The preliminary results of the Second Annual German IT Outsourcing Survey 2011 demonstrate that the prevailing majority of outsourcing companies in Germany are mid-sized, specialize in B2B services and transfer their development nearshore.

IT Sourcing Europe, a UK-based IT Outsourcing (ITO) market intelligence company, is currently surveying German companies in terms of their outsourcing behaviors, trends, challenges and best practices. The preliminary results of the 2011 research demonstrate a more intensive usage of IT/software development outsourcing services within German business community, compared to 2010. The following trends are currently observed on the German ITO scene:

  • The majority of German outsourcing companies surveyed are mid-sized (50-99 by headcount), while only 5% are large (more than 1000)
  • The greatest demand for ITO services comes from software development companies (B2B)
  • Most of German outsourcers expect 10%-19% revenue growth in 2011
  • Most of companies that do staff augmentation have 3 to 5 specialists on their outsourced teams and most of the ITO projects are valued at EUR 50-199K
  • Web and mobile solutions are most outsourced, while Cloud/SaaS solutions are least outsourced in Germany
  • The majority of German outsourcers multisource their solutions (i.e. have more than 1 ITO partner)
  • Nearshore is the most preferred, while offshore is the least preferred ITO destination in Germany
  • The top 3 drivers of outsourcing decisions are: cost reduction, shortage of domestic IT skills and resources and acceleration of time-to-market (TTM)
  • Poor communication with ITO partner’s project management and/or development team(s) is the biggest challenge facing outsourcing companies in Germany
  • Most of German companies find their ITO partners via personal networking

The survey is being in progress and the final results, including ITO costs, issues of in-house development, reasons keeping companies away from outsourcing etc, will be announced in the Outsourcing Journal, the leading German speaking region’s publication, at the end of 2011. Companies participating in the survey will receive the results in October 2011.


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