Outsourcing to Poland in 2025: Guide

Did you know that software development outsourcing in Poland is seeing increased demand, with the market projected to reach $3.84 billion in revenue in 2025? This growth is no coincidence. Combining cultural compatibility with top-tier engineering skills, Poland has emerged as a strategic nearshore hub for Western tech companies seeking scalable and efficient outsourcing solutions to optimize costs.

I’m Dmytro Ovcharenko, CEO and founder of Alcor, a software R&D accelerator that helps US tech companies build elite engineering teams in Eastern Europe and Latin America. Think of us as your operational co-pilot: we handle tech recruitment, Employer of Record, and operational support. Alcor makes it easy to grow from 0 to 100 Silicon Valley-caliber developers in just one year without the hassle of setting up a legal entity.

In this article, you’ll discover why Poland is an appealing outsourcing destination compared to other countries. I’ll walk you through the best way to access top-tier software development services for your business. 

Ready to take a closer look at why Poland stands out in tech outsourcing?

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Key Takeaways

1. In tech outsourcing, Poland is a go-to destination in Eastern Europe for US-based companies, thanks to its largest talent pool of over 650,000 IT specialists, top-notch tech education, and shared values with the US.
2. Polish senior programmers cost 33.2% to 40.7% less per year than their US counterparts.
3. Lack of control, hidden costs, and poor motivation among the tech team are the primary risks associated with outsourcing in Poland. Alcor’s R&D model gives you the clarity, control, and commitment you need. 
4. Building a tech R&D center in Poland is the smartest alternative to traditional outsourcing—you can get 30+ top-tier engineers in just 3 months, up to 40% cost savings, and zero buy-out fees.

IT Outsourcing in Poland: Brief Overview

Poland ranks among the world’s top three countries with the best developers. It is no surprise, then, that IT offshoring to Poland is a growing trend among global businesses. For tech businesses, the country offers more than just tech talent. Let’s take a closer look at why tech product companies choose to outsource software development to Poland.

IT services market

For US and European tech product companies exploring outsourcing or offshoring to Poland, the numbers speak for themselves. The country’s IT services market is projected to reach $10.44 billion in revenue by 2025, with a steady growth rate of 5.91% CAGR through 2029, ultimately reaching $13.14 billion. 

Additionally, software outsourcing in Poland is expected to grow at an 8.77% CAGR from 2025 to 2029, reaching $5.38 billion. Meanwhile, Poland’s IT exports have grown at an annual rate of 13.64% over the past five years.

Growth is important, but efficiency is equally important. Polish professionals clock in an average of 1,929 work hours annually, compared to the European average of 1,600. This productivity, combined with the deep technical skills I’ll discuss later in the article, makes the IT industry in Poland a top choice for global companies seeking high-tech services delivered efficiently. 

Startup ecosystem 

Home to over 3,000 startups, 300+ co-working spaces, and more than 130 venture capital firms, Poland offers a vibrant entrepreneurial environment. In 2023 alone, Polish startups secured $540 million across 147 funding rounds. StartupBlink highlights Poland as a geographically diverse, innovation-first ecosystem, with 14 cities in the global top 1000, igniting a fire of innovation that shows no signs of slowing down.

Poland leads the CEE region with the highest number of unicorns—13 to date—including well-known names like ElevenLabs, The Witcher, DocPlanner, LiveChat, and many others. According to the Global Startup Ecosystem Index, the country ranks fourth in Central and Eastern Europe, excelling in e-commerce and retail, marketing and sales, Edtech, Fintech, hardware and IoT, and software and data.

City-level specialization is another major strength:

• Warsaw ranked 4th in the EU for the Gaming industry

• Kraków: 8th in the EU for Digital Marketing

• Wroclaw: 5th in the EU for Medtech

• Poznan: 20th in the EU for Proptech 

State of the tech industries 

• Game Development. With over 15,000 professionals and 65 university programs dedicated to Game Development, Poland ranks second in Europe by workforce size. Warsaw alone is among the top 5 gaming hubs in the EU, as mentioned before.
• Public Cloud. The adoption of SaaS, PaaS, and IaaS solutions continues to surge. The public cloud market is projected to reach $3.09 billion by 2025, enabling global businesses to scale smarter and faster.
• Artificial Intelligence. The government’s $240 million AI development plan is powering national progress in the economy, defense, analytics, and business automation. Poland’s AI market, valued at $1 billion in 2023, is expected to exceed $5.8 billion by 2030.
• FinTech. With 368 active FinTech companies and a valuation of $952 million, Poland remains a key player in the Central and Eastern European financial technology scene.
• Healthcare IoT. This sector is on the rise, with a projected market value of $576.67 million for 2025. Growth is forecasted to continue at 10.79% annually, reaching $868.73 million by 2029.

