German companies cooperate with Polish ones – the potential of Silesian businesses

date: 1 April 2021
reading time: 5 min

Poland is quickly becoming the go-to place for investments for multiple high-profile companies and enterprises. There has been considerable growth in terms of foreign capital flowing into the Polish economy from multiple European countries and the USA. There are 115 data centers operating in Poland at this time, and additional investments are planned by Google and Microsoft to further expand the network. Currently, some of the most prominent investors are German companies that choose to allocate their budget to Silesian companies. Silesia can be regarded as a technological and business hub that Germans are more than keen to invest in.


State of outsourcing in Germany

While German companies have been reluctant to go for outsourcing over the years, the trend is now going the other way. In terms of IT onshoring, German businesses were the most likely to do so in 2019 out of all European countries. Interestingly, this figure has dropped considerably, from 22% to 13% in 2020.

This can only lead us to think that Germans will be keener on off- and nearshoring in the coming years. Additionally, according to a study by Handelsblatt, the technological skill gap in Germany has increased three-fold from 2014 to 2019.

Out of 338,000 jobs at business service centres, 82% of those are in foreign establishments. This is proof of the fact that international companies are keen on establishing partnerships with foreign, with Polish among them, service providers. According to the survey conducted by the Chamber of Foreign Trade 95 per cent of German companies that have invested in Poland would choose the country again as an investment location.

A study by Whitelane states that out of 450 German IT sourcing relationships, 73% of respondents will outsource at the same rate or more. Another study illustrates how satisfied German Information Services companies are with outsourcing their projects.

As you can see, nearshoring is on par with offshoring. What is more, the nearshored project results are of higher success rate when compared to other outsourced ones.

A lot of international enterprises decide to put their trust in Silesian workers, and Germany is following suit. Some of the most prominent ABSL-listed companies with offices in Silesian city Katowice include IBM, Asseco, Unilever, and Fujitsu.

German companies aren’t slacking, signing new contracts with Polish workers. For example, Diebold Nixdorf, a banking and retail innovation company, has decided to hire almost 100 Azure, .NET, Angular, and React specialists from Katowice.

Another case is Arvato Financial Solutions from the Bertelsmann Group, hiring 200 workers from Katowice specialising in state-of-the-art financial services.

Other companies like TUV Rheinland and Knauf also have offices situated in Silesian Altus, hiring well over 300 employees specialising in IT, marketing, HR and finance.


But why is Poland such a desired country for outsourcing?

After the fall of communism, there was a boom in start-ups. The economy still benefits from this broad range of self-employed companies today. One of the examples is the bus manufacturer Solaris, which is a leader in the development of electric buses.

There are many benefits that German companies can take advantage of in terms of outsourcing in Poland, especially for the IT sector.


Polish talent is among the best in the world

Polish developers are some of the most skilled professionals. Not only are they avid practitioners of agile methodology, but they’re also some of the most qualified specialists in the world. A significant part of these developers are Computer Science graduates, which is studied by 70,000 people annually at Polish universities.

Additionally, a significant portion of 1,300 Polish software houses are used to working with international clients who have a broad spectrum of requirements, meaning that the coders can find their way in all situations.

On top of that, Polish developers were ranked as the third most-skilled professionals in the world by HackerRank and 7th on TopCoder. Major companies like Google, IBM, and Motorola have put their trust in Polish talent, and they continue to do so.


Great price to quality ratio

Software development prices in Poland are still on the low end. Taking into consideration experience and high competences of the specialists. The code provided by Polish developers is always top-notch so companies that decide to outsource in Poland can maintain peace of mind as they’re choosing the most cost-effective solution.

When choosing the best IT partner one can check the list of best software houses in the country by Clutch.


Cultural and geographical neighbourhood

Western European countries, including Germany, are in an excellent position to outsource in Poland. Nearshoring is by far the most effective method, combining superb quality, affordable prices, and a well-established work ethic.

Culturally, Poland is relatively close to Germany, so companies in both these countries operate in similar ways.


Excellent communication

The lack of timezone and language issues is another advantage. Poland, similarly to Germany, is among the most English-proficient countries in the world. In fact, the German language is currently required in many Polish companies, making cooperation even smoother. The GMT+1 timezone makes the communication seamless and effective.

Polish service providers are known for fast responses, too, as they consider each client as the top priority. Besides, the Silesian region is a stone’s throw away from Germany, so travelling there is not that big of a hassle. Still, at the time, everything takes place online, so the timezone lets you communicate freely.


Stable economy

Currently, even with the pandemic at large, Poland has experienced the fourth lowest GDP loss. The Polish IT market is also going strong. It has been and still is, experiencing a stable growth of around 6.3% annually.


Wrap-up

There are many reasons to go with a Polish IT partner. If you’re after a reasonably-priced, top-quality nearshore solution, Poland may well be the best choice for you.

Want to know Polish IT companies better? Check our post on 15 skyrocketing Polish IT Companies to watch in 2021.

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