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To find competent software developers without the Silicon Valley price tag, a US tech product business, such as yours, should consider setting up a development team in an offshore or nearshore country with a developed tech scene. Poland is one such location, with the software development market revenue projected to grow to $10.44 billion by the end of 2025. Outsourcing software development in Poland is on the rise as well, since its revenue will likely reach $3.84 billion during the same period.
I’m Maryna Panchuk, Head of Tech Recruitment at Alcor, your professional software R&D service provider. We help US tech companies build hi-tech engineering teams in Eastern Europe and Latin America. With us, you get an all-in-one service: tech recruitment, Employer of Record, and operational support—no need to work with multiple vendors. Alcor helps you scale from 10 to 100 elite software developers in Poland in a year without setting up a legal entity.
In this article, you’ll learn how offshore software development in Poland closes the talent gaps for US companies, find out the reasons for investing in software outsourcing in Poland, know which hub for IT in Poland to select for creating your dev team, and how our company can assist you!
Key Takeaways
- Poland is the largest tech hub in CEE, with over 650,000 tech professionals and a software market that is projected to reach $10.35 billion by 2025.
- Reduce your costs by up to 40% by working with Polish software development experts instead of those based in the US.
- 74,000+ ICT students and top universities.
- Alcor’s tech R&D center model provides full control, zero legal risk, and rapid scaling—build a 30+ developer team in just three months.
Software Development Industry in Poland: Overview
The Polish IT industry boasts over 650,000 engineers and other tech experts, making it the largest hub in the region. With ICT exports expected to reach $13 billion by 2026, the country has become a Mecca for international businesses looking for tech offshoring/outsourcing. But there’s much more behind the decision to outsource software development to Poland than just impressive export figures.
A key metric is Poland’s innovation-driven ecosystem. The country ranks 4th in Central and Eastern Europe in the Global Startup Ecosystem 2024, which leads the way in e-commerce, marketing & sales, Edtech, FinTech, and other industries. Moreover, it has produced more unicorns than any other country in CEE—13, including ElevenLabs, The Witcher, DocPlanner, LiveChat, and many others.
To be more specific about tech industries, Poland finds itself in a great situation:
- Game development is one of the standout industries for outsourcing to Poland, boasting the 2nd workforce size in Europe with over 15,000 professionals. Over 250 academic programs in the country focus on game development and related fields, ensuring a steady flow of skilled tech talent into the local workforce. Warsaw, in particular, stands out as one of the top five gaming centers in the European Union.
- Artificial intelligence is driving national advancement in areas such as the economy, defense, data analytics, and business automation, supported by a $240 million government investment plan. Valued at $1 billion in 2023, the AI software development market in Poland is projected to surpass $5.8 billion by 2030.
- Projected to reach $1.52 billion by 2029, the mobile app market is also on a strong upward trajectory. Android dominates the landscape with a 79.36% market share, while iOS holds 20.48%. This makes Poland an attractive market for cross-platform mobile development and innovation.
- The country continues to be a significant force in Central and Eastern Europe’s FinTech landscape, home to 368 active companies and a market valued at $952 million.
- The Healthcare Internet of Things (IoT) sector in Poland is experiencing steady growth, with the market expected to reach $576.67 million by 2025 and projected to grow annually by 10.79%, hitting $868.73 million by 2029.
Why Outsource Software Development to Poland
Apart from offering access to the largest tech talent pool in the CEE region, Poland also provides Western technology companies with the following benefits:
Highly qualified software developers
Polish developers rank #3 by tech skills, among the top 5 at Google Code Jam, and 6th on TopCoder for first-place finishes. Moreover, Poland ranks 4th among all emerging European countries in the 2024 Emerging Europe IT Competitiveness Index. The most popular programming languages in the Polish job market include SQL, Python, Java, and others. Plus, developers in Poland are experienced in offshore AI development and data science.
Pro tip: Offshoring software development to Poland is easy with a software developer recruitment agency that also delivers EOR and all back-office services.
Attractive engineer compensation & tax incentives
One of the key reasons why companies choose outsourcing software development in Poland is the country’s combination of high-tech talent and cost-effective compensation. In the table below, you can see the average annual salaries of senior software developers in the USA and Poland for comparison:
|
Position |
Annual Senior Developer Compensation, USD |
|
|
USA |
Poland |
|
|
AI/ML Engineer |
132,000 |
80,400 |
|
Cloud Engineer |
174,000 |
72,000 |
|
Blockchain Developer |
132,000 |
77,000 |
|
Mobile Developer (iOS/Android/Xamarin) |
114,000 |
84,000 |
|
Salesforce Developer |
114,000 |
72,000 |
|
Manual/Automation QA |
96,000 |
72,000 |
|
Ruby Developer |
114,000 |
84,000 |
|
C/C++ Developer |
114,000 |
81,600 |
|
.NET Developer |
114,000 |
78,000 |
|
Vue.js Developer |
120,000 |
72,000 |
However, salary figures alone don’t provide a full picture when estimating your budget. To gain an accurate understanding, it’s essential to account for local taxes, hiring costs, and employee benefits.
