Software Nearshoring to Poland - Rates & Conditions [2024]

Introduction

Seeking savings in a period of an economic recession takes work. However, there is a solution more and more commonly used by Western companies that helps to significantly reduce costs and increase the efficiency of their software development process. Let’s find out what are the benefits of IT nearshoring and how to successfully outsource to Poland.

The rise of outsourcing during pandemic and recession

The COVID-19 pandemic and economic recession forced companies to seek savings and new growth opportunities. This is why outsourcing is on the rise nowadays, and more and more Western companies tend to use this opportunity to reduce costs and increase the efficiency of their software development process. However, outsourcing to the wrong location may be costly. If you already made the decision, you have to choose wisely as it may significantly impact your business.

One of the most frequently chosen solutions is nearshoring IT to Poland, which has become a recipe not only for decreasing costs but also for overcoming the global talent shortage. Let’s explore the benefits, risks, conditions, and tips on how to successfully outsource to Poland. We'll be diving deep into all of these aspects, and giving you plenty of reasons why you should seriously consider nearshoring to Poland.

Why Poland? - Reasons for IT nearshoring to Poland

Poland is a perfect location to outsource to because it answers to the most typical goals of IT nearshoring. The major benefits of software nearshoring to Poland include:

• Cost reduction. Salaries of software developers in Poland, although relevantly high within the country, are still lower than in the majority of Western European locations. Nearshoring helps to reduce costs of wages, but also infrastructure, and overhead expenses related to employment.
• Shared culture. Along with that, Poland offers Western working culture. Local developers regularly cooperate with Western companies, so they have awareness of business and culture and share similar values.  
• Skilled labor. Polish developers are one of the best educated and talented in Europe. According to the worldwide developers ranking, Poland is in 3rd place in the overview. So, in the era of talent shortage, IT nearshoring to Poland provides you with access to much more qualified developers than you can find in your country. 
• Proficiency in English. In 2022, Poland was ranked 13th in the EF EPI rating of English proficiency out of 111 countries from all around the globe, which states for “very high proficiency”. Moreover, Polish developers frequently work on foreign projects and use English on a daily basis.
• Convenient location. Poland is located in the main communication routes, in the middle of Europe, and in the same timezone as the majority of Europe. The country also has 12 international airports. 
• Political and economic stability. As a part of the EU, UN, ONZ, and OECD, Poland is politically and economically stable and offers internationally compliant laws. In addition, the Polish government supports foreign investments, e.g. by opening special economic zones and offering tax incentives to foreign investors. 
• Flexibility. With nearshoring IT to Poland, you can choose flexible or temporary employment, depending on your current needs, and scale your workforce up or down anytime the project requires. Such huge flexibility allows you to fuel your project with additional skills and competencies, and accelerate your software development process. 
• Increased efficiency. Thanks to smooth communication, skilled developers, and flexibility, you can achieve much higher efficiency in your business and software development processes.
• Higher customer satisfaction. Faster delivery translates into a higher capacity and ability to accept more projects, better quality, and more satisfied customers.
• Proven track record of successful nearshoring stories. Poland is home to the world’s leading tech companies, such as Google, Facebook, IBM, Accenture, Cisco, and more. They frequently choose to open their offices in Central Europe or to cooperate with Polish contractors in the IT nearshoring model. 

Outsourcing to Poland is highly regarded due to the country's blend of technological prowess and cost-effectiveness. Poland has made a name for itself as a leader in technological advancements such as cloud computing and AI, with over 200 Polish companies actively developing AI solutions. This focus on technology, combined with adherence to EU standards such as GDPR, provides a secure and compliant environment for outsourcing IT services - Andy Nguyen, Time Doctor

Time for the money talk - Secrets of cost-effectiveness of IT nearshoring to Poland

Although IT nearshoring to Poland offers a number of benefits, the main reason companies choose this location seems to be cost optimization. Let’s compare the wages of IT specialists and software developers in Poland and in Western European locations.

