Why are Nordic companies outsourcing software development to Poland?

Sweden, Norway, Denmark and Finland actively and successfully participate in software development outsourcing services. Nordic companies and Polish software houses like Software Mind work closely to develop solutions scale to growth strategies. Unsurprisingly, both parties are a perfect example of software development services working flawlessly, as they represent similar work cultures and problem-solving approaches. But this partnership goes beyond just that. 

Nordic investors benefit significantly from their presence in the Polish market. According to the Scandinavian-Polish Chamber of Commerce, Nordic companies are always at the top of the list of companies with foreign capital in Poland. Software partnership is also an important part of economic cooperation between Poland and the Nordic businesses.  

Nordic IT can rely on outsourcing 

Nordic companies plan, on average, a 4.2% increase in 2022 IT spending – according to the Gartner’s “2022 CIO Agenda: A Nordics Region Perspective”. Gartner’s analysts say Nordic region technology executives (in particular CIOs) should make their organizations more adaptable and resilient to deal with uncertain times.  For Nordic tech managers seeking to take their company to the next level, engaging external teams who have experience and deliver craftsmanship is a cost-effective option. 

The 2021 Nordic IT Sourcing Study, conducted by Whitelane Research, in collaboration with PA Consulting, reveals that IT companies from Nordic countries plan to focus even more on outsourcing in 2022 and 2023. The study, entitled “Nordic IT Sourcing – status and trends in the Nordic IT sourcing market,” saw experts interview 700 IT representatives and concluded that 71% of respondents said they would outsource at the same rate or more, while 27% said they would outsource even more.  

Gartner’s experts encourage Nordic IT executives to leverage their trust culture to empower autonomous, self-organizing networks. Deploying customized outsourcing strategies and trusting in the right software development services provider are essential parts of that approach. Regarding Nordic tech stakeholders participating in outsourcing, cultural differences were last on the list of potential issues according to a survey conducted for the “Nordic IT Sourcing – status and trends in the Nordic IT sourcing market” report. Their biggest fears are service providers being reactive rather than proactive (53%), lack of continuous service improvement (50%) and inadequate service quality (44%). Polish software partners address all three of these concerns by being proactive and continuously improving the quality of their services. 

Nordic IT and a Polish software partner – a perfect match 

There are several reasons why Poland is an ideal place for Nordic countries to find a nearshore outsourcing partner. First, there is no problem with scheduling since Denmark, Sweden and Norway are in the same time zone as Poland. Only the Finns need to adjust their clocks one hour, but 60 minutes does not affect workflows. A similar time zone makes it easier to arrange meetings. Furthermore, it also increases the sense of security among customers. Why? If there’s an issue, they can be confident that their Polish partner is always available during working hours to provide immediate advice or assistance. And since there is no actual language barrier, as Poland ranks number 16 in the global EF English Proficiency Index, conversations work and non-work-related flow smoothly. 

Thanks to regional proximity, meetings don’t need to remain a strictly online endeavor. One of the most significant nearshoring advantages is the possibility of reaching most customers’ locations in about 2 to 3 hours, thanks to direct flights. For this reason, company visits are not uncommon. It’s worth knowing that Nordic customers like to arrange  business meetings and workshops regularly.  After finishing their work, they love to enjoy the variery of activities Poland has to offer. As well, it’s not unusual for Polish software development services teams to visit Nordic clients. And in the case of Finnish partners, for example, such business trips often end in a sauna after work. 

The key to working with Nordic partners 

In their everyday work, Nordic clients appreciate Polish teams for their openness, communicativeness and willingness to cooperate. Polish employees are often the first to offer help when someone has a technical problem. They also look for ways to streamline the process of knowledge sharing. For example, it is not uncommon to build a newcomer’s entry point website, thanks to which new employees have the possibility of a step-by-step introduction to the project. 

A comprehensive approach to problem-solving is another feature of Polish IT specialists appreciated by Nordic partners. When implementing new solutions, that means first starting with a thorough understanding of the business problem. Poles often have a critical approach to the proposed tech stack and suggest a different way of solving a challenge, which is usually an added value for projects.  

However, customers from Nordic countries should be aware of cultural communication differences. People in Poland tend to be more straightforward. Polish engineers sometimes question proposed solutions, which might be considered rude by a client. However, the goal is never to offend anyone but to deliver the best possible outcome. Clients sometimes draw attention to this aspect, but workshops on cultural differences usually clarify any doubts. Taking a stand in the best way possible and not being afraid to speak their mind can save time and money for both parties.  

Polish software house provides a high level of commitment 

Another slight cultural difference worth exploring is the approach to free time. In Poland, employees work long hours if necessary and giving the proverbial 110 percent is common. Meanwhile, business culture in Nordic countries is more oriented towards achieving a work-life balance. For example, the holiday period in Finland might initially seem abnormal to non-Finnish developers, since most Nordic developers go on long breaks (often 3 to 4 weeks). Nordic partners can benefit from working with Polish software teams during such periods. A client’s employees can go on vacation knowing that Polish engineers will take over critical responsibilities during their absence.  

Taking ownership is natural for a battle-tested software house that is fully dedicated to addressing all the business and tech needs of its partner. This includes involvement in developing applications, proposing innovative approaches to solving problems and improving the already developed system elements. Polish engineers care about quality and try to improve a project holistically, to make it as good as possible. For example, after implementing static analysis mechanisms for a client, Polish engineers started requiring others to cover the code with tests. After a while, it became one of the Key Performance Indicators for the entire project. 

Nordic IT executives need software development services   

Outpacing revenue growth is a constant challenge for IT organizations and demands the delivery of efficient and optimized products and services. Gartner’s “2022 CIO Agenda: A Nordics Region Perspective” reports that Nordic technology executives can evolve their roles at the company and make their enterprises more flexible and resilient by applying these actions:  

• Demonstrating continuous and effortless sharing of ideas and access to platforms, tools and know-how across product teams, external partners and business collaborations.  

• Establishing iterative development techniques (such as DevOps) as the default approach to development.  

• Supporting digital outcome accountability beyond the traditional IT organization by promoting multidisciplinary teams, incorporating new ways of working and providing enabling technologies.  

• Creating dynamic and easily deployable integration capabilities for connecting data, analytics and application components.  

Software development services outsourcing meets all these goals, from DevOps solution implementation, agile approach to workflow or transforming legacy monolithic systems into scalable, robust, secure and user-friendly platforms. 

Seeing a solid commitment, clients entrust Poles with responsible roles in a project. One of the best examples that supports this statement comes from a Software Mind client from Finland, with whom we celebrated our 6th anniversary of cooperation in May. In 2016 we started our partnership with only two employees. Today, we have an almost 50-person dedicated team that works closely with them. We are an essential partner, assisting them in all areas of software development, from designing the system architecture through development and design to building an agile environment. 

If you’d like to know more about how an outsourcing partner can grow your business, get in touch by using this contact form – our experts are ready to help you build a tailor-made development team for your software needs.