Software Nearshoring to Poland: An Ultimate Guide 

Companies today have access to a worldwide network of software development talent. You can choose to keep it local (onshoring) or venture overseas to find high-quality talent (offshoring). 

But if you are looking for the perfect balance between cost, quality, and the convenience that comes with proximity, then nearshore outsourcing is the ideal approach for you. 

Nearshoring involves outsourcing your software development needs to a nearby country. 

Poland is one of the countries that continuously stands out as a nearshoring destination with a software development market size of €8.1 billion. In fact, IT outsourcing brings in the most revenue in Poland’s IT services market and is projected to have a market volume of $3.84 billion in 2025.

Why are so many companies choosing software nearshoring to Poland? Is it the right choice for your business, and how do you implement it successfully? Let’s explore this in depth.

Advantages of nearshoring to Poland

Poland is undoubtedly one of the best nearshoring destinations in Europe. But what makes it such an attractive choice? 

Here are the key advantages of choosing software development nearshoring services in Poland.

1. Cost efficiency

The cost of software nearshoring to Poland is significantly lower compared to Western Europe and the U.S. 

Software developers’ salaries in Poland are roughly 40% lower than in the US and 20–25% lower than in Western Europe. A survey by Alcor showed that companies paying for software development services in the US can actually spend over double what they will spend on salaries in Poland. 

Check out the comparison below.  

The cost efficiency allows businesses to access bespoke software development services without breaking the bank. And if you’re getting the same level of expertise you would from their counterparts in high-cost regions at a fraction of the cost, then you will definitely see higher ROI. 

2. Access to skilled talent

Poland’s substantial pool of highly educated software developers makes it an ideal country for nearshoring software development projects.

As of 2023, Poland had the highest number of software developers among Central and Eastern Europe countries, which stood at slightly over 400,000 individuals. 

This number has, of course, grown significantly to date since the country’s educational system places a strong emphasis on STEM fields. 

The country has around 86,000 students enrolled in IT programs and sees at least 11,000 graduates a year. This focus on tech-related education ensures a continuous supply of proficient developers with outstanding tech skills in the workforce.

Moreover, Polish software engineers typically start coding at a young age, with many writing their first line of code at the age of 14.2, on average. This early exposure contributes to their advanced problem-solving skills and technical expertise. For you, it means vast talent pool of experienced IT professionals, including senior developers which market is currently lacking.

Poland operates in the Central European Time (CET) or Central European Summer Time (CEST) zones, which overlap with most Western European countries’ working hours. Being in the same time zone facilitates seamless collaboration during standard business hours. It also ensures real-time communication, which streamlines project management and decision-making processes. 

3. Cultural and time zone compatibility

As a result, nearshore outsourcing companies in Poland can collaborate better with clients to provide quality software products. 

Poland’s work culture is also very similar to that of most Western European countries. Therefore, software nearshoring to Poland means you don’t have to worry about miscommunication or other major differences in business practices or work ethic.

Language is another critical factor that ensures successful nearshoring partnerships in Poland. Most people in Poland, including the software developers, have strong English proficiency. The country currently ranks 15th globally in the EF English Proficiency Index. 

The English-speaking skills allow software development teams in Poland to work and communicate effectively with different teams across Europe.

4. Quality & technical expertise

Polish developers are recognized for their technical excellence. International competitions like the International Olympiad in Informatics (IOI) and the World Programming Championship have seen Polish participants secure multiple medals. 

Poland’s developers are also renowned for their exceptional skills in cutting-edge fields such as financial technology (fintech), data science, cloud computing, and artificial intelligence (AI). The country ranks 7th in the EU with a 4% AI talent pool share and 1st place in the entire Central and Eastern Europe region. 

Miquido is a great example of Poland’s technical expertise. We have worked with global and international brands like Skyscanner, BNP Paribas, and Dolby. Our experts have built high-performing and secure AI-driven applications across different industries, ranging from Fintech and entertainment to eCommerce. 

