons why Germany is the market for outsourcing your software development requirements, this article aims to detail the pointers. Let’s take a quick look at why Germany is worth every penny you invest in outsourcing.

Market Overview: Germany

This country hosts one of Europe’s biggest and fast-growing software markets. Germany’s total number of companies operating in the Information and Communication Technology industry is 89.5k (Statista). Of these companies, close to 1500 are startups.

The total revenue generated from this segment is about 105.9 Euros in 2021 (Statista). A large part of this revenue is generated from consumer electronics, while 20% is received from product innovation.

Germany is also one of the biggest markets for cloud technologies. Owing to its prominence in software development, assured security and extensive use of cloud technologies, it is also a reputed destination for software outsourcing.

In 2018, before Covid hit the world, Germany’s estimated outsourcing market value was $19k million. It has increased in the post-Covid period with the rise in the number of companies and the changing consumer mindsets.

The country observes a great demand for Python developers, data scientists and CRM solution experts.

Despite the extensive abilities, infrastructure and growth, there are shortcomings that the country needs to address to grow its offshore capabilities.

Challenges the Businesses Face with Software Outsourcing

The country has specific challenges, which, if addressed, can help build the right foundation for offshore development.

The Unavailability of Development Resources

If you don’t have the expertise needed to build a capable solution, you might not be able to translate your idea effectively. Germany is experiencing a void in their talent pool. The number of jobs available is more than the resources applying for them.

While some technologies see many resources, you will find a gap in a few technologies and coding languages. The situation might halt the country’s outsourcing dreams, leading to reduced revenue from this segment. However, there is a solution that can help improve the situation.

The German market can introduce developers from other countries to their talent pool and improve the situation. Instead of looking at talent nearshore, they can build a remote team in other countries where talent is available. With their extensive infrastructure and talent from other countries, they can fill the gap and improve the outsourcing market.

The Increasing Quality Expectations

Several popular German-based brands include SAP, Mercedes, Adidas and others in different segments. However, what bonds them together is the unmatched quality they offer. People hint at German brands and companies when they desire quality. This has led to unspoken expectations from these companies. You can only belong to German if you offer a reasonably good product.

This will prove to be a challenge when people start looking for outsourcing. They may not look for mediocre companies or even accept developers that don’t offer quality.

You should consider these aspects right at the start when you are hiring talent and infrastructure for your business needs. Make sure your processes, methodologies and even the culture speaks volume about being driven by high quality.

To enable the quality demands, you might want to set best practices and communication protocols that can easily manage your multi-location remote software development teams.

The Rise in Competition

Along with the quality expectations, the rising competition in the software development markets can be challenging for your organization. There will be companies that offer better quality and product innovation than yours, which will impact your client acquisition. You might want to dive down a niche or look for innovative distinguishers that can help you attract a client.

Create a diverse portfolio that will attract your clients and increase their interest in what you offer.

6 Benefits of Outsourcing to Software Development Companies in Germany

Several German software development companies improve the outcomes and help deliver high-quality solutions. There are various reasons why you should consider German companies to outsource your software application requirements.

Extensive and Advanced Infrastructure

You can sense technological advancement and innovation whenever you hear of a German organization. They speak volumes about power and experiences. Their cars, consumer electronics and even software solutions are regarded for the advancement they offer in homes and companies.

When you hire a software development company from Germany, you will get advanced technology and innovative dimensions that can help improve the outcomes for your company. This will enable you to stay at the forefront of competition and enjoy the desirable solutions. It is one of the many reasons to choose a German company.

Excellent Integration with the Teams

The Germans operate with integrated protocols and strategies that ensure extensive cooperation with partner companies. They can easily communicate and ensure similar goals and deadlines for completing the project. Despite working remotely or in close quarters, the two companies will seem like they are working in integration. As a result, despite working remotely, the companies can handle the client requirements like a pro, ensuring they stay at the helm of their project.

Hassle-free Collaboration and Communication
When you connect with a German company for your software outsourcing requirements, you may not experience the cultural barriers or misfit issues that can hamper your software development progress. You will notice seamlessness and similarity in the ethics and processes. As a result, you will fit together naturally like the pieces of a jigsaw puzzle and accomplish the goals.

Lowered Cost of Development
When you outsource your mobile app development or software development requirements to a company in Germany, the hourly rates are low and cost savings. It is approximately 86 Euros*, considerably lower than most highly developed and advanced nations. At this cost effective rate, you get the developer’s expertise combined with their technology and advancements. This can help speed up development and ensure bug-free deployment. You can also introduce advanced software solutions to entice more users.

Faster Deployments

As you gain access to infrastructure and expertise combined with latest trends, you are looking at something other than someone that can delay the application development. They have the pre-built resources, extensive community and help from developers that can help build your app faster. In any given scenario, you can launch your app before your competition does.

Increased Scalability

As they extensively collaborate with developers from across Europe and outside, you can easily access more resources as needed. So, if you wish to scale up or down your team, you can do it without any issues.

IT Outsourcing: Germany vs Eastern European Countries-How is Germany Better?

Here are all the reasons why you should choose Germany against other Eastern European countries for software outsourcing.

High Quality of Software Solutions

We have discussed through the article how German companies are expected to offer quality solutions. When you outsource your product requirement to a German software development company, they will provide you with a high-quality, performing and seamless product that can be easily used and intuitively navigated.

They introduce software development processes, methods and development styles that ensure test-driven development methods. Continuous integration ensures that the code committed to the build is error-free and usable.

The Ease of Time Zone

When you outsource to Germany, you don’t experience a major difference in time zones. You can easily catch up, connect and even share your issues with software development companies in Germany.

The comfort of time zones makes it easier for you to access the project managers and developers when you need to connect with them. It ensures quicker resolution to your issues and better solutions.

Comfort with the English Language

The Germans are comfortable with the English language. As a result, they won’t face issues comprehending your requirements and translating them into capable solutions. They can easily decipher your requirements and work on your needs.

This is one of the biggest benefits of outsourcing to companies in Germany against others in Europe. They have better interpreters and knowledge of the language.

In Sync with your Culture
They can easily identify with your culture and embrace the gaps that exist. In most cases, there are cultural similarities between Germany and other countries. At the same time, they have the same business ethics as other nations, which makes it easier for them to offer development solutions without hurting sentiments.

Conclusion

Germany is an enthusiastic, highly advanced and technologically-driven country that offers extensive solutions to businesses. With great quality, unmatched resources and a well-defined infrastructure, they can cater to your needs and unique goals.

Lavorg Technologies is a top-notch software development outsourcing company located in Germany. We have the top software developers, communication protocols, processes and technology infrastructure that can contribute towards converting your business ideas into experiential app solutions. Get in touch with our team by sharing your requirements.