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Nearshoring to Poland is gaining traction—it’s officially Europe’s 7th most potent IT market. With the Polish IT services market revenue increasing by 5.9% annually from 2025 to 2029, C-level tech managers from the US, UK, Germany, Italy, and other countries pinned it as a top nearshore destination. What else is behind the appeal?
I’m Dmytro Ovcharenko, CEO at Alcor, a software R&D center provider and a well-established software development RPO agency in Poland. We build tech teams from 10+ to 100 top-tier programmers within a year. HR, legal, and back-office support covered in Eastern Europe and Latin America.
Below, you’ll find an in-depth overview of the Polish IT market, get insights into software developers’ expertise in Poland, and learn the benefits and tips for your product development outsourcing. That’s not all: at the end of your read, you’ll discover which cooperation model will guarantee the highest efficiency of tech nearshoring to Poland.
Key Takeaways
- Poland leads the CEE region in market size, climbs the global startup rankings, and now ranks among the top 7 worldwide for FDI appeal.
- Poland attracts tech product companies due to its pro-business climate, robust data protection, and strategic location.
- Polish developers form CEE’s largest talent pool—backed by world-class STEM education, strong English skills, and standout tech expertise.
- Nearshoring to Poland can cut employment costs by up to 43%.
- Navigating Poland’s labor laws, time zone gap, and talent competition can make solo nearshoring a real challenge.
- The winning formula for IT outsourcing to Poland? Prioritize, plan, pick the right model—and partner wisely.
- A software R&D center is your best bet for long-term impact, top-tier talent, and compliant tech expansion.
Nearshoring to Poland: Local IT Market and Business Environment
Market size
#1 in CEE:
- €30.4 billion of software development revenue in 2025.
- $3.8 billion for software outsourcing in Poland in 2025.
- $13 billion as a 2026 benchmark for dynamic Polish ICT exports.
Startup ecosystem
+1 position both in European and global rankings:
- 3,000 startups and 13 unicorns, including Allegro, The Witcher, Brainly, DocPlanner, This War of Mine, LiveChat, and others.
- 13 cities—including Warsaw, Wrocław, Kraków, Katowice, the Tri-City (Gdansk, Gdynia, Sopot), and Poznan—in the global top 100 as startup ecosystems.
- #5 in Europe and #11 worldwide in Robotics and embedded software.
Investment attractiveness
#7 in the 2024 FDI Confidence Index:
- Joined the list for the first time as a newcomer in emerging markets.
- In 2024, AI startups secured $193 million in funding.
Top industries for foreign investment include marketing & sales, energy & environment, healthtech, e-commerce & retail, Edtech, Fintech, AI, hardware, and IoT.
Why Big Tech Nearshore Software Development to Poland?
650,000+ skilled coders
Each year, around 21,000 tech graduates also bolster the Polish talent pool. Plus, Poland is a top-of-mind nearshoring and offshoring location for developers with in-demand expertise— #1 in CEE for tech skills and #4 for data science.
Standout STEM education
In 2023–2024, approximately 75,000 Polish students enrolled in an ICT major. No wonder—Poland boasts over 400 universities, with 60 specializing in tech and 22 listed in the QS World University Ranking 2025, including:
- Warsaw University of Technology,
- Silesian University of Technology,
- AGH University of Science & Technology,
- Wrocław University of Science & Technology,
- Lublin University of Technology.
Top 15 for English proficiency
Ranking 13th in Europe and 15th worldwide, local programmers exceed the expectations of those who nearshore or offshore software development to Poland. With a strong command of English (B2+), Polish developers seamlessly collaborate with foreign tech companies launching an offshore development center in Poland.
2.5x lower salary costs
Outsourcing to Poland is more cost-effective than developing your product in the US. Just look at the salary ranges of senior Polish and US developers:
| Position | Poland | USA | |||||||||
| Full-Stack Software Developer | $73,000 | $153,000 | |||||||||
| Front-End Software Developer | $68,000 | $144,000 | |||||||||
| Back-End Software Developer | $69,000 | $157,000 | |||||||||
| Mobile App Developer | $65,000 | $133,000 | |||||||||
| Game Developer | $64,000 | $130,000 | |||||||||
| Data Engineer | $70,000 | $170,000 | |||||||||
| DevOps Developer | $69,000 | $165,000 | |||||||||
| AI Developer | $81,000 | $146,000 | |||||||||
| Blockchain Developer | $84,000 | $180,000 | |||||||||
Developer salaries converted to US dollars at the relevant exchange rate for May 2025. |
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The compensation of Polish programmers is up to 60% lower than that of their US counterparts: a Data Analyst in the US earns $100,000 more per year than in Poland.
