Introduction
The concept of nearshoring in Germany is increasingly becoming popular, especially when it comes to IT operations. Many companies are trying to minimise their expenses by having some of their information technology services handled remotely in neighbouring countries.
In 2019, a CBI report indicated that 77% of German businesses nearshored their software development services in Europe, and only 23% offshored to countries based in other parts of the world.
But this fact isn’t surprising in such an energetic and self-driven market. https://vontech.online/, a platform with experience in recruitment and outsourcing for more than 15 years, operating in Germany, the US, UAE, and SEE (3 locations in Romania), brings to attention key reasons why nearshoring is gaining ground in Germany and many other states globally. Let’s go through the following sections to unearth more.
What’s Nearshoring?
As a type of offshoring, nearshoring involves an organisation recruiting workers from neighbouring countries to complete services. For many organisations in Germany, nearshoring combines the benefits of offshore and onshore outsourcing since it provides the same proximity, language, and culture to the brand. However, nearshoring does so in a cost-efficient manner.
In simple terms, nearshoring offers the logistical and cultural benefits that working nearby offers, but with the cost-saving advantage, you cannot enjoy it at home. Some of the major benefits of nearshoring include the following:
- Less expensive labour costs
- Highly skilled workers beyond your home country’s geographical footprint
- Avoidance of language barriers
- Geographical proximity
- Cultural alignment
Why Nearshoring is Gaining Ground in Germany
As you’ve seen in the section above, nearshoring offers many benefits for organisations in Germany. Let’s look at some of these benefits:
Opportunity to Hire IT Experts in Europe without Immigration Restrictions
The current situation in Germany is that there is a shortage of information technology professionals. As a result, nearshoring allows German companies to remain competitive in terms of prices with countries such as the US, that have many IT experts. With nearshoring, German organisations are able to hire dedicated IT development teams affordably.
Avoidance of Language and Cultural Barriers
Germans share the same language and culture with some of the neighbouring countries. Most people in Germany can currently speak English which is the case with some of the neighbouring European countries.
That means they can easily communicate and understand each other as opposed to offshore outsourcing. Information technology experts in the neighbouring countries have tech talent and English proficiency, similar culture, geographical proximity and the same time zone.
Cost-Effective IT Projects
Germans are usually careful when recruiting remote developers. But they have found an experienced tech talent pool in the neighbouring countries. The tech skills shortage is a major challenge in Germany, but European countries have managed to offer a perfect solution for that concern. Additionally, these European countries, especially those from Eastern Europe, are typically low-wage, making them perfect nearshoring partners for Germany.
If you want to explore all these benefits that nearshoring provides in Germany, be sure to partner with a reputable recruitment and outsourcing company like VON Tech. With over 15 years of experience, you’ll be sure to hire the right development team for your IT projects.
