Software Development Company in Germany: Key Facts

Germany is considered one of the most comfortable countries of the world. Germany’s highly developed economy attracts specialists from many areas from all over the world who want to realize themselves, work in comfortable conditions, receive a stable high income, and get the cherished line in their resume. Software development in Germany is primarily popular with its achievements in technology, the irreproachable performance of work, and discipline. After all, you probably heard the story that even at the dead of night, on an empty road, a native German will not cross the street to a red light. Consequently, software development Germany skills are also highly valued in many other countries from around the world, especially for software development company in Switzerland, as well as in the United Kingdom, in the United States, and etc.

IT Market in Germany

Over the years, the growth trajectory of the software development companies Germany has evolved. In 2014, the annual growth rate stood at a robust 8%. However, by 2015, it had slightly decreased to around 6%, and this trend continued with a gradual decline to 5% by 2018.

According to the most recent data in 2023, the IT industry in Germany has experienced a strong growth rate of 6.80%. At this point, there are around 54,000 IT companies in the country and about 1.09 million IT professionals in this vibrant industry. When it comes to programming languages, PHP, Lua, and .NET are still highly favored by developers in Germany. 

Germany’s tech export value has increased significantly to 209 billion euros, which shows how competitive the country is in the global tech market.

These tendencies show the reliability in the IT sphere nowadays, especially in software developer service in Germany.

The Largest Software Development Germany Cities

• Berlin

Berlin, the capital of Germany, has become a booming hub for the IT industry. The average pay for a software engineer in Berlin is very competitive and usually higher than the national average. For example, a software developer Berlin can expect a salary of $6,249 monthly.

The city is proud to have a wide range of tech entrepreneurs and is home to many creative incubators and co-working spaces. 

• Hamburg

Hamburg, which is a large port city, also has a significant presence in Germany’s IT industry. Software developers in Hamburg earn a competitive average salary, making this city an attractive choice for those in the tech industry. Here, software developer Hamburg, can get a monthly pay of $5,808. Hamburg stands out in the IT world because it focuses on the marine and transportation industries. This has led to new ideas in areas like IoT and supply chain management. The city’s maritime center makes it easier for tech companies and traditional industries to work together.

• Munich

The IT business is strong in Munich, the city of Bavaria. A middle-level software developer Munich can earn around $5,618 monthly, unlike what offer the software development companies in Berlin.

Munich stands out in IT for its strong focus on cutting-edge technologies, especially in areas like car engineering and aerospace. Munich is a center for creativity and research and development because it has a lot of well-known research institutions and global companies. 

• Köln (Cologne)

Koln, or Cologne, is a city with a growing IT industry and a fair average pay of around $5,755 for strongly-qualified software workers. Koln is unique in IT because it is in the middle of Europe. This makes it a key traffic and supply hub. This role has led to big changes in e-commerce and supply chain management, making it an exciting place for tech workers who want to be a part of these changes. Koln also has a number of tech events and meetups that help people in the IT community network and share information.

• Frankfurt

Software developer Frankfurt with middle-level expertise and good communication skills can get around $5,745.

Frankfurt’s focus on fintech and financial services technology sets it apart in IT. Numerous financial companies, banks, like the European Central Bank’s headquarters, and fintech startups call the city home, making it a desirable destination for IT professionals looking for a career in this field.

Number of Software Development Companies in Germany

According to statistics from the Statista, in 2015, almost 86,000 software development companies in Germany were registered. The statistics included data for all German software companies, with an annual income from 17,500 EUR to 250,000,000 EUR. The GTAI also published studies in which they indicated the growth schedule of the software industry in Germany from 2014 to the next 2019. The annual growth rate in 2014 was higher and amounted to 8%. A year later, the coefficient was slightly below the level of 6% and until 2018, smoothly continued to drop to 5%. Data from the Statista are almost the same. GTAI forecasted that in 2019, the mark of the annual growth in the volume of the software market, will drop to 5%.

Cost of Hiring Developer in Germany vs Ukraine

Professional IT developers are highly appreciated by software companies in Germany. Therefore, finding a job will not be easy for a programmer, but it is much easier than finding an engineer or a doctor vacancy. Especially it is easier for an foreigner. The level of salary, workplace, collective, processing and other conditions will depend on the software development services company who has a proposition. According to Glassdoor.com internet service, average annual incomes in Berlin, and in Munich are $73,000, and almost $70,000 respectively. However, an average salary of a middle-level software developer Germany is $72,000. A very impressive amount. Therefore, to accomplish some tasks, in order to save money, many companies, not only in Germany, turn to software development solutions for outsource. You can notice, that nowadays Ukrainian dedicated development companies are in cooperation with many other countries. For comparison, the average salary of a software engineer in Ukraine is $30,000.

