Poland vs. India: What to choose for software development outsourcing?

If this article were a TikTok, it’d begin something like “Don’t outsource your software development before reading his article.” Hype aside, it’s only hands-on insights into offshoring and nearshoring software development from here on out.

In the next four years, the IT outsourcing market could reach USD 812.7 B with a CAGR of 8.28%. For years, this growth was driven by expanding digital transformation, remote work, and business value.

We are seeing two steady and trending destinations: Poland and India. On one hand, Poland. Outsourcing there is celebrated for the country’s exceptional technical expertise and cultural compatibility with Western businesses.

On the other, companies looking to outsource programming in India can count on the vast talent pool and unmatched pricing.

Yet, the industry shifts, adapts advanced automation and agile methodologies, and opens more options for decision-makers for outsourcing destinations. This article compares IT outsourcing in Poland vs. India and helps readers make an informed decision.

And yes, don’t outsource your software needs before reading this material.

Market overview: Poland vs. India in 2025

Market size and growth

• Poland: USD 5.38 B by the end of 2029, a CAGR of 8.77%. This aligns with the focus on digitalization, supported by government-led initiatives (for example, the rollout of additional broadband access and further development of 5G networks).
• India: Expected to exceed USD 12.72 B in 2025 and reach over USD 20 B in the next four years. Nothing groundbreaking as the country has long positioned itself as a global IT powerhouse with a massive service export model.

Talent pool

• Poland: Has around 520,000 IT pros with 15,000 IT graduates entering the workforce annually. Offshoring to Poland has become a go-to strategy for worldwide giants for Poland’s high technical proficiency and strong English skills. And this still makes Poland outsourcing particularly attractive.
• India: Has 5.4 million IT professionals and about 1.5 million IT graduates each year. India provides flexibility in terms of scaling and a vast talent pool in terms of specialization. That’s why many large-scale projects choose IT outsourcing in India.

Key technologies and specializations

Poland

• AI and Machine Learning: Polish developers keep up with the modern tech pace and strategize to develop innovative solutions. They have a robust educational system and significant investments in R&D. Many foreign tech giants have opened R&D centers in Poland. And continue to invest hard in the country: Microsoft has invested USD 700 M in Poland to help them strengthen their IT infrastructure.
• Cybersecurity: Cybersecurity is a top priority for 2024-2025 for most developed countries. So, it’s no surprise Poland is trying to grow the number of specialists in this field. In the 2022/2023 Cyber Defense Index Poland landed 6th, ahead of Japan, Switzerland, and the UK, and the government runs several initiatives to support data protection practices to make offshoring to Poland safe and persuasive.
• Fintech: Numerous startups and established companies are developing cutting-edge financial technologies here. The recent trend is cooperation between creative agencies and banking. Asset management, cryptocurrencies, P2P insurance, cloud computing, and big data — Poland’s fintech sector has a powerful foundation.
• Blockchain: As with AI/ML, Polish service IT companies sink their teeth into blockchain technology, multiplying specialists in this area. Particularly, they apply blockchain in healthcare for data interoperability and sharing, EHRs, telemedicine, and counterfeit prevention.

India

Typically, it serves better for large-scale, enterprise-grade software projects. Many foreign corporations choose IT outsourcing in India to develop enterprise applications, ERP systems, and cloud computing solutions.

The 2023 NASSCOM report revealed that nearly 53% of Indian IT service providers focus on scalable solutions for global enterprises. Additionally, India is rapidly advancing in areas like AI and ML, but these are often integrated into broader solutions rather than standalone specializations.

And the most promising part of this is that the Indian IT sector grows 8-9% year over year.

Major IT hubs

• Poland: Warsaw and Krakow have strong academic foundations, promising tech ecosystems, and a culture of quality-driven development. Warsaw University of Technology is known for its comprehensive programs in robotics and telecommunications. Jagiellonian University in Krakow — one of the oldest and most prestigious universities in Poland with strong technology programs. Not to mention Tri-City universities and educational hubs.
• India: Speaking about India’s tech landscape, the top-of-mind cities are Bangalore and Hyderabad. They have established infrastructure and vast service delivery networks with deep industry expertise. Perfect fit for large-scale endeavors.

