Nearshoring remote IT teams is one of the best solutions available for German organisations that want to ensure their joint tasks are completed on time and accurately without encountering any negative consequences.
The nearshoring idea is becoming increasingly popular in Germany, especially in the tech sector. Businesses in Germany are trying to reduce their expenses by subcontracting their IT services to remote teams. Doing so helps boost:
- Cost savings and
Most organisations in Germany have shifted some of their system development and management as well as hardware tasks offsite. It’s crucial to keep in mind that not every task needs to be outsourced to remote teams. An organisation outsources IT tasks when its onsite team is overwhelmed, and there is limited talent in the home country.
Based on the CBI report of 2019, only 23% of companies in Germany offshored their IT tasks to countries outside Europe. 77% of German businesses nearshored their information technology projects, especially software development in Eastern Europe.
Since Germany is such a dynamic market, this fact comes as no surprise. https://vontech.online/, a recruitment and outsourcing company with over 15 years of experience operating in the US, Germany, SEE (3 Romanian locations) and UAE, brings to attention major reasons why the nearshoring concept has become more popular.
What is Nearshoring?
Nearshoring IT projects involves recruiting information technology experts from neighbouring states to offer certain services. Many organisations choose to nearshore their IT tasks since they enjoy the benefits of both onshore and offshore outsourcing. Nearshoring is preferred since it offers the same:
- Proximity and
However, it manages to achieve all these in an affordable manner. Nearshoring allows German companies to enjoy the logistical as well as cultural benefits of working onsite. However, this comes with a cost savings advantage that they can’t just find domestically. The main benefits that nearshoring in Germany offers are:
- A similar time zone
- Geographical proximity
- Language barriers and cultural avoidance
- Affordable labour
Reasons Why Nearshoring is Becoming More and More Popular in Germany
You have already come across some of the benefits that nearshoring offers in the section above. Now let’s narrow down to Germany and see how companies are benefiting from this concept.
- Allows German companies to tap into a worldwide pool of highly skilled tech experts: With nearshoring, organisations in Germany can onboard highly skilled IT professionals from neighbouring countries without worrying about immigration compliance. Germany is experiencing a shortage of information technology workforce. And the only perfect solution to this is nearshoring as it provides organisations with the opportunity to compete favourably regarding prices compared to countries such as the USA that are full of tech talent.
- No language and cultural differences: Many IT experts in Germany and the neighbouring countries speak both English and German. That means they share the same languages, cultures, time zone and geographical proximity, which are crucial when it comes to communicating and working on IT projects.
- Affordable tech talent: Another huge benefit that German companies enjoy is the affordable tech talent that European countries offer. Most Eastern Europe countries are low-wage states, enabling them to offer affordable labour for companies in Germany.
Nearshoring remote IT teams is, therefore, one of the best solutions available for German organisations that want to ensure their joint tasks are completed on time and accurately without encountering any negative consequences. If you’re considering nearshoring, working closely with experienced recruitment and outsourcing organisations like VON Tech will be beneficial.