Why Germany’s Global Services Market Is Not Like the Nordics
In a recent blog I shared Everest Group’s prediction about the short-term nature of the global services market in the Nordics. Germany is also a bright star in the global services arena. However, in contrast to the Nordics, we believe Germany’s market will not mature quickly.
Germany is relatively early on in its adoption of global services. As is the case in the Nordics, global service providers serving the German market are dealing with some structural inefficiencies in Germany’s labor market. Companies are increasingly using third parties to overcome some of their constraints around labor market rules. And German firms are hungry to apply technology into their businesses.
But the market differs from the Nordics because it’s significantly larger and broader. The German market is not concentrated in a relatively few large companies. It has large and medium-sized companies in a huge market that looks to be systematically utilizing global services to address labor market challenges.
Therefore, we believe that the growth of the German market will be long, projected and unlike the Nordics, which we think will mature quickly and be short lived.