This trend is contributing to major changes across the German economy. Germany has primarily been known internationally for its industrial production. Its reputation as a service location has rarely extended beyond its own borders. But B2B companies that offer services to corporate customers are now booming in the country – and opportunities for growth extend to their foreign providers.
Now SMEs are outsourcing too
The outsourcing of processes in the areas of human resources, accounting, IT, and customer care is no longer solely something for large corporations. Even SMEs, which typify Germany’s economy, are increasingly open to cooperation with external service providers, if only under certain conditions, explains Josefine Dutschmann, industry expert at GTAI. “German SMEs are often so-called ‘hidden champions’ – they are internationally very successful in their respective niches, but at the same time they are also strongly anchored in their home market,” she says.
“In order to win the trust of German corporate customers, it is therefore very important to have a local team that is familiar with the local market conditions.” That doesn’t necessarily mean that foreign providers of corporate services have to set up large local teams, or that they can’t offer services from foreign locations, “but at least one German-speaking sales team should be based locally if you want to be successful here, and ideally there is a German-speaking delivery center with specialists who are in close contact with corporate customers.”