Also, look beyond salaries—plan for employment cost, which includes:
- Recruitment fees: 20% for senior-level positions in Poland and up to 30% in the US.
- Standard benefits: $6,350 per year in Eastern Europe and $15,400 in the US.
That being considered, the full employment costs for hiring an AI Developer in Poland will amount to $102,400 per year, while in the US, the costs will reach $180,000.
A 43% cost cut when you choose nearshore software development services in Poland!
Data security
For nearshoring in Poland, robust copyright laws and adherence to the EU’s GDPR ensure strict guidelines for data collection, storage, and management. Poland’s data safety only adds to its appeal as a top nearshore outsourcing destination.
GMT+2 time zone
Poland’s geographical proximity to European cities (within 1.5–2 hours) contributes to more efficient collaboration between Polish employees and their colleagues from other European countries. For US companies, the time difference allows for the implementation of 24/7 operations and uninterrupted app development.
Poland’s not for you? Nearshore software development in Ukraine may be just right.
Hard & Soft Skills of Software Development Engineers in Poland
Dotmatics built a team of 30+ programmers—including Full Stack, React, QA Automation, and Node.JS Developers—in just a year.
How? Alcor informed them on talent availability in Eastern Europe.
Polish developers, for example, excel in JavaScript, Java, Python, Typescript, PHP, Golang, as well as AI and data science. Better yet, their soft skills and cultural fit are just as spot-on. See below:
Did you know? The Polish community of Java developers amounts to 95,000—it’s your tip nearshore Java development in Poland. Consider partnering with an IT recruitment agency in Krakow or an IT recruitment agency in Gdansk!
Challenges & Risks of Nearshoring to Poland
Complex labor law and taxes
Tech nearshoring to Poland is not a walk in the park, and here’s why:
- Poland comes 15th globally in the 2025 Global Business Complexity Index
- The country is notorious for complex reporting standards, ever-changing regulations, legal investment hurdles, and intricate HR and payroll rules.
#Tip 1: Consult legal and tax advisors to navigate the country’s legal system with guidance and support or learn about B2B taxes in Poland with Alcor.
#Tip 2: Find a service provider who will handle legal compliance and ensure a smooth launch of your branch in Poland.
When Ledger, a French tech product company, expanded into Eastern Europe, it leaned on Alcor for legal matters.
#Results: A team of 10+ Software Quality Assurance Engineers and full legal compliance—from timely tax payments to labor law consultations on documentation and SLAs to IP rights support.
Time gap with the US
Poland’s Central European time zone runs 6–10 hours ahead of the US, depending on the state. That leaves little to no time for communication during American working hours.
#Tip: Flip the script and create a 24-hour development cycle. While your team winds down, your Polish developers are already making progress, accelerating delivery without adding extra hours.
High competition for talent
Between 2020 and 2025, the number of businesses in the Polish software development industry increased by 16.1%, reaching a total of 153,000+. As a result, expanding to Poland became a race for A-players in tech.
#Tip: If you don’t need nearshore IT services immediately, consider more viable ways to hire software developers in Poland, such as partnering with an R&D provider.
4 Steps for Efficient IT Nearshoring to Poland
Step 1. Prioritize employer branding
Your employer brand seals or breaks the deal with a top candidate.
When US-based Sift was scaled to Eastern Europe, they struggled to meet their goal of hiring 6–10 programmers per quarter.
Why? Few applications.
As Alcor stepped in with a video & social employer branding campaign, response rates increased by 15%. Now, Sift has a 51+ software engineers and an R&D office in Eastern Europe managed by Alcor, but it wouldn’t have happened without a strong employer brand and an attractive EVP.
Step 2. Plan competitive benefits
When looking for senior talent, a competitive salary only gets you to the door.
