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IT Outsourcing in Germany vs Eastern Europe: Which Option to Choose?
Germany is one of the most technologically advanced countries in Europe. It is the largest economy in Europe and has a steadily growing IT market. Software development Germany is characterized by innovation and mature infrastructure. And IT outsourcing in Germany is popular because of the high-quality of services and comfortable location.
The local ICT industry is highly developed. In 2018 there were about 92.7 thousand IT companies registered here. And there were about 1,550 startups at the same time.
20% of the revenue 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. Germany IT nearshoring also relies heavily on security solutions. The revenue from the ICT market is expected to reach $49,205 million by 2021.
But it is not as easy to find remote specialists here as IT nearshoring for German companies is a common solution. One of the main reasons for Germany software outsourcing trend 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 businesses want to invest in IT outsourcing in Germany, there is a lack of workforce to fulfill the need. The spheres that are in the most demand of such SW developer are AI, IoT, and Big Data. So the employment market for IT outsourcing Germany is very competitive.
Other technologies that are in high demand for Germany nearshoring software development are:
- Python;
- Data Storage, Architecture, and Analysis;
- Cyber Security;
- CRM solutions;
- Machine Learning;
- DevOps.
Many German companies choose nearshoring software development in Europe or other destinations because it is simpler and more cost-efficient in terms of hiring costs and legislation.
So while many businesses look for software development companies in Germany, local businesses are also interested in delegating their tasks outside the country.
Country Profile
Time zone: GMT+2
Average Monthly Salary: $4,957
Biggest Tech Hubs: Berlin, Munich, Hamburg, Stuttgart
Size of Talent Pool: 837,398
Popular Technologies: Java, JavaScript, C++, C, C#, Python, Go
IT Outsourcing in Germany vs Eastern Europe
Luckily, software development Germany is not the only European destination out there. Nowadays, Eastern Europe is gaining momentum to fulfill the demand for remote IT services. It is popular for IT nearshoring Germany and other businesses all over the world.
The main benefits of this region are:
- Great talent pull and high quality of services;
- Comfortable location and time zones;
- Decent knowledge of English;
- Similar work ethics and business values;
- Reasonable salaries.
Now, let’s review four main countries in Eastern Europe for IT outsourcing.
Poland
Poland is conveniently located and has several big IT hubs, such as Warsaw, Krakow, and Wroclaw. The ICT market here is developing pretty fast and is expected to produce $13 billion in revenue by 2022. The talent pool is about 295,000 developers, and the average software developer salary 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 is still a great choice for many IT nearshoring Germany companies. The main IT hubs are Sofia, Varna, Plovdiv, and Burgas. According to Clutch.co there are about 180 software development companies. And the average salary for a developer is $1,540 per month.
The IT outsourcing sector is predicted to reach 7.9% of Bulgaria’s GDP. The most popular programming languages here are JavaScript, .NET, PHP, C++, and Python.
Serbia
Another valid alternative to IT outsourcing in Germany is Serbia. The ICT sector has wide governmental support, and society moves to adopt more e-government solutions. But the use of cloud technologies is relatively low among local businesses still (35%). The ICT sector generates 10% of the country’s GDP.
There are over 2,500 companies in this industry and about 28,000 specialists. A software developer’s average salary is $1466 per month, which is cheaper than software nearshoring Germany. The main IT hubs are Belgrade, Novi Sad, Nis, Subotica, and Kragujevac.
The popular technologies here are JavaScript, .NET, PHP, Python, C#, and C++.
Estonia
Estonia is a decent competitor to Germany software nearshoring in Eastern Europe. It is one of the top 20 tech countries in the EU. It has a talent pool of 20,700 IT professionals and strong STEM education.
About 5.9% of the country’s workforce is employed in the ICT industry. Local experts are known for the quality of work, and Estonia is easy to do business in. 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. Estonia’s popular technologies are Python, Java, PHP, VB.NET, C#, JavaScript, Android, C/C+.