We helped Dolby On create a mobile application that allowed users to record professional-grade sound, for example. This app has 3.8M downloads and a 4.8 rating on App Store. These results led to a long-term partnership, allowing us to work on three additional projects for the brand. 

Overview of the Polish IT industry

Poland’s IT industry has experienced remarkable growth in the last few years. This has established the country as a significant player in the global technology landscape. 

Check this out.

1. Growth and market size

The Polish IT sector has seen consistent growth, with the IT services market projected to reach $10.44 billion in 2025. This upward trend is expected to continue, with an estimated annual growth rate of 5.92% between 2025 and 2029, to reach a market volume of $13.14 billion by 2029.

The growth is fueled by strong government support, a thriving startup ecosystem, and foreign investments. 

In 2023 alone, the Polish Investment and Trade Agency (PAIH) oversaw the completion of 74 high-quality investment projects. The value of the investments already implemented and those that continue to be is estimated to be more than €7.4 billion.

Google also recently announced plans to expand its operations in Poland, focusing on the development and application of AI in sectors like energy and cybersecurity. This initiative came with a commitment of $5 million to develop digital skills among young people in Poland to strengthen the local tech talent pool.

2. Key technology hubs

Software development companies in Kraków, Warsaw, Wrocław, the Tri-City (Gdańsk, Gdynia, Sopot), and other key locations have built Poland’s reputation as a leading IT powerhouse.

These cities have grown into major IT and innovation centers. For instance, Google’s Startup Campus is currently located in Warsaw. Intel also has a research and development (R&D) center in Gdansk, where they design microprocessors. 

The R&D center is one of the largest laboratories, out of the 23 located in Europe, employing over 4,500 people. In addition, Intel has invested $4.6 billion in a semiconductor integration and testing facility near Wrocław.

3. Prominent tech companies

Many global tech giants have set up offices in Poland, including Google, Microsoft, Intel, and IBM. These foreign companies, as we’ve seen above, invest heavily in research and development, which has helped strengthen Poland’s position as a technology leader. 

Polish companies like Comarch, Asseco Poland, CD Projekt RED, and even Miquido continue to make a mark on the international stage by delivering cutting-edge software solutions.

Considerations for nearshoring to Poland

Software development nearshoring to Poland has numerous benefits, but you must consider several key factors before making the move.

1. Legal and regulatory environment

Poland has a well-defined legal and regulatory framework that provides a secure environment for nearshore software development projects. 

First, as an EU member, Poland complies with the General Data Protection Regulation (GDPR), which ensures high data security and privacy standards. 

Poland also safeguards intellectual property under its legal system. The country’s IP laws are governed by two main legal acts: the Copyright Act and the Industrial Property Act. Copyright protection is automatic and does not require formal registration. However, registering with the Polish Copyright Office can provide additional supporting documentation in case of legal disputes.

Industrial property rights, such as patents and trademarks, on the other hand, are managed by the Polish Patent Office (PPO). You must follow the official application process to obtain a patent or register a trademark.

How about employment agreements and contracts? 

The B2B contacts preference is mainly due to favorable taxation and social security benefits. These contracts also grant developers significant independence and autonomy, allowing them to manage their work with minimal subordination.

2. Infrastructure and connectivity

Poland has a well-developed IT infrastructure. Key tech hubs like Warsaw, Kraków, and Wrocław have state-of-the-art coworking spaces, business incubators, and innovation centers that provide a great environment for tech innovation.

A great example of this is Hubraum’s Kraków campus, which provides coworking spaces and prototyping resources for startups exploring advanced technologies like 5G, AI, and IoT.

The country also has a fast and reliable internet connection that ensures seamless collaboration with international partners. Moreover, Poland is dedicated to improving internet infrastructure to align with the EU’s Gigabit Society targets, which aim for:

• Universal coverage of at least 100 Mbps 
• Gigabit connectivity for socio-economic infrastructure
• 5G connectivity on all major communication routes and urban centers

Poland also has an efficient and diverse transportation network that makes business travel convenient for companies working with Polish IT teams.

