{"id":8127,"date":"2021-10-20T03:03:50","date_gmt":"2021-10-20T03:03:50","guid":{"rendered":"https:\/\/berg-software.com\/?p=8127"},"modified":"2022-06-23T09:54:13","modified_gmt":"2022-06-23T09:54:13","slug":"the-software-industry-during-disruptive-times","status":"publish","type":"post","link":"https:\/\/www.berg-software.com\/en\/the-software-industry-during-disruptive-times\/","title":{"rendered":"The software industry during disruptive times: India vs. non-EU Europe vs. Romania"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.4.1″][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.7.7″ title_font=”||||||||” title_text_color=”#ff6317″ title_font_size=”3.5em” meta_font=”|300|||||||” meta_text_color=”#ffffff” meta_font_size=”1em” background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_start=”rgba(248,248,248,0.85)” background_color_gradient_end=”rgba(248,248,248,0.75)” background_color_gradient_overlays_image=”on” min_height=”20vh” height=”400px” custom_padding=”6vh||6vh||false|false” global_module=”403″ locked=”off”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”intro” _builder_version=”4.4.6″ custom_padding=”|||0px||” locked=”off”][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ _module_preset=”default” custom_margin=”||||false|false” custom_padding=”6vh||||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.7.7″ _module_preset=”default”][et_pb_text _builder_version=”4.7.7″ _module_preset=”default” text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”||||false|false” border_color_left=”#ff6317″]<\/p>\n

During the last 18 months, virtually every industry and market have gone through major disruptions, and the software industry could not stay untouched. Digitalization<\/a> of legacy businesses has been a huge topic, as everyone \u201cturned it up to 11\u201d<\/a>. Nowadays, no new businesses start without \u201cdigital first\u201d. And the software development force that was supposed to drive them all is just being reshuffled.<\/p>\n

At Berg Software, we have seen increased<\/span> hot demand for software development<\/a> since spring 2020, and it doesn\u2019t seem to slow down. When looking into \u201cwhy?\u201d, (besides of us doing a great job) we see that EU-based clients are moving their software projects to partners that (A) are more resilient, (B) deliver high-quality results, and (C) can accommodate EU\u2019s strict data protection regulations. All this, at a moment when traditionally high-volume markets can\u2019t deliver at full capacity.<\/p>\n

So, let\u2019s look at some specific cases, shall we?<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”4vh||0px||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]<\/p>\n

India<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]In the software industry, India is the big elephant in the room that can carry huge volumes with skilled personnel. With its IT services sector valued at $ 99 billion\/year and software development at $ 9.2 billion\/year (both figures according to FT.com<\/a>), even the smallest incapacity would send ripples across the global software ecosystem.<\/p>\n

Already back in April 2020, IDC was sending worrying signals<\/a>: \u201cIT software and services vendors are facing a situation in which they need to continue servicing their clients while taking care of their employees and communities. <\/em>[\u2026]<\/em> Keeping the employee morale high is key.<\/em>\u201d<\/p>\n

As of 2021, the concerns legitimately turned into worrying and caring for the employees and their families. Quoted by FT.com<\/a>, Arvind Krishna, chief executive of IBM, says that \u201cI\u2019m more worried about the long-term impact on some of the families.<\/em>\u201d While Vinod AJ, general secretary of Forum for IT Employees, sees that \u201cMany companies are looking for 24 hours support for [clients in] the US and other parts of the world. They\u2019re not able to give that much support.<\/em>\u201d The effect is that the pandemics have \u201cdented that confidence in the resilience [<\/em>client <\/em>companies] thought India delivers<\/em>\u201d \u2013 according to DD Mishra, a senior analyst at Gartner.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”4vh||0px||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]<\/p>\n

Europe, non-EU<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]Back in Europe, the biggest issue is capacity \u2013 there is no local market that can compete with India when it comes to software development volumes. However, relative to other European countries, Ukraine comes pretty close.<\/p>\n

April 2020 was a bad moment for Ukrainian software development companies, too. \u201cJob vacancies plummeted<\/em>\u201d (source: Forbes<\/a>), while the country\u2019s [2020] \u201cGDP contracted by 4.4 percent and exports fell by 4.6 percent<\/em>\u201d (source: BBC<\/a>). But then, by the end of summer, Ukrainian companies started to recover, eventually seeing a 20% yearly increase in the local IT market.<\/p>\n

A lot of this growth is driven by US-based clients, sometimes via Ukrainian expats. If skills, volume, and prices are your software outsourcing criteria, then non-EU Eastern Europe (Ukraine, Russia, but also Serbia) might be the place(s) to look for.<\/p>\n

