Exploring the Advantages of Nearshore Services in Poland

There are various types of outsourcing in bespoke software development, and location is one of the most critical factors that affect services, since the distance between a client and a software provider plays a significant part in IT outsourcing. If you are a CTO or an IT executive looking for a software partner to provide experienced teams, choosing nearshore outsourcing may be the best option.

In this article, you will get:

• A nearshore outsourcing definition
• Significant nearshoring advantages
• Nearshore outsourcing rates
• Nearshoring trends for 2026 
• Case studies of Western European companies that use nearshoring

What is nearshore outsourcing?

Nearshoring (nearshore outsourcing) is the perfect sweet spot between onshoring (utilizing a development services company in the same country of operations) and offshoring (outsourcing work to a team located in a different part of the world). Nearshore IT outsourcing provides you with top-level services at more cost-effective rates. Nearshore is becoming increasingly popular among Western European countries, with Central and Eastern Europe being the foremost choice.

Poland is a perfect fit for nearshore outsourcing for the United Kingdom (UK), DACH (Germany, Austria and Switzerland), Benelux (Belgium, the Netherlands, Luxembourg) and Nordic (Norway, Sweden, Denmark, and Finland) markets.

Nearshore outsourcing benefits

By working with a nearshore outsourcing company, you gain many additional advantages. It’s worth taking a look at the most noteworthy of them:

• No time difference – since both countries share the same time zone, the software engineers’ executive team should have no issues coordinating parallel work, setting up meetings and submitting code. Working inhumane hours is no longer a must.
• Bringing teams together is easier – if necessary, traveling from one country to another is no challenge. With flights ranging from 1 to 3 hours, any participating party can easily transit to another city. Taking the morning flight means they can be back home by evening. A face-to-face meeting is easy to organize.
• A more comprehensive range of services – choosing a trusted nearshore software house gives you access to a larger pool of IT talent than an onshore vendor.
• No cultural differences – selecting a country in your vicinity guarantees the same work ethic, often very similar experience and no cultural discrepancies that may affect team cooperation.
• Better budget allocation – when selecting countries like Poland, where daily software engineer rates are lower than in Western Europe, companies can expect a cost reduction that does not compromise the quality of code or hinder workflows.

Poland is leading the digital transformation  

Poland has firmly established itself as a regional leader in digital transformation, powered by a vibrant and highly skilled IT sector. According to IDC Poland, the ICT market in Poland was worth $25.73 billion in 2024, representing an increase of over 1 percent compared to $25.42 billion in 2023. 

Poland’s role is particularly evident in several high-growth areas worth mentioning: 

• Fintech: Polish innovators are at the forefront of the financial technology revolution. The country is a hotbed for developing advanced mobile banking platforms, secure contactless payment systems (like BLIK), and innovative blockchain solutions that are being adopted across Europe. 

• Biotechnology: The biotech sector leverages Poland’s deep IT talent pool for complex data analysis, AI-driven research, and the development of sophisticated medical software. This synergy accelerates drug discovery and the creation of advanced diagnostic tools

• Manufacturing (Industry 4.0): Polish IT companies are crucial in transforming traditional manufacturing into smart, automated factories. They specialize in implementing IoT sensors, robotics, and AI-powered predictive maintenance, helping manufacturers increase efficiency and competitiveness. 

Global companies are increasingly turning to Polish software service providers to accelerate their digital transformations. Collaborating with these firms offers a powerful combination of high-quality service, cost-effectiveness, and access to a vast talent pool of over 500,000 IT specialists, according to the Future of IT Emerging Europe report. By outsourcing software development, cloud migration, and cybersecurity to Polish partners, businesses can swiftly implement modern technologies, reduce time-to-market for new products, and concentrate on their core strategic goals, knowing that the technical execution is in expert hands. 

Nearshore outsourcing to Poland – additional characteristics

Working with Poland’s trustworthy and experienced software development services provider goes beyond cost-efficiency and the abovementioned benefits. Choosing Poland as your nearshore IT partner means no actual language barrier, as the country ranks 16th in the global EF English Proficiency Index. There are other advantages as well.

As a part of the European Union, Poland already complies with all General Data Protection Regulations (GDPR). Setting the highest security standards elevates Polish software houses as reliable partners. For companies, especially those within the EU, choosing a Polish IT provider significantly simplifies and de-risks their operations. 

• Seamless data flows: Partnering with a Polish firm means personal data is transferred within the same legal jurisdiction, eliminating the need for complex and often scrutinized international data transfer agreements that are required when offshoring to countries outside the EEA. 

• Shared compliance culture: Polish developers and project managers are intrinsically familiar with GDPR’s demands. They build software with data minimization, user consent, and security protocols as standard practice, not as an afterthought. This shared understanding reduces the chance of costly compliance errors. 
• Reduced risk and enhanced trust: By choosing a partner in a GDPR-compliant country, a business minimizes its exposure to data breaches and the associated financial and reputational damage. It sends a clear signal to customers and regulators that the company prioritizes data security, elevating the Polish software house from a mere vendor to a trusted, reliable partner in a high-stakes digital world. 

Software Mind has the utmost security procedures, as proved by its SOC 2 (Service and Organization Controls 2) classification, an international standard for collecting and sharing information about control procedures and processes in IT organizations.

Experienced software partners are not afraid to take ownership and focus on solving issues, instead of looking for excuses. Continuous service improvement runs at the core of software creation, as an innovative approach to problem solving and agile way of project management are the cornerstones of a successful software development company.

What’s the average annual salary of an IT professional in Poland?