2024 SHRM survey outlined the employee benefits you should add to your EVP before nearshoring to Poland. Here go the top-5:
- Health-related perks;
- Retirement planning;
- Paid time off (PTO);
- Flexible work arrangements;
- Family-friendly benefits.
Step 3. Pick a cooperation model
Nearshoring to Poland is a win-win—if you get the cooperation model right.
The 4 standard engagement models are IT outstaffing, IT recruitment, Employer of Record, and R&D center.
IT outstaffing
IT outstaffing (also staff augmentation or dedicated development teams in Poland) means that when you do your software nearshoring to Poland, you “lease” programmers from an IT outstaffing vendor to work on a specific task or project.
Pros:
- Flexibility in team adjustments;
- More control over team management, compared to IT outsourcing in Poland.
Cons:
- IP risks unless there’s a clear and detailed IP rights transfer agreement;
- Issues when hiring outstaffed software developers in-house because of hefty buy-out fees;
- Low team loyalty and no need to go the extra mile.
Find more details on staff augmentation in Eastern Europe.
IT recruitment
IT recruitment covers the entire hiring process for nearshoring to Poland—from creating an ideal candidate profile and sourcing to interviewing eligible candidates and managing offers.
Pros:
- Provides a team of loyal and qualified software developers in Poland.
- Allows for involvement in decision-making regarding hiring and termination.
- Suits for a long-term partnership.
Сons:
- Rarely covers employment, HR payroll, tax management, and onboarding/offboarding for nearshore/offshore locations—these belong to the Employer-of-Record domain.
- Leaves you to manage the back office independently, including office leases, procurement management, and assistance with stock options.
Employer of Record
Employer of Record (EOR) acts as a local employer of your nearshore/offshore software developers in Poland, so you don’t need to open your own legal entity.
Pros:
- No need to set up a legal entity when you nearshore your software development to Poland.
- No hassle with payroll, taxes, accounting, employee benefits, and onboarding/offboarding—all handled by your EOR provider.
Cons:
- No IT Recruitment services for nearshoring product development to Poland.
- No back-office support.
Software R&D center
Software R&D center in Poland combines IT recruitment, EOR, and back-office functions.
For example, if you want to nearshore in Poland, a software R&D center will cover IT recruitment in Warsaw or other Polish tech hubs, EOR services in Poland, and full operational support.
Pros:
- A Polish R&D with a loyal team of coders.
- Reduced costs you can reinvest in your product.
- Complete control over the development process.
Cons:
- The need to find a tech-focused nearshoring partner in Poland for this type of all-encompassing and long-term cooperation.
When a US-based ML & AI company, People.ai, chose this all-in-one solution for nearshoring in Poland, they got a 100% equipped R&D center within just 4 weeks. Alcor helped them avoid all the typical hurdles when expanding to Eastern Europe and hired 25+ Silicon Valley-caliber engineers into their team.
Step 4. Partner with a reliable provider
With the partner for nearshore services in Poland, you either sink or swim.
Evaluate expertise, guarantees, case studies, and client reviews. Here’s a checklist to go through before you decide:
- Do they have nearshoring experience in your specific industry?
- What guarantees do they provide?
- Can they show successful cases of other clients that nearshore to Poland?
Are they represented on independent platforms like Clutch?
Explore IT Nearshoring to Poland with Alcor
Alcor is your software R&D accelerator in Eastern Europe and Latin America.
Trusted by companies like Grammarly, ThredUP, Gotransverse, and more, we elevate nearshoring product development to Poland and guarantee:
- Top-10%-market software development team
- No-entity employment
- Zero buyout fees
- 40% employment cost savings
- Comprehensive in-country support.
With our team of 40 tech recruiters, we can build you an R&D team in Poland, manage Polish payroll services, and provide 360° operational support.
References
- Ibis World
- Statista
- Report Linker
- Startup Universal
- Global Startup Ecosystem Index 2025
- The 2024 Kearney Foreign Direct Investment Confidence Index
- The Recursive
- Coursera Global Skills Report 2024
- Land of IT Masters
- QS World University Ranking 2025
- EF English Proficiency Index 2025
- 2025 Global Business Complexity Index
- 2024 SHRM Survey