Germany ticks noticeably differently than many other markets when it comes to B2B IT business. For foreign IT companies, this is often the decisive factor in their success or failure.
Agenda
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The German IT market: size, potential, and reality
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What distinguishes the German B2B IT market from others
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Proven market entry models for the German IT market
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Established platforms Call for tenders
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Conclusion: Sustainable growth in the German market with the right partner
1. The German IT market: size, potential, and reality
The IT market in Germany is one of the largest and most economically significant in Europe. Almost all companies (94%) outsource IT services such as maintenance, support, outsourcing, or software development to external providers. Despite advancing digitalization and globalization, German companies predominantly rely on domestic or European service providers: only around 6% of companies work with IT service providers outside Germany or the EU. Foreign IT services have therefore played a comparatively minor role to date. At the same time, Germany is a key player in the international trade of services. With a share of around 19.6% of the total EU service import volume, Germany is the largest import market for services within the European Union. These figures underscore the high demand for external services in the German market, while international IT services have so far only accounted for a small portion of the actual IT service volume.
2. What distinguishes the German B2B IT market from others.
Here are the most important differences between German B2B customers – practical, unvarnished, and with a view to what you need to know and consider in order to really gain a foothold.
2.1 Trust beats price in the German B2B IT market
German B2B customers are considered particularly risk-averse in international comparison. Decisions are influenced less by short-term costs and more by stability, predictability, and legal certainty. The cheapest provider rarely wins. Instead, German companies prefer partners who think long-term, deliver reliably, and remain predictable even in critical situations.
For foreign IT service providers, this is a key difference from many other markets. Aggressive pricing or cost-saving arguments are often counterproductive because they are associated with quality or compliance risks. "Cheap" is not perceived as an advantage, but as a potential weakness – especially in business-critical IT, data, or analytics projects.
Reliable references are crucial for trust. Marketing promises, global logos, or generic success stories carry significantly less weight in the German market than concrete, comprehensible case studies. German corporate customers want to see that comparable projects have already been successfully implemented – ideally in Europe or Germany, under similar regulatory and organizational conditions.
What sells in the German B2B IT environment is not superlatives, but reliability. Terms such as reliable, comprehensible, and proven create more trust than promises of innovation without substance. Providers who explain their services transparently, openly identify risks, and set realistic expectations position themselves much better than those who primarily argue on the basis of price or speed.
When entering the German market, therefore, investing in quality, references, and trust pays off in the long term. European or German case studies are often more effective than international prestige projects because they show that a provider understands and can meet the specific requirements of the German market.
Real talk: "Cheap" tends to be off-putting and is a red flag. "Reliable, transparent, proven" sells.
Tip: Show case studies from Europe/Germany, not just global logos.
2.2 Contracts, details, and liability are taken very seriously in the German IT market
For international IT service providers, the German market is strongly characterized by legal clarity. It is not without reason that Germany is considered a lawyer's market: contracts, liability issues, and responsibilities are clarified very early on and in great detail. What is regulated flexibly or implicitly in other countries must be defined here in writing, comprehensibly, and reliably.
German corporate customers expect clear statements on the scope of services, service levels, responsibilities, and escalation paths. Unclear wording or deliberately left-open points are not perceived as flexibility, but as risk. Statements such as "We'll figure it out later" or vague service descriptions quickly lead to a loss of trust – often even before a project starts.
The often-cited "handshake mentality" does not work in the German B2B IT environment. Commitment does not arise from personal promises, but from clear contracts. These include clearly defined SLAs, measurable KPIs, regulated liability scenarios, and transparent rules on changes, approvals, and escalations. This is a major hurdle for foreign providers entering the market.
Successful IT companies therefore work with German or EU-compliant contract structures and deliberately avoid buzzwords or marketing phrases in service descriptions. Instead, precise definitions, clear demarcations, and realistic commitments are what count. Honestly stated limits are often more highly valued in the German market than overambitious promises.
When it comes to accessing German B2B customers, legal clarity creates trust. Presenting contracts, liability, and scope of services in a structured and transparent manner reduces risks for customers and significantly increases the chance of long-term, stable cooperation.
