Alex Novytskyi: IT business in Germany (UA) UA Online IT Outsourcing Forum 2023 Spring Website - www.liof.org/online Youtube - https://www.youtube.com/startuplviv FB - https://www.facebook.com/ukrof

1. Kenner Soft Service
IT business in Germany
LIOF ONLINE 2023
Alex Novytskyi

2. • Technology trends and select
specialization
• Salary and tax review in
Germany
• Legal notice for IT business in
Germany
• Factors for making the decision
Agenda

3. More 12 years work in Germany
ecommerce software developing
About me
Oleksandr Novytskyi, PhD
CTO Kenner Soft Service GmbH
• Company optimization for code-fast delivery
• Hiring, training, and evaluating employees
• Architecture software experience
• Optimization IT business

4. • job advertisements that mention the language
• times the language is mentioned in web searches, as with Google
Trends
• references to the language found using a web search engine
• projects in the language on GitHub
• courses on the language sold by programming bootcamps
• postings on Reddit or Stack Overflow about the language
Methods of evaluation of technology trends

5. Indeed LinkedIn Indeed LinkedIn
Germany DE EN United Kingdom
PHP 5,294 8327 757 33,927 1,858 14,554
JavaScript 21,065 18531 2527 135,141 7,877 84,013
Java 39,544 36328 3197 159,329 6,328 90,414
C# 15,350 13997 1365 36,979 6,774 19,585
Visual Basic 921 605 313 2,424 2,152 1,692
ABAP 5,799 5572 226 14,022 66 865
Swift 1,224 885 340 1,000 3,692 2,721
DevOps 16,480 13617 2853 18,577 5,064 11,588
Python 19,625 14987 4609 147,360 12,478 101,171
C++ 15,866 12894 2949 124,271 5,801 90,523
SQL 24,755 22033 2710 168,046 17,054 119,045
Top position
Lead position
Easy to close
Statistics of mention in job advertisements

6. Example salary calculation

7. Employee calculation

8. Employer calculation
https://payroll-services-germany.com/how-much-will-an-employee-in-germany-cost-me/

9. E-Commerce
Average offered salary by experience and role
Source

10. E-Commerce
Freelancer rates from Germany 2020
Source
https://www.lyncronize.de/stundensatzvergleich-entwickler

11. Developing
80 euro/hour
DevOps
100 euro/hour
SEO
100 euro/hour
Consulting/PM
100 euro/hour
Developer for day
800 euro/day.
QA
70 euro/hour
Agency rates from Germany 2023

12. E-Commerce
Popular technology for ecommerce
Technology Websites % Amount local agency Competition level
Ecwid 79,804 18.56 7960
Shopify 63,985 14.88 5590
WooCommerce
Checkout
45,247 10.52 16 100
Shopware 34,892 8.12 38 400 High
Wix Stores 24,152 5.62 1750
ePages 18,605 4.33 29 800
Gambio 13,235 3.08 1400 Low
Magento 12,838 2.99 65 800 High

13. Interesting direction
Ecommerce:
Shopware, Oxid, Magento
CRM, ERP, PIM Systems:
Salesforce, SAP, Akeneo
Programmiersprachen:
Java, PHP, Python, .net, Node.js, React, Vue
Technology:
DevOps, BigData, Machine Learning & AI

14. E-Commerce
Closed
technology stacks Oxid eSales, Shopware,
Gambio,JTL,
Language barrier
only good level of German language is
accepted
Competition
Total count of local agencies are high
Long Sales
The sale phase is too long, more than 6
months
Decision making
Any making decision process is longer than
you can imagine
Obstacles on the German market

15. Requirements for success of the project
The estimate must
include
all expenses and risks
Quality is
more important than
speed
Decency in payments
is not the strongest
point
of some customers

16. How to check potential clients
https://www.handelsregister.de/rp_web/normalesuche.xhtml
• AD - Current hard copy printout
• CD - Chronological hard copy printout
• HD - Historical hard copy printout
• DK - Document view
• UT - Entity
• VÖ - Publications
• SI - Structured register content
https://www.unternehmensregister.de/
https://www.bundesanzeiger.de/
https://www.northdata.com/ - structure of company and financial
report

17. Why is it important to open a company in
Germany
Trust from potential customer A lot of banks from Germany do
not allow pay to Ukraine using by IBAN
Easy to pay and allow
connecting SEPA-Lastschrift
VAT is available for return
Responsibility according to the
German law
If you don’t have law address
you can’t buy a phone number

18. E-Commerce
Opening a company for working with clients directly
GmbH (25 000 euro) vs UG (1 euro)
Registration UG - from 350 euro
Registration GmbH - from 700 euro
https://www.firma.de/en/company-formation/how-to-register-a-company-in-germany-a-company-formation-checklist/

19. E-Commerce
Expenses for maintaining a company
Corporation tax + Trade tax 30 % from revenue
Accounting services from 200 euro/month
Bank 100 euro/month
Phone 40 euro/month
Post address 50 euro/month

20. Recommended tools for Company
• Bank: Penta https://getpenta.com/ or N26 https://n26.com/
• IP Phone services: Placetel https://www.placetel.de/
• Server and hosting: Hetzner https://www.hetzner.com/
• Web site components
• GDPR/DSGVO compliance
• Cookies (CookieBot)
• Impressum page
• Privacy policy (Datenschutzerklärung)
https://www.iubenda.com/en/privacy-and-cookie-policy-generator
• Terms and conditions (AGB or Allgemeine Geschäftsbedingungen)

21. E-Commerce
Ways of looking for new customers
• www.bark.com
• https://www.freelance.de/
• https://www.malt.de/
• Xing
• LinkedIn
• Personal Recommendation
• Cold call – is gray zone

22. E-Commerce
Lead classification by company type
•AG 50.000,00 EUR
•GmbH 25.000,00 EUR
•GmbH & Co. KG 25.000,00 EUR
•UG (1-Euro-GmbH)
•KG (at least 2 founders) , UG & Co. KG

23. E-Commerce
For example https://www.moebel-shop.de/

24. E-Commerce
Advice
•Avoid poor German
•Comply with legal requirements (Show that you have
nothing to hide and disclose all information about your
company in an "Impressum")
•German address & entity
•Study the customer carefully before work

25. Novytskyi Oleksandr
+49 721 957 946 70
o.novytskyi@kennersoft.de
https://www.linkedin.com/in/oleksandr-novytskyi/