Tuesday, March 13, 2007

German Outsourcing

Outsourcing has never been as popular in Germany as it has been in the US and the UK, but all that is starting to change, especially with the addition of Poland and the Czech Republic to the EU. Instead of shipping jobs to offshore countries like India and China, Germany companies prefer paying the higher wages for geographic and cultural proximity.

With outsourcing becoming more and more popular many German companies are using it as a threat to get their employees to move from a 35 hour work week to a 40 hour work week, or take pay cuts. Things like these are very hard to get in Germany due to very strict employment laws.

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1 comment:

Unknown said...

On the other hand, domestic situation has economically improved too.

According to the Economist,Germany Economy was rebounding surprisingly well, with growth in 2006 around 2.5% (compared with only 1% in 2005) and unemployment at 4.3m (down nearly 500,000).

What drove Germany better off do you think? Globalization or Germany politics?

April 28, 2007 at 7:05 PM

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