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Why is it worth considering IT nearshoring from Scandinavia to Poland?

29 08
2024

Why is it worth considering IT nearshoring from Scandinavia to Poland?

logo-kwadrat-2-2-2 Author: Claire Trinh

Claire Trinh – Nearshore Director with over 10 years of business-side tech experience, including 7 years in software development and tech engineering, and 8 years in banking and finance. She excels in guiding clients through the complexities of entering the European IT labor market, offering tailored solutions to meet their unique needs. Her extensive experience in building international client bases from the ground up has equipped her with the insights and skills needed to drive successful cross-border collaborations and deliver exceptional results.  

In recent years, Poland has significantly strengthened its position in the IT market. A particularly noticeable growth occurred after the pandemic, when Polish developers quickly adapted to the remote work model. This, in turn, increased the interest in nearshoring among European companies, including those in Scandinavia. The pandemic accelerated digital transformation processes across many industries, and Poland, by adopting a nearshoring model, successfully capitalized on this trend, securing a significant number of foreign contracts.

Poland as a key nearshoring partner for European companies

Nearshoring has become a strategic solution for many European enterprises, enabling them not only to relieve internal teams of specialists but also to optimize costs related to IT project execution. Companies from highly developed countries, in particular, choose nearshoring to Poland, recognizing the benefits of hiring highly qualified specialists while simultaneously reducing operational expenses.

Various factors play a crucial role in selecting an external partner, with geographic proximity remaining one of the most important. Therefore, companies from Germany, the UK, and France often decide to collaborate with Polish developers. Recently, the Polish IT market has also gained the interest of Scandinavian countries, which see it as an opportunity for further process optimization.

Key factors for choosing Poland as an IT nearshoring partner

Research shows that Poland has become the most popular country for nearshoring collaboration in Europe. A report by Reuters Events and A.P. Moller-Maersk on near-sourcing, nearshoring, and reshoring trends after the pandemic indicates that only six countries in the EU offer competitive conditions for collaboration comparable to those of Polish companies. Additional advantages of Poland include its work culture and highly qualified specialists, which further attract foreign partners.

Cost optimization

Salaries and rates of Polish developers are competitive on a European scale, making them an additional asset for companies seeking high-quality services while focusing on economic project management. However, it is the skills and professionalism of Polish developers that earn them recognition in foreign markets, including the Nordic countries.

Language proficiency

In the IT industry, aside from technical competencies, fluency in English is crucial. It is essential not only for effective nearshoring collaboration but also plays a significant role in the later stages of project development. Polish IT specialists stand out for their high level of English proficiency, typically at B2 or C1 levels. For foreign partners, communication is one of the most important aspects of cooperation, directly impacting the success of projects.

Strategic location

Poland is chosen as a preferred nearshoring partner due to its strategic geographic location. Positioned at the center of Europe, Poland serves as a key hub connecting the West and East of the continent. This location gives Polish IT companies an advantage in effectively collaborating with partners from Scandinavia, Western Europe, Eastern Europe, and Southern Europe. Additionally, the similar time zone to most geographically close countries facilitates coordination. This aspect supports maintaining a high standard of organizational culture and enables IT services to be provided at the highest level.

Higher education

Polish developers are internationally recognized for their high qualifications. According to the “IT Community 2024” study, 37.4% of Polish developers hold a master’s degree, which reflects the significant emphasis that the Polish IT industry places on solid education and professional preparation for work.

Currently, the largest percentage of individuals working in the IT industry are aged 25-30, which means that many of them enter the job market directly after completing their academic education. They make up about 31% of all employed in the IT sector. This high percentage of young professionals in the industry shows that Polish technical universities effectively prepare students for entering the IT workforce, equipping them with the necessary skills and knowledge. The rapidly developing IT market in Poland, offering numerous career opportunities, also attracts young graduates who do not want to delay starting their professional careers.

An interesting phenomenon is that over 8% of people working in the Polish IT industry have completed their education without obtaining a degree [4]. This may be due to the rapidly growing demand for IT specialists, which often leads young people to start their professional careers before finishing their studies. The IT industry is one of the few sectors where practical experience and skills can be more important than formal education. As a result, many students, already possessing some basic programming skills, receive attractive job offers and decide to enter the job market earlier.

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Nearshoring collaboration with Scandinavian companies

Scandinavian companies are eager to choose Poland as a nearshoring partner, appreciating the positive attitude of Polish specialists towards their culture and working conditions. These companies strive for operational optimization by outsourcing some responsibilities to external partners, which allows them to reduce costs while maintaining high-quality services. Poland stands out in the European market, ranking among the most hardworking nations – with an average workweek of 40.4 hours, second only to Greece, where the average is 41 hours per week.

Polish specialists are frequently involved in Scandinavian projects related to:

  • software development,
  • cloud services,
  • cybersecurity,
  • fintech solutions.

Significant initiatives and programs carried out by embassies and trade chambers also support nearshoring cooperation between Poland and Scandinavian countries, promoting trade and technological exchange with foreign partners.