Employers can choose between two main engagement models when hiring developers: the traditional employment contract (Umowa o Pracę) and the B2B contract (Umowa B2B).
Employment contract (Umowa o Pracę)
Regarding the taxation system in Poland, when hiring full-time employees, employers are required to cover social security contributions (SSC). For instance, if a developer earns a gross salary of $5,000 per month, the employer must contribute approximately 20% on top of this amount toward SSC.
These contributions include:
- 9.76%—retirement pension contribution
- 6.5%—pension contribution
- 0.67-3.33%—disability pension (varies by risk level)
- 2.45%—to the Employment Fund
- 0.1%—to the Fund of Guaranteed Employment Benefits
Social contributions can amount to up to 35% of a developer’s salary, with the employer typically covering 19.21%-22.14% of the total.
B2B contract (Umowa B2B)
In this arrangement, the developer operates as a private entrepreneur and assumes full responsibility for their tax obligations. As a result, the hiring company bears no legal responsibility for tax payments, effectively reducing its tax burden to 0%.
Compensation costs
If you consider software nearshoring to Poland, it’s important to look beyond gross salary and tax obligations when calculating the true cost of hiring developers. Several other variables influence total compensation.
Recruitment fees
Such fees vary by role seniority:
- 15% of gross annual salary for mid-level specialists
- 20% for senior-level roles
- 25%+ for lead and executive-level positions
The cost of recruiting these specialists in the US is 10% higher on average (25%-35%).
Standard benefits package
Tech businesses in Eastern Europe, including software development companies in Poland, typically provide benefits worth around $6,350 annually, covering:
- Medical insurance—$1,200
- Learning & Development—$900
- Corporate merchandise—$150
- Work equipment—$3,300
- Wellness & mental health support—$800
In the US, this number is 2.5 times higher—$15,400/year per developer.
The table below compares the total annual cost of hiring a senior-level software developer in Poland and the United States, providing a clearer picture.
|
Position |
Annual Senior Developer Employment Cost, USD |
|
|
USA |
Poland |
|
|
AI/ML Engineer |
180,000 |
102,480 |
|
Cloud Engineer |
232,500 |
92,400 |
|
Blockchain Developer |
180,000 |
99,600 |
|
Mobile Developer (iOS/Android/Xamarin) |
157,500 |
106,800 |
|
Salesforce Developer |
157,500 |
92,400 |
|
Manual/Automation QA |
135,000 |
93,600 |
|
Ruby Developer |
157,500 |
106,800 |
|
C/C++ Developer |
157,500 |
101,160 |
|
.NET Developer |
157,500 |
99,600 |
|
Vue.js Developer |
165,000 |
93,600 |
|
Gross Annual Salary + Recruitment Services + Standard Benefits Package |
||
The salary range clearly illustrates that Polish developer rates are about two times lower than those in the US.
Attractive business climate
According to McKinsey’s Poland 2025 report, the country is well-positioned to become a key driver of growth in Europe. With targeted reforms, Poland could achieve an annual GDP growth rate of over 4%, raising its per capita GDP to 85% of the EU-15 average in 2025.
What further sets Poland apart is its government’s strategic approach to R&D and emerging technologies. The state has pledged approximately $240 million toward AI development and offers a generous 200% tax deduction for R&D-related expenses, including employee salaries, research equipment, and intellectual property (IP) protection.
Excellent ICT higher education
Poland is home to over 400 globally recognized higher education institutions, such as the Warsaw University of Technology and Wrocław University of Science and Technology. 22 are ranked in the QS World University Rankings 2025. Additionally, around 60 universities and institutes in Poland are actively preparing future tech specialists. In the 2023-2024 academic year alone, nearly 74,000 students enrolled in ICT programs, highlighting the strength and sustainability of Poland’s tech talent pipeline.
High level of English
Polish software development specialists learn English from childhood and further advance their skills in university or language courses. Thus, Poland ranks 2nd in CEE in terms of English proficiency after Romanian developers. Therefore, custom software development in Poland is easier for a foreign tech company because most local programmers have B2+ levels of English and can communicate without barriers.
Western work values
Polish coders share the Western European work ethic in terms of dedication and punctuality. Their culture is relationship-oriented and hierarchical, with a strong emphasis on fairness, hard work, and being both result-oriented and committed to the process. In addition, the Polish also appreciate directness, politeness, and precision in their work affairs.
Learn more about the advantages of working with developers in Poland in our recent article:
“Polish Developers: Pros, Cons, Rates & Insights.”
