Poland has consistently attracted foreign investments, ranking third among the top 50 global investment destinations in 2021. By 2023, 92.7% of foreign investors reported satisfaction and expressed a willingness to invest in Poland again. The technology sector, especially IT outsourcing projects, remains a major draw.
Poland’s positive economic climate and stable market make it attractive for companies to outsource IT services to Polish companies. Among the most notable advantages of outsourcing to Poland are:
- Excellent coding expertise
- High concentration of talent
- Overlapping time zones
- European work culture and English fluency
- Affordable services
- Strong R&D market
- Nearshoring and offshoring opportunities
Poland is one of the fastest-growing economies in the EU, with significant investments in infrastructure and ecology. As a result, it has become a highly comfortable place to live, offering a warm and welcoming atmosphere that quickly feels like home.
Poland is one of the best IT outsourcing destinations worldwide. Geographically, it’s located near Western European countries and is tied to them culturally. While being a member of the European Union, Poland can provide affordable services for various reasons. Let’s see what creates a positive IT business environment in Poland, resulting in high product quality and additional benefits of outsourcing services.
Why is Poland a great outsourcing destination?
Since joining the EU in 2004, Poland has received lots of investment and infrastructure development. Up to 2015, Poland’s GDP growth was the highest among European countries, alongside Slovakia. Even in the face of the global COVID-19 pandemic, the Polish economy has stood strong, with the fourth lowest GDP decrease among European countries. From 2019 to 2023, Poland’s GDP grew steadily, except for a dip in 2020. More growth is expected over the next five years.
Poland is also one of the EU countries making the most progress in digital development, which allows it to quickly catch up with the region’s leaders. There are more than 400,000 developers in the Central and Eastern European region, and Poland has the biggest share, being home to almost 300,000 developers. This highly specialized market pays off, and revenue generated from software outsourcing in Poland is constantly growing.
IT outsourcing services market revenue in Poland from 2020 to 2029
Source: Statista, IT services
The Polish IT market has been growing at a stable pace year after year. Most Polish IT outsourcing companies are expanding their operations globally, opening development centers and representative offices all over the world. In 2022, the Polish ICT market reached $24.5 billion, increasing over 11% from the previous year. Another study shows that, in 2022, the country’s IT market made up around 3.5% of Poland’s GDP, and this figure was projected to grow to 4.5% by 2025.
Software development in Poland has entered almost every industry and become the main driving force behind rapid growth of the whole IT market and infrastructure in the country. Enterprise-level cloud computing services have also given a boost to growth in the number of IT outsourcing companies in Poland.
Why outsource to Poland?
Place of Polish outsourcing in the global IT market
Poland has already outgrown the status of emerging economy and has become a stable developed country that has cemented its place in global service and product markets. Software development in Poland has entered almost every industry. At the same time, software outsourcing in Poland is one of the key export services. Revenue from software development in Poland accounts for €8.8 billion annually.
Software development revenue in Poland and across Europe?
Source: IBISWorld: Industry statistics
Poland competes with countries from Latin America (Brazil, Argentina, Colombia), Asia (China, India, the Philippines), and neighboring CEE IT hubs (Ukraine, Romania) in being named the top software development destination. While Asian and Latin American markets can beat Poland in terms of people availability, Poland still has advantages in regards to the business environment, digital infrastructure, and quality of services.
On the CEE IT outsourcing market, Poland competes with neighboring countries.
Comparison of IT outsourcing in Central and Eastern Europe
Let’s compare IT outsourcing in Poland and the three other main IT hubs in Central and Eastern Europe — Ukraine, Hungary, and Romania — that provide the most talent capability to technology companies for outsourcing their software development.
Software development outsourcing in Poland vs Ukraine
Despite visible competition between Poland and Ukraine, these two countries share a strong bond in terms of culture and work environment. In fact, a lot of Ukrainian companies have offices in Polish cities. For example, Intellias opened four offices in Poland in the scope of the company’s global expansion of delivery operations and IT outsourcing services.
Ukraine’s revenue from software development is expected to be around $2.76 billion in 2024. That’s close to what Poland has. For example, in 2021, Poland’s IT services brought in $2.3 billion, and this figure has been steadily growing ever since.
The Ukrainian software outsourcing market is growing by 20% to 30% per year, similar to the trend seen in Poland. However, the number of software developers in Ukraine is lower. It amounts to 200,000, which is half of what Poland has (400,000).
