The looming talent shortage and rising costs push more and more American IT companies to look for beneficial locations to grow their business. One of the “go-to” choices is Poland. This IT market has been developing at breakneck speed, attracting hundreds of tech companies to its shores. But what is so special about this offshoring destination? Find out in this article!
Poland’s IT Market in Figures
Poland has long been recognized as one of the top IT outsourcing destinations in the CEE region. By continually making bigger and bolder steps towards digitalization and the promotion of innovation, this tech market has evolved into a mature global player. Here is a brief summary of facts that will give you a clearer picture of the Polish IT scene:
- The Polish IT industry ranks 7th in Europe, with a revenue of $10,4 billion and exports of $8,6 billion. It is expanding at a steady rate of between 5%-10% per year;
- The tech sector accounts for 8% of Polish GDP and 4.6% contribution to employment;
- There are over 65,000 tech businesses in Poland, among which are over 3,000 startup companies and 10 unicorns;
- The 2022 Ryan Strategic Advisory Survey includes Poland in the top 5 best countries for ІТ offshoring;
- The 2021 Kearney Global Services Location Index ranks Poland 14th due to its advanced business environment and high financial attractiveness;
- Ease of Doing Business 2020 includes Poland in the top 50 countries for investment and starting a business.
7 Reasons for Building a Software Development Team in Poland
- Large pool of IT professionals
The Polish IT market possesses the largest IT workforce in the CEE region — over 500,000 IT specialists. This extraordinarily big pool of talents broadens with 15,000 graduates annually who get deep STEM qualifications in 60 national institutions of higher education.
- Superb tech expertise
According to the Coursera Global Skills Report 2022, Poland boasts some of the most tech-skilled labor in Europe. Their IT stack is miscellaneous, often including such popular technologies as JavaScript, SQL, Python, HTML/CSS, and Typescript. Meanwhile, Polish coders constantly stay abreast of the newest technologies, including cloud computing, AI & ML, Big Data analytics, and system automatization. They have proven their tech mastery in reputable skill rankings (Harvard Business Review, SkillValue, HackerRank, Code Jam), where Poles take leading positions.
- Advanced interpersonal skills
Polish software developers have the perfect “yin and yang” of hard and soft skills, where the latter are just as exceptional. As practice shows, most IT companies face little or no challenges when working with these coders. That’s because the Polish mentality and approach to organizing and managing work are quite similar to western ones. Your company will benefit from Poles’ flexibility, dedication, problem-solving, communication, and team player skills, as well as passion for innovation and nonstop learning. Moreover, these programmers are some of the best in the CEE region in terms of their English knowledge. According to the EF English Proficiency Index, Poland is ranked 13 out of 112 countries.
- Optimal price-to-quality ratio
Another aspect that draws multiple western tech companies to the Polish IT market is getting quality services for a much lower price. Based on No Fluff Jobs data, the average salary of a Polish programmer ranges from $38,000 to $60,000. Check out the annual rates of senior IT specialists in Poland:
- Full-Stack Software Developer — $70K-$73K
- Front-End Developer — $65K-$68K
- Data Engineer — $80K-$84K
- AI Developer — $75K-78K
- Game Developer — $70K-$74K
- Mobile App Developer — $65K-$70K
- QA Software Tester — $45K-$48K
As you can see, it’s possible to save up to 70% on labor expenses by hiring Polish developers. On top of that, western IT companies can also save a decent sum on taxes. Polish programmers employed on B2B terms pay an income tax of 8,5% – 12%, which also translates into a higher take-home reward.
- Strategic location
What is more, the Polish tech market has an ideal location. Situated in the heart of Europe, it provides an easy gateway between Western and Eastern European IT centers. Therefore, many companies view Poland as a strategically convenient place for doing business. In addition to that, there is no time difference between Poland and most Western European countries. This means smooth and productive cooperation between in-house and remote teams.
- Developed IT powerhouses
When it comes to picking a suitable destination for building a tech team, Poland offers 6 ripe IT hubs that house over 75% of all IT professionals in the country. Let’s look at what each of them has to offer.
Warsaw
- capital and the largest tech powerhouse in Poland;
- 103,000 Polish IT experts (24%) and 3,000 ICT graduates per annum;
- included in the top 10 major European cities of the future by fDi Intelligence;
- #1 pick for R&D establishment among the international IT enterprises (like Google, Amazon, Microsoft, and Dell).
Krakow
- Polish second largest IT hub, with over 56,000 programmers (14%);
- 2,400 STEM graduates annually;
- the most business-friendly city with the best human capital in Poland;
- hosts about 200 startups and R&D offices of tech giants like Google, IBM, Cisco, Motorola, and Ericsson.
Wroclaw
- belongs to the top 3 IT powerhouses of Poland, and is often called the Polish Silicon Valley;
- 52,000 tech talent pool (12%) which growth with 1,400 STEM graduates each year;
- over 200 tech companies are expected to grow at Wroclawski Park Technologiczny;
- IBM, Accenture, Dolby, Opera Software, Volvo IT, and Nokia have their R&D offices in Wroclaw.
Katowice
- accounts for 9,3% or 40,000 tech specialists;
- over 180 IT businesses reside or have their headquarters in this IT hub;
- CBRE ‘EMEA Tech Cities’ names Katowice one of the most technologically advanced cities in Poland.
Tri-City
- Tri-city is the metropolitan area that consists of Gdańsk, Gdynia, and Sopot;
- 35,000 IT professionals (8,2%);
- Companies like Amazon, Intel, Nike, GetResponse, and many others already have offices in the area.
Poznan
- possesses a pool of about 30,000 tech experts (7,5%) that broadens with 1,500 STEM graduates annually;
- comprises about 80 IT companies and is considered an ideal choice for SMEs and startups.
Data security
Software products are the most precious possession of IT companies, as they encompass technologies, intellectual property, and trade secrets. Poland guarantees data security for foreign businesses as it’s compliant with the General Data Protection Regulation (GDPR). Based on the Primary Law of the EU, it prevents the appropriation of personal data and guarantees the right to portability of this data. So, your IP rights will be under a strong shield.
Hire Seasoned Software Developers with a Reliable IT Recruitment Agency in Poland
The process of assembling a tech team in the offshoring country can be quite arduous and time-consuming. Therefore, consider cooperation with a local IT recruitment agency that can pave the way to your Polish dream team. Alcor might be just what you need!
This hiring agency provides full cycle IT recruitment in Poland and other Eastern European countries for western product companies. Alcor’s 40 tech recruiters cover every single stage of the hiring process: from creating the right EVP and ideal candidate profiles to screening applicants and conducting job interviews. They need on average under 8 CVs to get to 1 accepted offer, taking 3-6 weeks to close a specific position. You can also get your employer brand promotion, consultations on the Polish IT market (talent availability, dev salaries, taxes), all legal compliance, and coverage of additional back-office operations like payroll and others.