Software Development in Poland: Market Overview for 2025

Elen Muradian

Last updated on January 16, 2025 | 17 min read

EuropePolandSoftware development

• Poland’s software market will grow by 2029, driven by AI, blockchain, machine learning, and expanding talent.
• Poland leads in IT outsourcing with competitive pricing, skilled developers, and EU-standard alignment attracting global companies.

Located on the crossroads of Central and Eastern Europe, Poland hosts the biggest IT talent pool in the region – over 600000 IT specialists. Such a pleasant environment for the emergence and development of IT talents occurred thanks to the quickly evolving software development industry. By the end of 2024, the revenue in the IT services market was projected to reach US$9.75bn. Subsequently, it is expected to grow 6.14% annually, reaching US$13.14bn by 2029.

Such a prolific environment, as well as competitive pricing turned Poland into the go-to destination of offshoring/outsourcing for prominent Western businesses, such as Google, IBM, Apple, Amazon, and 60000 more tech companies.

This article explores the state of Poland’s software development market as 2025 approaches, highlights key trends, forecasts potential challenges, and offers insights on navigating the evolving landscape.

The Software Development Landscape

Poland’s software development sector has matured into a strong and diverse market, offering a wide range of services supported by a highly skilled workforce. With over 31% of professionals in the field aged between 25 and 29, and the majority of them holding degrees in STEM fields, the talent pool continues to attract global attention. The industry’s growth is driven by expertise in modern technologies such as cloud computing, big data, machine learning, and cybersecurity. Polish developers are also well-versed in agile methodologies and DevOps practices, ensuring efficient project management and delivery.

The Polish local IT environment is fast-evolving and highly developed. In 2022, Poland recorded 11 unicorn companies – the highest number in the region. Poland ranks among the top 4 countries in Central and Eastern Europe that collectively secured over 70% of the region’s total venture capital investments, attracting €550 million in 2022.

The geographical distribution of talent is concentrated in major cities like Warsaw, Kraków, and Wrocław, with a prominent part of developers working for international companies. A strong preference for hybrid or remote work models has further contributed to the attractiveness of Poland as an outsourcing market, making the country one of the top 5 go-to startup destinations in Eastern Europe. The cost-effectiveness of hiring Polish developers compared to their counterparts in Western Europe and the US remains a significant advantage. For example, salaries for software engineers in Poland are typically 2.5 times lower than those in the US while maintaining high standards of expertise and English proficiency.

Poland’s software development landscape is highly competitive, with numerous multinational corporations (MNCs) establishing a significant presence in the country. Global tech giants such as Google, IBM, Motorola, and Fujitsu have set up R&D centers in Poland, attracted by the skilled talent pool and favorable business environment. Additionally, the country has attracted significant investments from Israel, the Nordics, the US, Germany, and Canada, which have fueled the growth of its outsourcing industry and enhanced its reputation as a reliable destination for global businesses. Companies like Citi, Accenture, and Procter & Gamble have established offices in major Polish cities, further intensifying the competition for top-tier developers. This influx of international companies has fostered a competitive market, driving Polish developers to continually enhance their skills and expertise to meet global standards.

The Polish software development ecosystem is supported by a favorable business environment, a stable legal framework, and a well-developed IT infrastructure. This combination makes it an appealing destination for offshoring and collaborative technology projects.

Projected Growth Trends for 2025

Market Growth and Economic Highlights

Building on steady growth, Poland’s IT market is anticipated to reach approximately $10.35 billion by the end of 2025, reflecting a projected annual increase of 6.14%. This expansion aligns with the nation’s focus on digitalization, supported by government-led initiatives such as the rollout of additional broadband access and further development of 5G networks. These infrastructure improvements aim to solidify Poland’s role as a digital hub within the European Union, fostering continued investment in the tech sector.

Emerging Technologies Gaining Traction

Poland is poised to strengthen its foothold in emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT). AI applications, particularly in predictive analytics and automation, are growing rapidly across industries like healthcare, logistics, and finance. Blockchain technology is increasingly used for secure data management and decentralized finance (DeFi), while IoT enables innovations in urban planning, manufacturing, and home automation. These advancements are underpinned by Poland’s emphasis on research and a strong academic foundation, further accelerating the adoption of cutting-edge technologies.

