Central and Eastern European countries have been gaining increasing recognition among the UK, the US, and Western European companies that outsource their software development. This region has a compelling number of benefits including highly qualified software developers, an advantageous price-to-quality ratio, and proximity to major global financial centers.
Many companies worldwide have already gained tangible business value from hiring dedicated software development teams in Ukraine or Poland. These two countries have established a reputation as leading IT outsourcing destinations in Eastern Europe. Their rapidly growing and well-developed IT market, software engineering talent, and good business environment attract many companies looking to outsource software development.
Both countries have made it to the top 10 European countries with the biggest number of professional developers. Also, Poland and Ukraine have the largest engineering talent pools in the CEE region. In this article we are going to make an extensive overview of the markets where you can hire Polish programmers and Ukrainian developers.
Why companies choose to hire dedicated remote developers and how it works
Many well-known companies have succeeded by building a delivery center or a dedicated development team in Poland and Ukraine. For instance, Lebara (a global telecom provider) has set up a large development center in Ukraine, partnering with N-iX. Also, the outsourcing vendor built a team for OpenText, one of the biggest ERP software companies.
There are many pricing models and types of cooperation with IT outsourcing vendors such as Fixed Price, Time and Material, Project Outsourcing, etc. Also, they may have various forms depending on the business arrangement. Yet hiring dedicated developers remotely is by far the most popular engagement model for long-lasting business relationships. So how does it work and what are its benefits?
A dedicated development team is an engagement model where a vendor provides a software development team to the client, usually on a long-term basis. Nearshore developers work exclusively for this customer. They cooperate closely with an on-site team and other remote developers and thus become an integral part of the client’s company.
A dedicated development team of engineers has a lot of advantages for businesses that want to have both flexible and sustainable cooperation with an outsourcing vendor. Firstly, it enables you to bring new valuable expertise to your business provided by the experts fully dedicated to your project.
Secondly, you can have a predictable bottom line. Since such teams are flexible and scalable, it’s easier to react to the changing requirements and capacity needs. Moreover, you do not have to worry about infrastructure, payroll management, office facilities, or administration since this is the task of your outsourcing partner.
For instance, Novell cooperated with the N-iX team for 8 years. Also, Anoto, a Swedish leader in digital writing solutions, has worked with N-iX since 2007.
So, how to hire software developers in Poland and Eastern Europe? Let’s take a closer look at Ukraine and Poland as potential destinations for hiring dedicated development teams.
Development teams in Poland and Ukraine: service market overview
Poland has one of the fastest-growing economies in the CEE region. As for the sector to hire developers from Poland, its value has increased substantially in the last decades – from $1.2B in 1995 to $9.29B in 2022.
This growth is backed up by many industry awards and rankings. According to A.T. Kearney’s report, hiring development teams in Poland is one of the most popular ways to outsource in Europe. Krakow, Poland’s second-largest city, is listed in Tholons Services Globalization City Index 2021 as one of the top 20 super cities including such factors as ‘talent pool’, ‘business catalyst’, ‘infrastructure, digital & innovation’, and others.
There are over 1,000 software development companies in Poland, with many of them included in Top 100 Global Outsourcing Companies by IAOP or Software 500. Such big brands as Microsoft, ABB, Google, Microsoft, Unilever, Motorola, Intel have an R&D center or a dedicated team in Poland.
While the Ukrainian IT sector has soared over the past years, it is hard to deny that the unprovoked war waged by russia has impacted every industry in the country. Many experts and entire companies had to leave their homes in search of a safe place to live and work. Nevertheless, even in such dire circumstances, the Ukrainian IT sector stayed strong and maintained a 95% service delivery level. As a result, most companies that partner with local vendors have hardly felt any effects on their ongoing projects.
At the moment of writing, around 1,000 IT services providers operate in Ukraine. Nearly a dozen Ukrainian companies are listed in 2022 Global Outsourcing 100 by IAOP. Also, the country comprises more than 100 R&D centers, including such global companies as Microsoft, Samsung Electronics, NetCracker, Wargaming, Magento, Oracle, Siemens, IBM, and others.
Tech talent pool
If you decide to hire software engineers in Poland, you will gain access to one of the biggest talent pools in Eastern Europe, estimated to be over 500,000 experts. Most of the programmers and almost every software development team in Poland are located in Warsaw, Krakow, Wroclaw, Poznan, or Gdansk.