Hourly rates in Ukraine may vary between $12 and $62, while for Poland these numbers are $11- $65. Ukrainian engineers in outsourcing companies may cost between $26 and $43. The most popular programming languages among Ukrainian developers are SQL and JavaScript, with Java, Python, PHP, C++, Ruby, and Scala following.
Software development outsourcing in Poland vs Romania
Poland’s software development market significantly surpasses Romania’s in both revenue and developer numbers.
In 2024, Romania’s IT software development market is projected to generate $387 million, while Poland’s is expected to reach $2.29 billion — nearly six times more.
Romania has about 120,000 developers in outsourcing, with 7,000 new tech graduates joining each year. In contrast, Poland’s sector boasts around 400,000 developers, with 15,000 new graduates annually and 99,500 high school students studying development.
Romanian software engineers typically charge between $15 to $60 per hour, similar to their Polish counterparts, who charge $11 to $65 per hour. IT outsourcing services from a Romanian firm cost between $26 to $45 an hour. Popular programming languages among Romanian developers include SQL, JavaScript, Java, Python, and C++.
Software development outsourcing in Poland vs Hungary
Both Poland and Hungary benefit from their central European locations and are seeing growth due to rising demand for IT services. However, Poland’s software development market is significantly larger than Hungary’s.
In 2024, Hungary’s software market is projected to generate $922.70 million, which is less than half of Poland’s expected $2.29 billion revenue. Despite this, both markets are growing at similar rates, with Hungary’s annual growth rate (CAGR) at 5.45% and Poland’s at 4.84%.
Hungary, like Poland, boasts a well-educated tech workforce, with 11 universities offering strong computer science and engineering programs. The country has over 8,000 registered tech businesses, employing 33,500 people. However, Hungary’s developer base is smaller, with 80,000 developers compared to Poland’s 400,000.
Both countries provide competitive rates for IT outsourcing services, typically ranging from $40 to $55 per hour. Popular programming languages among Hungarian developers include Java, JavaScript, Python, C#, C++, PHP, Ruby, SQL, and Swift.
The Polish IT ecosystem
The Polish IT ecosystem is vibrant and rapidly expanding, featuring a robust talent pool, a growing number of tech companies, and a thriving startup scene. It flourishes within a dynamic and strengthening economy.
The economic environment in Poland
For over 25 years, Poland’s economy has experienced steady growth, making it the sixth-largest economy in the EU. Between 2012 and 2022, the country’s GDP averaged a 3.7% growth rate, outpacing Eastern Europe’s average of 2.5%.
Poland’s strong economic performance is due in part to its well-diversified economy, with key contributions from industry, services, and agriculture. Notable sectors include manufacturing, finance, IT, and retail.
Poland is recognized for its investment-friendly environment, offering relatively low corporate taxes and various incentives for foreign investors. The country has also established multiple special economic zones and 79 industrial and technology parks to attract international businesses.
Software development market in Poland
Poland’s software development industry includes 50,817 businesses offering a wide range of digital products and services. IT outsourcing in Poland has gained international recognition, with Polish IT companies renowned for their strong project management skills and ability to deliver high-quality solutions.
Top software development service providers in Poland
Polish software development companies offer a variety of engineering services, ranging from providing dedicated software development teams to software architecture, QA, testing, IT operations, and digital marketing services. Web application development is the main service among Polish software developers, bringing over 15% of IT industry revenue.
Top software development services among Polish IT companies
Source: Software development in Ukraine, Poland, Belarus, and Romania
In addition, Poland has become home to numerous tech giants and pioneering startups. The largest players in Poland’s software development market include SAP SE, Alphabet Inc., and Microsoft Corporation. In 2023, Microsoft even launched its first data center region near Warsaw, investing about $1 billion in the project.
Other world-known companies like IBM, Nokia, Intel, and Samsung also operate in Poland, employing over 15,000 IT specialists in Poland. The Polish IT ecosystem provides talent capabilities for R&D centers and digital products used by billions of users.
International companies and R&D centers in Poland
Source: Software development in Ukraine, Poland, Belarus, and Romania
Software development penetration across industries
In Poland, software development has significantly impacted various industries, underscoring the sector’s broad influence on the economy. Polish IT outsourcing companies serve reputable clients across diverse sectors both domestically and internationally. The financial services industry is particularly prominent, with many Polish development firms creating software products for global banks and FinTech startups.
