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Denis Grankin Head of Sales Department
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IT sector in Poland 2022: What should you know before starting a project?

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IT industry in Poland 2022

Considering Poland as a go-to country for IT outsourcing? This makes sense. Of course, to make a final decision, you probably lack the arguments that would convince you: yes, I absolutely need to hire engineers from Poland. Well, we got that covered. Here is a comprehensive article on the IT sector in Poland. We hope it will give you an idea about the specifics of the IT industry in Poland and whether you should outsource your project there.

Now, let's get down to business!

Poland as a hotspot for software development in Europe

Since joining the EU in 2004, Poland has successfully upgraded its economy and made it one of the fastest-growing and most stable. Moreover, today Poland is experiencing dizzying growth in the ICT sector.

With some 60,000 technology companies and ten "unicorns," it ranks fifth in the EU for the number of registered ICT companies - about 8 percent of all ICT companies in the EU.

It is projected that by the end of 2025, the ICT market in Poland will reach and even exceed the amount of $13.00 billion. The main drivers of the Polish IT sector are as follows:

  • Globalization of the ICT market;
  • Foreign investment;
  • Digitalization of society supported by EU funding;
  • Geographic proximity and similarity of time zones to major European countries and IT centers;
  • Low tariffs, globally recognized technology education, favorable political and economic environment;
  • Adoption of modern technological trends, including cloud technology and mobile applications;
  • Increased standard of living and quality of life after the country's accession to the EU.

Poland is poised for any technological and economic challenge:

  • During the pandemic, the number of sectors of the economy where digital services are applied increased by 60%;
  • During the same period, about 3.6 million new "digital" clients appeared in Poland;
  • The war in Ukraine affects the economic situation in Poland, and at the same time, the country continues to receive an influx of workforce, including qualified IT specialists.

IT sector in Poland 2022: things to consider

Today, Poland is a steadily growing European ICT power and the largest exporter of ICT services in all of Europe:

ICT services in Poland

 

The IT industry in Poland at a glance:

  • One of the most powerful and promising ICT sectors is the gaming industry. With revenues of 500 million euros, it makes Poland the 23rd most profitable in the world. Every year about 500 games are produced in Poland. CD Projekt, 11 Bit Studios, The Witcher, and This War of Mine are among those that have brought Poland to the world gaming scene.
  • The number of mobile and indie game developers in Poland is growing, as are companies offering game-related services (digital 3D animation, etc.).
  • The startup ecosystem in Poland is booming. According to a recent report (PFR Ventures and Inovo Venture Partners), in 2020 the amount of funding for venture startups in Poland was 477 million euros, showing an increase of 70%.
  • There are dozens of startup accelerators and incubators throughout Poland, not just in large cities (e.g., Reaktor X in Warsaw).

Poland ranks second in the IT Competitiveness Index. Keep this in mind when deciding to outsource a project in Poland and then onboard developers. This is due to the favorable business environment in the country, the widespread digitalization, and the abundance of tech talent as a percentage of total employment.

IT Competitiveness Index

Polish IT Competitiveness Index

As for IT infrastructure, Poland is also one of the leaders in terms of Total for IT infrastructure, Connectivity, Digital transformation, and Non-personnel:

IT infrastructure in Poland

Moreover, Poland is known to be a technologically savvy country for its engineering potential, whereas Polish developers are recognized as first-class programmers around the world:

Polish developers

IT Outsourcing is the main driver of the Information Technology sector

Web app development and mobile development, as well as outstaffing/outsourcing, are the main business models followed by Polish IT companies. Of particular interest is the IT outsourcing market along with staff augmentation.

As software development has penetrated almost all industries, the demand for Polish IT services has increased. According to the IT Market Research Report, the Polish IT outsourcing sector is now one of the most advanced and even ahead of the IT hardware sector.

IT outsourcing is now a key export service in Poland. A large number of contracts from Scandinavian countries, Great Britain, Germany, and France contribute to this. At the same time, IT outsourcing is showing steady revenue growth, from $2.2 billion in 2019 to $3.1 billion in 2021. Meanwhile, the software-as-a-service (SaaS) market in Poland is projected to be worth more than $536 million by the end of 2024.

IT outsourcing Poland

ICT trends in Poland

Five areas dominate the technology market in Poland:

1. Advanced Analytics

2. Big Data

3. Cloud Computing

4. Robotics

5. Artificial Intelligence

Their growth is associated with the trend of business digitalization and automation of most business processes. Industries such as logistics, transportation, and manufacturing, i.e., those with the appropriate infrastructure and necessary regulation, are in particular need of automation.