Advantages of Outsourcing to Poland

Let’s see what makes choosing IT outsourcing services in Poland such a smart move.

The largest tech talent pool in EE

Poland has the biggest tech talent pool in Eastern Europe, with over 650,000 software developers. The growth isn’t slowing down either. Nearly 74,000 students enrolled in ICT-related fields for the 2023/2024 academic year, fueling a pipeline of fresh talent ready to support tech companies worldwide.

Elite tech skills

Polish developers lead the Central and Eastern European region in exceptional competencies, securing the #1 spot in Coursera’s skills report and placing 6th globally in TopCoders rankings.

In 2024, their strongest programming languages included:

• SQL
• Python
• VBA
• Java and JavaScript
• C#/*.net/C/C++ language family.

Lower costs compared to the US

One of the biggest advantages of software development outsourcing to Poland is its financial value. Senior full-stack developers in Poland typically cost 33.2% to 40.7% less per year than their counterparts in the United States. This difference is caused not only by the lower cost of living but also by the taxation system.

Tax rates in Poland are generally lower compared to those in the US or other European Union countries. The Corporate Income Tax is 19% (standard), but startups and small businesses that meet certain criteria pay 9% of the corporate income tax. Additionally, many international companies prefer to work with Polish developers through B2B contracts, which is both beneficial and easier in terms of documentation and payment processing.

Curious how this impacts your budget? Continue reading to discover more about the salary structures and tax benefits in Poland.

High English proficiency

Polish programmers consistently rank among the best globally in English skills, landing 2nd in Eastern Europe after Romania, according to the EF English Proficiency Index. A strong command of English helps ensure clear communication, making day-to-day collaboration easier, faster, and less prone to misunderstandings. As a result, working with Polish developers feels more like extending your in-house team than managing an offshore one.

Western work ethics 

Beyond technical skills, Polish software developers align well with Western work ethics and have a similar mindset. With over 30 years of experience working with Western companies, a professional culture has been established that is rooted in ownership, accountability, and agile thinking.

Tech talent from Poland consistently demonstrates critical soft skills that drive successful collaboration:

• Adaptability and resilience
• Critical thinking
• Creative problem-solving
• Emotional intelligence
• Effective communication

Strong tech education 

Poland’s tech talent pipeline is fueled by over 60 public and state universities offering strong information technology programs. Top institutions, such as the Warsaw University of Technology and Wrocław University of Science and Technology, are globally recognized, with 22 Polish universities featured in the QS World University Rankings 2025. Beyond formal education, coding boot camps like Coders Lab and Codecool help broaden access to tech careers. 

Strict data security 

Among the many advantages that drive enterprises to consider offshoring IT in Poland, data protection is a key factor. As a member of the European Union, the country adheres to the General Data Protection Regulation (GDPR), imposing strict guidelines for data collection, storage, and management. This means your data is protected under some of the world’s strictest privacy laws.

Average Polish Developer Salaries & Payroll Taxes

One of the primary reasons Western tech companies outsource to Poland is the lower costs associated with it. While Polish software engineers’ salaries are rising, they remain significantly lower than those in the US and other Western countries. And that’s just the starting point of the savings.

The table below compares annual salaries for senior developers in Poland to those in the US.

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

But to accurately estimate your budget, salary alone doesn’t tell the whole story. You’ll need to factor in local taxes, recruitment fees, and employee benefits to get a complete picture.

When working with Polish developers under the popular B2B model, companies benefit from a unique tax setup. There is no legal obligation to cover the developer’s taxes, effectively reducing the company’s tax burden to zero. Social contributions are also paid by Polish coders working independently under the B2B model, and their amount varies depending on the annual revenue.