Main industries served by software providers in Poland
Source: Software development in Ukraine, Poland, Belarus, and Romania
IT hubs of Poland
Large Polish cities have emerged as key hubs for IT software development outsourcing. According to Statista, Warsaw, the capital, is home to 23% of the country’s IT specialists. Other major IT hubs include Wroclaw (13%), Krakow (11%), the Silesia agglomeration (8.9%), and Tricity (8.3%).
These cities are attractive locations for IT outsourcing services due to their high-quality technical universities, large talent pools, good living standards at reasonable costs, and convenient infrastructure with easy access to other Western capitals.
Cities with the biggest population of developers
Tech talent pool
As previously mentioned, around 400,000 developers work in Poland’s IT sector. These tech professionals are skilled in a wide range of technologies and programming languages, including Java, JavaScript, Python, C#, C++, PHP, and SQL. They also have expertise in emerging technologies such as artificial intelligence, machine learning, blockchain, and cloud computing.
A significant advantage is that many Polish tech professionals are fluent in English, enabling seamless communication with international clients and teams.
Additionally, Poland’s IT/ICT education is thriving. Universities with tech faculties maintain high standards, producing graduates who are well-prepared for the workforce.
IT/ICT education in Poland
Source: Software development in Ukraine, Poland, Belarus, and Romania
Investing in the Polish IT market: Why is it worth it?
Investing in the Polish IT market is a wise decision. The country boasts a rapidly growing tech ecosystem, a skilled workforce, and competitive rates. It also fosters a vibrant environment for innovation, offering a diverse range of tech expertise, from traditional software development to cutting-edge technologies.
Poland’s strategic location in Central Europe, combined with a supportive business climate and strong EU ties, further enhances its appeal as an IT investment destination. In the next section, we’ll delve into the specific benefits of choosing IT outsourcing in Poland.
Key benefits of outsourcing to Poland
Many technology companies and global enterprises continue to rely on outsourcing services in delivering their digital products and following their digital transformation journeys. The choice of Poland as an outsourcing destination is more than reasonable because of the country’s location, talent capital, expertise, and international experience. Among the most notable reasons to outsource to Poland are:
- A healthy and developed economy
- Highly skilled engineers
- A dynamically growing IT market
- GDPR standards for protecting intellectual property and for securing data
- A large pool of IT graduates each year
- Proximity to European cities
- Experience in various industries
- Wide scope of engineering services
- IT hubs in biggest Polish cities
- EU member
- Results-driven mindset
The list could be endless. Let’s focus on the most visible benefits of Polish software development outsourcing.
Great coding expertise
IT outsourcing companies in Poland have access to a large network of skilled software developers. According to TopCoder, Poland is one of the top five countries for talent based on developers’ skills. This has also been proven by IT developers from Poland taking leading positions in annual coding contests like Google Code Jam, Microsoft Imagine Cup, and the Central European Regional Contest (CERC).
Poland is also in the top three countries worldwide for best developers according to HackerRank:
Source: HackerRank Programming Olympics
Poland has the largest pool of skilled software engineers in CEE. According to Statista, it was home to nearly 400,000 software developers as of 2023.
High concentration of talent
Poland is home to several major IT hubs, including Warsaw, Wroclaw, Krakow, the Silesia agglomeration, and Tricity, which together house 80% of the country’s software engineers. Krakow, in particular, stands out as a major cultural and educational center, with 170,000 students. Partnering with an IT outsourcing company in Krakow ensures access to a thriving community of experienced professionals capable of handling every aspect of your business needs.
Overlapping time zones
Poland is in the GMT+1 time zone, so the majority of European clients will have overlapping working hours with their IT technology partners. As for US clients, the time difference is 6 hours for the East Coast and 9 hours for the West Coast, still allowing several hours during the day to contact IT partners. As a result, tasks can be completed the same day for EU companies and overnight for US companies.
Similar work culture and English fluency
Poland is ranked #11 out of 100 countries in EF Education’s English Proficiency Index (and #9 out of 33 countries in Europe). Most software developers in Poland speak English fluently or at least at an upper-intermediate level. You can be confident in solid communication, saving your business from costly mistakes.
Poland is a predominantly Catholic state that follows the same calendar and holds the same values as its Western partners. Polish holidays mostly coincide with those in the US and Western Europe, so your outsourcing partners will work when you work and rest when you rest.