Anticipated Rise in Outsourcing Demand

Poland continues to attract global companies seeking reliable and cost-effective IT outsourcing solutions. With a highly skilled talent pool, cultural compatibility with Western markets, and proficiency in advanced software development practices, Poland is expected to see growing demand from both established businesses and startups. Specializations in areas such as cloud computing, cybersecurity, and DevOps further enhance the country’s appeal. As businesses look to optimize their operations in an increasingly digital world, Poland’s role as a trusted outsourcing partner is expected to expand in 2025.

Talent Pool and Workforce

Poland’s IT workforce continues to expand, cementing its position as a hub for tech talent in Europe. With more than 600000 IT professionals, the country’s workforce spans diverse roles, including software engineers, cybersecurity specialists, and data analysts. A growing emphasis on cloud computing, AI, and blockchain reflects both the global demand and Poland’s adaptability to emerging technologies​.

By 2025, Poland’s tech workforce is expected to grow steadily, driven by its education and training initiatives. Over 15000 tech graduates join the industry annually, supported by highly regarded universities like the University of Warsaw and AGH University of Science and Technology. These institutions, alongside coding bootcamps and government-backed programs, equip professionals with cutting-edge skills to address talent shortages and support industry demands. Upskilling opportunities also target areas like AI and DevOps, ensuring Poland remains a competitive destination for global IT outsourcing​.

In addition to formal education, Poland fosters innovation through strong collaboration between academia and industry. Partnerships with tech giants, internships, and hackathons create a dynamic environment for continuous skill development. These efforts not only enhance the workforce’s capabilities but also ensure a talent pool well-prepared to address the challenges and opportunities of 2025​.

Business-Friendly and Cost-Effective: Why Companies Choose Polish Market

In 2025, Poland will remain a highly attractive destination for software development outsourcing due to its competitive development rates and favorable business environment. The rates for software development in Poland are considerably lower than in Western Europe and the US. For example, while a senior Java developer in the US may earn around $170000 annually, the same developer in Poland would earn up to $70000​. This cost advantage, coupled with the country’s skilled workforce, makes Poland a cost-effective option for companies looking to optimize development costs.

Poland’s business environment is also bolstered by government initiatives and tax incentives that make it appealing for both local and foreign businesses. Since 2018, Poland has offered special economic zone benefits, including tax exemptions for investors and favorable conditions for startups and small businesses. The corporate income tax is set at 19%, but for startups, a reduced rate of 9% is available for companies with annual revenue below €2 million​.

Furthermore, Poland’s strategic location in Central Europe provides proximity to major international markets, facilitating communication across time zones. As an EU member, Poland enjoys strong economic ties with other European countries, ensuring regulatory stability and access to a well-developed infrastructure​.

Poland vs Romania: Popular Destinations for Outsourcing in the Region

When evaluating why companies choose Poland as an outsourcing destination in Eastern Europe, it is essential to understand the condition of the region’s competitive markets. Poland and Romania emerge as prominent contenders, each offering distinct advantages.

Talent Pool and Expertise

Poland boasts over 600000 IT professionals, with a significant portion specializing in modern technologies such as cloud computing, big data, machine learning, and cybersecurity. The country’s emphasis on STEM education ensures a continuous influx of skilled developers.

Romania, with over 100000 IT professionals, also places a strong emphasis on STEM disciplines, producing a skilled workforce capable of meeting the demands of the outsourcing market. Romanian developers are known for their expertise in various programming languages and emerging technologies.

Cost Competitiveness

In Poland, software development rates are competitive, with senior developers earning approximately $70000 annually, which is about 2.5 times lower than their U.S. counterparts. This cost-effectiveness, combined with high-quality output, makes Poland an attractive outsourcing destination.

Romania offers competitive rates for software outsourcing of approximately $34000 annually, with higher rates in major tech hubs like Bucharest. These rates reflect the quality of services delivered and are influenced by factors such as city, technology, and seniority level.

Business Environment and Infrastructure

Both countries are European Union members, providing regulatory stability and access to a vast market. Poland’s strategic location in Central Europe and well-developed infrastructure facilitate seamless collaboration with Western markets. Romania’s favorable business environment, streamlined administrative processes, and robust intellectual property protection contribute to its appeal for outsourcing ventures.