Hiring full-time Polish staff comes with additional costs. For example, if a developer receives a $5,000 gross salary per month, the employer will contribute around 20% more to social security contributions:

• 9.76% retirement pension contribution
• 6.5% pension contribution
• 0.67-3.33% disability pension
• 2.45% to the Employment Fund
• 0.1% to the Fund of Guaranteed Employment Benefits 

Recruitment fees for tech talent in Poland vary by role seniority:

• 15% of gross annual salary for mid-level specialists
• 20% for senior-level positions
• 25% and more for leads and top-tier talent

Also, Polish tech companies typically provide a benefits package worth approximately $6,350 per year. This includes: 

• Medical insurance — $1,200
• Learning & Development — $900
• Corporate merchandise — $150
• Work equipment — $3,300
• Wellness & mental health support — $800

For a more comprehensive view of the financials, the table below breaks down the full annual cost of hiring a software developer in Poland compared to one in the United States.

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

What does this mean for you? Even when you factor in total employment costs, you can hire two senior programmers from Poland for the price of one in the US. For instance, mobile application developers skilled in iOS, Android, and Xamarin cost around 32% less to hire in Poland. The gap is even wider with Polish Vue programmers, where companies save over 57%, all without sacrificing quality or expertise.

IT Outsourcing in Poland vs. Other Countries

Poland vs the US

The US remains a global tech giant, boasting over 5.47 million IT specialists and a highly mature tech ecosystem. Poland, by comparison, offers a smaller but rapidly growing pool of over 650,000 skilled software engineers, which is the largest in Central and Eastern Europe.

While American developers are native English speakers, Polish programmers consistently score high on the EF English Proficiency Index, making communication easy and effective. 

However, the real contrast lies in cost. As mentioned earlier, developer salaries in Poland are roughly half of what you’d pay in the US, even when accounting for benefits and tax structures.

	USA	Poland
Talent pool	5.47+ million	650,000+
English proficiency	Native	High
Average annual developer salary	$167,800	$82,370
Benefits	$15,400	$6,350

Poland vs Mexico

Mexico has established itself as a prominent software outsourcing and offshoring hub in Latin America (LATAM), with a talent pool of over 700,000 developers. However, its high level of bureaucracy and regulatory complexity can slow down the process, especially for foreign companies unfamiliar with local laws. Even though President Claudia Sheinbaum introduced the National Law for the Elimination of Bureaucratic Procedures and Corruption in January 2025 to simplify excessive bureaucracy, challenges persist in its implementation. That’s why partnering with a trusted tech R&D provider, such as Alcor, can make a significant difference in navigating the software engineering services in Mexico.

As an EU member, Poland offers a more predictable legal environment with streamlined processes designed for international business. And when it comes to English fluency, Poland is far ahead of Mexico’s 86th position in 2025 on the EF English Proficiency Index.

	Mexico	Poland
Talent pool	700,000+	650,000+
English proficiency	Low	High
Bureaucracy	High	Low

Poland vs Colombia

When comparing Poland and Colombia as outsourcing destinations, both countries offer distinct advantages. Both countries benefit from a strong tech education system. However, Poland has a much larger tech talent pool, with 74,000 students enrolled in ICT-related fields. This is significantly higher than Colombia’s 165,000+ professionals and 20,000 computer science students across its top five universities. Colombia’s tech ecosystem is expanding and gaining traction in LATAM, but its pipeline of trained developers is still relatively limited compared to Poland’s more established market.

	Colombia	Poland
Talent pool	165,000+	650,000+
English proficiency	Low	High
Tech education	20,000+ students	74,000+ students

Poland vs India

India dominates in numbers, with over 5.2 million software developers, but the quality and alignment of these developers often come into question. Poland offers a very different experience:

• Significantly better English level, ranking 54 spots higher than India on the EF English Proficiency Index;
• Greater business and investment freedom (ranked 45th vs India’s 128th globally)
• Higher engineering quality, thanks to a rigorous education system (95% of Indian programmers reportedly lack relevant tech skills);
• Western-style work ethics focused on ownership, agility, and direct communication.

	India	Poland
Talent pool	5.2 million	650,000+
English proficiency	Low	High
Quality of development	Low	High
Work ethics	Eastern-oriented	Western-oriented

Better than IT Outsourcing to Poland

While considering whether to outsource to Poland, Alcor offers a more advanced solution: your all-in-one software R&D center in Eastern Europe or Latin America. Alcor goes beyond staffing: from tech recruitment of over 30 elite developers in just 3 months to Employer of Record and operational support, we help tech product companies scale top-tier engineering teams without buy-out fees or the limitations of short-term vendors.