3. Potential challenges and mitigation strategies

While Poland is an excellent nearshoring destination, there are still some challenges you might face. 

One key concern is high talent competition, which may lead to high turnover rates since many global companies are vying for top Polish developers. To avoid these recruitment struggles, partner with established software development firms like Miquido that already have a strong talent network.

The other challenge is the language barrier. Although Polish developers typically have strong English skills, make sure to clarify your communication proficiency expectations upfront to avoid language barriers later on. 

Poland shares most of its business practices with other European countries. However, there can still be subtle differences in work styles, communication, and decision-making processes. To resolve this, conduct cross-cultural collaboration training and schedule regular check-ins to ensure everyone remains on the same page.

Navigating Poland’s employment laws and intellectual property (IP) rights can also be challenging, especially for first-time business owners. Consult local legal experts to ensure compliance and avoid legal fines.

Steps to initiate nearshoring in Poland

Now that you have a clear picture of the nearshoring scene in Poland, let’s get into how to implement it successfully.

1. Selecting the right partner

Choosing a reliable nearshoring provider or development team is crucial to your software development project’s success. 

How do you find the right partner? 

First, identify nearshoring providers with experience in your sector and expertise in the programming languages, frameworks, and technologies you need. Most software development companies include a dedicated portfolio webpage with these details, as shown below.

But, don’t stop there. Check client reviews, case studies, and testimonials to see how they handled projects similar to yours. Partner with providers with a proven track record of delivering high-quality software solutions and a strong commitment to client satisfaction. 

Use review platforms like Clutch and GoodFirms to simplify and shorten your research process. For example, Miquido has a 4.9/5 star rating on Clutch. Clients praise us for high-quality work, effective communication, great project management and timely results. 

Also, consider their collaboration model. Do they offer dedicated teams, managed services work, or staff augmentation? Do they use a fixed-price or time-and-material pricing model? You’ll want a partner that uses the model that aligns with your project needs, goals, and budget.

2. Setting up operations

Next, you need to set up your legal, operations, and hiring framework. For instance, are you looking to fully outsource development, or do you want to build an in-house team in Poland? 

If you choose to outsource, the legal setup is relatively straightforward since most Polish IT firms handle compliance and administrative tasks. 

If you are setting up a team in Poland, you’ll need to navigate legal requirements, tax structures, and employment laws. That said, setting up a local software development service might make you eligible for R&D tax reliefs or Special Economic Zones (SEZs) tax benefits offered by the Polish government.

3. Best practices for collaboration

To ensure seamless collaboration, set clear expectations from day one and outline clear deliverables and KPIs to track the project’s progress. Also, schedule regular meetings to keep everyone aligned.

Besides that, establish clear communication channels and protocols to avoid confusion and ensure transparency. For instance, you can outline your preferred tools like Slack for daily interactions or Zoom for weekly or daily stand-up meetings. 

In addition, make sure you designate a main point of contact for each team or department to further streamline communication between your company and the nearshore team.

Finally, embrace agile methodologies to promote flexibility, adaptability, and continuous improvement throughout the development process. You can use various project collaboration tools designed to support agile methodologies, including Jira, Trello, and Asana.

Conclusion

Software nearshoring offers businesses cost-effective, high-quality, and profitable solutions for software development. With its thriving IT industry, top-tier talent, time and culture compatibility, and strong infrastructure, Poland stands out as one of the best nearshoring destinations in Europe.

That said, you must understand the legal, hiring, and regulatory guidelines to successfully establish software development nearshoring in Poland. Fortunately, a great outsourcing services partner can guide you through it all and have your project development process up and running in no time. 

Reach out to us if you’re looking for a great nearshoring partner in Poland to help you take your business to the next level. Our team is ready to work with you to understand your project requirements and deliver exceptional software solutions that meet your business needs. 

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