Offshore Software Development Poland

Isabella Curiel

Offshore Software Development Poland – What criteria define the most attractive countries for offshore software development? Are low costs and availability of IT experts enough to outsource in 2021? With the coronavirus pandemic and lockdowns making travel even more difficult, we want to make it easy for you to check out hidden offshore spots from the comfort of your own home with our Beach Trend report. Our External Trends report on the most popular destinations for offshore software development in 2021 considers economic, technological, business, digital, cultural and other relevant dimensions.

Along with oil and gas production, outsourcing is one of the world’s largest economic sectors. Global outsourcing revenue was $92.5 billion in 2019 and is expected to reach $114 billion in 2025.

Offshore Software Development Poland

According to Tholons Services Globalization Index 2020, the leading outsourcing industry, these countries are among the top 50 digital countries in the world (by region):

Offshore Software Development Rates By Country: Detailed Guide

Attractive offshore software development jobs typically experience dynamic changes in the distribution of skills, expertise and knowledge. In addition to more obvious advantages, such as reasonable interest rates and a large number of IT specialists, each country has unique characteristics that must be exploited.

Based on insights from Kearney, Tolons, Bloomberg and others, we have a detailed analysis of attractive countries for offshore software development.

Many Eastern European countries are now considered the most competitive hotspots in the near future, worth 13 billion dollars in 2020.

Eastern Europe has become a leading software development region. Ukraine acts as an “inside tip” outsourcing location in the region. The Eastern European country is becoming a global outsourcing powerhouse, ranked 11th among the world’s best software development countries. IT outsourcing is the second largest service industry in Ukraine with a turnover of 5.7 billion dollars in 2020. IT contract revenue is expected to reach $8.4 billion by 2025.

Reasons Why It Outsourcing In Poland Is Growing So Fast

Ukraine is making significant progress in reforms aimed at making the country more vibrant, democratic and transparent, including the newly established State Anti-Corruption Agency, modernization of the banking sector, creation of a transparent VAT system and transparency of public tenders. .

As a result of recent reforms and growing ties with the West, Ukraine has gradually become an attractive destination for international companies.

Ukraine has the most C++ and Unity 3D developers in the world. The country has the second largest number of JavaScript, Magento and Scala developers.

Jobs in the IT sector are valued and wanted in Ukraine. 78% of Ukrainian programmers cited love of technology as an important motivation for choosing a career. Those who want to break into the IT industry spend a lot of time and resources on technical training. 63% of Ukrainian software developers rely on on-the-job training, mostly through specialized literature.

Mpc Among Top Web Development Companies In Poland 2021 By Design Rush

Education in Ukraine focuses on technology. In addition to 160 technical colleges and universities, IT companies offer their own courses and certificate programs to improve IT professionals and their professional skills.

In 2015, there were 74,000 IT professionals in Ukraine. By 2017, the number had risen to 166,000, and in 2020 it will eventually reach nearly 200,000. About 30,000 IT graduates graduate from Ukrainian universities every year.

Companies such as Samsung, Oracle and Microsoft have already begun to take advantage of the quality and quantity of the Ukrainian IT market by establishing subsidiaries and hiring software developers in Ukraine.

However, Ukraine’s IT sector is dominated by small and medium-sized service providers that mainly provide outsourcing services based on web and software development. Competition with tech giants is less intense in Ukraine than in other Eastern European countries, and most of the brightest people work in IT outsourcing. If you choose Ukraine as a destination country for software development as a small or medium-sized company, you can be sure that you will find the developers you are looking for without any problems.

Why Companies From Germany Outsource Their It Services To Poland ?

The government of Ukraine promotes the growth of the IT sector with a favorable tax system and actively cooperates with the main IT community IT Ukraine.

Officially, IT specialists are registered as sole proprietors (like sole traders in other countries) and therefore only benefit from 5% income tax.

Ukraine has more than a dozen high-tech projects focused on its own, but most of the development groups involved in digital transformation work in the EU and American banking sector. There are approximately 4,000 technology companies, many of which work on international digital transformation projects.

The cost of living in Ukraine is significantly lower than in other Central European countries. The average cost of living in Kyiv, the capital of Ukraine, is $1,100 to $1,500 per month.

The State Of It Outsourcing In Poland 2023

However, the low cost of living does not mean a poor quality of life. Lviv, one of the country’s most important technology cities, has a quality of life score of 120.55, higher than Paris or Rome.

