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Nearshore outsourcing in the IT industry

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Many profitable companies use nearshore outsourcing as part of their development strategy. 79% of the Dutch IT companies we surveyed confirmed that they will continue to outsource IT services at the same or a higher pace. 56% of German companies in our survey said they outsource IT tasks to external service providers.

Many companies are now taking advantage of the benefits that nearshore outsourcing offers businesses. We’ve gathered some statistics about software development in two of the most popular locations for nearshore outsourcing, Southern and Eastern Europe.

Nearshore outsourcing in Southern Europe

According to the Global Sourcing Association (GSA), the region has become an attractive location for nearshore outsourcing thanks to the low cost of qualified personnel and a large number of well-trained, bilingual, skilled IT professionals.

Other advantages include good control capabilities, better inventory management, no visa requirements, and easy procurement and logistics processes with easy communication with culturally close partners.

The total value of the Southern Europe market is $12,484 million with an expected annual growth rate of 3.3% through 2021.

Eastern Europe is a great alternative for companies considering integrating offshore or nearshore outsourcing into their development strategy. Eastern Europe offers access to a, comparatively, large pool of IT professionals who are both relatively cheap and highly skilled.

The agony of choice – nearshore outsourcing in Eastern and Southern Europe: What do Dutch and German companies choose?

77% of the German companies surveyed prefer to stay in Europe when developing their IT projects.

66.6% of the Dutch companies from our survey outsource their software development within Europe.

If you are also considering nearshore outsourcing and would like to set up a development team in a country outside Germany, just write us.

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