To outsource or not to, that is the question. Discover the impact of the recession on outsourcing and its potential benefits for your company.
Outsourcing has become increasingly popular in recent years and is considered one of the most efficient ways to run a business today. Companies are choosing this approach for many reasons, among them: a reduction in costs, the inclusion of domain expertise, the reduction of hiring time, the access to a world-class talent pool, the flexibility of scaling your project, the ability to work with a managed team, and focusing on your core business are just a few of the reasons why companies are choosing this approach. According to Deloitte, spending on IT outsourcing will increase to 519 billion dollars in 2023. Since outsourcing is one of the fastest ways to achieve high-quality results, enterprises may wonder which destination is better. Among the most popular countries specializing in this field are Eastern European – Ukraine, the Czech Republic, Romania, and of course, Poland.
Poland is an attractive option for many due to its highly skilled workforce, abundant resources, skilled IT professionals, and relatively low labor costs. Its convenient geographical location and well-developed transportation infrastructure make it an ideal destination for IT companies looking to expand their global reach. To introduce you to all the advantages Poland can offer in IT outsourcing, we have prepared this guide highlighting some of the main points worth mentioning while choosing a destination for your software development project.
Polish IT ecosystem
Hackerrank rated Poland third place when it comes to developers’ success at popular programming contests, and in The Global Innovation Index 2021, Poland is placed 40th among the top 132 digital nations. Poland is ranked among the top 30 nations for offshore services by Gartner. This list of impressive stats shows that Poland has lots of potential in software development outsourcing. Let’s have a deeper look at its IT ecosystem.
Poland has successfully upgraded its economy since joining the EU in 2004, making it one of the fastest-growing and stable nations in the world today. Additionally, the information and communication technologies sector is experiencing a rapid growth rate in today’s world. A PwC report says that by 2050, Poland shall achieve the highest average growth rate among all large EU economies.
Among the main drivers of the Polish IT sector are:
▪ Globalization of the Information and Communications Technology (ICT) market
▪ Digitalization of society supported by EU and other foreign investments
▪ Its geographical closeness to some of the most important European countries and IT centers, as well as similar time zones
▪ Low tariffs, a globally recognized technology education system, a favorable political and economic environment
▪ A commitment to adapting to the latest technological trends, such as cloud computing and mobile applications
▪ It is noteworthy that during the time of the pandemic, the number of industry sectors where digital services are being applied increased by 60%. During the same period, about 3.6 million new “digital” clients appeared in Poland
▪ Poland’s economic situation has been greatly influenced by the war in Ukraine, yet it also brought many qualified specialists currently staying in the country and doing business.
Poland is a homeland for many world-known R&D centers like Google, IBM, Motorola, Delphi, Fujitsu, Roche, and Pfizer. Speaking of business directions, there are main domains in which engineers have specific expertise: Fintech, E-commerce, Internet & Marketing, Digital Transformation, and Technologies.
Polish people are also considered to be skilled and educated. More than 400 institutions offer higher education in Poland, including more than 600 technical universities. During the academic year 2020/2021, more than 66,000 students will be enrolled in ICT courses in Poland. QS EECA ranked some Polish universities, and the following are the most popular among Poles:
▪ Krakow University of Technology
▪ AGH University of Science and Technology
▪ Warsaw University of Technology
▪ Gdansk University of Technology
▪ Poznan University of Technology
▪ Wroclaw University of Science & Technology
There is a large tech pool of experienced and specialized engineers in Poland who stay up-to-date with the latest trends in the industry and implement top technology solutions. So, if you decide to hire experts from Poland, you will have access to skilled and experienced software developers with various technical abilities.
In addition to tech skills obtained in universities, Poles are also highly skillful in English. According to the EF EPI Index, in 2022, Poland achieved 13th position among 113 fellow countries, and the rate also shows that it gained 11th place among 35 European countries. Profound knowledge of English allows engineers, management, and leadership to communicate without potential misunderstandings.
A sense of cultural integrity
Being a part of the European Union, Poland shares their fellow members’ values of equality and responsibility. Membership has contributed to the country’s strong work ethic, which is seen as an important asset in outsourcing. Another essential point is the establishment of a society in Poland, which, based on Hofstede’s report, can be described as predominantly masculine in nature, highly motivated by success, goal-oriented, and values high performance at work. Poles are considered individualistic, which means by hiring polish developers you can assure the mobility of every team member you choose for outsourcing.