Real talk: "We'll figure it out later" = is a red flag
Tip:
- German or EU-compliant contracts
- Clear service descriptions (no buzzword fog)
2.3 Data protection & compliance are deal breakers
For foreign IT service providers looking to enter the German market, data protection and compliance are often the biggest – and most underestimated – difference compared to other markets. In the German B2B IT environment, these issues often determine success or failure earlier than price, degree of innovation, or time-to-market.
The GDPR is non-negotiable and is interpreted very specifically by German corporate customers. General statements such as "GDPR compliant" are not considered sufficient. Even in early discussions, customers expect reliable answers about data locations, access rights, sub-processors used, and existing security and quality certifications. For international providers, this early review phase is often the first real hurdle to market entry.
These expectations are particularly evident when it comes to the use of cloud, data, and analytics solutions. Cloud technology is established in the German market, but it is not automatically accepted. German companies carefully check whether data is processed within the EU, how data flows between systems are designed, and what legal risks arise when third countries are involved. Without a clear governance and compliance model, the cloud quickly becomes a criterion for exclusion.
Successful foreign IT providers meet these requirements with transparency and structure. Clear GDPR processes, traceable data architectures, openly communicated sub-processors, and recognized standards such as ISO 27001 or comparable certifications create trust. EU hosting or clearly documented international data transfers are a decisive factor in achieving acceptance in the German market.
When entering the German market, trust is not created through marketing promises, but through demonstrable compliance. Those who clearly address data protection, liability, and data responsibility significantly lower market entry barriers and position themselves as reliable partners for long-term B2B IT cooperation.
Real talk: "We are GDPR compliant" is not enough – people want details.
Tip:
- Clear documentation on GDPR, ISO 27001, SOC 2 (if relevant)
- Ideally, EU hosting or clear data flows
2.4 Communication in the German B2B IT environment is direct, factual, and binding
The communication culture in the German B2B IT market is clearly structured and strongly focused on commitment. Directness does not mean unfriendliness, but precision. Statements are taken literally, commitments are considered binding, and unclear wording quickly creates uncertainty.
This is an important cultural difference for foreign IT providers. Statements such as "maybe," "we will see," or "should be possible" are often interpreted as indirect rejections in Germany. At the same time, clear yes or no statements are appreciated—even if they openly mention limitations or risks. Excessive euphoria or strong sales wording tends to be viewed as suspicious rather than motivating in the German context.
Meetings usually follow a clear structure. A defined agenda, concrete goals, and a focused discussion are standard. Small talk plays a subordinate role and is usually kept to a minimum. It is not the length of the conversation that is decisive, but the result.
Trust is built through transparency. Summaries after meetings, clearly formulated next steps, and written confirmations are perceived as professional and reliable. They create transparency, reduce misunderstandings, and accelerate decision-making processes – especially in international project constellations.
When entering the German IT market, clear, factual, and binding communication is not a stylistic device, but a factor for success. Those who formulate precisely, keep their promises, and document decisions transparently are perceived as reliable partners—regardless of their origin or company size.
Real talk: Excessive euphoria seems suspicious. But clear statements create trust.
Tip: Summaries after meetings: clear next steps, written confirmation
2.5 Local presence = major confidence booster
Local presence is a strong trust factor in the German IT market
A local presence in Germany is not always essential for foreign IT service providers – but it is a significant trust advantage. German B2B customers prefer partners who are accessible, approachable, and organizationally tangible. Proximity plays a central role, especially in the early stages of projects or when dealing with critical issues such as data protection, liability, and escalation.
A German-speaking contact person, fixed support hours during German working hours, and a local phone number or address significantly reduce perceived risks. They signal commitment, responsibility, and long-term engagement in the German market. German-language documentation—from offers and contracts to technical documentation—is not perceived as a bonus, but as a professional matter of course.
Operating purely remotely from abroad is possible in principle, but it is much more challenging. Without local anchor points, decision-making processes are prolonged, queries pile up, and trust must be explained and proven much more thoroughly. Especially in complex IT, data, or analytics projects, a lack of local presence quickly becomes a factor of uncertainty.
Many successful international IT providers therefore choose a pragmatic approach: a local partner, a country manager, or a small representative office in Germany. These models significantly reduce market entry barriers without requiring immediate high investments. For German corporate customers, it is crucial that there is a clear, responsible contact person in the market.