IT Nearshoring from Denmark to Poland

Nearshoring from Denmark to Poland benefits both parties due to:

  • geographic proximity,
  • shared business goals,
  • time savings,
  • identical time zones.

Danish companies typically seek long-term partnerships, focusing on transparency, open communication, and mutual understanding of expectations, which facilitates both negotiations and effective operations. The similar work cultures in Poland and Denmark ensure high-level collaboration between specialists from both countries, and the shared time zone supports real-time task execution. High labor costs and staff shortages are common challenges for Danish companies, so nearshoring collaboration with Poland enables cost optimization while ensuring access to highly qualified specialists.

In which fields do Danes seek top specialists?

Scandinavian countries, including Denmark, frequently collaborate with Polish engineers to strengthen their competencies in cutting-edge technologies. Polish companies and specialists are renowned for their expertise in areas such as:

  • mobile application development,
  • artificial intelligence (AI),
  • Big Data.

Danish companies appreciate access to these competencies, understanding that in the face of intense competition in the IT market, continuous technological development is key to maintaining a competitive edge.

Sweden as an IT partner for Poland

Sweden, as one of the Nordic countries, shows growing interest in collaborating with foreign partners, including increasingly with Poland (alongside countries such as Lithuania, Latvia, and Estonia). Swedish companies value the high qualifications of Polish specialists and their proficiency in English, which is crucial in the nearshoring model. Collaboration with Polish partners shortens project timelines and optimizes costs due to the competitive salaries of Polish developers. Poland and Sweden are closely linked geographically and historically, which fosters current cooperation in the IT sector.

Nearshoring IT from Sweden to Poland offers Polish developers the opportunity for higher earnings and Swedish companies the chance to receive support in implementing new technologies and market solutions.

This collaboration covers various sectors:

  • finance,
  • e-commerce,
  • telecommunications.

Swedish enterprises often utilize the services of Polish partners in areas such as:

  • software development and maintenance,
  • cloud migration,
  • ERP and CRM system implementation.

Polish nearshoring centers become a natural extension of IT teams, allowing for project scaling without the need to create new local teams in Sweden.

Nearshoring collaboration with Norwegian companies

Norwegian companies seek top-tier specialists for nearshoring collaboration to help optimize processes and introduce changes that increase project efficiency. Like other Nordic enterprises, Norwegian companies emphasize long-term partnerships based on stability and trust. This approach allows for the successful execution of planned projects and investment in the development of IT teams’ skills and competencies. The main motivators for Norwegian companies to engage in nearshoring collaboration are the desire to optimize costs and address labor shortages.

Poland among the leading European countries for nearshoring cooperation with Norway

Polish specialists are known for their professionalism, ensuring a smooth and quick integration with new companies. Norwegian enterprises are keen to collaborate with external partners from Europe, as the shared time zone enables work during the same hours, facilitating communication and accelerating task completion.

Norwegian companies value high service quality and professionalism in both their employees and partners. In nearshoring collaborations, they expect specialists to have the experience and qualifications necessary to deliver solutions that meet the highest technical and project standards. IT Nearshoring from Norway to Poland is becoming an increasingly popular trend due to the significant cost optimization and time savings in task execution.

The collaboration between Polish specialists and Norwegian companies often follows a dedicated team model, where Polish specialists become an integral part of Norwegian enterprise teams. This can involve hiring entire teams or carefully selected individual specialists to outsource specific functions. This model allows for flexible resource scaling depending on project needs.

IT Nearshoring from Finland to Poland

Finnish companies, like most enterprises from the Nordic countries, are seeking nearshoring solutions for several key reasons. The most important of these is, again, the desire to optimize employment-related costs. Poland is an ideal nearshoring destination because its specialists are among the best programmers in the world, and their qualifications are on par with engineers from Scandinavian companies.

Finnish firms, like their Swedish counterparts, frequently outsource services such as:

  • software development and maintenance,
  • cloud migration,
  • ERP and CRM system implementation.

Collaboration with Scandinavian companies offers Polish engineers not only attractive financial opportunities but also a chance to develop their competencies. The idea of nearshoring is not just about delegating some tasks to an external partner but, above all, mutual experience exchange and continuous skills improvement in the dynamically evolving IT industry.

How to find the right nearshoring partner in the job market?

Poland is one of the most frequently chosen countries for nearshoring services. Additionally, we are also among the leading nations in terms of English proficiency, and our specialists are highly educated and experienced. ITDS specializes in recruiting top IT engineers from Poland and beyond. Through our services, every partner can find a specialist perfectly suited to their requirements and project assumptions.

Bibliography:

[1] https://1.reutersevents.com/LP=33709

[2] https://bulldogjob.pl/it-report/2020

[3] https://bulldogjob.pl/it-report/2020

[4] https://bulldogjob.pl/it-report/2023 

[5] https://kadry.infor.pl/kodeks-pracy/czas-pracy/6371004,polacy-sa-jednym-z-najbardziej-zapracowanych-narodow-w-europie.html#google_vignette