Nearshore teams: The benefits of collaboration in software development

Even in the area of responsible IT outsourcing, companies can achieve significant cost advantages and avoid disadvantages such as a shortage of skilled workers and increased salaries in Germany. Although the hourly rates of providers who do not focus on sustainability may seem lower at first glance than the hourly rates of sustainable providers, these additional benefits should not be overlooked.

Below we list some important aspects of responsible outsourcing that can have long-term economic benefits for the outsourcing company compared to “conventional” outsourcing without consideration of social aspects:

Positive Corporate Reputation and Customer Loyalty

Consumers and commercial customers are increasingly interested in ethical business practices and tend to prefer brands that share their values. They increasingly question the social and ecological sustainability of services and consumer goods. Companies that actively promote social responsibility and sustainability are therefore increasingly preferred by customers and business partners, sometimes despite higher prices (e.g., organic products).

Proof of social sustainability will also increasingly have a positive impact on purchasing decisions in the future. By partnering with an IT outsourcing company committed to social and sustainable principles, companies offering services to their customers can strengthen their own reputation and ultimately their economic success.

High Availability and Long Retention of Highly Qualified and Motivated Talents in the Team

Outsourcing companies that take their social responsibility seriously often attract professionals in the target country who are not only highly qualified and the best in their profession but also have a strong personal value compass. Our team members also value principles such as gender equality and a positive working atmosphere, which is one of the reasons they work with us. This makes it possible to form committed and motivated teams that identify more strongly with the company’s vision. This can avoid high team turnover and reduce the need for frequent onboarding and learning phases.

Risk Reduction with Increasing Compliance and Reputation Risks

By collaborating with a partner who strictly adheres to social standards and pursues sustainable practices regarding working conditions, environmental protection, and human rights, companies can reduce potential reputation and compliance risks.

Social and sustainable IT outsourcing also reduces the risk of violating existing and upcoming voluntary or mandatory social standards. This includes, for example, the supply chain laws widespread in Europe or the CSRD and other already announced EU-level guidelines. By cooperating with responsible outsourcing companies, companies can ensure that they comply with all relevant guidelines.

Promotion of a Sustainable Corporate Culture

By supporting social and sustainable IT outsourcing, companies not only signal their values externally but also promote a culture of social commitment and sustainability internally. In addition to the aforementioned customer loyalty, this can also be an important signal to (current and future) locally employed workers.

In conclusion, social and sustainable IT outsourcing leads to a win-win situation for companies and outsourcing employees. It shows that taking advantage of global supply chains does not necessarily lead to the structural disadvantage of certain groups but that all participants can benefit.