We have just released the new “German IT Outsourcing Intelligence Report 2012” that is available for free download here. The Report is based on the results of the 3d Annual German IT Outsourcing versus In-House Software Development Survey.
About the Survey
The survey was conducted in November, 2012 among 764 German companies, of which 398 were IT / software development outsourcing companies and 366 – companies developing their IT / software solutions internally.
The Key Takeaways
- Web and mobile technologies are the most outsourced solutions in Germany, while SaaS/Cloud services are at the bottom
- Reduction of operating costs is the top factor that drives most of German companies to outsource development
- Cultural proximity and resource pool are among the main aspects in choosing the outsourcing destination
- More than 55% of German companies find their ITO partner(s) via online research
- Onshoring (outsourcing within Germany) is the most preferred outsourcing destination
- More than 77% of German companies don’t know the exact salaries of each employee on their outsources development team
- Among the Top 3 challenges in software development outsourcing are: poor communication with vendor’s project teams, poor project management on vendor’s side and cultural difference
- “Fixed-price/T&M project” is the most frequently used business model in outsourcing
- The majority of German companies spend only up to 19% of corporate budgets on IT/software development