Nearshoring in Poland vs other countries - Comparison of frontend vs backend rates

• Salaries increase from junior to senior levels for both front-end and back-end developers in all countries.
• The UK seems to offer the highest salaries for developers, especially for back-end roles.
• Poland offers the lowest salaries of the four countries for both types of developers.

Poland:

1. Has the lowest salary ranges among the countries listed.
2. The salary progression from junior to senior is consistent for both front-end and back-end developers.
3. The gap between front-end and back-end salaries seems relatively small, especially for mid-level and senior developers.

France:

1. Offers higher salaries than Poland across all roles and experience levels.
2. Similar to Poland, the progression from junior to senior level shows a consistent increase.
3. The difference in salary between front-end and back-end roles is more noticeable, particularly for senior developers.

Germany:

1. Shows a more significant jump in salary from junior to middle and senior levels.
2. Back-end developers, particularly at the senior level, have a higher salary range compared to front-end developers.
3. The trend suggests that as developers gain experience in Germany, the pay gap between front-end and back-end widens, especially at the senior level.

UK:

1. Has the highest salary ranges of the four countries for both front-end and back-end developers.
2. The difference in salary between junior, middle, and senior levels is more pronounced, indicating a high value placed on experience.
3. Similar to Germany, the salary difference between front-end and back-end developers increases with experience, with senior back-end developers earning the most.

Overall comparison:

• The UK stands out with the highest salaries for software developers, reflecting the high cost of living and demand for skilled labor.
• Germany and France show a moderate increase in salaries from junior to senior levels, with a clear premium for back-end development skills, especially at higher experience levels.
• Poland, while offering the lowest salary ranges, provides a smaller gap between front-end and back-end salaries, suggesting a more uniform valuation of these skills within the country.

Software developers’ average salaries - Poland vs other countries

Get ready for some eye-opening data on software developer salaries in Europe. Check out the figures compiled below:

Outsourcing to Poland vs other countries - analysis

Salary trends:

1. Junior developers: The starting salaries for junior developers vary significantly between countries. For instance, Poland, Slovakia, and Czechia show lower starting salaries compared to countries like Finland and the United Kingdom.
2. Middle developers: Salaries for mid-level developers also show variation, but the increase from junior to middle level appears substantial across the board.‍
3. Senior developers: Senior developer salaries are the highest, reflecting their experience and expertise. Countries like Switzerland and the United Kingdom show particularly high salaries for senior developers.

Regional differences:

The graphic implies that Western European countries generally offer higher salaries for software developers across all experience levels compared to Central European countries.

Highest salaries:

Switzerland stands out with the highest salaries for software developers at all three levels, followed by countries like the United Kingdom and Finland.

Lowest salaries:

The lowest salaries are seen in the Central European countries, with Poland, Slovakia, and Czechia being at the lower end of the spectrum.

<span class="colorbox1" fs-test-element="box1"><p>Check out the ranking of Top 15 software development companies from Poland.</p></span>

Software nearshoring to Poland - How much is software development in Poland?

Now, let’s take a closer look at developers’ rates in Poland and in other European countries.

By technology, it goes like this:

Software development in Poland vs other European countries: cost analysis

Comparison by technology:

1. Java: Developers specializing in Java appear to earn the most, with Switzerland topping the chart, followed by Belgium, Germany, and then Poland. France is at the bottom of the Java salary scale in this graphic.
2. Python: Python developers in Switzerland also have high salaries, followed closely by those in Belgium and Germany. Poland and France again are at the lower end.
3. JavaScript: Switzerland leads, with Belgium and Germany showing competitive salaries. France surpasses Poland in JavaScript salaries.
4. PHP: Salaries for PHP developers are lower overall compared to other technologies, but the trend remains the same with Switzerland at the top and Poland at the bottom.

Comparison by country:

1. Switzerland: Consistently offers the highest salaries for developers, regardless of technology.
2. Belgium and Germany: Compete closely, with Belgium generally offering slightly higher salaries.
3. France: Has a variable position, being the lowest in Java, but surpasses Poland in JavaScript.
4. Poland: Generally offers the lowest salaries among the presented countries, across all technologies.

