Why choose Poland for IT Outsourcing in 2024? TOP 20 factors







Why choose Poland for IT Outsourcing in 2024? TOP 20 factors

Published: 2021/07/01

Updated 30/01/2024

10 min read

Numerous foreign companies regularly rely on Polish developers to deliver software essential to their business. It’s not a coincidence. Suppose you haven’t yet discovered Poland’s strengths and charms. In that case, this updated 2024 article will give you a comprehensive list of why Poland successfully develops software solutions and implements cutting-edge tech.

Software development outsourcing changes rapidly, as do factors that prove critical in competing for the best and most challenging projects. As Poland continues to evolve as a top outsourcing destination, the list of factors that influence changes with it to be up to date.

1. A stable and healthy economy

Since the transformation in the 90s, Poland enjoyed uninterrupted growth, as between 1990 and 2015, the GDP growth was the biggest among European and OECD countries – it increased over seven times. Poland’s gross domestic product (GPD) remains stable despite economic downturns. In 2022, the GDP reached a steady 5.3%, according to data provided by The World Bank. Poland ranks 36th among the 50 high-income group economies and 26th among the 39 economies in Europe, according to the Global Innovation Index 2023.

2. Highly skilled software specialists

Polish software developers are among the world’s best and most qualified. And there are a few good reasons why they’re highly sought-after developers in the international market. First, they are among the most experienced in the world in terms of prior coding experience when they earn their first professional job. This is important for all companies that wish to outsource ambitious and challenging software projects to equally determined, detail-oriented, and hungry-for-success team members. How good are Polish coders? According to HackerRank’s ranking, China would win the gold medal, followed by Russia in silver and Poland in bronze in a hypothetical hacking Olympics. Polish teams scored 4th at Google Code Jam. Furthermore, according to HackerRank’s 2023 Developer Skills Report, the EMEA region has shown more robust growth than the software development areas in comparison to other parts of the world.

3. Dynamically growing IT market

The Polish IT market grows at a stable rate yearly. In the past few years, it has experienced massive changes, and more and more Polish IT companies are expanding internationally. The ICT sector has shown remarkable growth potential, with many startups being established in this field. In fact, over 50% of all startups are in the ICT sector. The Polish market is witnessing a steady increase in the number of enterprises operating in this sector at an average annual rate of 10.1%. Furthermore, the Polish ICT sector is in excellent condition, with an average yearly increase in turnover of over 8.6%, the highest growth rate in Europe.

Software development is one of the primary factors driving the growing IT market in Poland across various industries. Another significant trend is the rapid expansion of enterprise-level cloud computing services, encompassing software and infrastructure. Essential products and services include IoT, cybersecurity, and their respective sub-sectors. Poland is also becoming a hub for implementing AI-related technologies – more on that later.

4. US and EU standards in IP protection and data security

Poland has been prioritizing IT protection and data security for years. As a member of the European Union, Polish companies have implemented the General Data Protection Regulation (GDPR), widely known for its strict privacy rules. The GDPR is seen as a significant milestone in the fight for better privacy and data protection of individuals. Polish companies have a close relationship with the US, meaning they are well-versed in the common requirements of their American partners. This is especially true regarding protecting intellectual property, adhering to copyright laws, and ensuring data security. In fact, in the US Chamber of Commerce IP Index 2023, Poland scored 70.74 out of 100, making it the safest outsourcing destination among popular choices. All of this combined makes outsourcing to Poland a smart and secure choice.

5. An extensive pool of IT graduates

Annually, about 70 thousand Poles study Computer Science. Some of the most important academic centers include Krakow (AGH University of Science and Technology and Jagiellonian University) and the capital city of Warsaw (Warsaw University of Technology). Other important IT hubs include Wroclaw, Rzeszow, and Katowice, just an hour’s drive from Krakow. Polish universities produce approximately 15,000 computer science and nearly 100,000 STEM graduates each year.

6. Proximity to the major European financial centers

Poland is considered the top outsourcing destination worldwide for those who want to remain close to major European financial centers such as London, Paris, or Frankfurt. Its central location in Europe means that Krakow can be reached by plane within an hour from Vienna and under two hours from Berlin, Brussels, Zurich, and Paris. Moreover, reaching Krakow from London takes only two and a half hours.