The following applies to the German B2B IT market: Local presence does not replace quality – but it does strengthen trust. Creating proximity shortens sales cycles, facilitates cooperation, and positions you as a serious, long-term partner.
Real talk: Working purely "remotely from abroad" is possible, but more difficult
Tip: Even a local partner or country manager makes a big difference.
What foreign IT companies should do specifically:
- Invest in trust and compliance
- Put references and quality before price
- Allow for patience in the sales process
- Clear, factual communication
- If possible: establish a local presence
3. Proven market entry models for the German IT market
A few clear standard models have established themselves that neatly regulate trust, liability, and quality. The most common ones are briefly explained below:
3.1 Subcontractor model (white label/extended workbench)
The subcontractor model is the most common way to enter the German IT market
For foreign IT service providers, the subcontractor model – often referred to as white label or extended workbench – is by far the most common and practical way to enter the German market. In this model, a German IT company acts as the main contractual partner vis-à-vis the end customer, while the international provider performs services in the background.
The German customer has a central contact person and a clear contractual relationship. From the customer's point of view, it is often irrelevant – or even invisible – that parts of the service are outsourced. It is precisely this structure that reduces perceived risks and makes cooperation much easier. For German B2B customers, clear liability, unambiguous responsibilities, and legal certainty are crucial.
The subcontractor model is typically used in areas such as software development, quality assurance and testing, cloud migrations, and maintenance and support. This model offers a high degree of flexibility, especially for scalable or recurring services, without increasing contractual complexity on the customer side.
The reason why this model works particularly well in the German market is mainly due to the clear distribution of roles. There is one responsible contractual partner, no legal gray areas, and a clear separation of duties. For foreign providers, this means fewer legal hurdles when entering the market and faster access to real projects.
At the same time, this model requires a high degree of professionalism. Issues such as NDAs, GDPR compliance, clear delineation of services, availability, and representation rules must be clearly regulated. Quality fluctuations or communication problems have a direct impact on the trust of the German partner.
For international IT companies, therefore, one thing is clear: as a new entrant to the market, the subcontractor model is the easiest and fastest way into the German market. It enables references, market understanding, and long-term relationships—without having to immediately set up your own sales or legal structures.
Evaluation of forms of cooperation (from the perspective of foreign IT companies that want to sell in Germany)
Probability of success: VERY HIGH
Advantages:
- Low market entry barrier
- German partner takes care of: Sales, contracts, liability
- Customer communication: Quick access to projects
Disadvantages:
- Low margins
- No own brand with end customers
- Dependence on German partner
- Replaceable if quality is not consistently high
Assessment: Best entry-level model for 70–80% of all foreign IT companies.
Real talk: For market entrants, this is the easiest and fastest way into the German market.
3.2 Dedicated team / extended development team
Very popular with medium-sized businesses and tech companies
The dedicated team model is extremely popular in the German market, especially among medium-sized companies and technology-oriented firms. In this model, the international IT provider provides a permanent team that is "hired" by the German customer for an extended period of time and operates like an internal team. Typical contract terms range from six to thirty-six months.
The teams often consist of software developers, DevOps specialists, QA roles, or data engineers and are permanently assigned to one customer. This long-term collaboration enables a deep understanding of processes and systems, continuous knowledge building, and close integration with the customer's internal structures. For German companies, this model also offers a high degree of planning security in terms of costs and resources.
This model is particularly valued by German SMEs because it combines stability and reliability with scalability. At the same time, expectations are high. German B2B customers attach great importance to a stable team composition, low staff turnover, and clearly defined responsibilities. Frequent personnel changes or unclear roles are perceived as a serious risk and quickly undermine trust.
Dedicated teams only work successfully in the German market if they are managed with a high degree of discipline and professional processes. This includes transparent communication, fixed contact persons, smooth handover processes, and close coordination with the customer. Technical quality alone is not enough—the ability to operate like an internal team on a permanent basis is crucial.
For international IT providers, there is therefore a clear rule: dedicated teams are an attractive and lucrative model in the German market, but not an experiment. Those who cannot guarantee stability, quality, and commitment in the long term will quickly be replaced. Those who meet these expectations, on the other hand, build long-term customer relationships that often last for years.
