Poland has been actively earning a reputation as an ultimate Eastern European IT outsourcing hub for several years. Typically, IT outsourcing helps companies delegate certain functions to external service providers.
The business value of IT outsourcing services
Nowadays, IT outsourcing is a common practice.
Some of the most common IT outsourcing services include software development, web development, website maintenance, technical support, database development, management, etc.
The two main reasons for outsourcing IT services are operational cost reduction and fixing the lack of in-house expertise. However, IT outsourcing is not limited to these two business benefits. It also helps focus on the core business processes, adds flexibility in using resources, improves a business’s ability to innovate, and more.
Figure 1: Top business reasons for outsourcing IT services
If your IT department is overloaded, you are missing specific expertise, or you are afraid of high IT costs, it is a sign to learn more about IT outsourcing in Poland.
Outsourcing IT to Poland
Poland joined the EU in 2004. Since then, the country has received lots of investments, held different reforms, and earned its place as one of the largest economies in the European Union. Between 1990 and 2015, Poland’s GDP per capita increased 7.3 times.
Figure 2: Poland’s performance in global economic ratings
Source: Investment in Poland 2021
Polish IT sector
‘Every dollar invested in Poland by American companies creates 50% more value than other foreign investments’
The high profitability of foreign investments attracts significant players. Poland houses some of the largest international IT companies, including Dell EMC, HP Inc, Cisco, Lenovo, Microsoft, IBM, Intel, Apple, Oracle, Xerox, Sabre, and Google.
Figure 3: Major foreign investors
Source: The State of Central & East Europe IT Outsourcing Report 2022
Up to 400 higher education institutions had operated in Poland in the 2019/2020 academic year. Eighteen of them are Universities of Technology.
Figure 4: Students by narrow fields of education in the 2019/2020 academic year
Engineering and engineering trades fields make up to 9% of the total number of students. Therefore, it is one of the most often chosen narrow fields.
Figure 5: Time difference between the CEE region and other time zones
IT outsourcing in Poland significantly cuts the costs and provides West-based outsourcers with convenient project management, fast and convenient travel, and more. CEE region can cover any market in the world. Warsaw is just two hours ahead of other European countries, max. Poland is 6-7 hours ahead of East Coast, compared to India, with a 10-hour time difference.
Policymakers in Poland actively search for ways to promote understanding of programming and robotics in little children. Poland ranks 4th in the world for the highest share of developers who started coding at 5! Then, it also takes leading positions in annual coding competitions, like Google Code Jam, Facebook Hacker Cup, and Microsoft Imagine Cup.
Figure 6: Facebook Hacker Cup results by country
Figure 7: HakerRank Challenge results ranked by the average score
Labor cost typically is one of the main concerns for companies considering IT Outsourcing in Poland. EU IP and data protection standards, reliable infrastructure, and business transparency come at a specific price.
According to the job offers on NoFluffJobs, for the past 6 months, IT rates in Poland have varied between $21-30. Hence, avg. $3,517-5,121 monthly.
Figure 7: Analysis of remuneration per category on a B2B contract
In 2021, security, DevOps, big data, and business intelligence specialists had the highest earnings.
How can we help you adopt current IT outsourcing trends in Poland?
The leading IT outsourcing trends include talent shortage, increased demand for cybersecurity expertise, search for flexibility, strategic partnerships, and reliable service providers.
Talent shortage prevention
According to the Korn Ferry report, there will be a global human talent shortage by 2030. The United States and China are expected to face up to six and twelve million workers.
Figure 8: The intensity of labor shortage across economies in 2030
IT outsourcing will become critical for a company’s business continuity development plan.
By 2025, the cybercrime cost will reach $10.5 trillion annually. In 2020, the U.N. reported a 600% increase in malicious emails during the COVID-19 pandemic. After the pandemic, the trend remained.
Sombra ensures its services won’t compromise clients’ safety. We are ISO 27001 certified, which means our information security management system is constantly updating.
This IT outsourcing trend develops from clients expecting vendors to be able to ramp up things up and down depending on their needs.
At Sombra, we discuss the best possible outsourcing model to ensure flexibility and quick adaptation to the potential changes.
Strategic outsourcing partnership
Finding a trustworthy, reliable partner can be extremely difficult. The trend toward outsourcing services within one project to multiple vendors is being replaced by single-vendor outsourcing.
A long-term strategic partnership is no stranger to Sombra. Our clients, including a premiere Nothern American bank, have trusted us to take care of their IT services for years.
There are plenty of reasons to consider Poland an attractive IT outsourcing destination. Its stable economic growth, diverse talent pool, affordable service costs, and European standards in software development makes it the best choice for finding a reliable outsourcing vendor.
Sombra is a global software development and consulting company from Eastern Europe. We help our clients in North America and the UK simplify business operations, increase revenue, and improve daily work processes through technology and expertise.