IT Outsourcing to Poland: a Detailed Guide
Poland welcoming business environment and plenty of tech expertise allow tech giants like Google, Amazon, Microsoft, Oracle, and others to establish R&D facilities there to partner and actively recruit employees. Polish software developers are less expensive than other European states while still providing the most highly regarded services. Additionally, Poland and Ukraine (the other top outsourcing destination) now have an intriguing synergy that might positively impact the Polish IT business. Let’s revise IT outsourcing in Poland a bit more in detail.
Senior software engineers are more in demand from US-based employers. A junior or even a middle-position job opportunity is uncommon. There are many potential causes for this, including the need for strong leaders in each role, the lack of resources that make it challenging to hire and manage a large development team, or even the opposite, which is receiving funding rounds that open up new opportunities. Similar circumstances are seen in Western Europe, particularly in Germany and the Netherlands, where European enterprises are concentrated.
If you’re planning to hire software engineers in a country like Poland, you should mention the most recent it outsourcing services Poland’s market research. Here are some answers to your questions concerning the Polish IT sector and enterprise employment in 2023 and beyond.
Eastern Europe vs other regions
Poland, Romania, and Ukraine are Eastern Europe’s top engineering outsourcing locations. The latter maintains its place in the global outsourcing business despite the war. The United States, Great Britain, and Germany are Poland’s, Ukraine’s, and Romania’s principal export markets.
Eastern European nations have reaffirmed their status as the world’s top outsourcing locations. Statista estimates that with a CAGR of 17.17%, IT outsourcing revenue in Eastern Europe should reach $2.69 billion by the end of 2022. This market’s size is projected to grow to $5.94 billion by 2027.
These global states’ average rates are anticipated to be as follows in 2023: South Asia ($24-71), North America ($62-209), LATAM ($34-96), Southeast Asia ($18-70), and Central and Eastern Europe ($26-70).
Polish outsourcing in the global IT market
Poland is a popular destination for outsourcing by businesses with headquarters in the UK, Germany, Austria, Switzerland, Belgium, Luxembourg, the Netherlands, Norway, Sweden, Denmark, and Finland. In addition to having excellent knowledge, Poland is also in the same time zone (CET) or only one hour apart, making travel for in-person meetings relatively short and affordable.
Poland has a sizable market for IT outsourcing, in which numerous international companies engage. Google, Microsoft, IBM, Intel, Amazon, Accenture, and Cisco are among the businesses that hire IT personnel in (and outsource work to) Poland. In Poland, a lot of businesses set up centres for research and development.
Why is Poland a good outsourcing destination?
Due of the unpredictable socio-economic climate worldwide, outsourcing is growing in popularity. This is in addition to the ongoing requirement to integrate cutting-edge technology like robotics and artificial intelligence into corporate operations in order to automate tasks and increase business agility.
Outsourcing enables businesses to easily scale the necessary technology, skills, and knowledge because it is the foundation of shared services. Just last year, spending on OSS operations and services reached $688.4 billion, according to Deloitte’s Outsourcing and Shared Services 2019-2023 report.
Time zone
Communication, project planning, and many other duties are all enhanced by having a common time zone. CET, sometimes known as Central European Time, is the time zone that Poland falls under.
Focus industries
All types of industries can profit from outsourcing, particularly software development. You may enhance productivity, save operating expenses, and free up internal workers to work on more crucial duties by outsourcing design services, code development, or everything else, from huge projects to minor jobs.
Why outsourcing Poland? Poland is well known throughout the world as a talent hotspot for IT and technology. Software development teams must pay a variety of personnel acquisition and onboarding expenses when hiring software professionals internally. Poland is a considerably more cost-effective location to outsource because labor costs are much lower than in many other European states. In terms of digital transformation, it also does well. Numerous industries use Polish software developers, including finance, retail, eCommerce, and healthcare.
Additionally, there is a distinct emphasis on foreign projects in the Polish IT business. For instance, the USA receives a third of all IT services exported from Poland. Of half a million IT professionals, 34% work in Polish-owned businesses, while the remaining 66% are in foreign organizations.
Sustainable economy
Effective business collaborations depend on accessible transportation networks and other economy criteria. Poland is easily accessible by plane from countries on the other side of Europe, such the UK, in just a few hours. The majority of public venues in Poland have free, open Wi-Fi, and fast internet hubs. The Polish IT industry receives ongoing assistance from the government. As a result, numerous multinational businesses, including Google, Intel, and Siemens, established R&D offices in Poland.
