How to Hire Developers in Germany without Spending a Fortune
For a long time, the European IT sector was looking upward to a U.S. tech scene with quiet jealousy. Indeed there was a solid reason for that: a Silicon Valley as a leading technology hub and friendly startup ecosystem gathered a quarter of a million best IT specialists in the world. As a result, U.S turned into almighty high-tech and production workforce that no other country could compete with. What happened next was easily predictable, having the large pool of well-educated, skilled, and determined young specialists, European entrepreneurs managed to achieve spectacular results in just 2-3 years. Honing in mind a thought of replicating the success of their western competitor, European developers soon shook the world with Spotify, SoundCloud, Shazam, Wonga, Huddle and a bunch of other well-known services and products that allowed to grow capacities and attract successful IT specialists. Nowadays companies from all around the world want to hire developers in Switzerland, or to outsource their software development in Germany and other largest European countries.
Was it just a beginning? According to the most authoritative experts, the budding European IT sphere has the best yet to come, meanwhile, the countries already showing the biggest IT perspectives in Europe are: Germany, Switzerland, Sweden, Belgium, Austria, Finland, and others.
The stats on expected growth of IT outsourcing and offshoring in Europe
Still does it mean that it’s time to pack your bags and laptops and move to Europe looking for the promising talents for your business? The opinions of IT recruitment specialists split here. Let’s take a brief look at the European IT sphere stats in order to understand what’s currently happening on the German technology arena, what to expect, and what to be ready for.
Searching for a specialist in the IT labor market without understanding the core needs of your business is like launching the rocket without setting the destination, – risky, costly and absolutely useless. The things you need to determine first are the main priorities, the project needs and the ways they can be implemented within the frames of the corporate funds. Some IT recruiters prefer not to risk and base their decisions on the proven country choices that once proved to be good, the others look for the innovative solutions and less popular country destinations that allow them to pick the most affordable and competitive solutions for those businesses that feature a limited budget.
The main criteria for the IT project offshoring and outsourcing remain to be:
- Professional level of developers
- Reachability and communication
- Efficiency in project management
- Efficiency in terms of project deadlines
- Transparency of the project workflow
- In-time reports and flexibility of the project management
The language barriers still influence the way the decisions are made for the project outsourcing, so the businesses tend to pick the countries with better language capabilities that minimize the risks for the normal workflow.
Germany as an Attractive Provider of IT Talents
European developers are becoming very self-aware, they realize the value of their skills and knowledge so even for the mature and experienced IT recruiter it seems to be the tough task to find a real gem in the crowd of freelance rock-stars who can easily disrupt the project deadlines, knowing they are not bound by the regulations and corporate rules. For the outsourcing and outstaffing, the job conditions are different, they are able to keep the interests of both business and a developer as well so that the interest of each party is protected.
The occupational biases are common for all countries when it comes to the hiring process in IT sphere, however, tech recruitment agencies and experts are willingly sharing their common experiences and thoughts for picking the right staff for your business.
The interview with Ralph Haupter, chairman of the board of Microsoft Deutschland gave us insights into German IT labor market development and the benefits that it can offer for the businesses of various levels:
German IT industry is one of the greatest in Europe because it is also one of the most stable and crisis-resistant, it holds lots of opportunities. For now, Germany keeps holding the position of the largest IT services and software exporter. In the next 20 years, the number of people employed in IT will double. The best chances for ITK technologies in Europe are undoubtedly awaiting business owners in Germany, the same could be said about ERP solutions and the data protection in the private spheres.
Germany has been home to an exceptional manufacturing and engineering industry, most notably in the automotive, chemical, and electrical sectors of the market. These markets do not stand alone and are supported by high-quality and reliable software tools to power their production optimization, product design and enhancement, and remain competitive in their respective markets. The German Software industry directly accounts for €62.3 billion to their economy, and is among the European countries with the highest software development wages – around 33% higher than the average wage.
Germany is home to some of the largest software companies, such as Software AG and SAP, as well as thousands of startup IT companies. Germany ranks 6th in the list of countries with the most number of startups worldwide. The number of startups in a country can indicate the level of innovation and demand for software developer Germany, such as IT outsourcing Berlin offers, has in the technology sector.
Hiring developers in Germany are also preferable:
- Germany is home to thousands of startup companies and even more highly-skilled software developers.
- Germany ranks 7th amongst the countries with business, tech, and data skills worldwide.
- Germany has a high capacity for investing in modern and cutting-edge technology and processes as well as innovation across industries.
The country puts great stock in having a great environment for innovation and learning, which augments their skills and experience of the software developer Germany offers. A Java engineer Hamburg companies outsource has more to offer its clients. Because of its robust tech industry and economy, there is even more diversity and skills in the software developers you hire, or even when you build dedicated team in Germany.
At the same time, Germany has a higher salary range compared to other European countries, this can indicate high-quality work in an innovative and modern working environment. Germany is among the top 10 best countries with quality of life. Larger cities also have more skilled developers to offer; Java developer Germany: Munich, Hamburg, and Berlin are amongst the cities with the largest IT workforce in the country. A Software developer Berlin market offers a high quality of life which leads to better education, globalization, a good economy, and more productivity in their day to day work. The highly-skilled dedicated developers Hamburg offers will be able to offer more skills, experience, and great team culture.
