6 Benefits of Outsourcing Software Development to Poland

Outsourcing Software Development

The demand for software developers is at an all-time high, presenting a significant challenge for tech enterprises striving to stay ahead in the competitive market. To overcome this obstacle, an increasing number of software product companies are turning to IT recruitment in Poland, seeking skilled IT specialists from abroad. 

If you are looking for skilled tech gems overseas, consider establishing your own R&D center in your target destination. With this collaboration model, you get a team of software developers with full back-office support without establishing a legal entity in Poland or other Eastern European countries. Now, let’s take a closer look at what Poland has to offer.

Overview of the Polish Software Development Market

Over the past decade, the Polish IT market has experienced remarkable growth, establishing itself as one of the most competitive sectors in Central and Eastern Europe (CEE). While Poland has long been recognized as a prominent outsourcing destination, its IT industry’s remarkable advancement, coupled with sustained economic growth, has propelled it to a level comparable to global industry giants.

The tech sector in Poland has made a significant contribution to the country’s economic development, accounting for approximately 8% of its GDP. This increasing demand for Polish ICT services has led to a substantial surge in exports, nearly doubling since 2016 and reaching a remarkable $10 billion in 2021. These impressive achievements have propelled Poland to the seventh position among Europe’s most influential IT industries, with a projected revenue of $8.3 billion in 2024.

Another remarkable trend in Poland is the stark growth of the Linux development market. In 2023 alone, it has registered an impressive CAGR of 19.4% and will amount to $27 billion by 2030, making Poland a favorable choice for companies seeking Linux professionals.

Finally, Poland boasts an array of exceptional IT companies. As reported by the Polish Investment & Trade Agency, the country is home to nearly 50,000 software firms. The Polish startup ecosystem is also thriving, highlighted by the presence of numerous unicorns in the CEE region, including well-known entities such as Allegro, InPost, CD ProjektRed, PlayWay, DocPlanner, and others.

Why Do Software Development in Poland?

  • Big IT talent pool

The Polish tech sector’s continuous expansion is primarily fueled by its highly skilled IT professionals. In 2023, the number of ICT specialists in Poland numbered 607,000, accounting for a notable one-quarter of all technology talents in the CEE region.

  • Versatile tech skills

According to SkillValue’s research, Poland stands proudly among the top 10 nations renowned for its abundance of IT experts possessing advanced software engineering skills. In terms of programming language popularity, Java, Python, and JavaScript lead the way. Other widespread languages include Typescript, C#, and PHP. If you’re looking for Linux developers, especially experts in Java, Python, and PHP, Poland will not disappoint you: it’s the #1 European destination regarding tech talent education and skills.

  • Moderate costs

Another advantage of doing software development in Poland is its local costs and taxes. Polish senior full-stack software engineers earn an annual salary of around $74,500, significantly lower than the $160,000 in the United States. This cost difference can be attributed to the lower cost of living and favorable taxation system in Poland. Many foreign companies opt for B2B agreements with Polish developers, where they work as self-employed individuals providing services to IT firms. The flat tax rate is 19%, while the lump sum tax scale ranges from 17% to 32. This approach offers benefits in terms of both documentation and payments.

  • High education level

Poland has a well-developed ICT education sector that attracts both local and foreign students. With over 400 higher educational institutions, including 60+ tech universities, the country offers a thriving learning environment. Information technology is a popular field of study, with over 75,000 applicants choosing it annually. Prominent universities in Poland include the Warsaw University of Technology, Poznan University of Technology, Wrocław University of Science and Technology, and Lodz University of Technology.

  • Sound command of English  

English proficiency among Polish programmers is notable, ranking 13th globally and 11th in Europe, according to the EF English Proficiency Index. This language proficiency fosters effective communication and minimizes misunderstandings when collaborating with Polish software developers.

  • Robust data security  

Poland’s adherence to the General Data Protection Regulation (GDPR) provides strong data protection measures for outsourcing or offshore IT operations. This compliance ensures that businesses follow strict guidelines for data collection, storage, and management. Benefits include streamlined automation, protected brand reputation, and enhanced trust and credibility.

  • Convenient location & time zone

Poland’s geographical proximity to European countries allows for quick and efficient travel, with flight times averaging around 2 hours. Moreover, the minimal or non-existent time difference with European nations fosters smooth communication and collaboration. While US-based companies may experience a more significant time difference, it offers the advantage of round-the-clock productivity.

3 Ways to Work with Polish Developers

  • IT outsourcing  

While IT outsourcing may appear cost-efficient for software development in Poland, it comes with inherent risks and limitations. Concerns such as a lack of control over product development, subpar software quality, and weak protection of intellectual property rights make this model less favorable.

  • IT outstaffing  

One more option is to engage with outstaffing providers, offering access to a broader talent pool and flexibility in scaling the development team according to your needs. However, challenges arise regarding commitment and dedication to your product, potentially leading to data leakage among other teams within the provider. Additionally, hidden fees related to team maintenance and remuneration can result in a costly and troublesome experience.

  • IT recruitment agency

To overcome the pitfalls associated with the collaboration models mentioned above and foster effective teamwork, many tech companies opt to build their own development teams through IT recruitment agencies. These agencies possess extensive IT recruitment departments equipped with experienced headhunters and researchers. Their expertise in recruiting developers and navigating the challenging landscape of the local employment market sets them apart. 

Hire Polish Developers as Simple as Is

What about full-cycle IT recruitment without the need to set up your legal entity in Poland? Alcor is an R&D service provider helping Western product tech companies establish their own research and development centers in Eastern Europe and Latin America. With 40 experienced IT headhunters on board, we guarantee to hire developers in Poland fast and easily — 5 skilled programmers within just a month and over 100 within a year!

In addition to IT recruitment, our all-in-one solution includes Employer of Record (EoR) services ensuring 100% legal compliance, office leasing, IT infrastructure setup, and a range of supplementary services. The result? Your very own software R&D center abroad, equipped with a stellar team of seasoned IT talents.

Conclusion

Poland offers all the essential ingredients for an ideal offshore destination for software development. It features a thriving tech market with a large pool of skilled software engineers, moderate costs, and a strategically advantageous location. Planning to join its growing tech scene with a team of experienced programmers? Partner with a trusted local provider to get started on your success story in Poland quickly and effectively.