Category: Expertise strategy
Exploring the benefits, facts and questions of moving IT Development and Operations.
Outsourcing to Poland can provide companies with several benefits, such as access to highly skilled professionals with various advanced technologies.
Are you contemplating Poland for IT development? Learn about the advantages and get the facts right.
09 May 2023
Many consider Poland a valuable destination due to its expanding IT industry, sizeable and qualified workforce, cost-effectiveness and central European time zone (CET) operations.
Poland or Polska in Polish might be the right choice for businesses looking for development quality and to maximise their budgets.
Let's dive into the main benefits and also adress concerns and questions you might have.
Expanding IT development and operations to other countries has become increasingly popular for European companies that struggle to hire educated and skilled IT staff in their own country. For businesses experiencing these challenges moving operations to another country might be a tempting choice.
Traditionally rural, then in recent past industrialised, Poland has, within two decades, turned to technology with success.
As a Central European country with a population of 38 million, Poland is today one of the 25 most advanced global economies as stated in the FTSE Russell index, following a promotion to a "Developed Market" status in 2018.
According to the Polish Information and Foreign Investment Agency (PAIH), the Polish IT sector has grown at an annual rate of 7% over the past decades. The growth has led to the creation of over 200k IT jobs in the country, making the Polish ICT workforce a valuable part of Poland as a significant IT powerhouse in Europe.
Statistics from OECD and PAIH reinforce that the ICT workforce is at least 360,000 to 430,000, growing yearly.
Poland's attractiveness for innovative European businesses is due to several factors, including the availability of highly skilled and well-educated IT professionals and a relatively low labour cost. Add the geographical and cultural proximity that makes it convenient for short travels and a favourable time zone for communication with Western European and North American clients.
Thus, companies that can tap into this large talent pool to find a competitive opportunity to be noticed.
Warsaw is the capital of Poland with 3.1 million inhabitants. It is the political and cultural focal point of the Polish society and a large number of industrial enterprises have settled in the capital.
Considering all factors, the high technical expertise and experience of Poland's IT professionals is probably the main advantage. With Poland's robust second and tertiary education system in 20 universities and 28 renowned technical Universities, graduate students have a high proficiency in several advanced programming subjects.
With Poland's entry into the European Union (EU) in 2004, Science, Technology, Engineering, and Mathematics, coined STEM, were chosen to form the cornerstones of the modern Polish economy, preparing students for 21st-century high-tech jobs.
As an outcome, in 2023, more than 15,000 Polish students graduate within ICT yearly, constituting one of Europe's largest pools of IT graduates.
The table shows that more than 15,000 Polish students graduate within ICT yearly, from 13.203 oin 2016 to 15,058 in 2020. Source: stats.oecd.org
Thus, with a sound education system and political backing, thousands of IT professionals in Poland have obtained a strong computer science and engineering background.
New graduates are hired swiftly and get valuable job experience in advanced programming; many get to work with innovative fintech companies and are well-versed in attractive technologies and platforms.
Another advantage of moving IT operations and development to Poland is the competitive rates that can result in cost savings for businesses. Due to Poland's lower cost of living than some EEC countries, rates for IT services reflects that factor, making it an inviting destination for IT outsourcing for companies in high cost countries.
In reality, the competive rates translates into more development hours for CTOs' budgets, enabling them to achieve more advanced output for their money.
While cost savings are a meaningful benefit, they are not the primary reason for outsourcing to Poland, says Anders Gratte, Group CEO of emagine.
– When businesses consider outsourcing, their primary concern is typically the expertise and achievement of the provider. Companies prioritise a provider that promptly delivers the required skills, technology, or roles. Access to scalable expertise is a top priority for businesses, and lower rates are considered a bonus, Gratte maintains.
emagine has been established in Poland for 12 years and has seen the in-demand growth for Polish experts.
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It might not be surprising that many IT professionals in Poland are fluent in English. This fact helps European IT professionals communicate well whether based in Warsaw, Stuttgart or Stockholm. Polish experts have e decent level of English, making daily conversations and problem-solving with clients and colleagues from other countries easier.
In 2022, Poland was ranked number 13 among the countries with "Very High Proficiency" in English in the EF EPI 2022 report, one of the most reliable reports available. EF Education First specialises in English courses worldwide and publishes yearly an index of the world's most prominent ranking of countries and regions by English skills.
