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German Automotive Company (Umbrella Services)

Dikodi helped a leading German automotive company retain 12 developers who were unable to extend their B2B contracts due to legal constraints. By implementing a tailored umbrella service, Dikodi ensured compliance with German labor and tax laws while allowing the company to continue its projects without disruption, handling all legal and administrative tasks, including contracts and payroll.
Umbrella Service
App Development
CyberSec

About the project

In Q1 2024, a leading German automotive company faced a challenge when it needed to retain 12 developers for ongoing projects but was unable to extend their B2B contracts due to legal constraints. With project deadlines at risk, the company sought a flexible, compliant solution that would allow them to continue working with the developers while adhering to German labor and tax laws. The company turned to Dikodi for support in finding a solution that would mitigate legal risks while maintaining the project’s momentum.
Dikodi’s task was to create a solution that enabled the company to retain the developers without violating legal constraints. The team worked closely with the company to fully understand the legal challenges and explore alternative models for continued collaboration. The solution needed to be compliant with German laws while also offering flexibility to the company and developers.

Legal Compliance Challenge

The primary challenge was navigating the legal restrictions surrounding B2B contracts, which posed risks related to compliance with German labor and tax laws. Traditional outsourcing models were not viable due to these constraints, requiring a solution that adhered to all legal requirements while keeping the developer team intact.

Flexible Solution Implementation

To address these challenges, Dikodi implemented a tailored umbrella service. This service employed the developers under Dikodi’s framework, ensuring that the company remained compliant with local laws while retaining the team. Dikodi acted as the intermediary, handling all contracts, payroll, and legal administration, allowing the automotive company to continue their projects without disruption.

Results

Dikodi’s umbrella service solution allowed the automotive company to retain its developer team, avoid legal complications, and meet project deadlines. By managing all legal and administrative tasks, Dikodi ensured compliance with local laws and provided the flexibility necessary to keep the team engaged and productive. This solution successfully addressed both the company’s legal constraints and its operational needs.

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