Challenges

Poland faces challenges such as competition for skilled talent and rising labor costs, which may impact its cost-effectiveness over time. Romania encounters challenges in talent retention and competition from neighboring countries, necessitating continuous innovation and investment in the IT sector.
Both Poland and Romania present compelling opportunities for software development outsourcing, each with unique strengths. Poland offers a larger talent pool and strategic location, while Romania provides cost advantages and a favorable business environment.

Potential Challenges

Poland’s software development workforce is set to expand, fueled by both domestic growth and an influx of IT talent from neighboring countries. However, this rapid market expansion could lead to a talent crunch, especially in highly specialized fields. As the demand for software developers and other tech specialists rises, Poland’s existing talent pool may struggle to keep up with the increased demand from both startups and multinational corporations.

Rising wages, particularly for developers in niche technologies, are putting pressure on companies relying on cost-effective outsourcing. While Poland still remains an attractive destination compared to Western Europe, the growing demand for developers means that salaries in Poland’s tech sector have seen a noticeable increase. In 2024, junior developers earn between USD 18000 and USD 36000, with senior developers commanding salaries up to USD 70000. This upward trend in wages may impact the country’s ability to maintain its cost-effectiveness in comparison to other countries like Ukraine and Romania, which continue to offer relatively lower rates​.

Moreover, the increasing reliance on foreign talent may place additional strain on the Polish labor market. With tech professionals in high demand, competition for skilled workers could intensify, especially in larger cities like Warsaw, Kraków, and Wrocław, where the majority of IT companies are located. This concentration of demand in specific areas could exacerbate talent shortages in smaller regions, highlighting the need for companies to expand their recruitment efforts nationwide.

While the Polish software development workforce is expected to grow, the challenges posed by rising demand, wage inflation, and talent specialization could create potential bottlenecks that the market will need to address. Strategic investments in education, training, and relocation incentives for talent in underrepresented regions will be crucial for Poland to sustain its competitive edge in the global IT outsourcing market​.

Innovations and Key Developments by 2025

Even though the Polish software development market may face the potential challenges described above, its growth and development by 2025 remain significant. The continued demand for software solutions and innovation, along with Poland’s expanding tech ecosystem, ensures that the market will thrive in the coming years.

By 2025, Polish companies are expected to lead in the development and application of emerging technologies such as AI, blockchain, and cybersecurity. Many Polish startups are already focusing on AI-driven solutions that enhance automation and improve data analytics, with growing investments in blockchain technology for secure transactions. Additionally, the cybersecurity sector is evolving rapidly, with Polish firms developing cutting-edge solutions to safeguard digital infrastructures against cyber threats​.

In the coming years, Poland’s startups in industries like FinTech and HealthTech are expected to rise in prominence. These companies are creating disruptive solutions in digital payments, healthcare platforms, and telemedicine services. As international recognition of these projects grows, Poland is becoming an increasingly attractive destination for investors looking to fund innovative startups​.

Furthermore, Poland’s position within the global tech market will continue to strengthen, thanks to its collaboration with international partners. These collaborations are expected to create a robust ecosystem that facilitates knowledge sharing, technological advancements, and access to global funding opportunities​.

Hence, despite challenges, the Polish software development market will continue to expand, driven by technological innovation, a vibrant startup scene, and increasing international cooperation.

DevsData LLC: A Polish Leader in Software Solutions

Website: www.devsdata.com
Company size: ~60 employees
Founding year: 2016
Headquarters: Brooklyn, NY, and Warsaw, Poland

Headquartered in Warsaw, DevsData LLC stands out as a leading software development and IT recruitment agency in Poland with over 8 years of experience, providing top-tier services across various industries. With a global reach and a client base spanning Europe, North America, Asia, and beyond, the company has earned a 5/5 satisfaction rating on platforms such as Clutch and GoodFirms. Their success is built on a combination of industry expertise, a global team, and a deep understanding of their clients’ unique needs.

