Poland’s IT Industry Overview
The Central and Eastern European (CEE) IT sector is rapidly developing today. In 2021, the Global Outsourcing 100 included more than a dozen of companies in their list with the main office in the CEE region with IBA Group, Solberg, Sigma Software, and others among them. According to The IT Landscape: The Future of IT in Emerging Europe report, the CEE IT sector estimated 2 million people employed in 2020 and the number is growing by 3% each year. Meanwhile, the largest IT talent pool in the region is in Poland. It reached 401 thousand software developers in 2019.
Poland is considered to be one of the leading IT outsourcing destinations in emerging Europe and in this article we’ll figure out why. We’ll have a look at the state of the Polish IT industry, what are the main IT industry trends, and why many businesses prefer outsourcing software development to Poland to other world IT hubs.
Overview of IT Industry in Poland
Poland has one of the most progressive IT sectors among 23 countries of Central and Eastern Europe. In the Emerging Europe rating, Poland gained the highest 61.40 points of the overall score, being put in first place. The countries were ranked by the top software development talents, development of IT sector, and business climate components. Poland showed high results in the three of them, demonstrating a high level of competitiveness in the ICT sector and a positive business climate for investments.
Poland has significant economic potential. Many international tech companies are ready to invest in the development of the Polish IT sector and a great number have already opened their R&D centers in the country, including Microsoft, Intel, Google, IBM, Delphi, Samsung, and many others. According to the latest FDI Report 2021, Poland announced 101 STEM FDI projects in 2020, being placed among the top 10 destination countries for STEM FDI. It means that projects in ICT and science are among the major investment attractors in the country.
There are more than 50.000 software development companies in Poland and more than 800 are aimed at the international software development market. Based on the above, it’s evident why SMEs and large companies from the US and the EU are actively seeking IT expertise, custom software development services, and team augmentation in Poland. This is because Poland has one of the most favorable environments for business development and a large pool of IT talents with a strong professional background, and working experience with global companies.
Reasons Why Poland Becomes More and More Valuable for IT Industry Centers
World-known IT companies readily invest in the Polish IT sector and start their industry centers there. The three main reasons why Poland is worth investing in are a high level of specialists skills, adaptive legislation, and a stable and rapidly developing economy. Let’s have a closer look at them.
Businesses around the world are struggling to find skilled specialists. According to Randstad Sourceright’s 2021 Talent Trends survey, 40% of HR leaders claimed that their organizations were negatively impacted due to talent scarcity in IT. Poland, in its turn, has much available highly-skilled IT workforce to offer.
Poland has a strong STEM educational base, there are more than a dozen of technical universities around the country that get into the top 1,000 QS World University Rankings. Each year in Poland tech universities graduate 78,000 ICT students on average. The specialists start working for local and international tech companies. Meanwhile, while providing high-quality services, labor costs in Poland are generally much lower than in the US and EU countries by 20-50%. All these factors contribute to the popularity of Polish IT specialists, therefore, businesses of different scales search for Poland outsourcing services.
Adaptive and Effective Legislation
Poland attracts substantial investments into its ICT sector. It has become possible due to the establishment of an investment-friendly environment and compliance of its legislation system with the EU laws.
One of the recent Polish government initiatives is to enforce a new tax plan to encourage the implementation of innovations in Poland. A new system of tax incentives is aimed at decreasing the tax burden for the businesses that commercialize the results of their R&D services, being involved in prototype development and robotics, or employing innovative workers such as re