Average Salaries for Software Developers in Germany

* Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.

Cost of Living in Germany vs Ukraine

To understand why specialists from Germany and other European countries cooperate with dedicated teams and outsourcing companies from Ukraine, you should pay attention not only to the level of salaries, but also the cost of living in the country. Living in Ukraine is about 56% less than in Germany. Let’s take a closer look. Costs of basic utilities in Ukraine is only $64, while in Germany it is almost four times more and is around $253. For three bedroom apartment in Germany you will give $1512 in the city center, and approximately $553 for single bedroom flat outside city center. In Ukraine these numbers will be $659, and $247 respectively. To buy an apartment somewhere outside city center in Germany costs $2,717 sqm, and is only $834 in Ukraine. Nevertheless, in Ukraine there are many qualitative developers who have already found job in Germany or are already working for custom German software development solutions.

Our Expertise in Hiring Software Developers in Germany

Throughout the years, we have demonstrated our value as reliable partners for any sphere, whether it’s a client with an idea of a medical app or a website development company in Germany. Especially when it comes to addressing the growing need for skilled professionals, we have a wide network and an in-depth awareness of the local talent pool. This means we can help you connect with developers who have the technical skills you need and fit well with your company’s culture and goals. 

We closely follow Germany’s IT sector to stay up-to-date, allowing us to simplify the hiring process and guarantee success. In a highly competitive market, it can be difficult for businesses to discover talented programmers. But don’t worry, we are here at your service.

If you need to find lead developer CTO or outsource Ruby on Rails development that will improve the development processes in the company – you are welcome to contact Mobilunity.

Main Service Models

At Mobilunity, we have a variety of service models designed specifically for responding to the individual requirements of our clients:

• Dedicated Development Teams

The main advantages here are:

• The client gets the benefit of having a team of skilled professionals work on their projects completely;
• The client directly manages a full-time development resource, for example, mobile software development Berlin based, while our team takes care of all the tricky parts of HR, budgeting, and tech support so that clients can focus on their core business goals.

This approach makes sure that communication between our workers and the client is clear, scalable, and routine-free.

• Consultancy Services 

This service model lets clients directly handle a part-time developer, giving them more options for how to use the freed-up resources. At the same time, Mobilunity handles all HR, financial, and help desk chores, making the process more efficient. This plan works well for clients who need special skills for their projects but don’t need experts to commit full-time.

• Recruiting Services

Our recruiting-as-a-service offers holistic options for hiring. What makes Mobilunity stand out is that we can find skilled developers both locally in Germany, for example, services of software development in Berlin, and across Eastern Europe. This gives us access to a large group of highly skilled experts. We have a good track record of hiring local people in many countries, including Croatia, Serbia, Kazakhstan, Azerbaijan, Albania, Peru, and Tajikistan. These success stories show that we are able to find and hire the best candidates in a wide range of places, allowing our clients to build effective, globally spread teams for their projects.

Hire developers in other Countries

Access a wide range of specialized skills and fresh perspectives by hiring developers from different countries. Expand your team’s capabilities and drive innovation by tapping into the diverse global talent pool.

Switzerland

Czech Republic

Myanmar

Bangladesh

Bulgaria

FAQs

• Is hiring German software developers a good idea?

There are several advantages to hiring software developers in Germany. One of the main benefits is having access to a highly skilled workforce. German developers are known for their expertise and proficiency in the field. Additionally, there is a strong emphasis on quality and innovation in the German tech industry, which can greatly benefit your company. Being among the top software development companies in Germany, Mobilunity will make this way as easy as possible.

• How much do software engineers in Germany normally make?

The payment depends on different factors, but usually it varies around $3400 to $6300 per year, with more experienced coders being paid more.

• Can a software development company in Germany like Mobilunity help me with the legal and administrative aspects of hiring developers?

It can be hard to figure out the legal and administrative parts of hiring in Germany. It’s best to work with local HR workers with a lot of experience or to outsource HR and administrative jobs to a company that specializes in that so you won’t get into any trouble during the hiring process.

• If I want to hire workers in Germany, will there be a language barrier?

Even though English is widely spoken and known in the German tech industry, it can be helpful to know some German, especially if you want to communicate well and fit in with how people work there. However, many coders in Germany speak English well, which makes it easy to work with teams from other countries.

• How do I recruit and retain the best developers in Germany?

If you have, for example, a software development company in Berlin, you might want to team up with a recruiting agency that focuses on the IT industry. In addition, attending events and meeting other experts in your field, like forums on software development Köln, is a great way to expand your network and find qualified applicants.

Do you have a request for software developer service in Germany? Mobilunity will take care of it. Contact us today to give your tech projects a boost!

Written by:

Anastasia Stefanuk

Market Researcher

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.