Dedicated Team / Extended Workbench
Probability of success: HIGH (if quality is right)
Advantages:
- Long-term contracts (months/years)
- Predictable revenues
- Deep customer loyalty
- Knowledge remains within the team
Disadvantages
- High demands on: stability, communication, processes
- Staff turnover has an extremely negative effect
- Customers expect "internal quality"
Assessment: Very attractive—but only for mature providers with stable teams.
Real talk: Only works with high quality and discipline – otherwise you'll be out.
3.3 Project-based cooperation (fixed price/milestones)
Project-based cooperation models with a clearly defined scope, fixed price, or milestones are widespread in the German IT market. They are often used for clearly defined projects, such as MVP developments, cloud or system migrations, and the replacement of legacy systems. For German corporate customers, this model offers a high degree of planning security and a comparatively simple purchasing process.
From the customer's point of view, the advantage lies in the clear calculability. The budget, time frame, and results are contractually defined, which is particularly attractive for larger organizations and formalized procurement processes. It is precisely this structure that makes project-based contracts so popular in the German market.
For international IT providers, however, this model is associated with increased risks. Unclear or incomplete requirements quickly lead to scope creep, long coordination phases, and a high documentation effort. Changes to the scope of services are not regulated informally in Germany, but require a clear, contractually defined change request procedure. Without clear processes, conflicts over responsibility, costs, and deadlines can quickly arise.
German B2B customers attach great importance to precise service descriptions in project-based models. Marketing formulations or technical ambiguities become a problem here. Precise deliverables, clearly defined acceptance criteria, and comprehensible milestones are expected. The more detailed and realistic the scope is described, the more stable the project will be.
When entering the German market, project-based contracts are therefore well suited for building references and gaining trust – but they require a high degree of discipline in analysis, documentation, and contract management. Providers who underestimate these requirements usually bear the risk alone.
Probability of success: MEDIUM
Advantages:
- High project value,
- Clear deliverables,
- Good references possible
Disadvantages:
- High quotation effort
- Legally demanding
- Risk usually lies with the provider
Assessment: Good for reputation – dangerous for inexperienced providers.
Real talk: German customers expect precise service descriptions and a clear change request process
3.4 Strategic partnerships and preferred supplier models are the goal of mature providers
Strategic partnerships – often in the form of preferred supplier models – are the goal for mature and established providers in the German B2B IT market. These constellations are not about individual projects, but rather long-term cooperation that often lasts for several years and is regulated by framework agreements.
Such partnerships usually only come about once a provider has proven its capabilities on multiple occasions. German companies involve strategic partners early on in scaling initiatives, innovation projects, or technology transfer. The IT service provider is thus regarded not only as a supplier, but as an extension of the company's own organization.
The requirements for this status are high. Proven successful projects in the same or a comparable environment, organizational and personnel stability, and a clear commitment at the management level are expected. The decisive factor is not only operational performance, but also the ability to plan reliably in the long term, take responsibility, and align with the customer's strategic goals.
In this model, price plays only a secondary role. The focus is on reliability, sustainability, and the ability to grow together with the customer. Providers are not selected on the basis of short-term cost advantages, but on the basis of their contribution to long-term value creation.
For international IT companies, this means that strategic partnerships are not an entry-level model, but the result of consistently built trust. Those who demonstrate quality, stability, and market proximity over many years can rise from service provider to strategic partner in the German market – with corresponding sustainable business potential.
Probability of success: LOW (at the beginning)
Advantages:
- High volumes
- Long-term cooperation
- Early involvement in customer projects
Disadvantages:
- Only comes after years
- High expectations
- Dependence on performance records
Assessment: Goal, not entry point.
Real talk: This is no longer about "cheap," but about reliability and sustainability.
3.5 Joint venture/subsidiary
Establishing a joint venture or your own subsidiary in Germany or another EU country is a relatively rare but very effective model in the German B2B IT market. It is primarily aimed at international IT companies that already have significant business volume and want to develop the market in a long-term and in-depth manner.
In practice, this model involves a joint venture with a local partner or the establishment of a separate legal entity – often with local management and operational responsibility on site. This structure requires a high willingness to invest and a clear long-term commitment to the German market.