As you can see, software development services in Poland are one of the cheapest in Europe but maintain great value for money. 

Want to compare other aspects?

Nearshoring to Eastern Europe comes with small time zone differences, English proficiency, and big talent pool. If you want to compare Poland to other European countries in more detail, there's a solid resource: "Nearshoring to Eastern Europe: 5 Top Locations".

Why not go cheaper? Nearshoring to Poland vs offshoring

When selecting an outsourcing country, there are various factors to take into account. While cost savings are often the primary driving force behind outsourcing, it may not be wise to opt for the least expensive choice.

The alternative for software nearshoring to Poland is offshoring, meaning outsourcing to more remote, typically Asian locations, such as India or the Philippines. However, offshoring comes with a number of associated risks:  

• lack of skilled workers - Asian developers might not perform at an equal level of skills as European developers do, and are not fully aware of European standards.
• regulation problems in outsourcing outside the EU
• political issues
• communication issues, which may result in extended delivery time and excessed deadlines
• time zone differences, which may lead to distorted communication and the need to work overtime.

The only slightly cheaper nearshoring options in Europe are Romania and Ukraine. However, these two countries don’t offer similar proficiency in English, political stability, or equally attractive location. This makes Poland the best IT nearshoring country and the top choice for many companies.

Nearshore outsourcing to Poland - challenges and tips

While IT nearshoring to Poland offers significant benefits, it may not be the best solution for everyone. To make an informed decision, it is important to weigh the pros and cons of this approach. Let's take a look at the main challenges:

Dynamic staff turnover

The shortage of talent worldwide causes developers to switch jobs frequently. This is also the case with Polish developers. By nearshoring IT work to Poland, you can access a highly skilled workforce, but attracting and retaining candidates may require effort.

Solution: Conduct thorough research on wages and benefits offered by companies in your target location. Use this information to customize your offer in order to compete in the local employment market while meeting candidates' expectations.

Staffing problems

Searching for employees in a remote location might be overwhelming, as it requires knowledge about sources and locally-effective staffing techniques that will help you to reach out to top candidates.

Solution: If you find it difficult to seek developers in Poland, try to find an experienced nearshoring partner. They will provide you with staffing and recruitment services, and take ownership of your hiring process. The main benefit is that they already have access to a large talent pool and are in touch with top industry specialists, so they can easily provide you with many promising candidates.

Checklist - learn if Poland is the right fit for you

As you already know all the pros and cons of nearshoring IT Poland, it’s time to decide: is it the right choice for you?

The country will provide you with a dozen of promising candidates qualified in a number of technologies, as well as great English speaking abilities and a good understanding of the European working culture.

Poland - the best choice for Western European countries

If you wish to find a reliable nearshoring partner or contractor in Central or Eastern Europe, try searching among Polish developers. If you don’t know where to start, feel free to contact us - as an experienced software development agency, we have access to a variety of local talents from different fields and will be able to provide you with top candidates.

FAQ: Software nearshoring to Poland

What is IT nearshoring?

According to Forbes, enterprises worldwide might lose around $8.4T in revenue due to the lack of an experienced workforce by 2030. Global talent shortage becomes a serious threat that forces companies to continuously search for IT employees, also outside the country - and this is when nearshoring comes into play.

IT nearshoring means contracting the software development work to be performed in a nearby country. It’s an outsourcing model that prioritizes geographical and cultural proximity which can be ensured by companies operating in similar locations.

In Europe, Poland is one of the most popular nearshoring locations for companies from the UK, Germany, Belgium, Netherlands, Switzerland, or France, but also from the US, Canada, or Australia.

What are the benefits of IT nearshoring?

Nearshoring is an effective strategy for companies looking to outsource their software development tasks. It allows for cost savings, better communication, and cultural alignment, all of which contribute to more successful collaboration and better product development outcomes. 

The benefits of this approach are numerous and can be summarized into three main categories: cost savings, better communication, and cultural alignment.