• Proven results. For BigCommerce, a global SaaS e-commerce leader, we delivered a full R&D center solution—sourcing office space, hiring elite developers within just one month, and handling all legal, payroll, and tax compliance. The result? 80 Silicon Valley-caliber engineers in one year, 100% compliance with laws, and a fully backed R&D office.
• Fast and focused. To support GoTransverse, a company specializing in cloud-based online payment software, Alcor handled the recruitment process lightning-fast: we delivered pre-screened CVs within 5 days and achieved an average of one hire per week. Alongside recruitment, we provided EOR services, managed financial operations, and established tech infrastructure.

Trusted by industry leaders. With a 93% customer satisfaction rate in 2024 and a 5/5 rating on Clutch from 17 client reviews, we’re not just a vendor. Instead, we’re a strategic partner. Our clients stay because we stay committed. Long after the contract is signed, we utilize our WOW value to deliver results that exceed expectations, as if our own business were on the line. Just ask GoTransverse’s Head of Engineering, Dmitrii Iermiichuk:

“Alcor solved every problem, even crazy things like buying certified hardware in the middle of nowhere on Bali and shipping it to the EU.”

If you’re exploring outsourcing in Poland but want more than a transactional relationship, Alcor offers a more comprehensive approach. We help you tap into Silicon Valley-caliber engineering talent in Eastern Europe, launch your own branded R&D center, and build a high-performance tech team.

Challenges of Outsourcing Software Development in Poland

But despite the variety of appealing facts to outsource IT services to Poland, potential risks and challenges should not be omitted:

Underqualified outsourced developers 

Unfortunately, not every Polish IT outsourcing company plays fair. Some partners cut corners by assigning junior programmers to mid- or even senior-level tasks or misrepresenting a developer’s skill level altogether. When partners prioritize margins over your project’s success, the result is often buggy code and missed expectations.

At Alcor, we do things differently. We provide top-tier senior/lead software engineers whose skills match your request, and an expert tech skills assessment is available upon request. Furthermore, we provide transparent salary benchmarking from day one, allowing you to understand the current market rates of top coders and plan your budget with greater clarity.

Lack of control  

Partnering with external tech outsourcing agencies in Poland can feel like handing off your product into a black box. You won’t have full control over task execution, developers’ performance, and the overall development process. Moreover, it’s almost impossible to evaluate the quality of programming at every development stage—only when the project has been completed. 

With Alcor, your dedicated engineers work exclusively for you, providing you with full transparency and control, much like managing an in-house team.

Process orientation 

Outsourcing vendors often operate with a project-centric mindset, prioritizing task completion over delivering lasting impact. They meet deadlines but sometimes sacrifice quality and innovation. In this case, the product may have poor functionality and numerous gaps, which can negatively impact its market image. Moreover, at most tech outsourcing agencies, software developers work on several different projects at once and don’t see themselves as part of your company. 

Location & time zone 

Poland’s central European location offers excellent accessibility and convenient overlaps with most EU time zones. For US-based companies, the time difference may seem inconvenient at first, but it can actually work in your favor. In practice, it enables round-the-clock operations and continuous development. While your team winds down for the day, your programmers in Poland are just starting up, keeping the project moving forward 24/7. It’s a built-in system for continuous progress, which is one of the hidden perks of IT outsourcing to Poland.

Alternatives to Polish Outsourcing

Tech R&D center

Think of the software R&D services model as version 2.0 of tech recruitment. Picture this: an R&D provider that not only handles tech recruiting but also takes care of all operational functions, leaving you with more time to focus on the big decisions that drive success. Tech companies that choose offshore software development to Poland via R&D agencies can say goodbye to mundane tasks like legal & compliance, accounting, HR payroll, and employer branding as your R&D partner takes the reins. You get a dream development team in Poland who work exclusively for you. They work under your brand, becoming a true extension of your vision.

Employer of Record

Many providers take a global, high-volume approach that prioritizes task completion over deep specialization and genuine client service. But if you’re thinking long-term, you need a partner who can help you scale sustainably.

EOR is a company that legally employs software engineers on your behalf and handles the nitty-gritty like payroll, taxes, compliance, employee benefit management, and on/offboarding. With EOR, you can focus on building and leading your team without establishing a legal entity overseas. The software developer works directly for you but is legally employed by the EOR provider.

However, most EORs don’t help you find tech talent in the first place. Not to mention other operational matters, such as office lease, procurement, and employer branding. That’s why tech product companies often work with R&D providers like Alcor, who combine EOR services with tech recruitment and operational support.

