Joint-Venture

The key driver for a company merger is the shortage of skilled workers in the German IT sector. This brings German companies increasingly into contact with foreign providers, who then provide personnel or resources. The decisive factor in choosing the right contract model is the relationship between the company and its own size. The following considerations play a role here:

• Dependency: If the number of employees working abroad via a service provider exceeds a certain level, dependency on the service provider arises. This dependency represents a risk and makes you inflexible.
• Profit potential: In the course of a successful collaboration, the productivity of the teams increases. Onboarding costs decrease. The team becomes a valuable asset for the company. The service provider's margin is an attractive profit potential for our customers.
• Security: Working with a service provider always presents a potential for conflict from a legal perspective. Although this can be largely contained by contracts, it can never be completely ruled out.

Solution

A joint venture offers a sustainable and advantageous solution to the challenges described above:

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• Independence and flexibility: By setting up a joint venture with us, you reduce your dependence on us as an external service provider. You retain control over strategic decisions and can react more quickly and flexibly to market changes.
• Increased profit potential: A joint venture enables you to benefit directly from the efficiency gains that result from successful cooperation. The margins that would normally go to us as an external service provider remain within the joint venture and therefore benefit both partners.
• Increased legal certainty: A joint venture offers a more robust legal structure compared to working with us as an external service provider. By jointly establishing a company abroad, legal risks can be better managed and potential conflicts minimized.

Example

EA medium-sized German IT company specializing in the development of software solutions is faced with the challenge of finding qualified IT specialists. After several years of successful cooperation with hyretech as part of a service provider model, the company decides to deepen the relationship and establish a joint venture. The reason for the decision was that over 30% of the programmers employed are now employed by hyretech.

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Both companies jointly analyze their goals and create a detailed plan for the joint venture. The legal structure, roles and responsibilities as well as the financial contributions are clearly defined. The joint venture is officially founded and a new branch is opened in Albania. The development team is now officially employed by the newly established joint venture.