Nearshore in Poland: why is it a good idea

Nearshore in Poland has emerged as the latest and highly profitable approach for conducting business across different countries, leveraging its advantageous geographical proximity.

This model offers a range of advantages, with enhanced communication being a prominent one. 

By nearshoring in Poland, you can avoid the challenges of adapting to different time zones, ensuring smoother collaboration and efficient workflow.

Poland stands out as a sought-after destination for nearshore operations, particularly for numerous Eastern European countries. It provides top-notch outsourcing services, catering to companies grappling with IT staff shortages. The country’s skilled workforce and expertise make it an ideal choice for organizations seeking reliable nearshore solutions.

What is Nearshore?

Nearshore refers to the practice of outsourcing business processes or tasks to a nearby country, typically in the same geographic region or time zone. Contracting with a company or team in a neighboring or nearby country is a common practice. They can carry out specific activities or provide services.

Nearshoring is often chosen as an alternative to offshoring, where businesses outsource tasks to a more distant country, often located in a different time zone or region. Nearshoring has many benefits. These include being closer, having similar cultures and sharing the same time zone. This can make collaboration and communication between the client and the nearshore team easier.

By nearshoring, companies can benefit from accessing a skilled workforce, cost savings, reduced travel time and costs, and improved coordination due to fewer cultural and language barriers. This approach is commonly used in various industries, including IT, software development, customer support, and business process outsourcing.

Nearshore outsourcing offers businesses the benefits of outsourcing while maintaining close proximity and alignment with nearby countries. This provides an ideal balance of cost-efficiency and effective collaboration.

 

Why create a nearshore team in Poland?

Establishing a nearshore team in Poland offers numerous compelling reasons. Firstly, Poland boasts a large pool of highly skilled and educated professionals, particularly in the fields of engineering and programming. This talent pool ensures access to exceptional resources for your nearshore team.

Secondly, Poland’s renowned education system produces a tech-savvy and highly skilled workforce. This means you can rely on a talented and capable team that is well-versed in the latest technologies and industry trends.

Furthermore, Poland’s strategic location in Central Europe is advantageous. It allows for convenient collaboration and communication with businesses based in nearby regions, such as the United Kingdom, DACH, Benelux, and the Nordic countries. The geographical proximity enables smoother coordination and potentially reduces travel time and costs.

Moreover, Poland’s high English proficiency, ranking 13th in the global EF English Proficiency Index, eliminates language barriers. Effective communication and understanding between your nearshore team in Poland and your organization are facilitated, ensuring seamless collaboration.

Additionally, Poland’s membership in the European Union ensures compliance with the General Data Protection Regulations (GDPR). This is crucial for businesses that handle sensitive data, as it provides a solid framework for data protection and privacy.

Lastly, nearshoring to Poland often offers cost advantages compared to onshore or offshore options. The relatively lower costs, combined with the skilled workforce and favourable business environment, make Poland an attractive choice for establishing a nearshore team.

In summary, creating a nearshore team in Poland provides access to a highly skilled talent pool, tech-savvy professionals, convenient geographical proximity, effective English communication, GDPR compliance, and cost advantages. These factors make Poland a compelling and advantageous location for establishing your nearshore operations.

 

5 reasons to Nearshore in Poland

Poland is a great place to look for a nearshore IT company.

Cultural and language barriers are almost non-existent, time zone differences are very low and most importantly: the developers are among the best in the world!

When we add affordable pricing to this equation, Poland really becomes the perfect choice for tech-related projects.

Come check out the best reasons closely!

 

Location and similar time zones

Poland is attractive not only for their Tech excellence but primarily because of its premium location.

It’s located in the Central European time zone, which means accessible everyday communication for potential foreign clients, like Finland, Middle East country or even the United States (especially the East Coast).

To make a comparison: Europe and Asia have a time discrepancy of at least 6 hours, which makes the whole workflow much more difficult.

With that hurdle out of the way, let’s move on to something that can streamline your nearshore business efforts.

 

Having a good level of communication in English

You can expect remarkable English skills from Polish developers and project managers, especially since most of the projects they are already working on are foreign.

