Warsaw boasts Europe's second-largest concentration of IT firms, though it ranks only 12th in pay scales across the continent. The city stands out as Europe's fourth-best for its combination of economic potential, business friendliness, connectivity, human capital, and cost-effectiveness [1]. As a result, Warsaw has become a popular IT outsourcing destination for North American and European companies. American firms account for 36% of outsourcing contracts in Warsaw, while another third comes from the rest of the EU [2]. Team extension in Poland offers several advantages, including extensive talent pool, advanced expertise, and high English proficiency. Let's explore what makes IT outsourcing in Warsaw an attractive option.
Reasons for outsourcing IT development to Warsaw
The Polish IT industry is thriving, with over 560 IT companies operating in Warsaw. About 70% of tech professionals work for international companies, while 40% of local IT firms focus on outsourcing [3]. A large outsourcing sector drives competition, pushing companies to refine their offerings to maintain a competitive edge constantly. Additionally, the robust market offers access to a wide array of talented professionals, enabling the delivery of high-quality, innovative solutions across the industry. Let’s look at the IT outsourcing in Warsaw across four most important categories:
Business climate
Poland came 9th in the Tholons Top 100 Outsourcing Destinations ranking, highlighting its importance in global outsourcing [4]. International companies such as Google, Microsoft, Samsung, Siemens, P&G, and McKinsey have established R&D centers in Warsaw, further solidifying its position as a growing powerhouse for innovation in Europe. This investment in R&D boosts local expertise and fosters collaboration with global tech leaders, making Poland a key player in the international IT ecosystem.
Warsaw is also a vibrant startup hub, with around 360 startups based in the city, according to StartupBlink. This places Warsaw 7th in the regional rankings and 95th globally. Startups often push boundaries with fresh ideas and agile methodologies, creating cutting-edge solutions that larger, more traditional companies may not explore as rapidly. This fosters an ecosystem of experimentation and creativity, spilling over into other economic sectors.
Read more: Software development in Poland: IT hubs, developers, companies
Talent pool
As of September 2024, over 103K developers are based in Warsaw. Each year, between 3K and 6.5K graduates in ICT join the workforce, depending on the criteria used to define ICT graduates. This steady influx of fresh talent, combined with the increasing number of graduates, signals strong growth potential for the sector.
Moreover, the appeal of IT outsourcing in Warsaw extends beyond just its educational institutions. The city is increasingly attracting young professionals from across Poland, with 36K internal migrants relocating to Warsaw in 2023 alone [5]. This movement of talent strengthens the local labor pool, ensuring a continuous supply of skilled professionals essential for maintaining the city's competitive edge in the tech industry.
Polish developers are recognized for their expertise, with the country ranking 24th in the Global Coursera ranking [6]. In terms of specific skills, Polish developers are within the top 8% globally for general technology skills and the top 20% for Data Science skills. Additionally, the popularity of non-formal education in Poland, such as boot camps and online courses, allows individuals without prior experience in coding to gain essential IT knowledge, contributing to the country's growing digital workforce.
Expertise availability
Polish programmers demonstrate expertise across various technologies, with C#, C++, and Java standing out as the most commonly used languages. 24K developers specialize in C# and C++ each, while Java follows as the next most popular language with 5.6K professionals.
In Poland, most companies specialize in financial software development. General IT services rank second, followed by business and healthcare sectors.
English proficiency
Poland ranks 11th in Europe and 13th globally in terms of English proficiency; its position is contested by Finland and Romania. The city of Warsaw has an average score higher than the rest of the country. It is comparable to Germany and South Africa (a country where English is an official language). Poland's strong English proficiency is crucial for IT outsourcing quality since clear communication between clients and service providers is essential for project success.
Read more: How to choose the best IT company in Poland
Wrap up
Warsaw presents a compelling case for IT outsourcing, boasting a robust technological infrastructure, a highly skilled workforce, and a strategic geographical position. The city's thriving business ecosystem, characterized by a dynamic startup community and an extensive pool of talent, fosters continuous innovation and development. Furthermore, Poland's cost-effective operational environment and widespread English language proficiency enhance Warsaw's appeal as a prime location for North American and European enterprises looking to outsource or expand their IT operations.
Why choose N-iX as your IT outsourcing partner in Poland
N-iX is a trusted IT outsourcing partner with a strong presence in Poland. Here are some reasons why you should choose N-iX:
- Experience and expertise: With over 21 years of experience, N-iX has a team of more than 2,200 skilled tech professionals, including top talent in Poland. We have successfully delivered projects in various industries such as manufacturing, retail, fintech, supply chain, automotive, and more.
- Proven track record: N-iX has been recognized by industry leaders for excellence in public cloud services and has been listed among the world's top 100 outsourcing service providers by IAOP.
- Global presence: Apart from Poland, N-iX has offices and delivery centers in Bulgaria, Ukraine, Colombia, Sweden, Malta, and the USA. We hire professionals in 25 locations across Europe and the Americas.
- Rigorous candidate selection process: We ensure that we hire the perfect match for your team. Our process involves filling the position in 4-6 weeks, closing 80-100 positions every month, and having over 1M experts in the talent pool.
- Flexible and fast team composition changes: We offer the flexibility to scale your team up or down or engage new professionals in your project.
References
- European Cities and Regions of the Future 2024, fDi Intelligence 2024
- Tech market in Poland: 2024 analytical report, N-iX 2024
- Ibid.
- Grid Dynamics
- Demographic Yearbook 2023, Główny Urząd Statystyczny
- Coursera Global Skills Report
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