Germany: The Top Destination for Software Engineers

June 22, 2023

8 min read

Germany is a country with the 5th largest economy in the world and a very low unemployment rate, but there is still a demand for some professionals. The list of occupations that are in great demand in

Germany: The Top Destination for Software Engineers

Germany nowadays is headed by computer science, IT, and software development. It means that these skilled candidates have a good chance to be employed in this country which is often recognized as the best place for software engineers to work. What is it like to be a software engineer working in Germany, and what is important to remember about working in this sphere? This article will reveal several secrets for you!

Germany’s Reputation as a Leading Country for Software Engineers

Germany is home to the world’s leading tech companies, including such renowned names as SAP, Lufthansa Systems, Soundcloud, and Siemens. It’s no wonder that software development is booming there, and it has one of the leading software markets in Europe nowadays. There are over 900k software engineers working in Germany, and 42 local universities offer courses for learning this profession as well.

As recently as 2019, there were 94k software and IT service companies in the country, and LinkedIn suggests that there are 40k+ available software job openings in this European state.

The German IT market is expected to achieve a value of $129 billion by 2025. This incessant growth and promising future can face the problem of a talent shortage. Many IT graduates continue their careers in the US and Switzerland, so Germany lacks these specialists and creates a welcoming environment for software engineers from other countries as well.

The Main Technology Centers and Cities in Germany, such as Berlin, Munich and Hamburg

Speaking about Germany, jobs for a software engineer can be found all around the country, but there are destinations where the chances to get them are much higher. These are the 3 largest cities in Germany.

Berlin

Berlin is home to an alternative to the well-known Silicon Valley, which is called the Silicon Allee. This is a campus that has one of the most diverse and inclusive startup ecosystems in the world. Currently, the capital of Germany is home to around active 2,500 startups with an attractive startup capital of $2.7 billion and an ecosystem value of $32.7 billion. 11% of local startups moved to Berlin from other countries, since it is currently the EU business capital. It is also easier to launch a new startup in this city since it takes only 7 days and costs only $827. Entrepreneurs can even receive financial support from the government during their first months there.

Munich

Munich is also a great spot to start a tech career, especially if you are interested in app development, drone creation, AI, and many other advanced enterprises. This city is often called the Silicon Valley of Europe  And it’s also the 4th biggest tech hub on the European continent, asmany world-renowned companies have established their departments in this city. Tech experts can try getting a position in leading companies such as IBM, Amazon, Microsoft, Intel Corporation, and many more. There are over 1,300 startups in Munich with an overall value of 17 billion. One more important fact is that Apple chose Munich as its European Silicon Design Center and is going to invest a billion euros by 2024.

Hamburg

Another city that is advantageous to become a software engineer in Germany is Hamburg. This destination was first recognized as a tech hub after Google opened its office there back in 2001. Later Facebook and Airbnb followed their example, and now the entire list of companies seeking software engineers and other tech talent is rather significant in Hamburg. These tech giants are many, including Twitter, Dropbox, Microsoft, Hootsuite, etc. According to LinkedIn, there are approximately 17k open IT positions in this city, and the number of startups there is estimated to be 253 per 10,000 people, which is the highest in the country. Moreover, a new digital campus known as “HammerBrooklyn” has been constructed there to become a number-one spot for experimenting, cooperating, sharing knowledge, and bringing innovations to fruition.

Benefits of Working in Germany as a Software Engineer

It goes without saying that the main question that interests job applicants is what the average salary of a software engineer in Germany is, and what benefits one can receive by working at this position. Here are some ideas worth considering!

High Quality of Life

The Federal Republic of Germany was recognized as the 11th in the world in life ranking by Numbeo. People living in this country have a high purchasing power and excellent ranking in other criteria such as like safety, climate, cost of living, healthcare, etc. There is a lower VAT than in many other European countries, and Germany is the 22nd safest country in the world to live in as well. It is a highly-developed state with excellent infrastructure, a strong economy, and a variety of entertainment and cultural options to achieve a good work-life balance. 

Positive Work Culture in Germany

The working traditions of Germans are primarily formal and professional, which results in better productivity while working a smaller number of hours. Local business culture has a well-defined hierarchy, with accurately defined roles and clear responsibilities. Local people consider work relationships very important and communicate directly and specifically.

Many people have heard about the punctuality of Germans, and this good trait impacts the quality of work positively as well. They carefully plan every appointment or meeting and often suggest a probation period to new employees before offering them a permanent job. The average working week in Germany lasts from 36 to 40 hours from Monday to Saturday, but flex-time and remote working have become a popular tendency as well. Employees are offered many benefits and can also be promoted for high-quality work at anytime.

Software Engineering Salaries in Germany

The German national minimum wage is €9.50 an hour, but IT specialists are paid much higher. The salary of a software engineer in Germany is around €60,000 on average, while the hourly rate is €19. Naturally, this number can fluctuate because of education, experience, and specialization. Therefore, the hourly rate may range between  €20 and €149. These are not the only factors impacting the engineering salary in Germany, since even the location matters here too. For example, southern regions usually have higher salaries than others. When it comes to the Berlin software engineer salary, its average is much higher and stands at $85,000.

High Demand for Software Engineers in Germany

One of the most common challenges in the German software development market is a lack of skilled talent. Despite thousands of IT graduates who finish university and college each year, the number of offers in the IT industry exceeded 86,000 in 2020, and this gap is only increasing. The study carried out by a digital association called Bitkom shows that the number of job positions in tech industries achieved a growth rate of 51% within only a year, so the talent shortage in Germany will continue to be a major problem. No wonder there are jobs in Germany for Indian software engineers and professionals from many other countries as well.

Conclusion

Now it is not surprising why Germany is called the best place for software engineers and why this encourages tech talent from different parts of the world to seek employment in this country. Of course the high quality of life, competitive salary, huge selection of vacancies, and the possibility to work with global tech companies can attract the most skilled and experienced professionals, and encourage them to change their place of living in favor of Germany.

However, the inability to cover this talent shortage leads to the necessity of using professional assistance in this sphere, and this is where StaffingPartner is an indispensable tool. This agency provides German software development companies with the best talent and allows them to work for the world’s leading companies and organizations!

FAQ

What makes Germany an attractive destination for software engineers?

This country offers a high standard of living, safety, work in the world’s leading tech companies and promising startups, excellent social security for all employees, and a competitive salary.

How competitive are the salaries and benefits for software engineers in Germany?

They are similar to software engineer salaries in Belgium and Netherlands, but they are significantly higher than in neighboring countries such  as Poland, Romania, or Hungary. The same goes for benefits, since all employees can contribute to the social security system, including pension provision, unemployment benefits, and public health insurance.

What are some of the key industries in Germany that require software engineers?

The top 5 industries that are in constant need of software engineers are retail, financial and banking services, healthcare, business, and IT, as well as government and defense.

Why is there a high demand for software engineers in Germany?

Almost 100k students graduate in software development every year, but many of them leave the country in search of new employment markets and much higher earnings. Some engineers lack the experience and skills to face new challenges and cope with difficulties in their professional paths, so all of this leads to a bigger demand for skilled IT software engineers.

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