Firstly, nearshoring allows companies to save costs compared to outsourcing to distant countries. This is because the cost of labor in nearby countries is typically lower than that in developed countries. Additionally, the proximity of the partner company allows for easier travel and reduced expenses associated with remote collaboration, such as shipping and handling costs.

Secondly, nearshoring enables better communication and collaboration between the two companies. The time zone difference is often minimal, allowing for real-time communication between team members. This facilitates collaboration, enables quicker decision-making, and helps resolve issues faster. Also, the cultural similarity and proximity make it easier for teams to work together, understand each other's perspectives, and build trust, which is crucial for effective collaboration.

Lastly, nearshoring allows for cultural alignment, which can lead to better product development outcomes. Cultural alignment refers to the shared cultural background, values, and customs between the two companies. This similarity helps to reduce the risk of misunderstandings, miscommunication, and conflicts that can arise from different cultural norms. As a result, nearshoring can facilitate smoother, more effective collaboration and improve the quality of the final product.

Why are IT companies outsourcing to Poland?

Poland has become a popular outsourcing destination for IT companies due to its well-developed IT industry, skilled workforce, and attractive business environment. Poland is home to a large number of universities, technical schools, and coding boot camps that produce a steady stream of talented IT professionals. This has created a deep pool of talent that IT companies can tap into for their outsourcing needs.

IT companies are outsourcing to Poland due to its talented workforce and a business-friendly environment that attracts foreign companies. The country has a stable economy, low taxes, and a government that supports foreign investment. The Polish government has also implemented policies to support the growth of the IT industry, such as tax incentives for IT companies and a streamlined visa process for foreign workers.

Another reason why IT companies are outsourcing to Poland is the country's proximity to Western Europe. Poland is located in the heart of Europe, making it easy for companies to travel to and from the country. This proximity also means that Poland shares similar cultural values and business practices with Western Europe, making it easier for companies to work together.

Lastly, Poland offers competitive pricing for outsourcing services. While Poland may not be the cheapest outsourcing destination, it offers a good balance between price and quality. 

What are the top tech hubs in Poland?

Here are some of the top tech hubs in Poland:

Warsaw: As the capital of Poland, Warsaw is the largest tech hub in the country. It has a vibrant startup scene, a large talent pool, and a growing number of co-working spaces and accelerators. Warsaw is home to many multinational companies and has a thriving community of tech startups.

Krakow: Located in the south of Poland, Krakow is known for its rich history and culture, as well as its growing tech industry. It has a thriving startup scene and is home to many successful software development companies. Krakow is also home to several universities, including the famous Jagiellonian University, which produces a steady stream of talented graduates.

Wroclaw: Wroclaw is a city in western Poland that is rapidly becoming a hub for tech startups and software development companies. It has a vibrant cultural scene and a growing economy, which has attracted many young professionals and entrepreneurs. Wroclaw is also home to several universities, which are producing a steady stream of talented developers and engineers.

Gdansk: Gdansk is a city located in northern Poland and is known for its historical significance and picturesque waterfront. In recent years, it has also become a hub for technology and innovation. Gdansk is home to a number of successful startups and software development companies, as well as several universities that are producing talented graduates.

Is Poland an IT hub?

Poland has become a thriving IT hub in recent years, with a rapidly growing IT industry and a deep pool of talented professionals. The country has made significant investments in its educational system, producing a large number of IT graduates each year who go on to work in the IT industry. In fact, the IT sector is one of the fastest-growing industries in Poland, with a growth rate of around 10% per year.

Poland's IT industry is not just limited to software development; it also includes other areas such as cybersecurity, data analytics, and e-commerce. This has created a diverse and dynamic IT landscape that is able to cater to a wide range of business needs.Poland's location in the heart of Europe has also contributed to its growth as an IT hub. The country is well-connected to other European countries, making it easy for IT companies to travel to and from the country.

What is a nearshore software development company?

A nearshore software development company is a company that provides software development services to clients in nearby countries or regions. Nearshoring is a form of outsourcing that involves contracting a third-party company to provide software development services, but choosing a company that is located in a nearby country or region. This is different from offshoring, which involves contracting a company that is located in a different time zone or region.