Software Development Switzerland Possesses: Finding the Right Team
Switzerland is considered a country where scholars of various fields aspire, as well as employees of financial industry and different technologies. Many developers are impressed by the possibility of finding a job in this country, and also get an enviable line of software development companies in Europe. In such a high-tech country, the IT industry is well developed also. Switzerland is also an attractive country for the bespoke software development company. According to the annual reports of the European Patent Office, Switzerland has been leading by the number of applications for patents per capita for several years. According to the same EPO report for 2017, the number of applications from Switzerland, in the field of Digital Communication and Computer Technology, is 1% of the total number of applications of this field in the whole world. It may seem a small part, but it is worth noting the size of the country and a number of inhabitants. It is also important to understand that in this race, Switzerland is inferior to such IT leaders as the USA, China, Japan, the Republic of Korea, etc.
Is It the Main Industry in the Country
Nevertheless, the IT sector is not the most popular industry in Switzerland. Geographically, the country is located so that it has no access to the sea and more than half of its territory is occupied by the Alps. In Switzerland, the pharmaceutical, mechanical engineering and precision mechanics industries are well developed. Also, most of the country’s professional activity is banking. However, the software development companies in Switzerland still play an important role in its development. Lack of minerals and a small territory Switzerland compensates with its high-tech and high index of economic freedom.
Growth of Software Development in Switzerland Within Five Years
There is a Swiss resource, which annually publishes a list of start-up companies and projects in Switzerland. Studying their results, you can notice a sharp jump in the number of registered startup companies in 2014. We are interested in the fields of the cloud technologies, gaming, software and application development, Internet technologies, SaaS, AI, blockchain, etc. The number of registered startups was 27 units for 2013. Already in 2014, the number of annual registrants increased by 10 annual applicants and become 37 units. In 2015, the number of startups remained unchanged, that is, another 37 companies were added to the list. And already in 2016 the list was replenished by a record number in five years, 38 software development projects. In 2017, this number fell to 35 units.
Predictions for the Future Switzerland Software Development
On behalf of the University of Bern, in 2017, a study was published on the topic Switzerland Software Industry Survey. In one of the sections of the study, the authors clarify the predictions, concerning the future growth of IT sector in the country. The expected growth in revenue of the Swiss software industry grew by 8.4% in 2017. It is expected that in 2019 the value will increase up to 14.2%. Also, the study mentions that the growth of subsectors increased by 4% in 2017 and will be 5% in 2019.
The Most Suitable Cantons for IT Development
Switzerland consists of 26 independent cantons. Each canton has its own laws, authorities and the government. Also in each canton there are entrepreneurs of predominantly one industry. The Swiss economy consists of clusters. This is a mechanism where small, medium and large businesses work in geographical proximity to each other, which allows entrepreneurs to share their experience, conclude partnerships, develop infrastructure. Each IT software development company will successfully develop only in certain cantons. The IT sector of the country is mainly located in eight cantons: Jura, Neuchatel, Valais, Vaud, Geneva, Fribourg and Zurich.
Why Swiss Companies Prefer to Hire Dedicated Developers
As Switzerland is a high-tech country, the demand for IT sector developers is great. For middle level developers, or even junior, it is possible for them to find the job in Switzerland also. Especially, if a candidate for a vacancy has experience in large and successful projects, then such a developer will always find a job. Most often, temporary contracts are offered, but this is normal for professionals of any industry.
Cost of Hiring Software Developer in Switzerland vs Ukraine
One of the reasons why middle developers of the software Switzerland industry are given preference is wages. In Switzerland, the average annual income of a software developer is about $83,000. Annual software developer salary in Switzerland varies depending on the city. For example, in Geneva annual developer salary will be $80,000. In Zurich, IT companies will offer $98,000 of annual salary. In Neuchatel, as middle software developer with average salary you will get approximately $70,000. The taxes plays big role in formation of the salary. The amount of taxation also depends on each canton separately. In one of the cantons, it will be necessary to pay only about $4,500 taxes. However, for example, in Geneva, the size of the tax payment would have been 2.5 or 3 times higher. Therefore, many Swiss companies prefer to cooperate with dedicated teams of other countries. One such country is Ukraine with an average software developer annual salary of $26,000 only.
The Cost of Living in Switzerland and in Ukraine
Such a small salary of a developer in Ukraine does not mean at all that a company from Switzerland receives low quality support and performance of the assignment. It is worthwhile to understand that the salary in the country primarily depends on the cost of living there. Thanks to NationMaster resource, you can see the difference in the cost of living. A basic utilities in Switzerland costs $209, meanwhile in Ukraine it costs only $64 in average. For three bedroom apartment in the city center in Switzerland you will have to pay around $3,021. In Ukraine it is almost five times less. Of course you can choose one bedroom apartment somewhere outside city center for $1,266 in Switzerland, and only $247 in Ukraine. And for desert, to become the owner of an apartment per square meter outside city center you will have to pay $834 in Ukraine, and $7,962 in Switzerland.
Hiring Dedicated Team in Ukraine is a Cost-Effective Solution
Programming software development of Ukraine’s developers is very popular among other countries. Of course, the hiring cost is very small. However, often there are articles of authoritative magazines saying that Ukraine is considered the second silicon valley. Companies in many countries, including Swiss, understand that, therefore, abundantly use Ukrainian dedicated teams and dedicated companies.