The Polish IT sector attracts substantial investments thanks to an investment-friendly environment and a legal system that complies with EU law.
The Polish government recently announced that they are enforcing a new tax plan in order to encourage the implementation of innovations in the country. It is the goal of a new system of tax incentives to reduce the taxes of businesses that commercialize the results of their R&D services, engage in prototype development and robotics, or employ innovators, such as researchers, programmers, inventors, and engineers, as well as companies that use innovative workers. This tax plan is expected to start working at the beginning of 2022 and will last until 2025.
Major IT HUBS
Since Poland is a big country with a vast tech talent pool, recent research claims there are more than 250,000 developers. 25% of offshore programmer talent in Eastern and Central Europe is in Poland. Poland also has seven major IT hubs employing over 85% of all IT professionals in the country, with the lion’s share living in Krakow, Warsaw, and Wroclaw. According to this recent report, the highest concentration of developers is located in Warsaw, Krakow, and Wroclaw, where 24%, 14%, and 12% of the cumulative population of these areas live, respectively. Katowice, Tri-city, and Poznan followed closely behind with 8.7%, 8.2%, and 7.5%, respectively.
Warsaw is the capital of Poland and home to the most significant number of R&D centers in Poland. The city is home to a total of 85,000 IT specialists along with a developed infrastructure, making it the perfect place for businesses. Every year, Warsaw graduates over 3,000 new IT specialists into the market. All of these factors contribute to this city’s rapid development of software engineering.
Krakow is one of the largest cities and the leader in the number of jobs in the sector, making it one of the most appealing destinations for software development outsourcing in Poland. Approximately 70,000 people work in Krakow’s business service centers. A constant inflow of talent makes Krakow particularly attractive to businesses looking to outsource their team in Poland since 5000+ IT graduates enter the market annually.
Wroclaw is the third IT hub with a vast talent pool of 52,500 qualified developers. What is peculiar about this hub – it is known for its cooperation with the local universities, which leads to an annual talent inflow of 1400 ICT graduates.
Even though Katowice is primarily known for its transportation value, it is also home to a remarkable number of Polish developers. Approximately 27,500 tech experts were working in Katowice in 2021. It is also home to 1,400 ICT graduates each year. Katowice is noted for its expertise in the gaming and e-sports industry.
Combined with Gdansk, Gdynia, and Sopot, Tri-city has 30,200 software developers and 146 R&D centers. During the last couple of years, the region has grown a lot. Public transportation in this area is excellent, and offices are plentiful. Additionally, more than 20,000 students graduate from 20 universities in Poland every year, which is vital for software engineering growth.
The Lodz IT labor market is one of the largest in Poland. In total, SSC/GBS, IT, BPO, and R&D departments employ approximately 26,000 people in the Lodz centers, making it one of the countries with the highest growth rate in terms of employment rate. The Lodz University of Technology is one of the 5th most frequently chosen universities among students and graduates about 1,000 IT technologists each year from its program.
Poznan is another location where you can find over 100 R&D centers and teams for outsourcing. Poznan is also known as a place with the healthiest business environment, which makes the city an attractive spot for software engineering in Poland. Moreover, 24 colleges and universities are located here, ensuring constant talent influx.
Looking for a full-service cross-functional team to create a complete end-to-end software application? Hire Proffiz. Our company provides the development of custom web applications and other types of software services to bring even more value to your business. Application development services extend across scalable and flexible web and mobile development for various industries. By achieving your business goals we achieve ours, let’s pass this way together.
Poland has proved to be an impressive and fast-growing country with multiple benefits for software outsourcing. Possessing a highly qualified tech workforce, lucrative infrastructure, relatively low labor costs, and close to US culture, Proffiz chose it for its software development center. With years of expertise in the print, fintech, and photo domains, our company opened new opportunities for professional growth and market expansion, making Proffiz a reliable software vendor. Whatever your requirement is, web or mobile custom application, you can be sure of its top quality. If you wish to hire dedicated and qualified experts, you are in the right place.
You can entrust us with your custom software solutions.
RIP software is software that processes digital images to optimize them for printing. To learn more about it, read this article.