Nearshoring

The development of information technologies and the ability to work remotely from anywhere in the world have contributed to changes in the dynamics of the labour market. For an increasing number of enterprises, the borders of countries and the distances between them lose their importance, and international cooperation is expanding. For many years, Poland has been listed as one of the best locations for IT outsourcing in the nearshoring model. Among the main reasons for this state of affairs, we can mention above all the high competence of Polish IT specialists and lower employment costs.

What is nearshoring?

Nearshoring is one of the most popular IT outsourcing models. It relies on the services of external specialists living in relatively close regions - geographically and culturally. The main advantages of this model are:

• access to IT consultants with different competencies - nearshoring allows you to use the services of world-class specialists specialising in various areas of it. Thanks to this, it is easy to implement solutions tailored to the needs of a particular enterprise and help it in its further development.
• cost optimization and cybersecurity - the use of nearshoring is very profitable from the perspective of a Western company. At the same time, working with world-class specialists means working in a safe environment.
• no cultural barriers and smooth communication - thanks to the fact that specialists come from parts of the world that are culturally identical and cover the same time zone, contact between the company and the IT consultant is fast, efficient and trouble-free.

Nearshoring has developed particularly strongly in the countries of eastern Europe (i.e. Poland, Czech Republic, Ukraine), which offer high-quality services provided by experienced, competent IT specialists.

Cooperation with German and Scandinavian companies

Countries that are particularly eager to cooperate with Polish companies are, first of all,  Germany and Scandinavian companies. Until a few years ago, German companies expressed little interest in IT outsourcing. However, during the pandemic, market trends began to change, and our western neighbours quickly found themselves at the forefront of European countries most eagerly focused on external cooperation. Increased trust in outsourcing has translated into the search for specialists who have high competence, but the price of their services is lower than in the case of onshoring. Research conducted by Whitelane Research shows that as many as 73% of companies using nearshoring decide to continue working in this model - to the same or even greater extent. Statistics show that projects implemented within the framework of nearshoring cooperation are characterised by exceptionally high quality.

Why is outsourcing to Poland so profitable?

Poland is one of the most popular areas for establishing nearshoring cooperation for Western companies. The main advantages of such cooperation are:

• A large number of qualified programmers - currently the biggest problem of the IT industry in western countries is staff shortages. According to experts, more than 70% of employers in the IT industry have experienced difficulties in hiring specialists with specific skills, and from year to year the problem continues to grow. The search for IT consultants abroad seems to be an excellent solution to fill this market gap. The number of qualified programmers in Poland is much higher than in Germany or the Scandinavian countries.
• Geographical and cultural proximity - the reason why Western European companies choose to cooperate with their neighbours is, above all, a similar organisation and work culture. Cooperation with Asian countries, where work is completely different, can lead to many misunderstandings and communication problems. Moreover, such countries are in a different time zone, which makes it difficult to communicate effectively in real time. Entrepreneurs from Germany and Scandinavian countries are sure that working with Poles, they work with people who share a similar work culture. Additionally, Poles are considered to be one of the hardest working nations in the world and significantly enrich the economy of many other countries.
• Lower rates - the rates of Polish programmers are much lower than those of their Western colleagues, which is crucial for employers. The average wage ratio is 2:1, which means that the owner of the company can hire two Polish programmers for the price of one German or Scandinavian. The costs of recruitment, benefits, healthcare, taxes or office maintenance are also important. After taking into account all these factors, it may turn out that the decision to hire Polish employees may cost several times less than cooperation with specialists from your own country.
• Time saving - another important issue is the time it takes to hire the right candidate. For example, the recruitment process in Finland takes an average of six months. When choosing a Polish employee, the waiting time can be reduced to one month. Thanks to this, it is possible to carry out important projects and develop the company much faster.
• Excellent skills - Polish programmers achieve excellent results and are recognized as one of the best specialists in the world. According to the Programming Olympics, Poles rank  third among the best programmers in the world.
• Fluent communication - Poles have good knowledge of English. According to Wikipedia, as many as 37% of all Poles know this language. Therefore, foreign entrepreneurs are sure that communication will be smooth and trouble-free.

Development of IT services in Poland

It cannot be denied that IT services in our country have developed very dynamically, which means great news not only for Polish, but also foreign entrepreneurs. In addition, job offers include not only people with strict specialisations, but also administrative staff. It turns out that employing Polish recruiters and administrative staff is very profitable. Additionally, the innovativeness of IT processes increases. Proven solutions are implemented with the support of foreign partners, which greatly improves all processes and allows you to develop both the company and the competence of Polish specialists.

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