This step makes particular sense for large-scale projects, in regulated industries, or in the public sector. In these areas in particular, legal certainty, liability issues, data protection, and formal requirements are so pronounced that a local company is effectively a prerequisite. Public clients and highly regulated industries prefer providers with a clear legal presence and responsibility in the market.
The biggest advantage of this model is that it maximizes trust. A local company signals market proximity, stability, and long-term availability. It makes it way easier to get access to tenders, strategic partnerships, and sensitive projects.
However, there are also considerable disadvantages. The organizational, legal, and tax costs are high, as are the running costs. Company law, labor law, taxes, and compliance require specialized know-how and professional structures. Without sufficient volume and clear demand, this model quickly becomes a financial risk.
For international IT providers, therefore, joint ventures or subsidiaries are not a way to enter the market, but rather a strategic expansion. Anyone taking this step should do so based on data, be well prepared, and only proceed after successful market validation.
Probability of success: VERY LOW (for new entrants)
Advantages:
- Maximum trust
- Direct market access
- Access to regulated industries
Disadvantages
- Very expensive
- Legally and fiscally complex
- Risk without guaranteed sales
Assessment: Only makes sense with large volumes and clear demand.
3.6 Technology and implementation partners as an established route into the market
For many international SaaS, cloud, and platform providers, the role of technology or implementation partner is a proven route into the German market. US providers in particular use this model by integrating themselves into existing ecosystems of established platforms such as Salesforce, SAP, Microsoft, or AWS. The familiarity of the technology reduces market entry barriers and creates a basic level of trust among German corporate customers right from the start.
In this model, foreign IT companies typically take on the implementation, customization, operation, and support of the respective solution. The platform provider provides the technological basis and the brand, while the implementation partner is responsible for successful implementation at the customer's site. This clear division of roles is attractive to German companies because it makes responsibility, liability, and accountability transparent.
At the same time, expectations in the German market are high. Certifications within the respective partner program are considered a prerequisite, not a differentiating feature. In addition, German B2B customers expect clearly defined escalation paths, binding support structures, and, ideally, local contact persons. Technical excellence alone is not enough if organizational and communication structures are lacking.
In addition to the official requirements, there are several unofficial but very real success factors. A German-speaking project manager significantly increases the likelihood of success, as he or she mediates between the customer and the team both professionally and culturally. Time zone overlap is often more important in everyday life than a low price, especially when it comes to complex coordination. High turnover in the team severely damages trust, as knowledge and continuity are lost. Likewise, clean documentation is not seen as an add-on, but as an integral part of professional collaboration.
For international IT providers, the German market can be tapped in a relatively structured manner as a technology or implementation partner. However, anyone who believes that platform affiliation alone is sufficient is underestimating the requirements. Those who consistently deliver reliability, proximity, and professionalism in addition to technical expertise will enjoy lasting success.
Unofficial but very real success factors (rarely spoken about openly)
- German-speaking project manager = +50% success
- Time zone overlap is more important than low price
- Fluctuation kills trust
- Documentation is not a "nice to have"
Probability of success: MEDIUM to HIGH
Advantages
- Trust through a familiar platform
- Leads via partner network
- Clear performance role
Disadvantages
- Dependence on platform provider
- Certification effort
- Competition within the partner network
Assessment: Very good leverage for SaaS and cloud companies.
4. Established platforms for tenders and calls for bids.
Yes — in Germany, there are established platforms for tenders and contract tenders that can also be used to tender IT projects (especially in the public sector, but also partly by private clients). These are important if foreign IT companies want to apply directly for contracts.
4.1 German Procurement Portal — DTVP German Procurement Portal (DTVP)
Central portal for public tenders in Germany
- Includes public contracts from all levels of government (federal, state, local)
- Approximately 30,000 tenders are published daily
- Large number of sectors and services (IT, software, services, etc.)
- Registration enables participation in procurement procedures
For international providers, there is also information in English on how to use the portal.
How to obtain contracts. Important: DTVP is often the central entry point for public IT contracts — e.g., for consulting, software development, operating systems, networks, support, managed services.