Foreign businesses are not obligated to pay payroll tax when employing workers based in Poland as contractors. Sales tax and personal income tax are still due, nevertheless. Businesses also require a Polish bank account and a local signatory to hire a Polish engineer or developer. Many businesses have confidence in their Polish business partners to handle adherence to these tax regulations.
Startup ecosystem
There are six significant IT centres spread out over Poland. Warsaw, Wroclaw, and Krakow have the highest concentrations of R&D specialists. Poland’s capital and largest educational hub, Warsaw, employs 11,600 workers in BPO facilities by itself. Poland’s second-largest talent pool is in Krakow, which has more than 50,000 IT experts. Poznan, Katowice, and Lodz are preferable for small and medium-sized businesses operating in neighboring countries or on the domestic market. One of Poland’s top 3 IT centres, Wroclaw—also known as the Polish Silicon Valley—is home to about 12%, or 51,500 developers, which makes region a perfect start up area.
Education
The Krakow University of Technology, AGH University of Science and Technology, and Warsaw University of Technology are the most renowned educational institutions in the nation. Poland’s technical universities graduate 78,000 ICT students on average each year. So, the local market is rich in qualified staff, alongside international graduates from the other top European schools and training centers, etc.
Fun fact: Poland regularly expands its talent pool by hiring the top engineers from Ukraine in addition to its own IT grads. Since several Ukrainian and Polish markets for software outsourcing exist, corporations can easily shift engineers to the nation where the cost of living and software development is greater.
English Proficiency
Polish consumers also favor Poland for its Western outlook and high level of societal integration in Europe. The high level of English proficiency in Polish is evidence of this. In the globe, Poland is ranked 11th for English language competency. Poland still qualifies as having very high proficiency according to a more recent report from the EF English Proficiency Index, which positions it 11th globally. 1200 Poles in total were subjected to the exams. Poland scored 600, while the global average was only 502.
Poles are ranked ninth in Europe and eleventh worldwide by the EF EPI index, which is thought to be highly high. The same is true of the typical software developer. If you choose to outsource your software development to Poland, you can be confident that speaking with Polish developers won’t be an issue. The majority of ICT graduates are also fluent in other European languages like German, French, Spanish, or Italian, it is important to note.
In addition to having superior technical abilities, the majority of local experts speak English well. This opens the door for foreign experts to join Polish businesses, enhancing their multinational and diversified nature.
Quality custom software development
The majority of the Polish labor force consists of senior developers with 10 years or more of experience who are still young enough to adapt to new projects and working conditions.
Polish developers and technology specialists’ knowledge, experience, and technical prowess are well-known. Java, JavaScript, Python,.NET, C#, C++, PHP, and cloud technology (including AWS, Azure, GCP, and DevOps) are among the IT talents that are particularly prevalent in Poland.
The most widely applied programming languages in Poland are Javascript (28%), Java (20%), Python (16%), TypeScript (8%), PHP (8%), and C# (7%), with Kotlin, Swift, Scala, and Ruby following. Poland also has a sizable population of PHP and.NET developers.
Work ethic
The fact that this nation is a member of the European Union is one of its greatest advantages. As a result, Western European businesses that share a border with it find it to be quite alluring, safe and reputable. Besides, despite the existence of a Polish Labor Code, the majority of the nation’s employment rules closely resemble those applied by businesses throughout Europe and the EU as a whole which entrusts foreign investors more than anything.
With easy access to international transportation and entrepreneurial spirit, cities like Warsaw and Kraków are well-known global business hubs. Another important advantage is having access to the EU market, one of the most influential trading blocs in the world, as much of the bureaucracy involved in other foreign trade has been eliminated.
Poland must abide with the General Data Protection Regulation (GDPR) because it is a member of the European Union. Polish software companies must be up to date on all regulations governing data privacy and handling of personal data. Because of this, Polish developers have no trouble adhering to all laws and regulations which is a huge plus to their overall work ethics.
Average rates for hiring software developers in Poland
About $59 is average software development hourly rate in Poland as per Region Overview Report: Eastern Europe, 2023. However, costs may vary depending on multiple factors like elsewhere around the globe. The development cost is crucial when a business is searching for a long-term collaboration. At the same time, a more crucial factor in selecting an outsourcing region is the capacity to establish secure partnerships with your offshore developers, etc. Understanding offshore developer rates is crucial for businesses seeking long-term collaboration, as it allows for informed decision-making when selecting outsourcing regions and establishing secure partnerships with offshore developers.
