Poland has a large and growing IT market, with over 2 million Facebook users interested in programming. While Krakow has the highest concentration of IT talent, programming interests are well distributed across the country. Setting up an office in Poland provides access to a large pool of developers at costs generally lower than other EU countries, though competition for talent is high. Relocating developers from Ukraine may be difficult due to lower living standards in Poland compared to Ukraine. Overall, Poland represents an attractive nearshore development center within the EU.

1. Poland IT opportunities
Internal review

2. Poland General Info
Sixth-largest in the EU
economy.
Population 38.5 millions
GDP 2015 $491 billion
Expected economy growth
3.7% in 2015
Unemployment 10.6%

3. Taxation of Copmanies
Corporate income tax 19%
Withholding tax
• Dividends 19%
• Interest 20%
• Royalties 20%
Value added tax 23% (standard
Rate)

4. Taxation of Individuals
Personal income tax - regular
progressive rates
(applicable e.g. to income
from dependent services)
18% and 32% (for income
exceeding PLN 85,528)
Dividends 19%
Interest 19%
Royalties progressive 18% and 32%
Capital gains 19%
VAT 23%

5. Social Insurance Contributions

6. Full Deloitte Taxation review
http://www2.deloitte.com/content/dam/Del
oitte/pl/Documents/Reports/CE_TandI_Rapo
rt_2014.pdf

7. IT Market review
Following review is based on assumption that Facebook
users are relevant cross-section of society and analysis of
its users interests will allow us to compare Ukrainianand
Poland markets.

8. This data confirms Poland is on TOP of
EU IT Outsourcing
Around 2 000 000 Facebook
users in Poland are interested
in Programming

9. But Magento seems to be not so popular
Good for business, worse for
hiring!

10. TOP IT Clusters
Although PR of TOP cities we
can see 71% of Programming
interests are proportionally
distributed across the country.

11. Krakow is an IT heart of Poland

12. Some conclusions
• Capacity of Polish IT market is comparable to Ukraine,
in different sources we can find the market size of
150K-250K engeniers
• Annual market growth is around 15K graduates
• Market seems to be very competitve, so to hire good
resources we will need to propose really good
conditions
• Poor amount of ready Magento developers
https://goo.gl/ESCdUJ - if you would like to play with
data presented on graphics
http://rynekpracy.pl/raporty_1.php/wpis.42 - Polish IT
market report

13. Costs review
Sources:
http://hrstandard.pl/wp-
content/uploads/2015/03/raport_placowy2015_s.pdf -
HAYS Labor Market review
http://www.paiz.gov.pl/publications/labour_market -
Polish Information and Foreign Investment Agency
http://www.colliers.com/-
/media/files/emea/poland/reports/2013/colliers-poland-
q3-2013-office-market-en.pdf?la=en-US - Office Market
http://www.numbeo.com/ - cost of living comparison

14. Salaries
Type of Employee Average Gross Salary*, EUR
Project Manager 3600 Eur
PHP Developer 2150 Eur
Frontend Developer (JS) 2600 Eur
System Archytect 3800 Eur
QA Specialist 2150 EUR
* As far as I found, the main common way of
employment in Poland is working contract or B2B
employment, when “employee” has own established
company. Need to be clarified with locals.
+25% for Warsaw region

15. Office rent
City Min (EUR/m2) Max (Eur/m2)
Warsaw: City
Centre
17 25
Warsaw: outside
Centre
12 16
Wroclaw 13 15
Krakow 11 16
+ 23% VAT and public services cost

16. Cost of living (important for import
of developers from Ukraine)
Relocation to Poland will decrease the level of
life for Ukrainian developer even if company
will compensate the taxes increase.
Wroclaw and Krakow are bit less expensive.

17. Cost of company setup
Establishing of a new company 1700.00 EUR
10 employees assistance 1200.00 EUR
Work permission 300.00 EUR per person

18. SWOT
Strengths Weaknesses
• Healthy IT Market
• Ability to find good
resources
• Stable country and
economy
• Less expensive comparing
to other EU countries
• Not a lot of Magento
resources
• Very competitive market
• Taxes are bit expensive
Opportunities Threats
• Relocation of CIS
developers
• Local sales (only one
official Magento partner as
competitor)
• Invest to juniors
• Decrease of life level for CIS
developers  difficult to
convince for relocation
• Difficulties to sale Magento

19. Review conclusion
Poland is an interesting location to setup nearshore
development office. Local market to sale Magento
services is less interesting today, but can have a good
growth in next years.
Warsaw is the best location for doing business, there are
2.5 more developers on the market comparing to other
IT cities. This location is less risky for office setup but will
cost 20-30% more. Krakow and Wroclaw will be better
for import of CIS developers, if it will be chosen as main
strategy.

20. Questions?
Semor@opsway.com