Poland is one of the most proficient countries in using the English language on a daily basis. In fact, English is taught in most schools as a second language.

Poland is ranked 13th out of 111 countries on the EF English Skill Index, earning a high proficiency score.

Indeed, this facilitates communication with clients abroad and supports the outsourcing community.

 

 High-skilled workforce

IT professionals in Poland are highly qualified, adaptable and experienced. Poland has been proving itself as a first-class nearshore software development destination.

With a focus on science, technology, engineering, and mathematics, Poland has a range of world-recognized universities which provide solid technical education.

Today, there are 18 tech universities in Poland and around 450,000 highly skilled professionals ready to work in the tech area.

That is why Poland has the largest talent pool of software developers in Europe.

 

Government policies and tax incentives

 The Poland government guarantee a stable environment for nearshore business. With low tax services, the whole country is becoming more appealing for foreign investments.

One of the biggest concerns of large companies is tax rates, which is why the more stable the government is, the greater the confidence of the investor to grow their business.

Since 2018, Poland’s government amendment to fiscal law turned the country into a special economic zone and made tax incentives available across their territory.

Thus, foreign investors and companies benefit from exemptions from favourable tax conditions. That is why Poland is a flourishing tax land to grow your nearshore business.

 

A solid and stable economy

 A stable and growing economy is the foundation on which IT companies in Poland thrive.

Despite the COVID-19-related market collapse, the country has been growing continuously for the last three decades.

Poland’s economy has been steadily growing since 1990. In 2018, Poland had one of the biggest Gross Domestic Product (GDP) in Europe and entered the top 10 European GDPs.

According to the World Bank, Poland has a stable and solid economy with a GDP of over $594.16 billion.

What industries are most likely to benefit from nearshoring to Poland?

Its cost-effective environment, advanced infrastructure, and abundant English-speaking workforce make it an appealing destination for Western businesses. Among these industries, the IT sector stands out as one of the prime beneficiaries of nearshoring to Poland.

Notably, Poland has emerged as a leading outsourcing location, particularly in IT. Moreover, it boasts attractive investment incentive schemes in Europe and a robust labor market.

This makes Poland a well-suited option for nearshore outsourcing, catering to markets such as the United Kingdom, DACH, Benelux, and the Nordic region. Consequently, businesses operating in the IT sector are poised to reap significant advantages by opting for nearshoring to Poland.

What are the challenges of nearshoring to Poland?

When considering nearshoring to Poland, it is important to acknowledge the challenges that may arise alongside its numerous benefits. One significant challenge is the language barrier, as the official language in Poland is Polish. This can pose communication difficulties between the nearshoring team and the client.

Cultural differences also play a role, potentially affecting cooperation and understanding.

Moreover, legal and regulatory disparities between Poland and the client’s home country may require careful attention. Challenges can be addressed by selecting the right nearshoring partner. Implementing measures to facilitate communication and collaboration between teams will help too. This enables successful nearshoring.

 

Key Takeaways

Explaining Nearshore

It is one of the most profitable ways of doing business today, especially if you need to save on investments, but it also requires a highly skilled workforce.

Nearshore team in Poland

The last two decades have established Poland as a new IT hub, so investors are moving their work teams there.

Reasons for nearshoring in Poland

There is no lack of reasons for Nearshore in Poland, starting with the good geographic positioning and the qualified workforce.

Interesting time zone

The clock is ticking, and the money keeps ticking, so while you have your business meeting, let your IT team work and contact you for just a few hours difference.

Good communication skills

We cannot deny that English is the language of technology, so it is essential to have a team that knows how to communicate well in that language. In Poland, English is one of the country’s most widely spoken second languages ​​.

Qualified workforce

Poland has one of the greatest investments in tech education in Eastern Europe. That’s why you’ll find a thriving IT pool of outstanding skilled technology professionals.

Low Taxes

The Polish government guarantees low tax costs for investors who intend to start their nearshore business in the country.

Stable economy

The stability of the Polish economy pleases the international market and gives confidence and credibility for large companies to start approaching there, or even transfer their companies to Poland.