Blog | 09 October, 2024

Tech, Tradition, and Transformation: Keys to Understanding the DACH Market

The DACH region—Germany, Austria, and Switzerland—has long been a hub for mechanical engineering and manufacturing, with new growth opportunities emerging in digital transformation. In this article, we sit down with Oliver Becker, AMC Bridge’s Strategic Sales Manager for the DACH market, to discuss how the company navigates this business environment.

Oliver sheds light on the key industries driving growth, the cultural nuances that shape client relationships, and the strategic approach the company is taking to expand its presence. From long-standing partnerships in mechanical engineering to emerging opportunities in digital construction, this conversation provides valuable insights into how AMC Bridge is positioning itself for continued success in the region.

Mechanical and Machine Building: The Backbone of German Industry

When it comes to the IT market in the DACH region, there are some clear trends that stand out. Germany, for example, has always been strong in mechanical engineering, largely because of the automotive industry. However, there's also a big shift happening now toward digital construction. It's picking up pace, and digital transformation in general is becoming more and more prominent in Germany.

When we look at the industries that are most active in seeking software development services, mechanical sectors like automotive and machine building are still dominant. For example, Germany is home to some of the largest companies in the world in the sheet metal and machine-building sectors. Although we don’t work with the top company in this field yet, we’re actively collaborating with several of the major players on the market. So, anything related to machine building and mechanical engineering remains very important, especially in our niche market.

Long-Term Clients, New Horizons

Currently, we have about 25 customers in the DACH region. Most of them have been with us since 2015 or 2016, so we’re talking about long-term partnerships. These customers primarily come from the engineering and manufacturing sectors, which are the largest areas we serve. Geographically, the majority of our customers are based in the southern part of Germany—Bavaria and Baden-Württemberg—because of the high concentration of manufacturing and engineering there. Another interesting region for us is Linz in Austria, specifically Niederösterreich.

Our strategic plan for expansion in the DACH region really focuses on making sure people know who we are. When I start conversations with potential clients, it is clear that they still have much to learn about AMC Bridge, so one of our main goals is to increase visibility and show them what we can offer. There’s a lot of growth potential here—we haven’t even reached the tip of the iceberg. Most of the accounts we have now are legacy clients that have been with us for a while, but as more companies get to know us, we’re confident that growth will become both steady and faster.

Cultural Insights for Working with DACH Clients

Now, when it comes to business culture in the DACH market, there are some things developers should keep in mind. Germans, for example, are known for being very direct but respectful. If we don’t like something, we’ll say it. In some cultures, people might find that off-putting, but in Germany, it’s just how we communicate.

Work-Life Separation: A Key Aspect of DACH Business Culture

Adapting to this cultural directness can be helpful, but you don’t necessarily need to change who you are. It’s more about respecting the way things are done. For example, work-life balance is taken very seriously here. When someone is on vacation, they are truly on vacation. You won’t be able to reach them, and that’s just how it is. They separate their private and work lives very clearly. The younger generation is starting to be more flexible with this, but for the most part, the workday is from 8 to 5, with one hour for a break, and then it’s over.

It’s also common for people to take a big chunk of their 30 vacation days all at once—usually around 60% of their time off. Developers working with DACH clients should plan ahead, knowing that their main contact might be unreachable for weeks at a time. That said, there’s always someone available to cover, even if they aren’t as knowledgeable.

The Power of Preparation and Written Feedback

In terms of communication tips, I would say that formal, written communication is key. The English skills of German clients have improved over the years, but clear documentation is still crucial. Our engineers are very good at preparing for meetings and explaining what they’ve done, what they’re working on, and what’s coming next. That level of preparation makes a big difference in maintaining a smooth workflow. Respecting formalities is another important aspect of building strong relationships with DACH customers. Always be prepared with updates and feedback in written form. Formal, written communication is preferred; everything should be well-planned and documented to avoid misunderstandings and delays.

The Importance of Knowing Who Holds the Authority

The decision-making process in DACH companies can be hierarchical. You might think you’ve closed a deal, only to find out that the person you’ve been talking to isn’t the one who signs the checks. It’s important to know from the start who holds the decision-making power.

Titles are another interesting aspect. For example, while in English, we tend to use first names, in Germany, especially when addressing CEOs or high-level individuals, using titles like "Herr" or "Frau" followed by their last name is still common.

Beyond Coding: Expertise That Sets Us Apart

One thing I’m especially proud of at AMC Bridge is that our developers are much more than just coders. Many of them come from backgrounds in architecture, mathematics, mechanical engineering, and construction. When I share this with our clients, it truly sets us apart from other companies because we genuinely understand their workflows. This deep expertise allows our team to jump right into projects without the need for lengthy onboarding, making the entire process smoother and more efficient. This also proves that our clients expect more than just code; they value the comprehensive service we provide, and moving in this direction is undoubtedly the right choice for building stronger partnerships and delivering greater value.

Cultural Sensitivity is a Key to Success

Even though we all speak the same language across Germany, Austria, and Switzerland, the cultures can be quite different, so what works in one country might not work in another. It's important to recognize and respect these subtle differences when working with clients from the DACH region. In Germany, for example, there tends to be a greater emphasis on structure, formal communication, and precision. Austria, on the other hand, often has a more relaxed approach, while Switzerland balances both structure and informality depending on the situation. Even though standard business communication and a good level of English are generally sufficient for effective communication, understanding cultural nuances can enhance collaboration. It's also important to pay attention to details and take the time to learn about the culture and background of the people you cooperate with, as this fosters stronger working relationships.

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