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Blog / IT Staffing /  How to Hire Developers in Germany without Spending a Fortune

May 17, 2017 - Marina D

How to Hire Developers in Germany without Spending a Fortune

For a long time 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 of 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 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 Germany and 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.

hire developers in Germany or consider all-inclusive rates of Ukrainian programmers

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:

  • Cost
  • Language
  • 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.

hire developers in Germany or in Ukraine at lower rate

Germany as an Attractive Destination for 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.

Build Dedicated Team in Germany: What to Expect?

How to build dedicated team in Germany? Hamburg, Munich, Berlin and Frankfurt are those cities in Germany that are positioned as the places with the largest employment opportunities in IT sphere.

Average developer salaries of top developers in Berlin

Stats on 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 the better opportunities and higher salaries. Frankfurt is not very profitable for Java developers, their salaries here are €46,716.

Developers Cologne city features the 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 software engineer will get around €50,181 while senior software engineer can count on €61,076.

The developers Düsseldorf have profound knowledge variety of technologies. In this city it is better to look for Data Analysts who is 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 for the 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.

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.

Hire Developers Berlin and Follow Key Technology Trends 2017

Just after the European IT sphere witnessed the big impact and the perspectives begun to flourish the common craze over the European IT labor market has slightly slowed down. The 2.9% growth rate of 2015 was followed by humble 0.7% growth rate of 2016, reaching only €686 billion. That happened because new IT labor markets are constantly popping up, evolve and improve the quality of service, leaving the old ones behind with their less competitive service rates. Such thing happened with the Eastern Europe where the project implementation conditions improved dramatically over the past 3 years but the service rates remained very humble if to compare with the vast Europe.

In 2017 the technologies that are most sought after are mobility, big data and cloud solutions. In 2018 they will remain to evolve in prevail in Western Europe and Central & Eastern Europe according to the “ICT Market Report 2016/17”.

IT security, as the #1 concern for the average businesses, is only followed by the investments in the innovative information technologies. The businesses needs, gaps, and problems will determine the demand for the specialists that will be dominating the market for the next decade of years. In fact, 61 percent of companies have given the highest priority to the area of secure data storing in 2016, 48% of all companies that took part in the survey admitted the important role of the big data for the projects while 47% pay greater attention to the public cloud developments. Considering the big data project spectrum of the last year: it turned out that nearly 40% of respondents were ready to invest their money in updating the storage technologies, provide the more space for the big data applications and develop the new cloud solutions. As far as the corporate funds for investment in IT solutions tend to grow each year, the costs for the implementation is climbing up as well. 58% of businesses are determined to reduce costs on IT projects, this is 6% more than last year.

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: Germany vs Ukraine

The majority of IT HR managers (over 65%) are facing the problem 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. US is still one of the highest paying countries for the 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.

build dedicated team in Germany

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.

hire developers in Germany or consider Ukraine

The industry experts insist that the best developers for such technologies as: .NET, C++, Java, JavaScript and PHP could be found in Ukraine, where the average professional level for a programmer varies between a middle and senior software developer but the level of salary is very moderate and the conditions of work are much better than in Asian countries. The trends clearly show the patterns of growth for the outsourcing and offshoring. The former cheapest Asian rates get higher, communication and availability in Europe get better and the rates for the services in Eastern Europe are even lower. This is what directly impacts desire of business owners to seek for the Ukrainian tech talents for hire.

If you want to hire developers in Germany consider also the possibility of hiring the best Ukrainian specialists for your business!

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