In 2017, Ukraine signed a cooperation agreement with the EU and EU member states. The association agreement anticipates deeper political ties, stronger economic ties and respect for common values.

About 2,000 IT startups come from Ukraine, including Petcube, iBlazr, Grammarly, Jooble, CleanMyMac, Mobalytics and Looksery (acquired by Snapchat).

Despite the development of political, legal and economic factors, the geography of Ukraine is excellent. As the largest country in Europe, it has a lot of natural resources and a cheap and skilled workforce.

Key Eastern Europe Offshore Software Development Advantages

Ukraine is often associated with Russia. However, the two countries have chosen very different paths since the collapse of the Soviet Union.

The country is reducing corruption, developing capital markets, improving the business environment, attracting foreign investment, privatizing state-owned enterprises and implementing land reform.

Software development is one of the country’s most dynamic industries, accounting for 10% of annual GDP. The focus of the Hungarian IT outsourcing industry is the development of anti-virus software and information security services. In recent years, Lufthansa, IBM, Microsoft, Nokia and HP have decided to cooperate with Hungarian IT experts.

About 80,000 people work in the IT sector in Hungary. In addition, there are several research and development centers of Microsoft, Siemens, Ericsson, Nokia, TATA and other international companies in Hungary. These contribute significantly to the development of the IT industry in Hungary.

Software Development Outsourcing. What You Need To Know

Hungarian outsourcing companies pay a lot of attention to developer salaries. Therefore, in most cases, they pay the average developer at least $40 per hour.

Compared to other Eastern European countries, such as Ukraine, the average hourly wage of IT professionals in Hungary is relatively high. However, net income will ultimately be lower due to taxes.

Poland is an established location for the research and development centers of global companies in various industries in Eastern Europe. Sales of IT services in Poland are expected to continue to grow and reach EUR 14 billion in 2022. The Polish IT sector has 295,300 IT professionals, 20% of whom work in companies providing software development services.

Polish IT companies offer a wide range of IT services, from software development to additional functions such as IT operations, quality control and digital marketing.

Top 15 Outsourcing Companies In Poland

Although salaries for IT professionals in Poland are growing strongly annually, they are still 46% lower than in Germany. Average hourly wages for software developers in Poland are between $40 and $56 per hour.

Poland is the EU’s sixth largest economy and has long been considered a business-friendly country. Poland is ranked 34th on Forbes’ list of the best countries.

Poland is a member of the World Trade Organization, the European Union, NATO, the United Nations, the Patent Cooperation Treaty, the Bern Convention, the Paris Convention, the Madrid Protocol and several other important organizations.

This represents advantages in terms of data and data protection that are not automatically guaranteed in well-known maritime regions such as Asia or India.

The Cost Of Offshore Software Development: Everything You Need To Know

Poland’s long-term business challenges include further investment in innovation, research and development and limiting the migration of young, educated Poles to other EU countries.

There are 400 research and development centers in Poland, including Google, IBM, Motorola, ABB, SABRE, Delphi, Fujitsu, Capgemini, IBM, Motorola, Shell and several other well-known large companies. Therefore, 80% of all IT specialists in Poland work in international companies and only 20% in local IT companies.

Asia not only has the most popular shipping destinations, but also the most shipping developers – more than 10 million.

Thanks to their solid infrastructure and decades of outsourcing experience, these countries have become the most attractive destinations for offshore development:

Custom Software Development Rates By Country [2023]

Nearly half of the world’s Fortune 500 companies have branches or offices in India, which Kearney says is considered a prime offshore outsourcing destination.

Thanks to the large-scale introduction of good English language skills, India has become a significant exporter of IT services, business process outsourcing and IT know-how. Four out of ten software development and technology remote workers worldwide work in India.

India’s challenges include deficiencies in physical and financial infrastructure, as well as regulatory twists and turns, such as the recently introduced e-commerce policy.

These make it especially difficult for foreign companies to navigate the country’s business environment. However, a carefully selected contractor can take on such domestic challenges for you and minimize the risk.

Software Development Outsourcing To Eastern Europe: Which Country To Choose In 2023?

The country’s digital transformation started in 2017 with the beginning of the protests

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Isabella Curiel

Keap is a CRM for small businesses that want to automate their sales and marketing processes. Its features are valuable for colleges that need to manage their enrollment and admission cycles.

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