7. Experience with AI projects

According to reports, Generative AI is set to be the most influential new technology in 2024. Poland is also emerging as one of the top places in the world to work on AI-related projects. In December 2020, the Council of Ministers in Poland adopted a national AI strategy called “Policy for the Development of Artificial Intelligence in Poland from 2020.” Currently, over 200 companies in Poland are working on AI projects, which is expected to grow further, according to the Invest in AI in Poland report. Here is a list of some domestic companies in Poland that provide AI products. Each major Polish metropolitan area has a few universities that teach machine learning and big data skills. In the case of Warsaw, there are about a dozen universities. Over the past 30 years, more than 650 PhDs or professors have written their theses in the field of AI. Additionally, in the last five years, almost 5,000 researchers have published scientific papers in AI, out of which 1,500 are IT specialists (according to the report).

8. Cultural and work ethics similarity

It is often overlooked, but an essential factor to consider when choosing software developers is their ability to understand and work well with clients. While technical skills and experience are crucial, having work culture and communication similarities can significantly affect successful cooperation. Polish work culture and management style closely align with countries that frequently outsource software development, including the UK, the US, Germany, and France. This similarity extends beyond work and into social situations. Poles share many cultural similarities with Western countries, making communication and collaboration easier in and out of the workplace. These cultural similarities can significantly affect the ease of communication and cooperation when outsourcing software development to Poland. You can find more information about the importance of cultural fit and what Poland has to offer in our dedicated Finding a software development partner article.

9. The ease of nearshoring

Suppose your business is located in Western Europe. In that case, outsourcing to Poland can provide you with a local partner who is easily accessible within a few hours of driving or a short plane ride. This proximity allows you to visit your Polish partners frequently and have better control over the implementation of your project. Being geographically close to the developers also makes it easier to communicate with them, leading to a stronger relationship and collaboration with your nearshore team. Learn more about the benefits of nearshore outsourcing.

10. The best value for money in software development

As compared to other outsourcing destinations, Poland offers highly competitive salaries for software development. However, selecting the cheapest option is not the only factor to consider when outsourcing. Business owners and project managers should prioritize the value they receive for their investment. Ultimately, they should expect skilled professionals to complete their project on time and to a high standard of quality.

11. High-quality tech infrastructure

Poland is classified as a developed country and offers a highly advanced economy with excellent IT infrastructure, amazing mobile Internet (and one of the cheapest in the world) and a stable and fast broadband connection. Poland’s national broadband plan for 2025 aligns with EU’s Gigabit Society targets. Additionally, Strategy 5G for Poland has been developed to address challenges and implement measures to provide coverage using 5G networks. Additionally, Poland is one of the leaders in developing IT infrastructure for science – especially regarding advanced research.

12. More-than-solid English skills

Polish software developers, particularly those who are university-educated, have excellent English skills, which is highly valued by companies seeking outsourcing services. Poland ranks 13th out of 113 countries in the EF English Proficiency Index 2023, with high proficiency mark – the second-highest mark a country can get. Many Polish software developers often work on projects for foreign clients, which means they often collaborate in an international environment.

13. The popularity of Agile approach and methodologies

You will be satisfied if you search for a team skilled in Agile methodologies. Polish teams are well-versed in Agile, and the country is also home to some of the most important Agile events, such as the ACE! Conference or AgileByExample, making cooperating with Polish teams easier and the whole software development process a lot more transparent. The latter is one of the keys for those software development clients who want to stay in control of the project and value a professional but modern approach to project management.

Read also: Why should US companies outsource to Poland? 

14. Top software developers from Krakow

Poland itself is an excellent choice for software development outsourcing. But the city of Krakow, one of the top tech hubs not just in Poland but the whole CEE region, adds much of its unique value and charm to the cause. You can learn why Krakow is a great software outsourcing destination by reading the linked article.

