With a highly skilled talent pool, competitive costs, and a fast-growing economy, it’s now the premier outsourcing destination in Europe. In this article, we’ll find out why.
Read on to explore the key factors shaping software development in Poland, what makes the country stand out from others, and how you can take advantage to achieve your software goals.
Poland’s booming IT industry
Over the last two decades, Poland has seen a remarkable economic transformation. Since the fall of communism in the early 1990s, the country’s GDP per capita has increased more than 1,000%, from around $1,700 to over $22,000 today.
GPD per capita in Poland
Source: World Economics
This impressive growth has been spearheaded by a booming digital economy, which is now estimated at $44 billion. By 2030, this is forecast to almost triple to over $120 billion, making up nearly one-tenth (9%) of Poland’s GDP.
Within Poland’s digital economy, its IT services sector has taken center stage and is expected to be worth more than $10 billion in 2025. In the coming years, the IT industry in Poland is forecast to grow at a compound annual growth rate (CAGR) of 5.92%, reaching north of $13 billion by 2029.
Revenue by segment
Source: Statista
Drilling down further, IT outsourcing is the most lucrative area of Poland’s IT market and is currently worth around $3.8 billion. Software development — and enterprise software development in particular — is also a major niche, achieving a revenue of almost $2.5 billion in 2025.
So, what’s driving this explosion in software development outsourcing in Poland? Well, there are several factors, including:
- A strategic location within Central Europe and the EU
- A highly motivated and educated talent pool
- Excellent levels of English proficiency
- An increasingly Westernized work culture
- Competitive rates compared to Western Europe and the US
These factors are set against a backdrop of public sector and institutional investment. In 2024, the European Commission allocated $149 billion to Poland as part of a national reconstruction plan, with more than 20% of these funds being used to further the country’s digital transformation. Specifically, this investment will be used to improve Poland’s IT infrastructure and cybersecurity capabilities.
Furthermore, Poland’s IT and software development industry has been supercharged by global corporations. The likes of Google, Microsoft, Intel, and IBM have established regional bases and R&D hubs in Poland. At the same time, a huge amount of venture capital has flowed into Polish startups. Between 2019 and 2023, almost three billion Euros of VC money was invested in growth-stage companies. This has helped fuel a thriving startup culture spanning areas such as SaaS, blockchain, and AI.
Top IT hubs in Poland
Unlike some of its smaller Eastern European neighbours, Poland is a large country with a sizable population of just under 40 million. As a result, it offers several distinct IT hubs, including:
Warsaw
- Poland’s capital and largest city, with a population of over 1.8 million
- The nation’s primary business and technology hub
- A regional base for global IT enterprises such as Microsoft, Google, Samsung, and more
- Home to around 80 universities, making it one of the biggest academic centers in Europe
- A large pool of highly skilled tech talent
Krakow
- Poland’s second-largest city, with a population of around 800,000
- A historical and cultural hub with a growing tech and startup community
- Has transitioned away from traditional manufacturing towards IT services in recent years
- Offices of major global tech companies such as Google and Cisco
- Home to over 20 universities and higher-education institutes
Wroclaw
- A major regional city with a population of around 650,000
- Strategic location in the west of the country
- Excellent connections and an international airport
- A fast-growing startup and IT scene
- A regional base for Nokia, IBM, and other major IT enterprises
Poznan
- A large city in the west of Poland, with a population of over half a million
- Ranked second most attractive Polish city for business by Forbes
- A major academic centre and home to the Poznan University of Technology
- A relatively large IT talent pool, with more than 20,000 programmers
- Home to several up-and-coming IT startups
Expertise in Polish software developers
One of the key factors behind the popularity of software outsourcing in Poland is its large talent pool of software developers and IT experts. Polish developers are proficient in a broad range of coding languages, but the most popular include:
- Java Script
- Java
- Python
- Typescript
- PHP
- C#
- C++
These languages are applied to a wide range of projects and industries, with IT outsourcing and software development representing two of the biggest sectors. Polish software developers are also heavily involved in cloud services, FinTech, AI, cybersecurity, and blockchain development.
