The IT industry in Poland is among the most crucial for the national economy. It has high basic principles and huge growth in its future. There are some things that are influencing this growth like the state budget compensation, the number of experts available and the speed at which it is developing. The country is also known for its economic stability, making it able to provide services that have been difficult to find because of the global crisis.
We are going to go over some of the reasons why it is worth investing in the Polish IT industry, along with evidence to encourage you.
The Development of the market
There are numerous reasons to invest in Poland but regarding its growth, we can narrow it down to two. The first is the speed at which domestic demand is growing. The second reason is that companies like IBM, Mircosoft, HP, and Google all choose Poland as a place of business. Poland used to be a good place to buy and sell, now it is a sound place to invest.
PMR produced various statistics relating to the IT industry in Poland, these included hardware, software, and IT services. In 2015, the value of Poland’s IT industry was 32.6 billion PLN. The figures for 2017 were estimated at 35.8 billion PLN. Most of the income came from the sale of computer equipment. IT services (like outsourcing) and software distribution also predicted growth at 45% in 2019.
Then when you look at the numbers published by Computerworld TOP 200 ranking, you can see the cumulated capital for the largest IT companies in Poland in 2016 was 63 billion PLN. This staggering figure was thanks to businesses that deal with electronics, considering the subcontractors in Poland too.
Euromoney estimated the growth in the IT services field would grow annually by 8.2% between 2015 and 2019. In the same time period, the software sector was set to grow by 7.2% annually and the hardware industry at 3.2%.
Human Capital
Poland’s IT industry in centers is increasing in value mainly because of the number of employees available. Poland, unlike many countries, has a surplus of workers. This surplus gives Poland the opportunity to provide services to clients abroad.
Labor costs are between 20-50% lower than neighboring countries in Western Europe. Aside from that, Poland rises above Western European countries in terms of the high quality of services Polish experts provide. You only have to look at the results of international programming competitions to see the level of abilities and expertise of the Polish youth. The International Olympiad in Informatics and Hello World open are two competitions that prove the standards.
Outsourcing is one of the dynamic sub-sectors of the Polish IT industry. There are currently 45,000 employers but this is likely to be close to double within just two years.
Compensations, demand, and modernity
Poland’s growth has obviously been boosted by investment incentives that are on offer in some areas. An existing company that wishes to expand or take on a new project can benefit from a range of regional aid. Some of this aid comes in the form of non-repayable funds from either the EU or the state. In some areas, there are tax exemptions for people who choose to invest there.
Some things that are likely to influence the IT industry in the next few years are:
- The pubic sector rate of spending
- Small and medium companies
- Modern technology
- The development of IT services such as outsourcing
Small and medium companies are going to have higher demands for software, hardware, and IT services thanks to the necessity of having a competitive advantage. There is also a curious pattern in the demand for first-class solutions by small businesses.
What we have mentioned so far are just some of the positive influences on Poland’s IT industry, there are more! More and more people are going to be using cloud computing in both the private and public sectors. The number of Internet users is constantly increasing and so is our need to be up-to-date with what technology can offer us.
So the facts and figures regarding Poland’s IT industry, its growth and the range of services should be enough to get your excited about investing in this country.