Back-end specialists are in high demand in Poland, and there are more openings for juniors in the industry now than ever before. According to Glassdoor, the average annual pay for software developers was $13,000 back in 2022. The starting wage for a software developer is $7342 annually and keeps rising. In Poland, backend engineers can expect to make about $12606 per year. Full-stack specialists can make roughly $11990 each year, whereas front-end specialists make an average of $10233.
Possible Challenges
Anywhere in the world that you outsource has its difficulties. One of the most expensive states in Eastern Europe for software development outsourcing is Poland. It is also one of the area’s most secure and stable vendor economies.
Typical issues encountered while outsourcing to Poland include the following: Polish developers are in high demand due to their skill set and cost-effectiveness. This implies that choosing developers in Poland may present businesses with intense competition.
Time zones and probable cultural differences are two of the most frequent worries that come up when discussing outsourcing. You can avoid restless nights or missed connections by looking for companions who are more familiar with your place and culture. You can also reduce the likelihood of misunderstandings.
Finding the ideal candidates can be difficult because selecting the finest candidates for the position, particularly if you’re new to outsourcing in Poland, is troublesome. Working with a nearshoring partner can be beneficial in this situation because they are probably familiar with Polish talent pools and have the means of facilitating communication with potential employees.
Looking for a nearshore partner can potentially save you the trouble of scheduling crucial conference calls with an outsourced partner. The time zones can change when outsourcing from the US, since there are 6 hours between the East Coast and Warsaw. This indicates that you still have three hours of overlapped workdays.
High employee turnover is also an obstacle. Because they are in such great demand worldwide, developers frequently switch employers. You must offer competitive experience monetarily and in terms of working circumstances if you want to keep employees.
How to find the best software house in Poland?
There are more than 1300 software development businesses in Poland (according to the Clutch), and as the CTO, you should base your decision on the following three criteria: experience, service excellence and price.
Thorough investigation, interaction with the chosen vendor, and agreement on any future cooperation specifics that will meet your software needs are the keys to your project’s success.
Top Branding Agencies in Warsaw may easily help you with the search of an ideal candidate for outsourcing to Poland. You may also find a reliable software development Poland hearing through the grapevine in case you known someone who is already familiar with the developers market here.
When working with the customer for the first time, feel free to inquire as much as you need to in order to become familiar with their employment practices, hiring models, corporate culture, and approach to staff selection. The agency should ideally know about foreign hiring and recruitment laws.
Do you require an outsourcing employee partner who can help you improve your software or create original, unique software with extra services like Quality Assurance? At our digital product agency, we provide free strategy counseling and a preliminary cost and timetable estimation for product development. And that’s why we’re one of the top it outsourcing Poland vendors.
Conclusion
Modern technologies allow you to outsource software development to a team of programmers in another country, saving money. Offshoring also gives access to international talent pools. However, there are still significant regional differences in the average cost of software development services. A tech stack, a developer’s level of experience, a hiring strategy, and the platform you use to hire offshore professionals can all affect how much it costs to develop a product.
While there are many advantages to outsourcing IT services, doing it properly requires assistance. If your business is located in Europe, nearshoring to Poland is unquestionably something to think about. Poland is one of the states with the highest levels of daily English language proficiency. Hire a remote firm with knowledge assisting businesses to nearshore services to Poland and suppling high-quality English-speaking staff. Our team has the capacities, know-how, and ability to lead your custom software development investment projects, whether you want to develop a new SaaS, app or any other digital product or update an existing one.
At Fireart, we provide the skills and knowledge needed to perform bespoke software development services for businesses of all categories and we’ve been doing it for years. By working with us, you may escape the anxiety that comes with trying to find the best employees and managing international teams.
FAQ
What are the benefits of outsourcing to Poland?
Software outsourcing Poland has a range of benefits for your business, like other CEE regions. Here rea some of them:
- Excellent knowledge in coding.
- High talent concentration.
- Time zones that cross.
- English proficiency and the work culture of Europe.
- Inexpensive services.
- Strong market for R&D.
- Opportunities for nearshoring and offshore.
What are the costs of a software development team in Poland?
Software development in Poland is quite affordable for businesses used to paying US developer rates. Benchmark Poland estimates that team augmentation Poland with Python developers make between $1,700 and $5,500 USD per month.
How to hire a software developer in Poland?
Employing an offshore development team in Poland can be done in a number of methods, including working with regional recruiters, using traditional Poland software development companies and outsourcing in Poland agencies, using freelance portals, and using tech talent marketplaces. Fireart is a distinctive outsourcing company Poland and a reliable partner that gives its clients access to a sizable pool of programmer talent.
