French Software Development: How Wise Companies Outsource
The challenge of finding developers in Europe leads to many companies looking to outsourcing. For example, for a software development company in Austria, Germany or France, software development comes with the challenge of limited talent availability.
Web Application Development Software Market in France
France is a world leader in technology, with a strong history in STEM fields generally. For instance, in 2017, this European nationled the list of nations in the Universities of Science and Technology Rankings. This leadership position extends to technology areas such as software development. According to Export.gov, the French digital economy is responsible for 3.3% of total employment in the country. The French software and services market in the country amounts to over $57 billion. The sheer size of software development and mobile application development software in France makes it an important player in the worldwide software industry.
Software Development Market in France
The French software industry comprises multiple specialization clusters, with the most important ones being:
- Software publishers – This sector makes up about 22% of French software activity.
- Technology consulting services – Some large French consulting companies are Sopra Steria, CapGemini, and Orange. This segment of the market makes up 17% of the whole.
- Consulting services – Comprises 61% of the market.
The vibrancy in the French technology market has led to French software engineers enjoying high salaries. For example, according to PayScale, senior developers enjoy salaries of over $66,622, while lower-paid developers start around $34,814 per year. The more experience a developer has, typically, the higher the salary he or she can command in the market. Based on Export.gov statistics, the French software industry grew at an average annual growth rate of approximately 9% annually. This is much higher than the INSEE figures of 2.3% for the growth rate of the rest of the French economy in 2017.
Trends in French Outsourced Software Development
According to a report by French international investment bank BNP Paribas, the French software industry is technically strong but it suffers from a few weaknesses.
Challenges facing the industry
- The industry has not been able to acquire a dominant position in the European market
- French software as a whole suffers from marketing challenges
- The industry faces challenges breaking into new markets around the world
A key hurdle for many technology companies in France is finding qualified talent. A Reuters report highlights the problem, indicating that data specialists and other highly skilled tech workers are especially hard to find. The situation is exacerbated by the rapid pace of change in the high end of the technology market, with demand for talent with all the skills outstripping supply.
The Technology Talent Problem
In order to help overcome the challenges they face, many French companies have turned to soft outsourcing. Done right, software outsourcing can make these companies even more competitive both in Europe and in world markets.
For example, among the French companies that have turned to outsourcing, large names include Michelin, the tire manufacturing company, and France Telecom. According to a Yale report, most French companies predominantly outsource to Central Europe and North Africa, where there is a high prevalence of French speakers. The gains from such outsourcing, however, tend to be 70% less cost, which is lower than the 90% lower costs experienced in India or China.
Helping Clients from Any Location
In France, the largest cities are:
The capital and also the center of gravity of the French tech industry. The population of the city is over 2 million. Paris competes with other European capitals like London in the tech scene. According to The Economist, the city is now making big strides in attracting VC funding for its startups.
The second largest French city, with a population of over 800,000. Marseille is a port city and among France’s biggest tech centers. Its Aix-Marseille French Tech initiative aims to make it a leader in French technology.
Has around half a million inhabitants. Lyon has a notable dance music scene, many museums, and is a UNESCO World Heritage Site.
Overcoming Challenges in Custom French Software Development
What is striking, however, is that none of these five largest French cities made it onto BusinessInsider’s ranking of 25 Most High-Tech Cities in the world. That ranking published by BusinessInsider was topped by San Francisco, followed by New York, with London, in 3rd position, as the highest ranked European city. This ranking echoes the research by French international bank BNP Paribas that the best French software and tech companies need to do more to elevate its status internationally. One way to do this is to partner with software outstaff developer agencies in Eastern Europe, where a high volume of developers makes ambitious software products easier to develop.
Outsourcing Software Development Remotely
The spread of the internet has made outsourcing a more viable mode of working. Electronic communication makes collaboration with top IT outsourcing companies easier than ever.
Project management tools and communication platforms like Trello, BaseCamp, among others, make it easier to produce quality finished software from distributed teams. Software French engineer managers can collaborate on projects with dedicated teams in real time.
The Advantages of Ukraine for French Tech Companies
Ukraine is on a trajectory to become a world leader in the technology industry, with Forbes speculating in 2014 that Ukraine could become the next Silicon Valley.
Vast Progress in Software and Technology Leadership
The country has seen numerous high tech deals which illustrate the growing importance of its technology industry. For instance, in 2018, Amazon paid $1 billion to acquire Ring, a startup with its largest R&D center in Kyiv, Ukraine.
Superior Software Quality
Outsourcing your development to the country lets you access to world-class developers who are experts at the latest cutting edge technologies. Cheap outsourcing in other parts of the world is not as reliable as the higher quality you can get in Ukraine. Companies like Mobilunity and others provide developers who have experience implementing very large projects for well-known Western tech companies.
Lower Project Costs
In addition, you can often save on development costs, since technical hiring costs less in Ukraine. For example, according to PayScale, hiring a software developer in France costs around $41,734 in base salary, whereas for Ukraine it’s $24,000, about 40% lower. In Paris, software developer salaries are higher than elsewhere in France, at $44,974. Developers in Nice earn $42,046 on average, while they earn around $42,809 in Sophia Antipolis.
This is in large part due to lower living costs in Ukraine, where housing and other amenities cost less on average than in France. According to Numbeo, Ukraine has 64.19% lower consumer prices than France. Below are some sample costs compared between Ukraine and France:
Outsource Development With Mobilunity
Mobilunity is among Ukraine’s top-tier of software outsourcing agencies. Our developers are highly skilled and make for world-class software development. The company works with the dedicated team model where you will get your own dedicated developers. You can communicate and collaborate with your team during normal French working hours, since Kyiv, Ukraine, is only 1 hour ahead of French time. This makes collaborating with Mobilunity developers especially easy. Teamwork is a highly prized aspect of working with Mobilunity, and this is a cultural value that the French share as well. Having a shared European culture and values ensures that our clients receive the best service and your software project is completed without hiccups.