The high level makes it manageable to communicate across borders with international teams, assisted by emails, Teams and Zoom calls.
In 2020 there were more than 1.2 million students in Polish higher education institutions, and the increase in curriculums in English is a high priority at Polish universities, indicating that language skills will even improve within a few years.
Young Poles talk English on a high proficiency level. Poland is ranked no 13 of 111 countries by their English skills and is in the top tier.
"With great IT talent, entrepreneurial spirit and a rapidly changing business sector, from small to large, Poland has great potential to become the digital heart of Europe."Dr Mark Loughran, former General Manager of Microsoft in Poland.
Discerning businesses like the financial sector are driven by high-end development and attracted by the many skilled Polish IT experts, allowing companies to locate the skills they need quickly.
Fintech is one of Poland's most exciting expanding industries, with high demands for advanced IT solutions, security, and development. Many prominent Scandinavian fintech companies are established in Poland and run large operations and development departments working with the latest cutting-edge technologies.
Paweł Widawski, President of Fintech Poland, maintains that Poland has become a critical European FinTech hub. The Fintech expert mentions large US-based companies:
"[Poland has] a strong and innovative banking sector, an excellently educated team of experts, a resilient FinTech ecosystem, strong presence of FAAMA companies (Facebook, Apple, Amazon, Microsoft, Alphabet), a well-developed sector of shared services centres developed by global financial institutions as well as more and more innovation-friendly financial supervision supported by the EU membership – all that constitutes a unique combination that determines the strength of Poland as an important FinTech hub."
And former General Manager of Microsoft in Poland, Dr Mark Loughran, states in the same report:
"With great IT talent, entrepreneurial spirit and a rapidly changing business sector, from small to large, Poland has great potential to become the digital heart of Europe."
Not only in fintech but corporations from a spectrum of industries take advantage of IT operations and succeed due to the above-stated factors of expertise and availability of resources.
Citations accredited: «Invest in digital Poland» 2021 by DigitalPoland Foundation (Polish Investment and Trade Agency)
Top IT experience and a numerous ICT workforce: Poland has one of the largest skilled IT workforces in Europe. At least 360,000 to 430,000 people are employed or on contract with foreign and local businesses.
Businesses might face a few pains when moving IT development and operations to another country. Often, it comes often down to people and communications, finances, infrastructure, logistics and practicalities.
One of the main concerns are the risk of cultural and language barriers and the potential for misunderstandings and miscommunication.
Companies may also need to invest additional resources and tools to manage and collaborate with their outsourced IT team compliant and effectively.
More extensive operations with multiple teams in various locations need smooth correspondance and good planning; it all adds complexity and demands excellent leadership qualities and ample experience.
Frequent travel and long-distance calls and meetings can be stressful for some, but is manageable.
Established companies like emagine, with their vast knowledge and secure set-ups, have a solid foundation in Polish society. They provide IT consulting to many companies and actively share their expertise to address concerns in the industry.
Professional consulting firms also have the experience to mitigate these challenges daily. They have set up quality-assured systems and perform a thorough screening of employees.
By giving their clients access to secure premises, larger companies enable their clients' operations with well-established routines, leveraging their processes with ISO certifications and governance. They focus on hiring educated staff and encourage continuous training, including security and language proficiency.
These measures help clients to experience smooth operations and access to academic staff in modern, secure development centres.
The modern Warsaw is attractive for foreign companies, setting up IT development and operations in several business centres in Poland.
Is Polish expertise the right choice for your company's IT needs?
Outsourcing IT development and operations to Poland can be a cost-effective and efficient way for companies to rapidly access IT expertise and advanced technologies. While cost savings are attractive, businesses prioritise skilled consultants who are plentiful in Poland and work at competitive rates.
Warsaw is less than a two-hour flight from most European capitals, making Poland one of the most accessible destinations, allowing you to fly in and out on the same day.
With a growing IT industry, and an entrepreneurial spirit in a large qualified and experienced workforce, Poland seems like an excellent destination for European companies looking to scale their IT needs abroad.
Read about our service: Nearshoring
Access to scalable expertise is a top priority for businesses, and lower rates are considered a bonus.Anders Gratte, emagine
Want to learn more?Download our ebook "The Ultimate Guide to Nearshoring" for free.
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