Ukraine – Great Alternative to IT nearshoring Germany
Ukraine is yet another perfect destination in Eastern Europe to compete with software outsourcing Germany. It is known for cost reduction, high-quality services, and a great talent pool. The number of IT professionals here is much higher than in Estonia, Bulgaria, or Serbia. So if you are looking for a dashing alternative to Germany IT outsourcing, consider these benefits that Ukraine has to offer:
- Comfortable location and convenient time zone (GMT+2);
- Access to experienced professionals. There are about 200,000 IT specialists in Ukraine. Also, local universities graduate about 16,000 STEM students each year to supply the market’s demand.
- Ukraine has similar business ethics and values, and it is pretty easy to work with local companies.
- Ukrainian developers are known for the quality of their code. They are in 14th place worldwide, according to TopCoder.
- Local IT professionals have a good command of English. Many of them have experience in partnering with other countries and invest in learning English. It ensures direct and easy communication.
- Ukraine has a developed ICT infrastructure. That’s why many industry leaders and Forbes 500 companies here offices or R&D centers here, including Microsoft, Boeing, and Samsung.
Country Profile
Time zone: GMT+2
Average Monthly Rate: $2000*
Biggest Tech Hubs: Kyiv, Lviv, Kharkiv, Odessa, Dnipro
Size of Talent Pool: 200,000 professionals
Popular Technologies: Java, JavaScript, C, C#, Python, PHP
*Ukrainian rates are based on the data of our internal Recruiting Team
Ukraine and Germany Outsourcing Software Development: Salary Comparison
One of the main reasons Ukraine is a top choice for many businesses that outsource is the budget. The salary rates are lower here while the quality of services is still great. And the local employment market is less competitive than in Germany. Here is a salary rates comparison table for both countries.
| Ukraine – salary per month | Germany – salary per month | |
| PHP junior | $1.000* | $2.058 |
| PHP middle | $2.000* | $2.740 |
| Java junior | $1.000* | $2.405 |
| Java middle | $2.000* | $3.207 |
| .NET junior | $1.000* | $2.273 |
| .NET middle | $2.000* | $3.040 |
| Python junior | $1.000* | $2.250 |
| Python middle | $1.800* | $3.004 |
| C# junior | $500* | $2.417 |
| C# middle | $2.000* | $3.231 |
| JavaScript junior | $500* | $2.285 |
| JavaScript middle | $2.000* | $3.052 |
| Android junior | $1.000* | $2.285 |
| Android middle | $2.500* | $3.052 |
*Ukrainian rates are based on the data of our internal Recruiting Team
Overall Attractiveness of Both Locations
The choice of outsourcing destination is based on many factors. Of course, the cost of it is essential. But the companies need to also consider other circumstances.
For example, Germany has more IT professionals than Ukraine, but it doesn’t mean that they are easier to hire. The German ICT sector is more advanced and that’s why it experiences a shortage of employees.
As a result, there are many German companies outsourcing to India, Ukraine, Poland, or Serbia. So it might be significantly 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.
| Germany | Ukraine | |
| Time zones | GMT+1 | GMT+2 |
| Size of a tech talent pool | 837,398 | 200,000 |
| English proficiency | High, 8th worldwide | Decent, 44th worldwide |
| Education level | High | High |
| Talent availability | Decent | High |
Mobilunity – Excellent Ukrainian Nearshore Vendor
After you’ve chosen an outsourcing destination, it is time to find a credible local partner. Mobilunity is a well-established nearshoring company with more than a decade of experience. We’ve been working with all types of companies from all over the world. We’ve already helped more than 40 international partners to find dedicated developers for their projects.
Mobilunity can help to hire the most suitable IT specialists in Ukraine for any type of software development project. Among our satisfied clients 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 to achieve their goals and bring companies to a new level of success. But do not take our word for it, listen to what our clients have to say.
“Mobilunity helps us to solve important projects with perfect selected high potential professionals in programming. The work processes are smooth with fast solutions. And all under family collaboration. We found a perfect partner to progress in a technical way in our business”
CEO of Buttonorder (Germany)
Mobilunity is ready to assist you in any IT project and find top-notch talent fast and easily.
Are you looking for a perfect alternative to software nearshoring Germany? Contact Mobilunity!
Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
