Europe’s Developer Shortage Is Real — Here’s How Founders Are Solving It with Offshore Teams

Europe’s Developer Shortage Is Real — Here’s How Founders Are Solving It with Offshore Teams

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Gaurav Kumar

19 Jul 2025
Developer shortage in GermanyIT skills shortageOffshore development teamSoftware developers from abroadDevelopers from Eastern EuropeNearshore development in GermanyDeveloper shortageIT skills shortageOffshore developersNearshore develop

“We’re growing fast, but we can’t find developers fast enough.” Sounds familiar? If you’re a founder or VP in Germany, the Netherlands, or anywhere in Europe, this probably hits home. The developer shortage in Germany (and beyond) is more than just a hiring hiccup; it’s a serious bottleneck that’s stalling product launches, stifling innovation, and inflating hiring costs across the board.

The good news? You’re not out of options. The European companies 

European companies are addressing the IT skills shortage by outsourcing to offshore development teams, with notable results. Let’s break it down, ask the tough questions, and see what’s working right now.

Is the Developer Shortage in Germany Really That Bad?

Yes. Currently, almost 137,000 unfilled IT roles exist in Germany, and the number is significantly growing. Local universities aren’t producing enough graduates, and Big Tech or international offers are constantly luring away experienced developers.

So you’re competing not only with startups in Berlin and Munich, but with remote-first Silicon Valley firms, too. This developer shortage in Germany isn’t a temporary talent gap. It’s a structural issue that will take years to fix, and that’s time founders simply don’t have. So here’s the real question:

How are other companies moving forward while the hiring market stays frozen?

What Are Offshore Development Teams And Why Are They Working?

Your offshore development team could be a replacement for in-house hiring or a strategic extension of it. The process you go through is still the same. YOU have set vision, your own roadmap, and everything including culture and time zone alignment but this eliminates your 4-6 months of hiring a developer and next 3-4 weeks onboarding and getting accustomed to their job. 

You get access to:

  • Backend & frontend developers
  • DevOps engineers
  • Designers
  • QA testers
  • Scrum masters or team leads (if needed)

And you stay in control. The team works in your time zone, follows your process, and reports to your product or engineering leadership. With the IT skills shortage only deepening, this is how smart founders are reclaiming momentum.

Why Developers from Eastern Europe Are in High Demand

Let’s talk geography. When it comes to developers abroad, founders increasingly prefer developers from Eastern Europe, and for good reason.

Here’s what makes nearshore development in Germany so attractive:

  1. Skill + Education

Due to increase in the startup custom and drastic shift towards building and integrating high tech softwares, the need of skilled software engineers is growing rapidly.

  1. Time Zone Proximity

With just a 1–2 hour difference from Central Europe, collaboration is seamless.

  1. Communication

Most developers speak fluent English and are experienced with agile, remote work.

  1. Compliance

Most countries in the region already follow GDPR-friendly practices, making legal alignment easier.

This is why developers in Eastern Europe are among the most trusted and hired offshore talent pools for European businesses today. 

However, to bridge the gap of talent Indian software developers fulfills all these requirements precisely in justified prices and global standards. 

But Isn’t Offshore Just a Code Word for Cheap

This is where many founders get it wrong. Hiring offshore developers used to be associated with low cost and questionable quality. But that’s no longer the case.

Today’s top offshore development teams bring:

  • Senior-level experience
  • Proven delivery for EU & UK companies
  • Structured processes, clear documentation
  • Real-time communication and integration

This isn’t outsourcing for cost-cutting. It’s team-building across borders.

And when you hire a dedicated team through a trusted partner, you’re not sacrificing quality; you’re scaling with confidence.

Real-World Example: How Startups Are Winning with Offshore Developers

Let’s say you're a fintech startup in Munich.

You need:

  • A React frontend dev
  • A Node.js backend dev
  • A DevOps specialist
  • And you needed them yesterday

You’ve tried:

  • LinkedIn job posts
  • Recruiters
  • Referrals
  • And still... nothing solid

Now you partner with a provider (like us) who builds offshore development teams.

In 2 weeks, you have:

  • 3 candidates per role to interview
  • Full legal contracts and an NDA in place
  • Developers are integrated into your GitHub, Slack, and Jira

By week 3, your MVP development is back on track. By month 2, you’ve saved €60K in hiring costs. By Q3, you’re pitching to investors with a live product.

That’s the offshore advantage, and it’s working every day for startups across Europe.

Hiring Dedicated Offshore Teams: What to Expect

At WebOConnect, we provide a dedicated team for hiring that gives you:

  • Full-time, handpicked developers
  • Complete team control, you manage tasks, priorities, and velocity
  • Scalable engagement, grow from 2 to 20 developers as needed
  • Legal & operational peace of mind

We don’t just “assign” developers. We help you build your global tech team, embedded into your culture and goals.

5 Questions Every Founder Should Ask Before Hiring Offshore

1. Are these developers exclusive to us?

Yes. In a dedicated team model, your team works only for you.

2. Will they match our work hours?

Absolutely. We align time zones based on your schedule, especially with nearshore developers from Eastern Europe.

3. Can we start small?

Definitely. Start with 1–2 developers and scale based on comfort and workload.

4. What about IP and security?

We ensure GDPR compliance, full IP protection, NDAs, and encrypted systems.

5. Can I replace a developer if needed?

Yes. We guarantee team flexibility and quick replacements if needed.

Mistakes to Avoid While Hiring Developerment Teams

Mistake #1: Only focusing on the Cost

Consider value, not only cost. The cheapest dev isn’t always the most efficient.

Mistake #2: Not integrating the team
Your offshore team should be part of standups, retros, sprint planning, and everything.

Mistake #3: Treating offshore teams like vendors
A dedicated team is a strategic asset. Build culture. Share wins. Treat them as your own.

FAQs 

Q: Is the developer shortage in Germany temporary? How to deal with Shortage of developer in Germany?

No. The shortage is expected to worsen through 2026 unless alternative hiring strategies are adopted. To deal with the shortage of Germany one can hire offshore and nearshore developers. The best option is to hire dedicated resources with no long term commitment from India. As Indian developers justify the pricing and meet the global standards, it is easier to accustom with them for your vision. 

Q: What’s the best region for hiring developers abroad?

For most EU companies, developers from Eastern Europe is becoming a critical shortage. However, the Indian developers brings an ideal balance of quality, timezone alignmen, and cultural adaptability.

Q: How do I know if offshore is right for me?

Being an European startup or an enterprise you will need the best set of developers to have an edge over the competition. To create a stong reputation, you need a stronger team. With the shortage of developers available for hiring, many businesses are struggling to hire locally for 3+ months, this is your time to explore offshore development teams options providing no compromise in the quality.

Q: What if we need to scale fast?

That’s the beauty of dedicated teams: you can scale from 2 to 10+ engineers in one weeks. At WebOConnect, we provide you with the pre-vetted developers with the wisdom of various langauges and experiences. To get an idea of the cost of such developers, WebOConnect have this calculator that helps in budgeting and estimation for scaling using Indian developers. 

Final Thoughts

Europe’s developer shortage isn’t going away. But that doesn’t mean you have to fall behind. Thousands of companies are regaining control of their roadmap, not by waiting out the market, but by hiring developers from abroad and building elite offshore development teams tailored to their needs.

At WebOConnect, we help European tech companies build dedicated teams that deliver fast, reliably, and securely. Ready to Build Your Offshore Dream Team?

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