The State Of IT in Poland: A Complete Overview
Poland boasts one of the largest IT services markets in Europe, with a robust CAGR of 8.85% projected from 2023-2027. With a wealth of qualified programmers, favorable laws, and a rapidly growing economy, Poland has emerged as a leader in Europe’s IT sector.
In this article, you will delve into the current landscape of the IT industry in Poland, including key companies, government support, custom software development, and more. Let’s explore this concise overview.
State of the IT Industry in Poland: trends, challenges, and opportunities
In recent years, the IT sector in Poland has experienced rapid growth, with research indicating that one quarter of all developers in Europe are located in Poland. The country’s robust and rapidly expanding IT market positions it as one of the most dynamic sectors in the region.
The key trends in the Polish IT sector are driven by global technologies such as AI, ML, and cloud-based solutions, which find wide-ranging applications in industries such as fintech and healthcare. Additionally, there is a growing focus on cybersecurity, given the global challenge of securing servers and databases.
However, the sector also faces challenges, including the current global shortage of tech talent. Statistics predict that by 2025, the shortage of developers worldwide will increase by more than 186%.
Despite these challenges, the Polish IT sector presents ample opportunities for startups and outsourcing companies, particularly those catering to international projects. Outsourcing services in Poland offer competitive prices and high-quality work, ensuring stability and a strong demand for skilled developers.
Major IT Companies in Poland: areas of specialization overview
Poland is home to over 500 software development companies, making it one of the largest countries in Europe in terms of its IT industry. The country’s key IT hubs include Poznan, Warsaw, Krakow, and Wroclaw, each with its own specialization.
- Asseco Poland is the largest software development company in Poland, offering comprehensive and advanced IT systems for various sectors including banking, finance, healthcare, and enterprises.
- Sabre Polska is another prominent player in the Polish IT scene, known for creating booking systems, mobile apps, and websites using innovative technologies such as voice recognition, data analysis, AI, and Machine Learning.
- Future Processing is a leading IT solutions provider in Poland, offering services in areas such as blockchain, cybersecurity, cloud computing, and software development. They have established partnerships with Microsoft, 4finance, Steamship Mutual, and other prominent companies.
- iTechArt Group, based in Lodz, is a software development company that specializes in custom mobile app and web development, CRM and Cloud consulting, and blockchain solutions.
Polish IT companies offer a wide range of services that cater to diverse business needs, from custom software development to cutting-edge technologies such as AI and ML implementation.
Poland B2B IT Services Market
Let’s delve into more details about the B2B IT market in Poland, including its size, growth rate, export destinations, types of companies, salaries, industry associations, tax system, and key cities.
Poland’s IT market is projected to reach a substantial size of $9.99 billion by 2027, making it one of the fastest-growing sectors in the country. This growth can be attributed to the rising demand for skilled developers, a well-educated workforce, and supportive government policies, which are driving the steady expansion of the market.
The geographic distribution of IT exports from Poland is largely influenced by its strategic location. Key export destinations include Germany, the United Kingdom, and the United States. Diverse IT companies in Poland offer a wide range of specialized services, such as software development, consulting, outsourcing, cybersecurity, blockchain, and more.
As previously mentioned, the average salary of developers in Poland varies depending on their skill level and experience. According to a report by Payscale, the average hourly rate starts at 47.50zł (equivalent to around $10.4), with the final compensation depending on factors such as location, project experience, and other relevant qualifications.
In Poland, there are two prominent organizations that play a key role in the IT industry: the Polish IT Association (PIIT) and the Polish Chamber of Information Technology and Telecommunications (PIIT&T). These organizations provide valuable networking opportunities, training programs, and other types of support to IT companies across the country.
According to research, Poland’s tax system is known for its simplicity and flexibility. IT companies are required to pay a standard income tax rate of 19%, but there are options available that can help reduce the tax burden to as low as 9% for certain businesses.
When it comes to important cities for Poland’s B2B IT market, Warsaw, Krakow, Wroclaw, Poznan, and Lodz are the major players. These cities boast thriving IT hubs that cater to all types of businesses, from startups to enterprises. For instance, Warsaw is home to offices of tech giants like Samsung and Microsoft, while Wroclaw hosts centers of IBM, Dolby, and Nokia, among others.