Tech recruitment

Unlike software development outsourcing in Poland, where you may have limited visibility into who’s working on your product, tech recruitment lets you hand-pick each top-tier engineer, ensuring a perfect fit for your vision. 

It’s an ideal solution for companies building their first tech team abroad or expanding an existing one. A skilled tech recruitment partner does more than source candidates. You receive clear pricing, detailed invoices, and regular updates on candidate pipelines, interviews, offers, and market feedback. With this approach, your programmers become a fully integrated part of your company, not a disconnected outsourced tech team.

But keep in mind that in this case, you’ll need to set up your own legal entity in Poland, which can take several months, depending on the city, and hire a local team of lawyers, an accountant, and a payroll specialist to handle all employment-related tasks.

IT Outstaffing Services in Poland

With over 100 IT outstaffing vendors in Poland listed on Clutch, this model is a popular option that connects you with external engineers who temporarily join your team. 

But the setup has its downsides. Outstaffed developers are employed by the vendor, not your company, resulting in blurred responsibilities, team misalignment, and slower decision-making. There’s also the risk of losing product knowledge when they leave. Some companies buy them out, but this can come with limited guarantees and unexpected costs, which can range from tens to even hundreds of thousands of dollars, depending on the size, technology stack, and seniority level of the team. It’s a risk that should be weighed carefully when considering this model.

Make Your Tech Expansion Hassle-Free

Looking for elite software developers?

Need a team that feels like a true extension of your business?

Want full transparency, no buy-outs, and support beyond just hiring?

If yes, then you’ve just found your answer—Alcor is the partner you need. We offer more than standard Polish IT outsourcing. We help you build and manage your own Silicon Valley-caliber development team, tailored to your needs, with an EOR solution, operational support, and no hidden costs. 

Let our clients’ success stories speak for themselves. Take Dotmatics, a US-based tech company that develops digital products for scientists. After considering all the pros and cons, they decided to step back from traditional tech outsourcing and build their software products independently. They chose Eastern Europe as their go-to destination and reached out to Alcor as a reliable partner to hire an expert software engineering team. We sourced talent through exclusive HR platforms, internal databases, and trusted networks, guiding every step of the hiring process alongside their manager. Alcor also provided Dotmatics with back-office services.

The outcome? A dedicated tech team of 30 engineers within a year, including a Director of Engineering, Full-Stack Programmer, QA Automation Engineer, and others. Some of them were hired from the first candidate!  

Alcor is your trusted partner for  IT recruitment in Eastern Europe and Latin America. We specialize in helping product-based tech companies build teams of elite Polish programmers, as well as engineering talent from Romania, Bulgaria, and Ukraine. Our reach also extends to the Latin American market, where we deliver the same R&D solution. Compared to traditional tech outsourcing or outstaffing providers, we help you not only build your own software team but also retain full control over your product development.

With us, you lead the project. You manage the team. We handle the rest.

Our 40 in-house tech recruitment professionals are experts at hiring the top 10% of tech talent, even with the rarest and most in-demand programming skills. Whether you’re looking for specialists in Laravel, Drupal, React, Java, Python, or .NET, we know how to hire the best of them. The result is a 98.6% success rate on probation, with engineers who integrate seamlessly into your team.

But we don’t stop at tech recruitment. Alcor also provides legal and compliance, HR payroll, tax services, employer branding, tech infrastructure setup, procurement management, and other R&D services to help our clients create their own R&D branch hassle-free. Alcor builds a tech team that is yours now and will remain yours in the future, with a 90% retention rate.

Ledger, People.ai, and ThreadUP already work with their own hand-picked remote teams in the east of Europe through Alcor. Ready to build yours? Book a call with us, and let’s talk!

References

1. Statista
2. HackerRank
3. Report Linker
4. McKinsey&Company
5. International Monetary Fund
6. Startup Universal
7. Ain
8. StartupBlink
9. StartupBlink Startup Ecosystem Report 2024
10. Central and Eastern European Startups Report 2024
11. Forbes
12. The Game Industry of Poland Report 2023
13. Coursera Global Skills Report 2024 
14. TopCoder
15. ABSL Business Services Sector in Poland 2024
16. EF English Proficiency Index
17. QS World University Rankings 2025
18. U.S. Bureau of Labor Statistics
19. ResearchGate
20. The Economic Times
21. Index of Economic Freedom 2025
22. IEM Group
23. Clutch