Nearshoring to Poland: Similarities and Differences with Ukraine

The global talent shortage in the software development industry is unlikely to disappear in the foreseeable future. According to Statista, in 2020, 54% of global organizations experienced a talent shortage that held them back from further development. If you need to back up your already-existing team or create a remote team from scratch, nearshoring to Poland sounds like a decent plan. Let’s find out how software nearshoring to Poland can positively impact your software development efforts and compare it with nearshoring to another talent hub, such as Ukraine.

What is nearshoring?

Nearshoring is the practice of contracting out work to be performed in a nearby country. Although the term is similar to outsourcing, its meaning implies particular geographical proximity to the chosen country, while outsourcing is an umbrella term for all business activities performed abroad. Nearshoring is also different from offshoring as it covers transferring operations to a neighboring country rather than one that is further away.

It’s also crucial to differentiate between nearshoring and onshoring. The latter is moving business operations back to the home country. It’s often done in response to concerns about the offshoring challenges, such as loss of control over the quality of products or services.

Why go for software nearshoring to Poland?

There are many reasons to nearshore IT services to Poland, but some of the most common reasons include reducing costs, accessing skilled labor, and improving communication.

Reducing costs. When companies choose to nearshore, they often do so to take advantage of lower wages in other countries. Nearshoring services in Poland can help reduce costs associated with labor, infrastructure, and other overhead expenses.
Accessing skilled labor. One of the most significant advantages of nearshoring is that it provides access to skilled labor that may be difficult to find in your home country. When companies go with a nearshore approach, they get the advantage of lower wages in other countries. Nearshoring also eliminates the need for expensive infrastructure and other overhead costs associated with traditional outsourcing.
Improved communication. Another crucial advantage of nearshoring is that it can help improve communication between the company and its outsourced IT service provider. When companies can communicate more effectively, they can often avoid or resolve issues more efficiently.
Staying flexible. Decent nearshoring to Poland gives you the ability to scale your workforce up or down as needed, allowing you to be more agile in responding to changes in demand.
Increased efficiency. When nearshoring to Poland (or any other country), you can improve communication and collaboration by locating your team closer to your customers, leading to an increase in the team’s productivity.
Enhanced customer satisfaction. With nearshoring, you can provide your customers with a local point of contact, improving customer satisfaction.

Why use nearshore IT services in Poland?

There are many factors to consider when deciding which countries are suitable for nearshoring. One important factor is the availability of skilled workers. Eastern Europe has a large pool of IT specialists, making it an attractive option for companies looking to nearshore. Additionally, labor costs in Eastern Europe are typically lower than in Western Europe, making it a more cost-effective option.

Nearshoring to Poland is an increasingly popular option for Western businesses thanks to its relatively low costs, well-developed infrastructure, and a large pool of English-speaking talent. Poland is also located in Central Europe, making it easily accessible for businesses based in the region. There are many reasons to go with software nearshoring in Poland, including the following:

Poland has a large pool of highly-educated and skilled workers, especially in engineering and programming. It makes it easy to find talented staff for your nearshoring team in Poland.
The cost of living and doing business in Poland is relatively low compared to Western European countries.
Poland has a large population of highly-educated, English-speaking workers.
Poland is situated in a convenient location for companies who want to do business in both Eastern and Western Europe.
The Polish government is very supportive of foreign investment and has created several special economic zones which offer tax incentives to companies.
Poland is in the same time zone as much of Europe, making coordination and collaboration between teams easy.
As a member of the European Union, nearshoring to Poland offers businesses access to a large and lucrative market.
Poland has a stable political and economic environment, which provides a secure and predictable business environment that can help reduce risks associated with running an IT operation.
Poland is home to some of the world’s leading technology companies, such as Accenture, IBM, Cisco, Uber, and more. It provides access to the latest tools and technologies to help your business stay ahead of the competition.

Why nearshore to Ukraine?

Ukraine is one of the world’s largest markets for nearshore software development services. The industry is proliferating, with the overall value peaking at $6 billion, which roughly represents the country’s 4% of GDP. Nearshore providers in Ukraine have an excellent reputation for their expertise in technology and programming. Additionally, most IT professionals have a good grasp of both written and spoken English and are comfortable communicating with teams around the globe. They are also well acquainted with the latest trends in technology and can easily adjust their services to meet current needs.

By taking your software development activities to Ukraine, you will get access to the following benefits:

A rich tapestry of technological talent. Ukrainian engineers have a long history of performing in such IT companies as Facebook, Google, Microsoft, and many others. Working with them, you can share experience and best practices to maximize the effectiveness of your development processes.
Proximity to European markets. Ukraine is located in Eastern Europe, so it’s well-positioned to serve European markets.
A favorable time zone. Ukraine is in the same time zone as many Western European countries, making communication and coordination easy.
Cost-effective services: Ukraine offers cost-effective IT outsourcing services, making it a budget-friendly option.
English-speaking professionals. Most IT professionals in Ukraine speak English adequately, making communications more streamlined, easy, and without any significant blockers or barriers.

The collaborative power of Ukrainian and Polish nearshoring in 2023

In 2022, significant events, including the war, have impacted the global IT market. Despite these circumstances, the Ukrainian IT market showed incredible resilience, with many global companies currently nearshoring in Ukraine. This can be chalked up to Ukraine’s well-established digital infrastructure and a network of existing partnerships developed during pre-war times. However, many Ukrainian specialists were compelled to leave the country, often finding new opportunities across Europe, including in Polish IT hubs.

According to a recent survey, 35.2% of respondents relocated from Ukraine to Poland after February 24, 2022. Thus, Poland has been experiencing a significant influx of skilled professionals from Ukraine. Polish IT companies have been actively recruiting Ukrainian specialists who bring their expertise as well as adaptability to changing circumstances. That way, developers from Ukraine have played a crucial role in solidifying nearshoring in Poland. So, when you use nearshore services in Poland, it’s possible that you cooperate with Ukrainian developers as well as Polish. For instance, we at nCube have established a software development presence in Warsaw and are ready to build tech teams for our clients in this vibrant tech hub.

Overall, there’s definitely a synergy between the Ukrainian and Polish nearshore markets, which strengthens the IT sectors of both countries. The combination of Poland’s thriving IT sector and the Ukrainian skilled tech workforce creates new opportunities for businesses looking to nearshore in Poland.

Bottom line

Overall, nearshoring to Poland presents some similarities and differences when compared to Ukraine. On the one hand, both countries offer a large pool of technically-skilled workers and relatively lower costs than Western European nations. However, some key differences should be considered on your company’s side. For instance, software nearshoring to Poland is much more stable than in Ukraine, primarily due to the political and socio-economic stability. English proficiency is generally higher in Poland, which can be a significant advantage when working with foreign businesses. Ultimately, whether or not to make the most of nearshore IT services in Poland should be based on a careful evaluation of the specific needs of the business in question.

Yulia Borusiuk