Poland — the perfect place to outsource your next web project
Outsourcing in Poland
It is estimated that over 200,000 people work in the outsourcing industry in Poland and the market grows at a staggering rate of 15% per year. The sector is focused on young people and is an attractive employer for people starting their careers. Researches show that about 64% of Polish companies focus on servicing foreign brands. Why do firms from outside of Poland so often choose this country as a perfect place to find their outsourcing partner?
In the report of Raconteur of Outsourcing in September 2016, Poland was recognized as the most attractive outsourcing location in the nearshore model in Europe. As the main justification, the prices, very favourable business environment and development of modern business-related infrastructure were given. Apart from it, Poland is also having several attractive locations (in 11 cities the population exceeds 300 thousand people) and a very large pool of talents. It is a merit of big and modern academic centers from which highly educated people come to the sector every year. Most of them are very perspective, young people who easily speak in foreign languages. One of the biggest advantages of the market in Poland is definitely the cost of making business. Despite it is not as low as in Asia, it is still much lower than in Western Europe.
Not only low costs, high-skilled personnel and proper investment atmosphere place Poland among the most attractive countries for the outsourcing sector. For Western investors easy communication and location proximity within a single time zone are equally important. It is no wonder that this model of business service is developing very dynamically in Poland. The Everest Group advisory firm claimed that Poland is the most mature European location for direct investment in modern business services.
“Business service centers in Poland are most often focused on customer service processes, accounting, financial services, and HR. We are also very often facing situations where companies need, for example, the entire IT department including the office and relevant modern equipment. These are activities that go far beyond the traditional framework of outsourcing services or employment processes that are more commonly associated with physical work or telemarketing.” — comments Bartosz Kaczmarczyk, the CEO of Loyd Capital Group.
IT Outsourcing in Poland
The revenue of the Polish IT market in 2016 amounted to 34 billion PLN (+4% comparing to the previous year). In 2017 the growth will accelerate to 5% which will increase the market value to nearly 36 billion PLN — according to PMR. Outsourcing services should also get higher growth rates. Their share in the Polish IT market in 2018 will amount to approximately 22%, exceeding 8 billion PLN annually. This is related to the fact that more and more companies are moving their IT centers to Poland while providing services to the international market.
Annually published Tholons Top 100 Outsourcing Destinations report is a guide to the best outsourcing locations in the world. What is interesting, one can find only 22 cities from the Old Continent there and three out of them are Polish. Kraków, which for the first time in history is ranked ahead of Dublin, was named the best European location for modern business services. Foreign centers stationed in the capital of Małopolska employ over 30,000 people.
Kraków is not the only Polish city that could be proud of being a part of this respectful ranking. Warsaw was placed 32nd in the world (6th in Europe) and Wrocław landed on 65th place (17th in Europe) but there are more very attractive and quickly developing locations in the country. The sector of modern business services is thriving also in Łódź, Tri-City, Poznań and Katowice. In the case of IT services, such cities like Katowice or Rzeszów are also competing more than successfully.
According to reports, more than 90% of IT service providers in Poland are planning to increase employment over the next few years. This trend shows the dynamic development of the sector and the growing specialization of Polish IT industry.
“Nearshoring applies to the most of European companies that transfer their processes and projects to other countries on the continent or very close to Europe. In this case Poland and other countries of this region are the most attractive choices. Poland is an undisputed leader in nearshoring. “The advantage of such a solution is the level of costs lower than in Western European countries, but not only” — explains Szymon Włochowicz, head of Enterprise Web Team at Hicron.
The compatibility of Poland’s time zone with the most of European countries plays a significant role in improving coordination and communication in the project. In addition, the location of the state in the heart of Europe makes the country the ideal place for nearshore as the parties can easily meet when it is needed. Poland has very good connections with major European cities and regions and a well-developed transport infrastructure to use within the country.
What is more, thanks to long years of international cooperation, the best agencies in the country have developed a perfect system of offshore collaboration. Piotr Kulczycki, CEO of Crafton agency from Poznań explains:
“Dozens of international projects were a real lesson for us showing how important it is to take care of perfect communication with partners and customers. At the beginning, years ago, we thought it was a real challenge to be available for them whenever they need us. Especially, when it is about offshore relationships. Now we are totally confident that thanks to limitless power of the Internet, we will never let our customers down. Our team responds each e-mail within one hour and we are available for a Skype meeting whenever it is needed. Offshore communication could not be any easier!”
Impressive number of highly qualified employees is a key factor in Poland’s IT outsourcing position on the map of Europe. Currently, more than 150,000 of them are employed in the IT industry on a national scale and each year approximately 15,000 IT graduates enter the labour market. Moreover, according to the Central Statistical Office, the number of IT graduates is constantly growing and the level of skills is often higher than among specialists in the most of European countries. Year after year, the skills of Polish specialists are being confirmed in international competitions such as the Imagine Cup and Google Code Jam. This demonstrates the high standards in the Polish education system and the great skills of native designers and developers.
“Poland is no longer just a provider of cheap workforce. This is primarily the case for the IT industry, although it applies also to other industries such as the banking sector “commented tax advisor Cezary Żelaźnicki. According to the expert, Poland competes with Western Europe with two main elements — relatively low wages and a large number of educated young people. — Our universities release a huge number of professionals every year. We are a big European market and it puts us in a privileged position with our neighbors — Czech Republic and Slovakia — who do not have that high demographic potential”.