Most importantly, Poland is part of the EU and adheres to all EU business regulations like the GDPR while following generally accepted codes of conduct for European companies. Polish companies prefer building long-term partnerships over simply closing deals.
This is certainly true of Intellias, a well-known IT outsourcing services provider. We value our reputation and do everything we can to win our clients’ trust. With returning clients and referrals accounting for 70% of all our clients, we’re proud to be among the most trusted and reliable IT outsourcing companies in Poland.
Affordable services
Hourly rates of software engineers vary depending on seniority, project scope, and other factors. However, cost of living is one of the most influential aspects. According to a 2017 overview by Eastern Peak of global average hourly rates for software development, a skilled specialist in Poland charges about $35 per hour. This is three times less than the average rates for US contractors, most of whom charge around $150 an hour, or with Canadian companies, which often charge around $100 an hour.
Despite the lower rates, however, the quality of services and final products is high. From the perspective of price–quality ratio, Poland is by far the best choice to meet your hiring needs.
Strong R&D market
Poland is located next to major economic hubs and has direct flights to destinations around the world, making it easy for companies to communicate and interact. Many leading international companies and global technology vendors like Intel, Google, Oracle, Microsoft, Cisco, and Samsung have already established R&D centers in Poland and are benefiting from its strong and growing economy. This is why Poland is one of the top 50 outsourcing destinations worldwide.
With each passing year, Poland strengthens its position in various international ratings and attracts more and more companies to establish a presence. Maybe it’s time to join them?
Offshoring and nearshoring
Poland is a great destination for both offshoring and nearshoring. For EU companies, Poland is an attractive nearshoring option due to its geographical proximity and relatively lower cost of living. EU companies outsourcing to Poland can significantly reduce their project expenses and easily keep their hands on the pulse of their projects.
For US customers, Poland is a great offshoring choice due to the ability of Polish companies to deliver high-quality end-to-end solutions at affordable prices. Outsourcing companies in Poland excel at providing turnkey products to support their customers’ innovations and business growth.
Challenges of outsourcing software development to Poland
While Poland is a popular destination for IT outsourcing services, there are some potential drawbacks to consider.
Time difference challenges
Poland’s time zone is generally convenient for European clients, but it can present challenges for companies based in North America or Asia. To mitigate this, it’s crucial to work with experienced IT outsourcing providers, like Intellias, who have well-established processes and expertise in coordinating work across different time zones, ensuring smooth collaboration regardless of the client’s location.
Security concerns
Data privacy and security are vital considerations when outsourcing software development, and Poland is no exception. As a member of the European Union, Poland adheres to the GDPR, a stringent regulation that governs the collection, processing, and storage of personal data. Outsourcing partners in Poland must comply with these rules, ensuring that data handling practices meet EU standards.
That said, a trustworthy IT outsourcing partner will help you handle these challenges. Overall, the benefits of IT outsourcing to Poland far outweigh any potential issues.
Unleash the full potential of nearshore outsourcing in Poland with Intellias
We established our Krakow office in 2019, and it has since grown to over 200 specialists. In 2022, we expanded to three additional Polish cities: Warsaw, Wrocław, and Łódź.
Opening these new delivery centers in Poland was a strategic move to better serve our clients and strengthen our presence in the EU. This expansion also reflects our commitment to sustainable development across our global locations. By integrating our Polish offices with our international and Ukrainian teams, Intellias is well-positioned to make a significant impact on the global IT industry.
In 2023, Intellias was honored with the Great Place To Work Certification, recognizing us as a top employer in Poland. With a 92% employee trust index, we stand out in the Polish IT market. Our dedication to creating a positive work environment helps us attract top talent and stay at the forefront of IT outsourcing in Poland.
Choose Poland for quality, cultural match, and expertise
Poland is an attractive IT outsourcing destination for many reasons. Due to its stable growth, influx of highly qualified specialists from surrounding countries, and strong software development community, Poland is a place where you can find a trustworthy technology partner.
Intellias is an international IT outsourcing company with offices in Berlin, Krakow, Ivano-Frankivsk, and Lviv. Due to its abundance of skilled software engineers, ever-growing investments, and proximity to our clients, Poland was a logical destination to expand to. We’re happy to provide top-notch IT outsourcing services in Poland to help your business reach new heights.
Contact us with your project requirements and let’s make great things together!