Software Development in Poland: Trends
Software development outsourcing in Poland and other tech havens remains a cornerstone strategy for US businesses, especially in the tech industry. A remarkable 92% of Global 2000 companies rely on tech outsourcing services.
However, beyond simple outsourcing software development to Poland, a new trend is emerging: establishing dedicated R&D centers abroad to gain greater control, innovation power, and long-term value.
At the forefront of this trend is Alcor’s Tech R&D Center model, which offers a smarter alternative to traditional staff augmentation in Poland. Designed for software development companies in Poland and from abroad, building complex products, this solution allows you to launch a fully operational R&D center where you retain full ownership and control, from recruitment to team culture.
So, what makes Alcor’s R&D solution stand out?
- Top-tier recruitment: Our tech recruiters help you build a team from 10 to 100 developers, hiring only the top 10% of talent.
- Budget-friendly setup: Enjoy 40% savings, zero launch costs, no pre-payments or buyout fees, and flexible pricing.
- Zero legal hassle: Thanks to our built-in Employer of Record service, you can hire internationally without opening a local entity.
- Product-based mindset: Perfect for companies that need innovation and long-term team commitment.
- Full dedication: Your team works exclusively on your product—no distractions, no compromises.
- Long-term retention: On average, Alcor-hired developers stay for 2.5 years, driving consistent value.
- 360° operational support: We go beyond hiring, offering help with the office lease, HR, legal compliance, and more.
- Dedicated support: Each client is assigned a personal account manager to assist them at every step.
Polish Software Development: Latest News
In a major move, Microsoft announced a PLN 2.8 billion ($744 million) investment in Poland to enhance cloud infrastructure, AI capabilities, skills development programs, and cybersecurity. This positions Poland as a strategic hub for digital transformation in Central and Eastern Europe.
Meanwhile, Google signed a memorandum with the Polish government to accelerate AI adoption across critical sectors such as cybersecurity, healthcare, and energy—an initiative expected to drive innovation across public and private sectors significantly.
The Polish software development community also remains highly engaged through events that foster collaboration and knowledge sharing:
- Rustikon Conference—The first Rust-focused event in Poland, marking the language’s 10th anniversary with expert talks and workshops.
- Scalar Conference—A leading event in Functional Programming and Scala, offering insights into advanced software engineering practices.
- Code Europe—The country’s largest tech festival, bringing together developers and IT leaders for talks, panels, and networking.
- DevConf—One of Poland’s top annual conferences for software developers, focused on innovation, inspiration, and industry trends.
With high-impact investments and a supportive government stance on innovation, the software development market in Poland is quickly becoming the most dynamic in Europe.
Prominent Software Development Hubs in Poland
Suppose you’re enthusiastic about obtaining professional software development in Poland. In that case, you should learn about the biggest technology hubs in the country that provide all the right conditions for running a successful tech business. Among them are Warsaw, Krakow, Wrocław, Katowice, Tri-city, and Poznan.
Software development in Warsaw
Warsaw is the capital of Poland and home to approximately 24% of Poland’s IT specialists, or 156,000 individuals. When it comes to qualification guarantees of software development in Warsaw, the Polish capital boasts the best higher education tech institutions in the country, which graduate over 3,000 ICT professionals annually. The University of Warsaw and the Warsaw University of Technology are leaders in STEM education.
Warsaw ranked 4th in the EU for the Gaming industry, according to Global Startup Ecosystem 2024. Additionally, fDi Intelligence ranks Warsaw as the fourth major European city of the future, citing its high economic potential in Poland, its focus on groundbreaking technologies, tech startups, and a large number of software developers. Thus, the city is the #1 choice for setting up an R&D branch or establishing a software development team in Poland for IBM, Google, Amazon, Microsoft, Oracle, Cisco Systems, and Dell Technologies.
Are you planning offshore software development to Poland in 2025?
Check out our latest article to explore all the key insights and trends!
Software development in Kraków
Regarding the number of software development professionals in Kraków, you receive access to 13% of the total tech talent pool in Poland or 84,500 tech experts, plus the city’s tech talent pool grows by 10% annually. Kraków IT universities, such as the AGH University of Science and Technology, Cracow University of Technology, and Jagiellonian University, graduate over 2,350 ICT professionals yearly. The largest tech corporations that have opted for IT recruitment in Krakow to establish their development teams include IBM, Motorola Solutions, Ericsson, Nokia Networks, and half of the country’s tech unicorns.
Kraków is ranked 8th in the EU for Digital Marketing. Moreover, this city is a leader in investment and is renowned for its exceptional ecosystem for startups, comprising incubators, technology parks, communities, associations, and other organizations.