4.2 DTAD – Business and tender platform
DTAD platform. It aggregates tenders from the public and private sectors and contains a large database with hundreds of thousands of leads and public tenders. Many industries, including IT & EDP/software (many suitable tenders every year)
Registration is often necessary to view details and receive alerts.
DTAD is frequently used in Germany to monitor the tender market and identify potential customers (authorities, municipalities, companies).
4.3 Tender Select & Tender Zen – Tender management + matching
These modern platforms help automate the tender search process:
Tender Select
- AI-based matching based on individual criteria
- Links data from other tender services (e.g., DTAD or Tender Service)
- Goal: less filtering, more relevant tenders
Tender Zen - Automatically searches hundreds of sources, analyzes tender documents, and matches them with company profiles. It even helps with the preparation of bid texts
Such tools are helpful if you want to reduce the time spent on tender research—especially when there are many criteria or large quantities.
4.4 EU-wide and international tender portals
TED – Tenders Electronic Daily
- Official EU database for public contracts across Europe (including Germany)
- Particularly relevant for projects above EU thresholds
- Includes IT, consulting, telecommunications, infrastructure, etc.
Bund.de – Official platform for publications by German authorities
How does this work in practice? When authorities or public contracting authorities put IT services out to tender, this usually involves:
- Publication of the tender on DTVP, Bund.de, TED, or commercial portals
- Registration as a bidder or participation in the e-procurement process
- Submission of bids in accordance with specifications (deadlines, evidence, EVB-IT, etc.)
- Review and award/rejection
Tenders are often strictly governed by public procurement law (VgV / UVgO / EVB-IT) — this distinguishes Germany from many other markets and requires strict compliance.
Tip for foreign IT providers:
- Register your company in good time on the procurement portals (e.g., DTVP)
- Use tools such as Tender Zen or DTAD Alerts to find suitable tenders
- Pay attention to requirements such as:
- Proof of performance
- Financial and legal documents
- EU/Germany compliance
Many German tenders are not published on traditional freelancer marketplaces at all, but directly on these procurement platforms.
Addendum: Private tenders & IT projects
In addition to public tenders, there are also private project platforms (e.g., freelancers, project exchanges, or B2B job platforms). These are not subject to public procurement law, but are often used to award IT projects. These include, for example, portals such as: freelancermap, GULP, Projektwerk, Twago.
Most important entry points:
- DTVP – German Procurement Portal (public)
- DTAD – Aggregate & Alerts (public + private)
- Tender management tools (Tender Select / Tender Zen)
- EU platforms such as TED / Bund.de
These are essential if you want to obtain public contracts in Germany—especially for larger IT projects.
In short: No – they do not only apply to German providers.
However, foreign IT companies face additional hurdles that you need to be aware of. This is precisely where many fail.
Conclusion: The German IT market is open — but only to those with the right access
The German IT market offers enormous potential: high demand, stable budgets, and a strong willingness to engage in long-term cooperation. At the same time, the figures clearly show that international IT service providers have so far only tapped into a very small part of this market directly. Not because there is a lack of demand, but because market access, trust, and local roots are crucial.
This is precisely where the opportunity lies. Why a local country manager in Germany is crucial.
German companies are open to international IT expertise, but they expect clear structures, reliable contacts, and a deep understanding of market logic, compliance, and decision-making processes. Without a local presence, market knowledge, and reliable translation services between international providers and German customers, this potential remains untapped for many.
An experienced country manager or an established local partner is not a "nice-to-have" but a key success factor. They reduce market entry risks, shorten sales cycles, build trust on the customer side, and translate offers, services, and expectations into a form that works in the German market. At the same time, this model enables a structured, scalable entry—without the high costs and risks of setting up your own branch from the outset.
5. Conclusion: Grow sustainably in the German market with the right partner
For international IT companies, this means that if you want to approach Germany strategically, you should not try to "conquer the market remotely," but rather rely on proven market entry models. Partnerships, country management structures, and local responsibility are the fastest and most sustainable way to gain a foothold in Europe's largest IT and services market.
Real talk: For 90% of foreign IT companies, the following applies:
- Start as a subcontractor
- Expansion to dedicated teams
- Develop into a strategic partner
Everything else comes later – or not at all.
The German market is not a sprint – but a very rewarding marathon. With the right partner at your side, market entry becomes market access.