On the contrary, limited funding, lack of necessary infrastructure, and appropriate regulation make the following technologies the least popular in Poland:

1. Edge Computing

2. Augmented Reality/Virtual Reality.

Along with these trends, the demand for professionals such as data analysts, data engineers, data scientists, and big data engineers is growing. Data visualization and VR solutions are also evolving dynamically, leading to market demand for relevant specialists (e.g., Python engineers).

Polish ICT trends

Poland’s IT sector in terms of specialization, age, and work experience

The backbone of the talent pool in Poland is made up of senior developers with 10 years or more experience, but young enough to adapt to new projects and working conditions. And now for the details:

Poland’s IT sector in terms of specialization years of experience

What about investments in the Polish IT sector?

Poland today is an attractive investment destination:

  • The CEE region as a whole is recognized as the most rapidly growing area in Europe in terms of invested venture capital.
  • In 2020, Poland ranked third in the world as the country most preferred for investment and business. Major foreign investors include such giants as Microsoft, Lenovo, Amazon, Apple, Google, and many others.
  • Poland is the regional leader in foreign direct investment, with more than 130 venture capitalists operating in the local market.

ICT education in Poland

Poland is known for its high level of ICT education. There are more than 400 institutions of higher education, including technical universities. The number of students in Poland exceeds 1.2 million, with more than 66,000 studying ICT in the 2020/2021 academic year.

Some universities in Poland are top-ranked, and the following are the most popular among Poles:

  • Krakow University of Technology
  • AGH University of Science and Technology
  • Warsaw University of Technology.

ICT education in Poland

Poland features a huge pool of experienced, specialized engineers who keep up with the latest industry trends and implement high-performance technology solutions (Azure Cloud, etc.). That's why any services related to frontend development, mobile application development, the creation of complex software solutions, and many other areas of cutting-edge coding are available to you.

In addition to classic coding or outsourcing, IT providers from Poland also conduct customer-focused training seminars. Their goal is to help both parties focus on the product idea to get the design, architecture, and MVPs right, or to be precise, according to the SRS document.

So, why choose Poland?

The answer to the question of why Poland is not rocket science. See for yourself:

  • +410,000 technicians, making Poland the leading country in the CEE region in terms of programmers;
  • The IT/ICT industry accounts for 8 percent of Poland's GDP;
  • The software development market is estimated at 8.8 billion euros;
  • The estimated value of the IT/ICT market in 2022 and beyond to be $12.4 billion;
  • About 70% of local engineers are employed by foreign organizations;
  • Poland consistently ranks in the top 5 or top 3 according to HackerRank, SkillValue and TopCoder.

Poland in the international rankings:

41 - Index of Economic Freedom (of 178)

35 - Social Progress Index (of 168)

10 - PISA Mathematics (of 78)

35 - Human Development Index (of 189)

16 - EF English Proficiency Index (of 112)

22 - Online Service Index (of 193)

Key points about the Polish engineers you are going to hire

You are expected to provide clear salary and bonus data

Just think about these numbers: 84% of candidates admit that salary level is a key factor in their decision to change jobs.

Do not hide from job seekers the level of salary you are willing to offer them, tell them how the salary can be increased, how soon, and under what conditions. It is better to be honest and transparent from the get-go to gain credibility and attract the best employees.

One in two Polish developers got a job offer from a foreign company

Polish engineers have a bright future - last year about half of them got job offers from foreign employers. These are mostly companies from Great Britain, Germany, Switzerland, and the USA.

Polish developers hiring

To hire the best talent for your project, you will have to put in a lot of effort.

Or you can turn to an experienced IT outsourcing provider operating in the local labor market and thus get rid of the headache of hiring.

Be prepared to give developers more leeway

Fifty-five percent of the professionals surveyed report that the ability to work remotely and the flexibility of the work environment are critical to their performance.

Work from home, a hybrid work model, and operating under an Agile project management approach are just some of the conditions to be met for mutually beneficial results from such a partnership.

You can retain experts through professional growth and training opportunities

Please remember that IT companies in Poland are already actively adopting advanced digital technologies, allowing them to quickly adapt to market changes and partner and customer requirements. 15-24% of companies in Poland use cloud computing capabilities in their operations, and 18% use artificial intelligence.

In addition, specialists in local companies are provided with extra education. According to the DESI study, 18% of Polish companies provide their employees with ICT training, which is in line with the EU average.

Polish IT sector challenges you may encounter

Competition is getting tougher

The global shift to technology has caused the need for engineers to grow. Today, to hire the best developers, you will have to compete with both local companies and other foreign companies that may offer your candidates better deals.

What employers value most in Polish developers:

  • High level of qualifications;
  • Experience in international projects of different complexity and topics;
  • Willingness for professional development;
  • Fluent English, a good level of German, and French, and a desire to master any of the required foreign languages.

