Outsourcing has been very effective model for companies looking to save on labor costs while improving efficiency. In many branches of business, it is a trend we have been observing for the past few years, even a whole decade. The most popular country to outsource to was India, especially for software development, but for companies that don’t want to deal with the cultural, language and time zone differences involved in offshoring (outsourcing to far away locations like India), nearshoring is the best option.
Derived from the term “offshoring”, nearshoring (nearshore outsourcing) can be defined as the transfer of IT and business processes to software companies operating in countries nearby.
The issue with India
India isn’t as appealing as it once has been. The labor costs are becoming more expensive, the developers are often inexperienced and can’t speak english well. There are also the flaws of offshoring itself – huge time zone differences, physical distances are enormous and in some cases it’s hard to overcome cultural gaps.
Eastern Europe is becoming more and more popular as a software development and IT services outsourcing destination. Especially for companies from Western Europe.
Many countries from Eastern Europe, like Poland, are an outstanding alternative. Top IT companies there provide world class skills and security. They speak English very well and have western culture and mindset.
The 8 reasons for nearshoring to Poland
With over 15,000 new IT engineers graduating annually, and the fact that Polish developers are ranked very highly (3th in the world in the Top Coder ranking), Poland has become a leading IT hub, offering some of the best IT resources in Europe. Here are eight reasons why you should nearshore to Poland.
1. World class qualifications
Every company’s requirement are high qualifications of who they hire. Polish developers have a solid educational background. According to New York Times, almost 40% of Polish people aged 25-34 have university degrees. This puts Poland on second place in that category. That applies to software developers, who use modern, up to date technologies and are well educated experts.
2. Excellent English skills
Polish people (especially from younger, tech-oriented generation) have impressive language abilities. Approximately 38.5 million Poles speak Polish as their first and native language, accounting for over 95% of the population. This is a great percentage keeping in mind that there are approximately 55 million Polish speakers worldwide. Moreover, Poland ranks 11th out of 80 countries in the English Proficiency Index, which means that Polish developers, project managers and other IT specialists speak English really well.
Moreover, Poland ranks 9th out of 80 countries in the English Proficiency Index (EF EPI 2017), which means that Polish programmers, project managers and other IT specialists speak English extremely well.
3. Great value and low labor cost
Everything in the real world comes down to money. Poland has the lowest working costs within the European Union. While a world-class programmer can earn even $100.000 a year in Silicon Valley, you can easily find just as experienced one in Poland for less than half of that – $40.000 a year, according to Association of Business Service Leaders (ABSL). This gives an opportunity for astonishing costs reduction when developing an app for your company, which is one of the preconditions for being able to save money through outsourcing.
4. Geographic location
Poland, being placed in the middle of Europe, gives a close proximity with major European financial centers as Berlin, London and Paris.
Because of that, time of flight from Western European and Scandinavian countries ranges from one to two hours. Time zone difference is non noticeable, if it even exists. In practice, that stands for non exhausting meetings because of quick flights and being able to collaborate easily – having Skype meetings, even participating in SCRUM sessions during office hours.
5. Being part of the European Union
Poland has been serious about IT protection and data security for years. Taking that to next level, because of membership in the European Union, new rules had to be adopted by all businesses processing personal data in 2018 according to General Data Protection Regulation (GDPR). The regulation replaced the Polish Personal Data Protection Act.
Second aspect of being in the European Union is culture, mindset and work ethics similarity to Western Europe. The way Polish people work and manage their organizations is very similar to what you can experience in countries that tend to outsource their software development abroad the most, such as Sweden, the US, the UK or Germany. It’s one of the reasons why communication tends to be a breeze in projects outsourced to Poland.
6. Stable economy and growing IT market
Poland ranks third in Europe in terms of the number of jobs created by foreign direct investment, and holds seventh place in terms of the number of FDI projects according to EY’s Attractiveness Survey 2017. During the last decade, the country’s GDP per capita has almost doubled. Poland is also a member of EU, NATO, WTO, OECD, and ESA and has a transparent legal system.
Polish IT market grows at the stable rate of 5-10 percent a year. In 2016, the IT services market in Poland reached $7.9 billion. Companies such as CD Projekt RED (who are responsible for the Witcher 3 video game) made Poland internationally recognizable for excellent software and highly competent IT specialists.
7. Agile methodology
Nearly every software development company in Poland (especially the ones that specialise in outsourcing) is experienced in working with Agile methodologies. Polish development teams value the use of iterative planning and feedback results and are happy to use SCRUM in projects.
8. Beautiful cities
As one of the most exciting Eastern European countries, Poland becomes a favorite holiday destination for tourists from the whole European Union. It is known for its rich and dramatic history as well as beautiful old architecture. Cities like Krakow, Wroclaw or Warsaw (where most software related companies are placed) are breathtaking. Moreover, Poland is a fairly cheap destination, meaning that business trip can become a little holiday easily.
To summarize, Poland, as well as a few other Eastern European countries, is growing in popularity as a nearshoring location. Software outsourcing to Poland is a great way to get modern and top quality software and maximize profit while reducing costs and risks, being able to communicate in excellent English in real time, cooperate using Agile methodologies and being able to travel there quickly (not only for business reasons). If you are interested in nearshoring your software development to Poland, please visit https://zaven.co/.