Cost comparison: Which country offers better value?

Average developer rates

Poland

Junior: ~USD 20 - USD 30/hour

Mid-level: ~USD 35 - USD 50/hour

Senior: ~USD 65 - USD 90/hour

Specialized roles (e.g., AI, blockchain): ~USD 90 - USD 120/hour

India

Junior: ~USD 15 - USD 25/hour

Mid-level: ~USD 25 - USD 40/hour

Senior: ~USD 40 - USD 60/hour

Specialized roles: ~USD 60 - USD 80/hour

Hidden costs

Hourly rates are quite visible. However, there are several additional factors that influence the overall project budget.

• Taxes and compliance: Local tax obligations and adherence to regulatory standards.
• Infrastructure: Secure data centers, software licenses, and reliable internet connectivity.
• Project management: Dedicated project oversight to execute smoothly.
• Currency exchange fluctuations: Currency volatility risk coverage.
• Onboarding and training: Initial setup, integration, and knowledge transfer.

Cost vs. quality

Poland: The hourly rates are 20%-25% higher than India’s. Yet, outsourcing to Poland seems more relevant for most foreign companies. Why? Technical proficiency, rigorous adherence to agile practices, and strong quality control. This means fewer reworks and faster time-to-market, which can offset the premium.

India: Lower hourly rates sometimes come with hardships: inconsistent quality, lax processes, and cultural differences. But we can’t help admitting many Indian companies deliver excellent outcomes on large-scale projects when managed effectively.

Key takeaways

• Value isn’t that simple: Make sure to include visible and hidden costs in the calculation of the true investment.
• Cost-effectiveness + quality: A higher hourly rate in Poland often means better project outcomes and a lower total cost of ownership.
• Choose an engagement model based on the analysis: Balancing the pricing model and project management — a go-to strategy for optimizing costs.

Talent and workforce quality

Access to education and learning opportunities

Poland:

• University programs: The University of Warsaw, AGH University of Science and Technology, Jagiellonian University are a few of the top-of-mind institutions that produce highly skilled graduates in computer science and engineering.
• Coding boot camps and certifications: Coders Lab and Software Development Academy, for example, offer intensive, industry-focused training for devs to keep them up-to-date with modern technologies. Generally, Poland’s outsourcing is based on one of the strongest educational systems.

India:

• University programs: The region is known for its high poverty rate. However, there are enough prestigious institutes: the Indian Institutes of Technology (IITs) and the National Institutes of Technology (NITs). They form the backbone of India’s tech education system.
• Specialized training: Apart from classic universities, you can rely on private academies and boot camps to ensure your IT outsourcing to India has legs. For instance, Coding Ninjas and UpGrad play the same role as Coders Lab in Poland.

Work ethic and cultural alignment

Poland:

• Approach to deadlines: Teams are punctual and committed to deadlines. At least, this is a general rule. Seems like it’s a direct and disciplined nurturing.
• Collaboration: They prefer transparency and structured agile methodologies. As well as accountability and clarity. So, be ready for relatively lengthy preparation but a rapid and efficient start.

India:

• Approach to deadlines: Teams are generally adaptable and have problem-solving skills. Yet, we can’t help raising the differences in cultural norms and interpretations. So, keep your English plain and simple and avoid double-talks.
• Collaboration: You will find many skilled teams, but chances are you will spend more time managing and aligning them.

Advice: Decision-makers should invest in strong project management frameworks when collaborating with Indian teams to mitigate any communication or cultural misalignments.

Key takeaways:

• Education and learning ability: Poland’s focused academic institutions and specialized boot camps = many skilled tech talents. India focuses on producing a large-scale workforce.
• Poland excels in English proficiency: 15th ranking = clearer communication and reduced misunderstandings in critical project phases.
• Polish teams have a Western-like business mindset: They typically offer a more structured and disciplined approach = meeting deadlines and more significant influence on business results.

Time zone and geography

Nearshoring vs. offshoring

Poland:

• Located in the Central European Time (CET) zone.
• It is a nearshoring destination for European companies. If your company is located in the UK or the US, you can offshore to Poland without a doubt — discipline offsets the time difference. If your project requires close coordination and frequent communication with the development team, you can find other solutions within the same destination. Anyway, communication is key — negotiate.
• For European clients, Poland offers real-time collaboration and quicker turnaround times.

