The Cost of Work Performed by Software Developers for Buddy Healthcare Ltd Oy
Wolkersdorfer, Juliane (2021)
Wolkersdorfer, Juliane
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021052611253
https://urn.fi/URN:NBN:fi:amk-2021052611253
Tiivistelmä
This bachelor thesis aimed to identify the cost of work performed by software developers for the commissioning company Buddy Healthcare Ltd Oy. The objective of the research was to investigate what are the costs of employing a software developer in-house in Finland, and what are additional costs if the software developer is employed in-house in Germany. In addition, the research identified what is the cost of work performed by a software developer in selected areas considered suitable for outsourcing as Buddy Healthcare.
The thesis consists of a theory section and an empirical section. The theoretical section provides in-depth knowledge on the topics of supply and demand of labour, employee recruitment, and the costs of in-house employment as well as outsourcing. Within the empirical section, the focus is laid on presenting the results and deliver answers to the research objective.
The research design was divided into two parts. Internal information and interviews with the company CEO and CTO provided data to address the in-house employment of a software developer for Buddy Healthcare in Finland and Germany. The second part of the research was performed as desktop study applying compiled datasets to identify suitable countries for outsourcing as Buddy Healthcare and to calculate the cost of work performed by software developers in the selected destinations.
The results of the first part of the study show, for the first year of employing a software developer in Finland, including the employee recruitment process, Buddy Healthcare incurs the cost of 120,000€. In the situation, the software developer is hired in Germany, the company faces additional overhead costs and higher salaries to be paid. In the second part of the research, Eastern Europe and Baltic countries, as well as Germany, Portugal, and the United Kingdom were identified as suitable destinations to source software developers from as Buddy Healthcare. The cost of work performed by a software developer in Eastern Europe and Baltic countries was determined as most affordable.
In the recommendations to the company, it is suggested to strongly engage in employee retention to avoid the costs of employee separation. Furthermore, it is recommended to hire a software developer in Germany if the demand for a German-speaking IT professional outweighs the high costs. In terms of sourcing software developer services, the recommendation is to receive services from Eastern Europe or Baltic countries, reasoned by
the low cost.
The thesis consists of a theory section and an empirical section. The theoretical section provides in-depth knowledge on the topics of supply and demand of labour, employee recruitment, and the costs of in-house employment as well as outsourcing. Within the empirical section, the focus is laid on presenting the results and deliver answers to the research objective.
The research design was divided into two parts. Internal information and interviews with the company CEO and CTO provided data to address the in-house employment of a software developer for Buddy Healthcare in Finland and Germany. The second part of the research was performed as desktop study applying compiled datasets to identify suitable countries for outsourcing as Buddy Healthcare and to calculate the cost of work performed by software developers in the selected destinations.
The results of the first part of the study show, for the first year of employing a software developer in Finland, including the employee recruitment process, Buddy Healthcare incurs the cost of 120,000€. In the situation, the software developer is hired in Germany, the company faces additional overhead costs and higher salaries to be paid. In the second part of the research, Eastern Europe and Baltic countries, as well as Germany, Portugal, and the United Kingdom were identified as suitable destinations to source software developers from as Buddy Healthcare. The cost of work performed by a software developer in Eastern Europe and Baltic countries was determined as most affordable.
In the recommendations to the company, it is suggested to strongly engage in employee retention to avoid the costs of employee separation. Furthermore, it is recommended to hire a software developer in Germany if the demand for a German-speaking IT professional outweighs the high costs. In terms of sourcing software developer services, the recommendation is to receive services from Eastern Europe or Baltic countries, reasoned by
the low cost.