Germany’s strong economy has led it to become one of the heaviest IT services consumers and largest outsourcing markets in Europe, with a particular focus on Business Process Outsourcing.
The country is undergoing a series of changes aimed at creating an environment of increased flexibility and competitiveness and this is a strong driver for most large and medium-sized German companies to rethink their processes and sourcing strategies. In addition, we are increasingly seeing German companies adopt near-shore and offshore sourcing strategies to help achieve their overall business objectives.
As a result we are currently witnessing the following trends in the region:
- captive centres and spin-off IT departments of large firms are still dominating the landscape;
- shared services and outsourcing models are becoming more common;
- nearshore locations are being used aggressively but scalability and access to resources are a problem for many firms; and
- offshore, although small, is a key part of sourcing for all top German firms.
Germany’s business landscape is transforming rapidly. The maturity of the German economy combined with greater competition in the global market is driving organisations in the region to focus more on reconsidering their key value propositions and cost reduction strategies by pooling and sharing of resources. In the longer term, this will enable companies to achieve better, more streamlined processes, standardise operations, implement business solutions quickly and will ultimately lead to cost effectiveness and a good quality service.
EquaTerra incorporating Morgan Chambers has advised a number of large organisations in the region such as Daimler Chrysler, Bayer and Linde at all stages in the Sourcing Lifecycle. From working with a client to create an initial sourcing strategy through to evaluating the effectiveness of an existing solution, our advice ensures organisations get the most from their sourcing arrangements.
EquaTerra (formerly Morgan Chambers) supported Linde in the harmonisation and offshoring of its F&A functions. Download our case study to find out more.
- For more information on Germany please contact Juergen Hirschberg.