Why the value of software development companies in Poland has skyrocketed
Poland: location, culture and politics
Poland is the 6th largest country in European Union with a population of around 38 million. Warsaw is the capital of Poland, and one of the IT hubs along with Krakow, Poznan, Wroclaw, Gdansk, Lodz and Katowice. Their official language and the most commonly used language in Poland is, of course, Polish. They do however rank amongst the most proficient at English in Europe, alongside Scandinavia and Austria and 11th in the World for English Proficiency after native English Speaking countries. Indeed they are far more proficient than their neighbours to the East and even more so than Western European counterparts. They usually study at least 2 foreign languages at school, mostly English, German or French.
Culturally-speaking Polish people have quite a Western mindset, despite their communist past. In large part because of becoming a member state of European Union in 2004, Poland’s economy is one of the fastest growing in Central-Eastern Europe. The GDP is growing steadily. In 2016, Poland’s real gross domestic product increased by around 2.64 percent from last year. The political situation is fairly stable, however, some tense political issues surface from time to time. European standards for data protection and intellectual property are applied in Poland, which makes it safer for businesses to operate there.
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IT market in Poland
The IT sector in Poland consists of three interrelated sub-segments: hardware, software and IT services. It is the IT services market that is growing fastest. According to International Data Corporation estimates the IT services’ share of the industry is expected to grow from 39% to 45% to 2019, whereas the share of computer hardware sales is expected to drop from 43% to 36% respectively. The software sector is expected to grow at 7.4% per year. This market growth is supported by foreign investments in software development.
Global technological companies such as Microsoft, IBM, HP, Nokia, Google, Oracle, Opera Software, Samsung etc. have offices and R&D centres in Poland. Outsourcing companies from Poland have substantial experience working directly with companies worldwide.
Among software development companies in Poland, Asseco is the market leader and one of the largest software vendors in Europe with over 22,000 employees worldwide. Comarch, OEX Group, Qumak, Sygnity, Betacom are also the key players in the software development market in Poland.
In terms of pricing, the average hourly rate charged by web development companies (Netguru, Railsware, Exadel, Xfive) in Poland is in the $50-$99 bracket, as reported on Clutch. This is noticeably more expensive than Ukraine, Romania and Moldova.
Outsourcing companies from Poland have substantial experience working directly with companies worldwide.Click to tweet
Developers in Poland: education, salaries and technical skills
Polish Developers work mostly at international software development companies, which have their offices there, however, Poland provides also access to a relatively large talent pool of high-quality software developers to the greater marketplace.
According to OECD data 43.5% of the population, aged 25-34 in Poland are educated to a tertiary level. There is a range of recognised universities, providing a good education with a focus on science, technology, engineering, and mathematics (STEM) such as the University of Warsaw, AGH University of Science and Technology in Kraków, Poznan University of Technology, Wrocław University of Technology etc. The programming skills of the engineers developers in Poland are top notch, ranked 3rd on Hackerrank:
PHP is the most widespread programming language among web developers in Poland. Java and .Net are also used in web development in Poland.
Software development companies in Poland offer fairly competitive salaries. The average pay for a Software Developer is $23,349 per year based on PayScale and according to the Report prepared by Association of Business Service leaders the average monthly salary of a software developer in Poland is €2600. Hence labour costs in Poland (depending on location) are still between 20% and 50% lower than in Western Europe.
Web developers in client’s reviews on Clutch describe the Polish specialists as highly professional, with excellent communication and work ethic, meeting deadlines and providing suitable solutions to complex problems.