Why companies choose Poland for software development
So why are so many businesses now choosing to outsource software development to Poland? There are several key factors that make Poland the most sought-after outsourcing destination in Europe, including:
1. A large, highly skilled talent pool
Poland is blessed with a huge talent pool of highly skilled and motivated software developers. In 2023, Poland had the highest number of software developers among all Central and Eastern European countries, totaling more than 400,000.
In addition to quantity, Poland offers some of the highest quality developers in the world, ranking third in HackerRank’s global ranking — and the highest European country on the list. These rankings measure developers’ abilities to solve coding challenges in different languages.
2. Widespread English language proficiency
Polish software developers tend to be highly proficient in English. In 2024, Poland ranked fifteenth in the world for English proficiency. With an index score of 588, Poland places within the “high proficiency” band, outperforming all of its neighboring Eastern European countries.
English is widely considered the primary business language in Poland, especially in the IT industry, which is predominantly made up of highly educated young adults.
3. Location and culture
With its strategic location in the heart of Central Europe, more and more Western European companies are looking to nearshore in Poland. It’s also an ideal destination for collaboration with companies based in the Americas. Poland offers excellent transport connections, with 12 international airports and excellent rail and road links to nearby European capitals.
What’s more, Poland’s work culture has become increasingly Westernized in recent years. Software outsourcing to Poland means less friction and fewer misunderstandings compared with outsourcing to Asian countries, for example.
4. Cost-efficiency
Despite its high-quality talent pool and booming economy, Poland remains a highly cost-effective outsourcing destination. For countries in Western Europe, it’s around 25% cheaper to hire Polish software developers than domestic ones. US companies can reduce the cost of software development by two-thirds compared to local rates by outsourcing to Poland.
5. Favourable economic conditions
As we’ve already discussed, Poland’s economy isn’t just stable, it’s booming. The country benefits from EU membership, and its government has implemented favorable tax policies and streamlined regulatory frameworks to attract foreign investment. Corporation tax in Poland currently stands at 19%, making it one of the lowest in the EU and 10% lower than neighboring Germany.
At the same time, government Initiatives like the Poland.Business Harbour program are encouraging the most talented and promising IT specialists and startups to relocate to Poland.
Top software development companies in Poland
With more than 50,000 software development companies in Poland, it can be difficult to know where to start. In this section, we’ll narrow down the field and list seven of the best.
Intellias
Intellias is a global technology partner with a strong presence in Poland. We specialize in custom software development, AI solutions, cloud computing, digital transformation, and much more. Our dedicated development teams help businesses across the globe with end-to-end software development, project management, digital consultancy, and much more.
In addition to our office in Krakow, we recently opened three new Intellias offices in Warsaw, Wroclaw, and Gdansk. In total, we have 14 delivery locations worldwide and a team of more than 3,000 experts. Our clients include Travis Perkins, Hello Fresh, and PandaDoc.
10Clouds
10Clouds is a custom software development company from Poland. With offices in Warsaw, Poznan, and Wroclaw, it has a team of 200 experts serving more than 500 clients worldwide. Specializing in custom software development, AI, blockchain, and mobile app development, 10Clouds’s key clients include Forbes, Samsara, and Qenta.
Miquido
Another popular software development company in Poland, Miquido is based in Krakow. It offers a range of services, including bespoke software development, app development, AI, and product strategy and design. Its clients span industries such as eCommerce, FinTech, Banking, and Healthcare.
Scalo
With offices in Warsaw, Krakow, Wroclaw, and Katowice, as well as regional bases in Israel and the US, Scalo is a leading European software development company. The Scalo team specializes in AI, ML, automation, and big data. They also help clients modernize legacy infrastructure and systems. Clients include ING, Santander, and Asseco.
AgileEngine
AgileEngine is a global team of more than 1,000 software experts. It’s headquartered in the US but has offices worldwide, including a Polish base in Krakow. In addition to software development, they offer services spanning AI, design, and data. Major clients include Asana, Shutterstock, and Delivery Hero.