Software development in Wrocław
Also known as the “Polish Silicon Valley,” Wrocław belongs to the top three IT hubs in Poland and hosts around 12% or 78,000 development professionals. Ranked 5th in the EU for the MedTech industry, Wrocław stands out with approximately 1,400 STEM graduates annually. The city’s leading institution for these programs is the Wrocław University of Science and Technology.
These and other factors have already encouraged more than 200 tech companies to grow at Wroclawski Park Technologiczny alone.
Software development in Katowice
Katowice accounts for 9,3% or 60,450 tech specialists who are employed by around 180+ tech businesses. Local students can study computer science, program engineering, or other STEM fields at the University of Silesia in Katowice, the Katowice School of Technology, and other tech universities. Each year, the city boasts 1,500 tech graduates.
Software development in the Tri-city
Tri-city is the metropolitan area that consists of Gdańsk, Gdynia, and Sopot. Together, these cities house 8,1% or 52,650 tech specialists, as well as over 60 companies in the tech industry. Furthermore, Tri-city graduates over 1,000 tech students from the Gdańsk University of Technology, the University of Gdańsk, and other ICT higher education institutions. Companies such as Amazon, Intel, Nike, and GetResponse, among others, already have offices in the area.
Software development in Poznan
The number of software development professionals in Poznan is about 44,200 (6,8%). Ranked 20th in the EU for the Proptech industry, Poznan hosts 80 IT/R&D business service centers. The top universities that provide technical education are Poznan University of Technology and Adam Mickiewicz University. Together with other higher education institutions, they graduate around 1,500 tech students each year. In terms of technical skills, local developers are strongest in C/C++, JavaScript, Linux, Python, Java, C #, .NET, PHP, project management, and graphic design.
Want to set up a dedicated development team in Poland?
The best way to do it is through your tech R&D center with Alcor.
Simpler Than Offshoring Software Development to Poland
In 2020, the US software product company Sift, which produces smart anti-fraud software, decided to establish its development and R&D team in Eastern Europe. The company had an ambitious goal to hire 30-35 programmers in Eastern Europe within one year, yet faced a lack of qualified tech headhunters who could not only manage to recruit such a large number of professional coders on time but also do it effectively. Fortunately, Sift discovered the software R&D solutions provider Alcor and entrusted us with this responsible task.
We’ve built a team of 30 high-tech developers in just one year, with the Head of R&D hired from the second CV submission. In addition to that, we ensured compliance with European and American laws, managed tax affairs for Sift’s offshore developers, provided labor and contract law assistance, and handled other operational functions.
Apart from Sift, we have already helped Grammarly, Globality, ThredUP, People.ai, Ledger, and other product tech companies achieve their talent acquisition goals and succeed during software offshoring/software nearshoring to Poland and other countries through Alcor’s model. Our team of 40+ skilled tech recruiters and researchers will hire developers from Poland, Romania, Ukraine, Bulgaria, and the rest of Eastern Europe.
Our clients benefit the most from hiring engineers with rare tech stacks, recruitment marketing, payscale & availability analytics, weekly progress reports, and our other IT recruitment services in Poland. In fact, 80% of our candidates receive interview invitations, while 98.6% successfully pass the probation period.
Being an all-in-one R&D center provider, Alcor offers R&D services that may partially or fully cover the following areas:
- Full-cycle tech recruitment: Our team finds the rarest tech gems from the Silicon Valley-caliber tech talent pools of Eastern Europe and Latin America.
- EOR (Employer of Record): We can hire foreign candidates for your team, pay their salaries, handle their taxes, and manage benefits without you having to establish a legal entity.
- Legal & Compliance: Our team ensures your team abroad complies with local laws and keeps you in the loop regarding the relevant information on legislation updates in a foreign location.
- Operational support: Get office lease, equipment procurement, and IT infrastructure setup support for your R&D branch employees.
All of them guarantee seamless integration of your offshore or nearshore software R&D team in the product development process as if it were your in-house crew.
Need other offshore or nearshore services? Just say the word—we always go the extra mile for our clients!
References on Software Development in Poland
- Statista
- ReportLinker
- Startupblink
- Central and Eastern European Startups 2024 Report by Dealroom
- The Game Industry of Poland Report by the Polish Agency for Enterprise Development
- The Gaming & Game Development Sector Report by the Polish Investment & Trade Agency
- Forbes
- Statcounter Global Stats
- Poland Country Commercial Guide by the International Trade Administration
- HackerRank
- Google Code Jam 2022
- TopCoder
- Emerging Europe
- Poland 2025: Europe’s New Growth Engine Report by McKinsey & Company
- QS World University Rankings 2025
- EF EPI
- DemandSage
- Microsoft
- Reuters
- fDi Intelligence
- IASP
- Investment Potential of the IT Sector in Poznan Report by Experis, ManpowerGroup