We interviewed Mr. Till Hahndorf, CEO of Sourceconomy and BW Business Bridge about his impression of the market situation in Germany, on hurdles for a speedier development and the (mis-)understanding between buyers and service providers.

Till, with your background in professional software services, consulting, working with both end clients in Germany and international service providers, your experiences in Eastern Europe you have a broad perspective on the topic of ITO and BPO in Germany, also in the mid-market segment.

From your perspective, how would you describe the overall current market situation in Germany?

We seem to move towards a two-tier industry: There’s a class of companies embracing the global nature of the IT industry and even shaping it. These aren’t necessarily all courageous pioneers or bold first movers. Rather, they’re focused, determined players who have made the global challenge an intrinsic part of their IT value creation.

And then there’s the much bigger group of companies who still stand ignorant or fearful and seem to be suffering a mental blockade when it comes to outsourcing decisions across national borders.

And while I’m far from applying Global Sourcing as a remedy for every imaginable IT challenge, I’m astounded to see how far away from a rational and fact-based decision making process most companies in IT still are. With a thriving economy and an agonizing shortage of IT skills, these are the days to find yourself a partner outside your own market and utilize this partners’ capacities as an integral part of your value creation. If you can’t do it today, when will you?

Capacities, talents, mature companies and business models are all available very close by at the nearshore destinations in Europe. However the development of the ITO and BPO market in Germany was and is comparably slow. From your conversations with clients and providers, what do you think are the reasons for that?

 

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