The advantages of working with Poland IT companies
We have already provided an overview of the current state of the IT market. Companies of all sizes and with varying business needs can easily find skilled developers for their projects in Poland. There are numerous benefits to working with IT companies in Poland, and here are some of the key advantages:
- Favorable geography and time zone: Poland’s strategic location in Europe makes it convenient for communication with many companies, and its time zone is compatible with several European countries.
- High quality of work: Developers in Poland are renowned for their English proficiency and technical skills. In fact, Poland ranks 16th in the global English proficiency index, and developers have a strong command of the language.
- Abundant pool of tech specialists: With over 250,000 developers in the country, according to the report, there is a vast talent pool to choose from, allowing companies to assemble a team of specialists according to their specific tech requirements.
- Government support: Poland offers various tax initiatives and funding programs that support businesses in their economic and innovative endeavors, providing valuable support to companies.
- Cost-effectiveness: The rates for skilled developers in Poland are comparatively lower than in other countries. According to Glassdoor statistics, the average starting price is around PLN 7,000 (~$1,620), making it an ideal opportunity for businesses and startups with limited budgets to hire highly skilled developers.
In conclusion, Poland is an excellent choice for companies seeking skilled developers, thanks to the numerous advantages it offers, including strong government support, which we will further explore.
Government Support for the IT Industry in Poland: tax incentives and funding programs
Poland has emerged as a thriving hub for IT startups, with over 3,000 new companies in the market, as per recent statistics. The rapid growth of the IT industry in Poland can be attributed to strong government support, including tax incentives and grants.
The tax system in Poland is straightforward, and the process of establishing a business can be completed in just 2-3 days. IT companies in the country are subject to a standard corporate tax rate of 19%. However, there are opportunities for reduced taxation, with a rate of only 9% applicable if certain conditions are met. For instance, if the business has been registered for less than a year, or if the total revenue is less than €2,000,000.
Furthermore, Poland also offers an initiative known as the “IP Box,” which provides a reduced tax rate of 5% for innovative activities and intellectual property creation. Additionally, funding programs such as the Smart Growth Operational Programme are available in Poland to encourage economic investments, including grants for innovative developments.
Overall, the combination of tax incentives and grants for the IT industry in Poland promotes the establishment of startups and encourages a focus on cutting-edge technologies with robust government support. This support also plays a vital role in attracting foreign investments and contributing to the overall growth of the economy.
Future Outlook for the IT Industry in Poland
According to Statista’s projections, the IT market revenue in Poland is expected to reach US$9.99 billion by 2027. This growth is fueled by foreign investments, the global trend towards digitalization, and the increasing demand for skilled IT specialists in the country.
There are four key trends that are expected to further drive the growth of the IT sector in Poland: advanced analytics, big data, cloud-based solutions, and the utilization of artificial intelligence (AI) and machine learning (ML) in the development of digital products. As businesses increasingly need to establish an online presence for scaling up, hiring developers for website and app development has become crucial.
The IT sector in Poland is poised to grow and adopt new technologies in line with global trends. Supported by robust government support and investments, Poland is expected to remain a leader in the software development market.
How Red Jumpers can help clients achieve IT goals?
The main challenge when hiring employees for a project is finding the time to review resumes, assess test results, negotiate contracts, and onboard new employees. Even if a developer has impressive technical skills, there is always a risk that they may not align with the company’s values, resulting in unproductive cooperation.
With Red Jumpers, you can fill out our simple form and we’ll match you with the best candidates from the largest pool of talent available today. Plus, as a trusted partner in the European tech industry, we offer access to a network of companies for top-quality services in talent and project sharing.
Selecting the right developer goes beyond just browsing through CVs. It’s a multifaceted process with multiple stages, and one of the most critical decisions is choosing the right IT outsourcing country. Poland boasts a thriving IT market with developers who offer top-notch services for businesses of all sizes.
If you’re considering hiring developers in Poland to implement your digital solution and scale up your business, you’re on the right track. Contact Red Jumpers by filling out our form, and we will connect you with the right talent to meet your needs.
April 19, 2023