Information technology is one of the most popular fields of study among Polish students. There are over 67,000 IT specialists studying in Poland and over 12,000 graduates annually. Such a constant inflow of new tech resources into the market provides the continuous growth of the market of development teams in Poland.
The extensive talent pool of IT professionals with many experienced software engineers allows to easily form a dedicated development team in Poland. Poland takes one of the leading positions (6th place) in the TopCoder ranking. It is also among the leaders (3rd place) on the HackerRank Best Developers list and the leader in Java programming.
The number of Ukrainian software developers is increasing as well. According to the State of European Tech, there are around 298,000 software developers in Ukraine.
Ukraine got 11th pace in the HackerRank rating of the countries with the most skilled software developers. Also, the same source ranked Ukrainian engineers as the first in the field ‘Security’. TopCoder, a global platform for competitive programming online, rated Ukraine 5th in its programming countries list.
Most of the developers live and work in the big cities in the safer western and central parts of the country, such as Kyiv, Lviv, and Dnipro. Hence, most dedicated development teams are also located in these cities. Over 56% of all developers in Ukraine are working in IT outsourcing and outstaffing companies.
One of the key components of successful IT industry growth in Ukraine is its strong technical education. There are over 39,000 graduates annually with degrees in technical studies in the country. Moreover, this number increases every year as IT professions are becoming more and more popular in Ukraine.
There are many favorable conditions that help companies easily form a software development team in Poland. Business Insider named Poland the third best country in the world to invest in. The 2021 A.T. Kearney Global Services Location Index has recognized Poland as the 14th most attractive IT outsourcing location. Also, Poland ranks 40th in Ease of Doing Business 2020 by the World Bank Group that measures different aspects of business regulation and their implications. As for the innovations, the country takes the 38th position in Global Innovation Index 2022.
Poland has an advantageous geographical location in the GMT +1 zone and 1-2 hour time difference with most European cities. Also, the cultural proximity to other European countries makes the collaboration with a dedicated development team in Poland very effective.
When it comes to communication, you will not have to face any language barriers. In general, when you hire Polish programmers, they have a good command of English. EF English Proficiency Index 2022 placed Poland in 13th position out of 80 countries.
Ukraine has introduced many reforms to simplify business operations and attract investments. Both the Ukrainian government and local authorities support the IT industry understanding its importance to not only develop but maintain the country’s economy. For instance, the Ukrainian government reduced labor taxes and mandatory contributions that made the taxation system much more friendly for the IT workforce.
Furthermore, Ukraine has gained industry recognition in reputable IT ratings. Before the war, Ukraine took 42nd place in The A.T. Kearney Global Services Location Index, outperforming many other Eastern European IT outsourcing destinations.
The country keeps pace with the latest international trends and promotes innovations. According to Global Innovation Index 2022, Ukraine is ranked 57th as there have been substantial improvements in education, technologies, human capital, research and other areas.
In addition, Ukraine is culturally close to the Western culture, which facilitates communication and helps in building business relationships. There is a small time difference with major European cities and the short flight distance between Ukraine and other European countries. Although Ukraine is not part of the European Union yet, the EU and US citizens do not need a visa to enter the country.
Picking the best country for outsourcing software development is an essential step on the way to choosing a vendor and setting up a dedicated development team. Hiring a dedicated development team in Poland or Ukraine will prove to be quite beneficial. These countries have booming IT industries, a robust tech education system, and many trustworthy outsourcing providers.
Moreover, they have a wide-ranging pool of software developers, which ensures easy ramp-up of your engineering capabilities. Such global companies as Lebara, Novell, Anoto, OpenText and others have a dedicated team in Poland or Ukraine, as well as long-lasting partnerships with local service providers.
Why choose N-iX to hire development teams in Poland or Ukraine?
- N-iX has over 2,000 professionals on board and offices in Krakow and Wroclaw (Poland), as well as Lviv and Kyiv (Ukraine);
- We can build and manage a software development team in Poland or Ukraine ranging from 5 to 50 experts and development centers ranging from 50 to 100 experts;
- N-iX has many industry recognitions (Clutch, GoodFirms, OpenText and Microsoft partner, GSA, Inc. 5000, Software 500, IAOP, and many more);
- We have strong expertise in custom software development, Cloud computing, DevOps, Big Data engineering, Data Science, AI/Machine Learning solutions, and more.