MerixStudio
Since its foundation 25 years ago, MerixStudio has delivered around 400 digital solutions to more than 350 clients worldwide. Based in Poznan, they offer custom software development and a range of technology consulting services.
Neoteric
With offices in Gdansk as well as New York City, Neoteric is one of the leading Polish software companies. It has a strong focus on generative AI development, as well as digital product design and web app development. It offers a strong team of software experts, with 90% of staff operating at the senior level. It also boasts some huge clients, including Boeing, Siemens, and Nestle.
Challenges and considerations
While Poland offers huge advantages for software development, there are some potential challenges you should be aware of when setting up operations in the country. Here are the main hurdles to consider:
High competition for top IT talent
Poland’s booming IT sector and skilled talent pool have led global companies to expand their presence in the country. With the demand for skilled developers continuing to rise, securing top talent can be a challenge. You can avoid this issue by outsourcing your software development needs to a trusted expert.
Rising salaries in the sector
The growing demand for experienced software engineers is driving salaries higher, particularly for senior developers and those with specialized expertise in areas such as AI. While Poland remains cost-effective compared to Western Europe and the US, companies should factor in rising labor costs when budgeting for software development operations.
Legal and tax considerations
Navigating Poland’s employment laws and tax regulations can be complex for foreign firms. It’s crucial that you understand how employment contracts, social security contributions, and intellectual property rights work. You must also weigh up whether you want to hire Polish developers as full-time employees or independent contractors, as each option has different legal and tax implications.
Adapting to cultural and business practices
While Poland is becoming increasingly Western-minded in its approach to work, there may still be instances where work styles, management expectations, and communication norms differ from your own. Likewise, nuances in language dialects and terminology may lead to misunderstandings, despite Poland’s high English proficiency levels.
Infrastructure and operational setup
If you plan to establish a physical presence in Poland, factors such as finding available office space, setting up IT infrastructure, and navigating administrative processes can be a challenge. While Poland offers modern office spaces and strong digital infrastructure, securing prime locations in major IT hubs such as Warsaw and Krakow can be competitive and expensive.
How Intellias can assist in navigating the setup process
If you’re interested in software development outsourcing in Poland, working with a trusted partner can make all the difference. At Intellias, we help companies maximize the opportunities the Polish IT industry offers and navigate the challenges.
We offer a broad range of end-to-end services, from help with bigger-picture strategy consulting to hands-on technical expertise. Here are just some of the ways we can help you with custom software development in Poland:
Digital consulting and strategy development
We offer in-depth strategic consulting to help you determine the best approach for setting up operations in Poland. Whether you need support for specific software projects or digital transformation in general, we have the expertise and insights to help guide you.
Access to the best talent
Our outsourcing teams comprise some of Poland’s best software developers. They can help you with end-to-end software development, fill gaps in your existing team, or help you drive software projects to fruition rapidly and successfully.
Access to the best technologies
With deep knowledge of different systems and domains, we can help you leverage innovative technologies such as AI, machine learning (ML), data engineering, and the Internet of Things to drive tangible results.
Operational and project management
To streamline daily operations, we provide clients with project management support, ensuring that development teams are aligned with business objectives. We also integrate agile methodologies and DevOps practices to enhance productivity and collaboration.
Technology and security integration
We can assist you in setting up resilient IT infrastructure to ensure smooth performance, operational continuity, and compliance with data protection regulations and security standards.
To sum up
In recent years, Poland has established itself as a leading destination for software development in Europe. With a large talent pool of experienced professionals, competitive rates, and a thriving tech economy, it’s a sensible choice for companies in Western Europe and the US looking for outsourced software services.
If you’re looking to outsource software development to Poland, it helps to work with a trusted technology partner. At Intellias, we have extensive experience in the Polish software ecosystem. With offices across the country, we offer our clients access to the talent, technologies, and services they need to achieve success. For example, we have helped:
- Travis Perkins accelerate software development by leveraging AI
- A healthcare provider save $1 million+ through a new digital booking portal
- A communications service provider drive growth through a B2B self-service portal
Need help turning your digital vision into reality? We can make it happen. Get in touch today.