What is the average yearly software developer’s salary in Poland compared to other Western European countries? “Skillsoft’s Global Knowledge 2024 IT Skills and Salary Report” states that the annual average salary of an IT professional in Poland is $61,201. Meanwhile, Switzerland leads European wages with a yearly average of $138,286. What about other countries? IT professionals in Denmark earn an average salary of $100,429, IT professionals in the United Kingdom earn $85,437, while German’s yearly wages are $81,266. 

Software developer’s average salary according to Skillsoft’s 2024 IT Report:

There are also additional benefits of teaming up with a trusted external software partner, like a billing model that allows you to just pay for the hours worked and software produced. Moreover, you do not need to worry about additional hiring costs that accompany employee acquisition, onboarding, bonuses and everyday work perks.

The price of software development services in Central and Eastern European software houses is higher than in companies in India or Pakistan. Still, the aforementioned nearshore outsourcing benefits bring far more added value – cutting costs is not always the best solution. The choice between nearshoring and offshoring is essential and may significantly impact your company.

AI, cloud and IoT – Meeting the needs of European markets 

Polish IT suppliers have become pivotal partners in advancing AI, cloud services, and IoT solutions for key European markets. Leveraging a deep pool of highly skilled engineering talent, they deliver sophisticated technology that powers digital transformation across the UK, DACH, Benelux, and Scandinavian regions. sds 

In the realm of AI, regional companies are developing custom machine learning models for predictive analytics, natural language processing, and computer vision, serving industries from fintech to e-commerce. Their expertise in cloud computing is equally critical, with companies specializing in seamless cloud migration, cost optimization, and building scalable, cloud-native applications on platforms like AWS, Azure, and Google Cloud. 

For the IoT, Polish suppliers provide end-to-end solutions, from designing firmware for smart devices to creating the robust cloud backends needed to process and analyze vast streams of data for manufacturing (Industry 4.0) and smart city projects. 

A dynamic ecosystem of Polish IT companies actively meets the demanding needs of clients in Western and Northern Europe. Their technical expertise, competitive pricing, and cultural and geographical proximity make them ideal nearshore partners. These companies are well-versed in the high standards for quality and security required in markets such as Germany and the UK. They possess the agility and knowledge needed to implement cutting-edge solutions efficiently, positioning them as strategic partners in innovation rather than just suppliers. 

Case studies of applying nearshoring

Real-life case studies are the best evidence of how nearshore outsourcing can influence your tech stack and change business outcomes. With over 23 years of software development experience, Software Mind has supported leading European companies in a nearshore outsourcing model.  The following is a list of some of our case studies:

Belgian IoT company that delivers a proprietary platform to manage and optimize machines’ performance requested Software Mind to audit the current platform by analyzing the existing architecture and flaws.  

Dutch company banking platform provider needed the Software Mind team to deliver product development and application deployment services, enabling financial institutions to accelerate digital transformation strategies.

Finish fintech company, known for its comprehensive financial management software, was able to extend its development capabilities to support the rapid growth of its business while reducing maintenance costs and speeding up time to market, thanks to Software Mind.

German company needed its IT department scaled to supply an efficient digital platform to raise retail deposits and enable banks to expand their reach and source deposits from savers. Software Mind scaled its IT department by 300% while maintaining team cohesion and identity.

UK financial services company focusing on the B2B market required project management, code reviewing and security consistency assistance. Our dedicated team members helped this 500+ company successfully implement a digital transformation.

Nearshoring trends in 2026 – a shift towards specialization 

In 2026, nearshore outsourcing will shift from being a cost-saving measure to a strategic necessity for accessing highly specialized talent. The main reason for this change will be the growing demand for expertise in advanced technologies that are becoming essential to all business operations. 

Companies will be seeking nearshore partners with proven, deep expertise in various high-growth domains. 

• AI and automation at Scale: The focus will move beyond pilot projects to full-scale integration. There will be a surge in demand for nearshore specialists in Robotic Process Automation (RPA) and MLOps (Machine Learning Operations) who can seamlessly embed artificial intelligence into core business workflows to drive efficiency and data-driven decisions. 

• Advanced cloud and SaaS development: Simple cloud migration will be table stakes. The real demand will be for teams that can architect and build complex, secure, and scalable cloud-native SaaS solutions. Nearshore partners will be selected for their ability to deliver market-ready platforms. 

• Fintech and RegTech innovation: The fintech sector will continue to be a major driver, requiring specialized nearshore teams to develop sophisticated solutions in embedded finance, decentralized finance (DeFi), and Regulatory Technology (RegTech) to navigate complex compliance landscapes. 

In these scenarios, nearshore partners act as literal partners, co-creating products and enhancing the client’s competitive edge. 

The best choice for a Western European company

When looking for the right outsourcing provider, one of the essential questions you need to ask yourself is whether the distance is critical. Nearshore software development is a logical choice when looking for a partner that is geopolitically aligned, culturally similar and time zone compatible.

To learn more about choosing the right software development services to drive your digital acceleration, attract new customers and engineer your software, get in touch with our top specialists by filling out this contact form.

FAQ 

What are the advantages of nearshore outsourcing? 

Nearshore outsourcing provides a compelling balance of cost-efficiency and convenience. Its primary advantages are minimal time zone differences, which enables real-time collaboration, and greater cultural and linguistic alignment, reducing misunderstandings and fostering smoother teamwork. This model offers access to a skilled talent pool at a lower cost than domestic options but without the significant communication and logistical challenges of traditional offshore outsourcing, making project management far more straightforward and effective.