Build Dedicated Team in Germany: How Does It Cost?
How to build dedicated team in Germany? No matter you chose the development team Munich, Hamburg, Berlin and Frankfurt are those cities in Germany that are positioned as the places with the largest employment opportunities in IT sphere.
Stats on an average net salary of developers skilled in different technologies
It is quite easy to hire developers Berlin. Top developers in Berlin are gaining around €50-55,000. Computer programmers in Berlin can expect to make between €41,200 and 48,300 with 1-2 years of experience, it is the best place for hiring the safety specialists as well for the large projects.
Dedicated developers Hamburg are well-versed in the top IT technologies like specialists from Berlin, there is a great variety of mobile-game developers in Hamburg and the salary level for hiring is approximately the same as in Berlin – €44,424 per year.
Hiring the development team Munich will cost you around €50,000 per year as it closes the circle of the most popular destinations for IT work. The skills that increase pay for this job the most are ASP.
Frankfurt is a very popular city among developers, they head here for better opportunities and higher salaries. Frankfurt is not very profitable for Java developers, their salaries here are €46,716.
Developers Cologne city features great opportunities for hiring Java developers, generally, the developer will earn around €1,500 per month.
Dedicated developer Stuttgart. In this city are the best developers and middle-level specialists who know various technologies. In Stuttgart, the German software engineer will get around €50,181 while senior software engineer can count on €61,076.
The developers Düsseldorf have a profound knowledge variety of technologies. In this city, it is better to look for Data Analysts who are earning €43,218, software developers (€43,200), and Project Managers (IT) who earn €60,173.
If you are intended to hire the Dortmund development team you can find a great selection of middle and senior software engineers in this city. The software developer earns here €57,808.
Developers for hire Essen are good for the various projects and in this city it is possible to find a good team to get innovative solutions for small and middle level businesses. The software developers earn here around €61,142
Developers in Leipzig feature a bit more opportunities than small cities for gathering the development team, the average salary for a Software Engineer is €54,000.
Top developers in Bremen boast flexible work approaches and project management as in this city you can find the good fit for small businesses with moderate rates, the developers get usually get €44,816 as an annual salary. It is cheaper than salary of top developers in Berlin, right?
Dresden development team can support projects of various scales as well and if you’ve picked this city than average salary of the software developer will be €42,000.
If you want to hire developers in Hanover you can be surprised by the relatively good infrastructure, it is good for both small and big businesses, the developers get here €49,845 annually.
Developer in Nuremberg is generally better for building small and middle-sized projects. The average salary for a Software Engineer is €54,000.
Duisburg developers can be of a great help if you are searching for the solution with a moderate prices as you can see that the developer here gets around €47,500.
If you hire developers in Bochum your can get beneficial and flexible outsourcing conditions in this city for small projects.
Looking for the dedicated team Wuppertal? Then it is a good practice to look through several choices in the market as the city features good environment for outsourcing, the salary level of programmers here is around €49,845.
Dedicated developers Bielefeld make it possible to implement any kind of project. The conditions here are beneficial for the software engineers €35,972 and the Java developers €45,333.
Thus top developers in Berlin are not the most expensive in the country.
Top Developers in Berlin or Top Indian Developers?
Another country that has become the center of outsourcing recently is India. The reason for this is the low cost of services as well. The annual income of an Indian programmer is barely reaching $12,000 but the software labor market export has grown for more than 55% over the last 5 years. American and German companies have been outsourcing the Indian tech talents for a long time that inevitably contributed to their technological might.
One thing that you should pay attention to selecting the developers from India is a set of work regulations as they can be different as well as contract conditions. Outsourcing developers from Ukraine will still mean better reachability, better choice in terms of price and work conditions. Indian developers offer the widest variety of IT specialists on the global labor market, however, the world experts point out that the level of competencies of Ukrainian programmers is undoubtedly higher.
Europe: Build Dedicated Team in Germany vs Ukraine
The majority of IT HR managers (over 65%) are facing the problem of finding qualified professionals even in the big cities. No other industry is facing the lack of good quality specialists as much as Internet technology does nowadays. As Eastern Europe became a popular IT destination many business owners face a choice to make their software development outsourcing to Western Europe or Ukraine. The US is still one of the highest paying countries for software engineers where the annual income reaches $107K.
The following comparison table shows how annual incomes are different for the biggest IT cities in Germany and Ukraine.
Stats on an average net salary of a software developer in Germany VS Ukraine
As it turns out Ukraine is placed at the very bottom of the salary range that however, does not mean compromising quality. An average Ukrainian software developer can possess the same level of skills and qualifications as the one from the central Europe but the salary still will be much lower due to the national currency. The truth is, IT specialists real income can be different, it can be lower or higher than shown in the graphic. The low level of income in the country does not always reflect a low purchasing ability, nor the high levels of salary mean an employee can be considered wealthy.