However, for EU-based clients, subject to stricter EU regulations, this might be good-but-not-enough.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” _builder_version=”4.7.7″ custom_margin=”||||false|false” custom_padding=”4vh||0px||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.4.1″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]<\/p>\n

Romania, EU<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”|20px|||false|false” border_color_left=”#ff6317″]One of the most defining digital regulations in the EU is the famous GDPR\/General Data Protection Regulation 2016\/679<\/a>. It addresses data protection and privacy within the EU, and the transfer of personal data outside it. As of its implementation in 2018, it caused non-GDPR companies’ user leakages of up to 20%.<\/p>\n

Therefore, when looking for high-quality software development and<\/u> EU-regulatory compliance, it is more convenient for EU-based companies to source their software development with EU-based providers \u2013 at least for projects that have anything to do with users\u2019 personal data. (And nowadays almost every software has at least a login interface and database that can be subject to GDPR.)<\/p>\n

For Berg Software (and other Romanian software development companies) the overheated digitalization trends, superimposed on the strict privacy regulations, resulted in 18 months of double-than-regular demand. By caring for our employees’ well-being; switching to remote work modes early on; and focusing on deliverables, we were able to successfully take on all the challenges that came our way.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.4.1″ custom_padding=”|||0px||” locked=”off”][et_pb_row use_custom_gutter=”on” gutter_width=”3″ admin_label=”\uff3f” _builder_version=”4.4.6″ custom_margin=”||||false|false” custom_padding=”4vh||8vh||false|false” border_color_left=”rgba(0,0,0,0)”][et_pb_column type=”4_4″ _builder_version=”4.4.6″][et_pb_text _builder_version=”4.7.7″ text_font=”||||||||” text_font_size=”1.1em” text_line_height=”1.6em” quote_font=”|700|||||||” quote_text_align=”left” quote_font_size=”16px” header_2_text_color=”#ff6317″ header_2_font_size=”1.5em” header_2_line_height=”0.9em” header_3_font_size=”23px” header_4_font=”||||||||” header_4_font_size=”16px” header_4_line_height=”1.5em” header_5_font_size=”14px” custom_margin=”||||false|false” custom_padding=”||||false|false” border_color_left=”#ff6317″]<\/p>\n

\uff3f<\/h2>\n

While we are aware that there are other software markets that we didn\u2019t cover (e.g., South Americas), those are markets that we don\u2019t regularly cross paths with. However, for our contact markets, we think that this map correctly describes the current competitive landscape of the software industry:<\/p>\n\n\n\n\n\n\n
<\/td>\nCapacity during regular times<\/td>\nCapacity during \u201cthese\u201d times<\/td>\nFull compliance w\/ EU regulations<\/td>\nCost level<\/td>\n<\/tr>\n
India<\/strong><\/td>\n\u2605\u2605\u2605\u2605\u2605<\/td>\n\u2605\u2605\u2605\u2605\u2605<\/span><\/td>\nNo<\/span><\/td>\n\u20ac<\/strong>\u20ac\u20ac\u20ac\u20ac<\/span><\/td>\n<\/tr>\n
Ukraine, non-EU<\/strong><\/td>\n\u2605\u2605\u2605\u2605\u2605<\/span><\/td>\n\u2605\u2605\u2605\u2605\u2605<\/span><\/td>\nNo<\/span><\/td>\n\u20ac\u20ac<\/strong>\u20ac\u20ac\u20ac<\/span><\/td>\n<\/tr>\n
Romania, EU<\/strong><\/td>\n\u2605\u2605\u2605\u2605\u2605<\/span><\/td>\n\u2605\u2605\u2605\u2605\u2605<\/span><\/td>\nYes<\/strong><\/td>\n\u20ac\u20ac<\/strong>\u20ac\u20ac\u20ac<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Regardless of where you source your software development, please just consider that the software industry is being repositioned and that some of the humans behind it need your compassion and understanding before they return to normal.<\/p>\n

