The CIS countries are home to many talented programmers. Today, we will explore whether it’s worth opening an IT business in Poland and bringing these specialists here. What is the current state of the IT market in Poland, how much does a programmer cost and bring in for a business owner, and what are the salaries in this field? Dmitry, the owner of a software house in Poland, will help us understand. Dmitry has been living here for 8 years, and that’s enough time to get a solid grasp of the inner workings of the IT business.
Let’s take a look at the interview. The full text of the conversation is below.
Business Owner’s Opinion on Poland’s IT Sector
IT business in Poland for 6 years — do you regret it?
— I don’t regret anything. Everything is learned through practice. You won’t know until you try.
Tell us about the level of Poland’s IT market.
— Let’s clarify: we do outsourcing. Our main income comes from providing programmers who specialize in certain programming languages. Poland is developing rapidly compared to other countries, and the situation is changing dynamically. Six years ago, it was a good and reasonable idea, and the difference in developer wages wasn’t much between Ukraine (where we have an office). Now, the situation has changed. It’s become significantly more expensive.
The second point is the growing competition from large corporations that keep entering Poland and luring developers away. Poland is approaching the list of countries that hire developers from abroad. Companies like Google and Microsoft are coming because the country is cheaper than the U.S. or the U.K., and Poland has a strong educational system that produces good specialists. Overall, it’s still possible to start, but it’s more difficult and expensive now.
Let’s look at the business from the inside. First, the clientele and the market. Do you work with Polish clients or initially focus on the European/US market?
— That was the initial plan. Poland is outsourcing in Eastern Europe. This includes logistics, IT, and call centers. As I mentioned earlier, it’s a cheaper country, and the government offers certain discounts to corporations.
There are Polish clients, but mostly, Poles work with Poles. And honestly, I don’t see the point — Polish clients pay less.
Are there many Polish software houses in the market?
— The field is quite developed, there are many software houses in Poland, and there are more popping up every year globally. I see this as a problem. There’s demand and supply. I predict that soon demand and supply will level out, leading to a price war. When that happens, the IT niche will be in trouble.
Do you mean that when prices level out, programmers will be less in demand?
— That’s logical. Employers pay big money to programmers because the market dictates these terms, but if there are many willing candidates, employers will have the luxury of choosing.
Would you hire a broader specialist or a narrower one?
— It depends on the project’s tasks, but it’s more rational to hire someone flexible who knows several technologies.
Based on what you’ve said, being a specialist in multiple areas will be a must-have.
— It already is. Eight years ago, there was the profession of a “web designer,” someone whose job was just to design websites. Now, if you don’t know anything else, it’s unlikely you’ll attract the employer’s attention. Our company has high requirements.
What about infrastructure? Events, community, supporting tools.
— The IT community here is one of the strongest. Plus, it’s actively supported by the authorities.
Are there clubs?
— There are even free courses and subsidy programs from the government. Various hackathons are organized with prizes and opportunities to meet participants from different countries.
Personnel: Should you hire Ukrainians, Russians, or Poles?
— Based on my experience, you can hire anyone. It depends on the size of the company. In large companies (over 100 people), processes are streamlined, and it’s comfortable for everyone. In our case, we have 30-40 people. We don’t aim to become a large company because that brings big costs, loss of flexibility, etc. In small companies, what matters is the person and how they fit in with the team. We’ve had Poles working for us, but they didn’t stay long. We’re mostly focused on Ukrainians. I think it’s all individual.
Is it easier and quicker to onboard someone in their native language?
— It depends on the person’s soft skills. If they communicate well with people, they can integrate into any team.
Regarding salaries. A person moves here and opens a Polish office. What does the market dictate, what are the prices for IT specialists?
— It depends on the technologies and experience. A Senior gets slightly higher than the market salary. They’re in demand, and headhunters chase after them. Juniors — it depends on what you negotiate. Salaries range from 1,000 to 5,000 euros net. Plus, you need to add taxes. That’s the main issue. Taxes in Poland are high.
What about the government? Does it help or hinder, and how difficult is it to run a business here?
— It’s a complex question. There are periods when I feel differently about the government. Setting aside the emotional aspect, I’ll say objectively that every year it becomes more difficult in terms of taxes and reporting. The government is becoming stronger, and the stronger the government, the more it protects its citizens. I don’t like that it complicates doing business. It’s hard to compete with Ukraine, where IT specialists are cheaper due to tax policies. If you compare with Germany, there they support startups and innovations. I think Poland is striving for the same level.
I know directors of IT companies who open offices in countries where the cost of specialists is much lower to reduce expenses. Top corporations have offices in India, and there are Indians who can code well.
Let’s go back to the calculator and mention a couple of important parameters. What do you think is the profitability of the business?
— If you work transparently, pay taxes, and provide various perks in the office for specialists, the margin drops. That is, the smaller the company, the fewer expenses, the higher the margin.
How much money does one person bring in?
— The average margin in large companies is 10%, and in small ones — 20-25%. But there are many hidden costs — employee vacations, sick leaves, public holidays, mistakes made by the programmer, all of which are paid by the business owner.
Thank you, Dmitry, for the information. The decision of whether or not to open an IT business in Poland is yours. We initially chose this country not because of clients, but as a place to live, and it suits us.
