The concept of nearshoring is increasingly popular in Germany, especially when it comes to IT. What does this entail? Briefly, it represents the outsourcing of some company operations to trained personnel, often located in neighboring countries. In 2019, according to the CBI, 77% of German enterprises nearshored their software development in Europe, while only 23% offshored it to countries based on other continents.
However, in such a dynamic market, this fact is not surprising. VON Tech, a company with experience in recruitment and outsourcing for over 15 years, operating in the US, Germany, SEE (3 locations in Romania) and UAE, brings to attention the reasons why nearshoring has become so widely used.
It positively impacts the business strategy
The strategic side is essential for any business, since the speed of development and profitability depend on it. The business strategy can be supported in a surprising way: through qualified and talented people in the IT field who live across borders.
It is important to know that revenues from the German IT industry have grown steadily over the last decade, reaching 113 billion euros in 2022. For 2023, a total of 120.2 billion euros is estimated. On the other hand, it is also worth remembering that there is a labor shortage in Germany. Last year, an all-time high was reached, with a shortfall of 320,600 STEM (science, technology, engineering and math) workers.
Given the context, outsourcing tasks to people with rich knowledge is a considerable competitive advantage that more and more companies are turning to.
It helps when it comes to cost optimization
Nearshoring not only facilitates access to skilled personnel, but also leads to a company’s cost efficiency, characterized by increased budget control and flexibility.
According to information provided by Glassdoor in June 2023, the average salary of IT specialists in Germany reaches approximately 61,000 euros annually. This amount is much higher compared to the average salary in Poland (which is close to 23,000 euros annually, according to the Economic Research Institute) or the Czech Republic (which is just over 26,000 euros, according to the Economic Research Institute).
It enhances team efficiency
When you outsource certain complex tasks and you focus on the company’s strengths by leveraging them, the results are not long in coming. In other words, by using nearshoring you allow team members to focus on the tasks they are good at, without any additional stress.
And to forestall concerns about cultural differences that may affect the smooth running of business, we emphasize that proximity plays a key role. This type of collaboration often takes place between neighboring countries with no (big) time zone difference and similar cultural traits.
VON Tech IT outsourcing, a valuable alternative
To enjoy all these advantages, you need to get in touch with professionals in the field. VON Tech has a vast experience in helping IT businesses grow! Among the main guiding principles of the company are flexibility, cost efficiency and quality consultants.
The technical consultancy division delivers hardware design and verification, as well as embedded software development services, application implementation and testing in telecommunications. VON Tech clients are mainly active in networking and semiconductors industries and all are top tier in their fields.
The company provides technical specialists, who can work either from the client’s offices or from their personal office. VON Tech comes with the most suitable recommendations so that the client’s needs and wishes are satisfied in an efficient manner, optimizing the necessary costs and time.