Explore our case study about how we assisted a large German based IT company relocate to Serbia, improving their capacity for growth.
The managers of a large IT company based in Germany realized that the competition in Western Europe was toughening, and high salaries were affecting their margins. We assisted them by finding a solution that met their various needs in Serbia, thanks to our expertise and network of trusted contacts. Read on to discover the details.
Story
The company’s operational costs had been growing because German IT specialists were paid comparatively high salaries, and they were faced with growing competition. For this reason, they considered transferring part of their operations to Eastern Europe, Central Asia, or the Caucasus. With this purpose in mind, they contacted us and asked to find a jurisdiction in one of these areas where they could register a company.
The IT company needed a local legal entity to carry out business operations. Additionally, they needed a bank account in a foreign jurisdiction to be able to pay salaries to their local employees and receive payments from their clients in Eastern Europe or in other locations.
When hearing the request, we immediately thought about Serbia. The position of the country is unique. Serbia is located in southeast Europe, and was once part of Yugoslavia. However, the local authorities as well as much of the local population are pro-Western and have implemented EU legislation that is familiar to Germans like our clients.
Geographically, Serbia is not too far away from Germany. A flight from Berlin to Belgrade takes only just over an hour. In addition, the infrastructure is well-developed in Serbia. Because the top managers of the German IT company were going to pay extended visits to the Central European subsidiary, the short distance was important for them, as they wanted their business trips to be comfortable.
No less important was that while the IT sphere is well-developed in Serbia and qualified personnel is readily available, software engineers cost considerably less in comparison to Germany. Plus, due to business-friendly immigration legislation it is easier to bring in talent from other countries. Eventually, due to the proximity, cost-efficient salaries, and understandable legislation, Serbia was chosen by our clients for their operations.
Solution
Here is exactly what we did. We registered a company in Serbia and put its headquarters in Belgrade. In addition, we opened several bank accounts for the company to simplify transferring money to different countries. Our clients from Germany appreciated this opportunity for international trade.
Result
The Serbian division of the German IT company is now in operation. Almost all the positions have already been filled and our German clients are amazed at the high level of professionalism that Serbian IT specialists demonstrate. The company has been expanding the scope of its operations in Eastern Europe and other adjacent regions.