15. Great European time zone for business

Poland is located in the same time zone as Germany or France, with only a one-hour difference between Poland and the UK. Due to its central location, Polish developers can easily communicate with their partners from various parts of the world, including the Middle East, Asia, the US, and even Australia during their working hours. Compared to Asia, which is typically 6 hours ahead of most European markets and has at least a 12-hour time difference from the US, the Polish time zone is much more favorable for outsourcing software development. With the acquisition of Virtualmind, Software Mind has expanded its presence in LATAM countries. Virtualmind, an American and Argentinian software house, has successfully delivered over 1,000 projects for companies across North, South, and Central America, thus overcoming the challenge of time zone differences.

16. Poland is a part of the European Union

The paperwork required to establish a successful business partnership is significantly reduced if your company is located within the European Union (EU). Many trade barriers have been eliminated, and both the Polish government and EU politicians are working tirelessly to streamline the process of forming business partnerships between companies based in different EU member states further. These positive changes and reduced bureaucracy allow you to concentrate on what matters – growing your business, increasing efficiency, and cutting costs.

17. You may be using Polish software without knowing it

Throughout the years, numerous products from Poland have gained immense popularity worldwide. The first thing that comes to mind for many people is the award-winning Witcher video game series and Netflix adaptation based on the original novels. However, this is only the beginning, as many other products have gained widespread recognition. Poland is a place where innovations thrive, and entrepreneurs can make their visions come to life. The World Bank ranked Poland as 3rd best startup hub in the world. AI voice cloning startup ElevenLabs, founded by Polish entrepreneurs, achieved unicorn status in January 2024. A while ago amazon acquired Ivona Software, a Polish-based specialist in voice technologies, forging it into one of its Amazon Development Centers. There are many well-established software brands from Poland, like Brainly of IoT-focused

18. Polish people know how to “kombinować”

Polish developers are known for their exceptional skills and innovative approach to problem-solving. This is because Polish people can find unique solutions and workarounds to overcome any difficulty. This skill has become a national characteristic of Poland due to the various political and economic challenges faced by the country in the past. The Polish language even has a particular word for that – “kombinować” – which cannot be directly translated into any other language. If you witness this approach, you will immediately understand what “kombinować” means and learn the true power behind it.

19. “Go big or go home” mindset

Polish people are known for their effectiveness, which is attributed to their skills, experience, and mindset. As Master Yoda once said, “Do or do not – there is no try.” Once Poles decide to do something, they are confident that it will be done, rather than wondering if it can be done or if deadlines can be met. Polish athletes are a great example of this attitude. Robert Lewandowski, with his almost magical control of the ball; Marcin Gortat, scoring tons of points for his NBA team; Iga Świątek, playing tennis so smart and agile that she became the best female tennis players worldwide. This attitude is needed to complete every job, and you can easily find it in Poland.

20. Software Mind – a global software house

While it is not necessarily too humble, we couldn’t help but add Software Mind, our software company, to this list. Since creating the list, Software Mind has consistently expanded, acquiring CodeFactory, VirtualMind, ValueLogic, and Chmurowisko, which has led to our software development teams being located all over Europe and the Americas. This expansion has allowed us to increase our engineering capacity, accelerating digital transformations and business growth in cloud technology, AI, product engineering, mobile development, and various industries.

If you have a project in mind and are unsure how to bring it to fruition, feel free to contact us using this form. Our team of experts is always ready and willing to help turn your ideas into a reality. From brainstorming and planning to development and execution, we’re here to guide you every step of the way.

Read also: Culture and quality make Polish software houses perfect partners for Japanese businesses 

About the authorSoftware Mind

Software Mind provides companies with autonomous development teams who manage software life cycles from ideation to release and beyond. For over 20 years we’ve been enriching organizations with the talent they need to boost scalability, drive dynamic growth and bring disruptive ideas to life. Our top-notch engineering teams combine ownership with leading technologies, including cloud, AI, data science and embedded software to accelerate digital transformations and boost software delivery. A culture that embraces openness, craves more and acts with respect enables our bold and passionate people to create evolutive solutions that support scale-ups, unicorns and enterprise-level companies around the world. 

Subscribe to our newsletter

Sign up for our newsletter

Most popular posts