India:

• With a time difference of approximately 9.5 - 10.5 hours from the US East Coast, there is limited overlap.
• Predominantly is an offshoring hub, especially for US companies. Yes, they have lower rates, but you should think through the cooperation system.
• Sometimes, costs are as significant so they offset the overlap challenges.

Remote work adaptability

Poland:

Poland is greatly prepared for remote work with its distributed teams and 87.64% Internet penetration rate. Also, the country has an advanced digital infrastructure and a high remote work adoption (over 88% of companies adopted the hybrid work model). Polish are punctual and are used to agile frameworks — significantly adds up to efficient collaboration.

India:

SHRM stated that 12.7% of Indian companies work remotely with a stable trend for distributed teams. Not as promising as in Poland. However, you can count on Indian cultural peculiarities if you look to outsource programming. India is a country with high flexibility. Working by US hours? Okay. Double down to make it by the end of the month? No problems.

Yet, you should include the extra time you will likely spend on coordination, alignment, and additional communication.

Business and regulatory environment

Political and economic stability

Poland:

The country is an EU and NATO member. This creates a safer and more secure legal and economic environment than in some other European countries. Regulative frameworks support long-term investment and project reliability.

India:

On one hand, India is experiencing robust economic growth. On the other, the country faces occasional regulatory and bureaucratic challenges that impact potential project timelines and predictability.

Under these conditions, Poland has a leg-up over India.

Legal and compliance factors

Poland:

• Strict adherence to GDPR guarantees robust data security, IP protection, and compliance. This backs international projects up.
• Poland has strong intellectual property (IP) protection laws, which safeguard the rights of software developers and ensure the security of proprietary technologies.

India:

Has made significant strides in aligning with global compliance standards. However, you should understand that such countries still need time to overcome historical concerns over IP protection and data security.

Ease of doing business

Poland:

Has clear and predictable business practices supported by EU policies. When you sign an outsourcing contract, you get a streamlined regulatory process and fewer bureaucratic obstacles. Poland also offers various investment incentives and tax benefits for IT companies. Nothing groundbreaking, just a wise government policy.

India:

Has improved its ease of doing business rankings through digital initiatives, but some operational difficulties remain. All due to too various regional practices and regulatory delays.

Future trends: Which country will lead in the next 5 years?

Growth potential

Poland grows steadily, with government incentives and EU funding fueling investments in emerging tech areas. As we stated, with every new nearshoring and offshoring to Poland, the entire IT outsourcing market grows exponentially and may achieve USD 5.38 B by 2029, as per Statista.

This growth may slow as the market matures, with increased competition and searching for economical ways of realization.

Long-term projects and those requiring more workforce would keep their eyes on India as it has an expansive talent pool and lower rates.

Poland is set to capture a larger share of quality-driven segments, while India will continue to lead in cost-sensitive projects.

Government support and investment in tech sectors

Poland:

• The government began several strategic initiatives (for example, tax breaks for IT entrepreneurs) and investments in digital infrastructure.
• The government also closely works with the educational system to strengthen Poland’s future labor market with relevant and skilled specialists (for example, The IDUB programme).

India:

• India’s investment in innovation hubs (e.g., Digital India) and technology parks supports the growth of startups and tech companies.
• The current government tries to support and further develop education and training programs to create a continuous supply of highly skilled professionals, not just in the IT industry.

Conclusion

Comparing outsourcing to Poland vs. India, you should consider several factors.

India offers lower pricing and a larger workforce. Indians are usually less demanding. Poland has a more convenient location and cultural alignment with Western markets. Robust regulatory compliance adds up to it.

Recently, the idea to offshore to Poland is looking brighter for US and UK companies as Poland invest in tech hubs and strong IT infrastructure and focuses on modern technologies.

Being fast on the uptake — this might be a perfect description for Polish developers, alongside high English proficiency.

Devico provides access to top-tier Polish developers. Offshore or nearshore to Poland with cost efficiency and confidence that your software development partner understands you.