Until then: stay safe and healthy![\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22″ background_color=”#eeeeee” custom_padding=”50px||50px||false|false” border_color_top=”#ff6317″ global_module=”1642″][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.4.1″ custom_padding=”0px|||||” locked=”off”][et_pb_column type=”1_3″ _builder_version=”4.4.1″][et_pb_social_media_follow _builder_version=”4.4.4″ text_orientation=”left”][et_pb_social_media_follow_network social_network=”linkedin” url=”https:\/\/www.linkedin.com\/company\/berg-computers-srl\/” _builder_version=”4.4.4″ background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]linkedin[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”twitter” url=”https:\/\/twitter.com\/berg_software” _builder_version=”4.4.4″ background_color=”#00aced” follow_button=”off” url_new_window=”on”]twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/bergCOMPUTERS” _builder_version=”4.4.4″ background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”instagram” url=”https:\/\/www.instagram.com\/berg_software\/” _builder_version=”4.4.4″ background_color=”#ea2c59″ follow_button=”off” url_new_window=”on”]instagram[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.4.1″][et_pb_post_nav in_same_term=”on” show_next=”off” _builder_version=”4.4.1″ title_text_color=”#ff6317″ custom_padding=”|25px|||false|false”][\/et_pb_post_nav][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.4.1″][et_pb_post_nav in_same_term=”on” show_prev=”off” _builder_version=”4.4.1″ title_text_color=”#ff6317″ custom_padding=”|||25px|false|false”][\/et_pb_post_nav][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”CONTACT” _builder_version=”4.4.1″ background_color=”#d2d2d2″ custom_padding=”75px||75px||false|false”][et_pb_row column_structure=”1_4,3_4″ admin_label=”Service Section Title” _builder_version=”4.4.1″ custom_padding=”||25px||false|false” animation_direction=”top” locked=”off”][et_pb_column type=”1_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][\/et_pb_column][et_pb_column type=”3_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.4.1″ text_font=”|300|||||||” text_text_color=”#ffffff” text_line_height=”1.1em” header_5_font=”|600|||||||” header_5_text_color=”#ffffff” header_5_font_size=”14px” header_5_line_height=”1.5em” custom_margin=”||||false|false”]29 years in business | 2700 software projects | 760 clients | 24 countries<\/p>\n

We turn ideas into software. What is yours?<\/h5>\n

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Get in touch<\/h2>\n

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Digitalisation is \u201cup to 11\u201d, and no new business starts without digital-first. All while the software development force that was supposed to drive them is just being reshuffled.<\/p>\n","protected":false},"author":7,"featured_media":8125,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"2880","footnotes":""},"categories":[33],"tags":[],"class_list":["post-8127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"\nThe software industry during disruptive times | Berg Software<\/title>\n<meta name=\"description\" content=\"During the last 18 months, virtually every industry and market have gone through major disruptions, and the software industry could not stay untouched.\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.berg-software.com\/en\/the-software-industry-during-disruptive-times\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The software industry during disruptive times | Berg Software\" \/>\n<meta property=\"og:description\" content=\"During the last 18 months, virtually every industry and market have gone through major disruptions, and the software industry could not stay untouched.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.berg-software.com\/en\/the-software-industry-during-disruptive-times\/\" \/>\n<meta property=\"og:site_name\" content=\"Berg Software\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/bergCOMPUTERS\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-20T03:03:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-23T09:54:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.berg-software.com\/wp-content\/uploads\/Berg-Software-Software-markets-during-disruptive-times.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@berg_software\" \/>\n<meta name=\"twitter:site\" content=\"@berg_software\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"6 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.berg-software.com\/en\/#organization\",\"name\":\"Berg Software\",\"url\":\"https:\/\/www.berg-software.com\/en\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/bergCOMPUTERS\/\",\"https:\/\/www.instagram.com\/berg_software\/\",\"https:\/\/www.linkedin.com\/company\/berg-computers-srl\/\",\"https:\/\/www.youtube.com\/channel\/UCw1FfcRJnC-CoKPwlcM10Iw\",\"https:\/\/twitter.com\/berg_software\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.berg-software.com\/en\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/berg-software.com\/wp-content\/uploads\/berg-software-logo.png\",\"contentUrl\":\"https:\/\/berg-software.com\/wp-content\/uploads\/berg-software-logo.png\",\"width\":512,\"height\":512,\"caption\":\"Berg Software\"},\"image\":{\"@id\":\"https:\/\/www.berg-software.com\/en\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.berg-software.com\/en\/#website\",\"url\":\"https:\/\/www.berg-software.com\/en\/\",\"name\":\"Berg Software\",\"description\":\"We turn ideas into software.\",\"publisher\":{\"@id\":\"https:\/\/www.berg-software.com\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.berg-software.com\/en\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.berg-software.com\/en\/the-software-industry-during-disruptive-times\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.berg-software.com\/wp-content\/uploads\/Berg-Software-Software-markets-during-disruptive-times.jpg\",\"contentUrl\":\"https:\/\/www.berg-software.com\/wp-content\/uploads\/Berg-Software-Software-markets-during-disruptive-times.jpg\",\"width\":1200,\"height\":600,\"caption\":\"Berg Software - 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