What sets DevsData LLC apart in the software development sector is their dual approach — the company specializes in both software development and recruitment. DevsData LLC has a team of top-tier Google-level engineers specializing in custom software development, with expertise in areas such as artificial intelligence (AI), machine learning, and data science. With over 100 successful projects, including complex back-end systems and web development, DevsData LLC serves a diverse range of clients, from multinational corporations to startups in sectors like healthcare, e-commerce, and finance. Their client list includes well-known brands like Cubus, Skycatch, and Novartis.

In addition to development services, DevsData LLC also offers comprehensive recruitment solutions backed by extensive experience collaborating with global corporate clients and high-growth startups across countries such as the US and Israel. With a database of 65000 candidates and a government-approved recruitment license, the company provides precise hiring solutions tailored to each client’s needs. Operating on a success-fee model, DevsData LLC ensures risk-free hiring with a guarantee period for added assurance.

The company’s rigorous hiring process, which includes in-depth interviews, assessments by senior software professionals, and a 90-minute problem-solving challenge, guarantees the selection of top-tier candidates with strong technical skills, exceptional communication, and problem-solving abilities. DevsData LLC has successfully completed over 100 projects for more than 80 businesses, cementing its reputation as a reliable partner in both recruitment and development.

A recent success story for DevsData LLC involved a comprehensive recruitment project for a leading financial services firm. DevsData LLC’s targeted approach included deploying three dedicated recruiters, leveraging multiple channels like job boards, LinkedIn, and social media, and conducting detailed technical and personal assessments of candidates from various regions, including Asia, Eastern and Western Europe, and the US. Initially, the client intended to hire just one developer, but after seeing the exceptional quality of candidates provided, they decided to hire four developers and even establish a new engineering branch in Poland. This project showcases DevsData LLC’s ability to meet high demands and deliver results that exceed expectations. More about this case here.

By combining software development expertise with tailored recruitment services, DevsData LLC offers a flexible, client-focused approach that helps businesses achieve their goals. Their personalized services, competitive pricing, and high-quality standards make them a trusted partner for companies looking to succeed in the fast-paced world of technology.

Contact DevsData LLC via email at general@devsdata.com or research their services more at www.devsdata.com.

Address:
DevsData IT Recruitment Agency Poland
Al. Jerozolimskie 181B,
02-222, Warsaw, Poland
poland@devsdata.com

Bottom line

Poland’s software development market is rapidly growing and evolving, making it one of the most competitive and promising destinations for IT outsourcing and tech investments in Central and Eastern Europe. The country’s thriving tech ecosystem, bolstered by a large and diverse talent pool of over 600000 IT professionals, is attracting global businesses and startups alike. With an annual growth rate of 6.14% projected for the coming years, the market’s expansion is set to continue, driven by advancements in technologies like AI, blockchain, and IoT. As industries such as fintech, gaming, and healthcare increasingly seek software solutions, Poland’s software development sector is positioning itself as a leader in providing high-quality, cost-effective services.

Looking toward 2025, Poland’s workforce is expected to grow and diversify, with universities and training programs contributing to a skilled and adaptable tech talent pool. However, challenges such as potential talent shortages and the competitive nature of the market could impact growth. Economic factors and geopolitical events also pose risks that may influence the software development landscape, but Poland’s strong business environment, attractive tax incentives, and government initiatives should help mitigate these challenges.

As companies continue to seek innovative solutions and cost-effective development options, Poland is well-equipped to meet these demands with cutting-edge technologies and robust infrastructure. The country’s growing prominence in the global tech market is clear, with a steady influx of international collaborations and investments anticipated through 2025 and beyond.

DevsData LLC stands out as one of the key players in Poland’s software development sector. With over 8 years of experience, a diverse and highly skilled team, and a client-focused approach, the company offers top-tier custom software development and recruitment services. DevsData LLC’s expertise in AI, machine learning, and data science, coupled with its comprehensive recruitment strategies, ensures it continues to deliver exceptional results to clients worldwide. The company’s adaptability and personalized service make it a trusted partner for businesses looking to harness Poland’s dynamic software development market.

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Elen Muradian Copywriter and Marketer

As a versatile and accomplished writer with 3+ years of experience in digital media publishing, Elen is skilled in crafting engaging content across various subjects, styles, and media. In her previous experience, Elen worked closely with editorial teams and visual artists to bring content to life. She always seeks opportunities for personal and professional growth and is eager to contribute to the writing field.

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