What Polish engineers consider when choosing an employer:

  • Salary;
  • Working conditions that must be flexible;
  • Opportunities for training and career development;
  • Project scope.

Why do we say that today the fight for technological talent located in Poland is getting tougher and tougher:

  • First, the level of earnings offered by foreign employers has led to increased interest in their offers from Polish programmers.
  • Second, foreign employers offer the opportunity to participate in world-class innovation projects, which means direct access for Polish specialists to international know-how and large-scale projects, and thus to prospects.

All of this leads to the need to work with experienced outsourcing partners from the very beginning. In addition, having a Polish IT partner will enable you to effectively deal with vital related issues such as accounting, taxation, legal nuances and more.

Financial appetites are on the rise. And with good reason.

Are you looking to hire an outsourcing software development team? Make sure you are aware of the salary expectations of local professionals. Four times as many professionals (61%) received a salary increase in 2021, and that number is expected to grow in the future.

The reason behind this could be the increased demand for Polish IT specialists in the second quarter of 2021, especially in the areas of data analytics and remote teamwork tools and systems. It got to the point where qualified specialists could get three or four job offers at the same time. Usually, those employers who offer higher wages win.

Here's what Polish developers say about their paychecks:

Polish developers salaries

Well, employers will have to plan their budgets more carefully. Although it is already known that even companies with a strict remuneration policy are willing to pay extra at the expense of profits, just to get the right expertise.

The stakes are going up. Are you in on it?

Candidates are waiting to be chosen

What can make it difficult to find experts is that there are professionals who can afford to be passive. Their job and salary situation is so good and secure that it makes no sense for them to look for new opportunities. These tend to be high-level professionals - business analysts (63%) and cloud engineers (60%). You have to try very hard to get them.

Conversely, project managers, team leaders, and junior specialists are those who are open to job offers. They see it as a chance to grow professionally and gain invaluable experience leading to an increase in their salaries in the future.

Okay, why are you telling me this? - you may ask

The situation is such that business demand for IT talent is growing, and competition for specialists is naturally toughening:

Polish IT talents are growing

Agree that now is not the time to be slow in recruiting. On the contrary, companies should optimize the hiring process by making it more dynamic. The best way is to work with an experienced software development service provider in Poland.

This will allow you to:

  • Speed up the hiring process;
  • Gain access to the right experts;
  • Participate in the screening of the best candidates;
  • Outline crucial software development metrics before hired engineers get to work.

Why is that? Getting the right candidate today is much harder than just posting a job offer on a mainstream resource like LinkedIn, Reddit, Quora or GitHub.

The recruiter's role has changed dramatically:

  • He or she has the necessary knowledge;
  • Understands technology;
  • Knows how to lead a discussion;
  • And most importantly, he or she can attract the best candidates for your project while aligning them with your functional and non-functional requirements.

Hiring the right people with the help of recruiters has proven to be the most effective.

Why should you start your project with an IT team in Poland?

Let's face it:

  • You want the best programmers in the world;
  • You expect your business challenges to be solved properly;
  • You need the best value for money.

Well, Poland seems to be the exact country to give you what you need:

  • The quality of education provided at local technological universities is globally recognized;
  • Engineers in Poland start coding as children;
  • Poles demonstrate the highest level of English proficiency in CEE;
  • You have at your disposal the vast experience accumulated by Polish coders in the most complex and large projects.

Today, IT companies in Poland are no longer merely providers of outsourcing services:

  • They are equipped with extensive cross-industry experience and know-how gained from major international projects performed for clients.
  • Their talent pool is constantly replenished with highly qualified technicians.

All that said, they seem to be your potential all-in-one technology partner throughout the CEE region. You got lucky. Did you know that? Poland is one of those countries with a favorable business climate, a developed economy, and a stable political situation. Polish IT companies are seen as valuable and long-term IT partners. Case studies, customer feedback, and company ratings speak for themselves.

When you opt for an IT contractor from Poland, you get the full range of services - from strategy and full-cycle software development to post-launch support. All this is done in order to match your product to the market and make it in demand.

Bottom line

Dealing with an IT partner from Poland is a win-win combo of quality and quantity. You get high-quality IT services at fair prices, and your team consists of like-minded people who are fully immersed in your needs. You have their invaluable experience, customized approach to work and, importantly, the strengths of Poland's already mature IT industry on your side.

It is up to you to decide whether to contact an IT company from Poland. At least the essentials about the IT sector in Poland and the reasons for working with an IT company from Poland are at your disposal. Now let's discuss your request in more detail. Just give us a call so we can help you as much as possible.

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