What is IT nearshoring and IT offshoring? Why in Poland?
Poland is one of the best IT outsourcing destinations in the world for EU and U.S. businesses. Furthermore, it can become an even more interesting destination for businesses interested in software development outsourcing services by merging nearshoring and offshoring approaches to IT delivery. Interested why do we think so? Read on…
First, let’s start by defining the differences between IT nearshoring and IT offshoring. A surprisingly large proportion of CIOs confuses these terms even though they are distinct concepts.
II nearshoring is the practice of obtaining IT industry-related services from another country or relocating software development to another country. Nearshoring of software development and managed services has been increasingly popular among EU and American companies in recent years. This is due to the numerous benefits offered by the transfer of IT operations to countries characterized by lower costs but at the same time culturally and geographically close.
These benefits include IT costs reduction while maintaining high standards of service, easy collaboration with nearshore IT providers thanks to their location in the same time zone, similar culture and the possibility of holding personal meetings at key stages of a project.
Wait, what’s IT nearshoring? Don’t you mean IT offshoring?
IT offshoring is a similar term to IT nearshoring. The most distinctive part between the two terms is the geographical and cultural distance between the country of the contracting business and the country of the service provider.
In IT offshoring, these countries are distant both culturally and geographically, which often leads to many problems resulting from working in different time zones or cultural differences. In IT nearshoring they are close.
Nearshoring is the compromise between offshoring and hiring a local team. As the name suggests, nearshoring means ‘near’ to your location. It refers to moving your operations or hiring a team in a location that’s different, but still in the same region.
Geographical proximity eliminates the problem of different time zones in offshore IT development. Moreover, no major cultural differences are encountered and it is easier to arrange personal meetings when necessary. This promotes an efficient and cost-effective implementation of software development projects.
Poland is a hub for IT nearshoring. This is why many European companies are looking for nearshoring partnerships!
The EMEA region has been an important source of IT services for the global market for years. In the region, the strongest position seems to be held by the IT industry in Eastern Europe. IT outsourcing providers from these countries attract clients not only with competitive rates but also with highly-skilled technical staff, good knowledge of English as well as cultural, geographic, and time-zone proximity to Western Europe.
The most important destination on the map of EMEA nearshore IT locations is Poland. This country is becoming an increasingly global destination for the outsourcing of IT projects due to: its blend of critical factors including:
- its cultural and geographical proximity to Western Europe,
- its skilled workforce with a high level of IT education and foreign language capabilities,
- the Polish labor market well-equipped to provide competitive rates of IT projects implementations,
- An important factor is also the presence of highly experienced IT nearshoring providers in the Polish market, including Multishoring.
When you compare Poland with other Eastern European countries using multiple criteria, important for selecting an IT sourcing destination, you will find out that there is no other country with such a comprehensive score. You can find a country that is equally good and sometimes even better than Poland at specific criteria, but none matches Poland with its overall score as Poland is the no. 1 IT nearshoring destination in EMEA when compared with multiple criteria.
- Polish specialists ranked highly among the world’s best software developers
This fact is confirmed by Poland’s no. 3 position in HackerRank’s list of countries with the best software developers. Also, Polish students of technical universities win programming and math international competitions on a yearly basis which proves a high level of IT education in Poland.
- Good and common knowledge of English
Knowledge of English is common in Poland as learning this language is compulsory from primary school. Poland holds the no. 13 position in Europe with English proficiency, according to EPI, which is high above average.
- Lower costs
Also, labor costs are lower than in Western European countries and the U.S.A. For example, the average wage of a software developer in Poland amounts to $27,580 while in San Francisco – $104,784; Zurich – $98,160; New York – $89,648; Oslo – $61,430; Sydney – $75,783, according to PayScale.
- Politically stable
Poland’s membership in the European Union and NATO is a very important factor that contributes to the political stability of the country. This is extremely important given the current geopolitical situation in the world.
- Benefits of Polish location in Europe
Poland is close and well-connected to Western European countries. It has also a well-established network of air connections with major cities in the United States. As one of the members of the European Union, Poland is also in line with GDPR data laws and various other software and trade requirements of other countries within the block.
- Emergent Poland as a software house
The blend of these characteristics has made Poland one of the world’s most popular destinations for software development. Global IT companies such as Capgemini, Google, IBM, Microsoft, Nokia, and many more have located their software development centers in the country while the Polish IT outsourcing industry has been booming for the last years.
- Highly innovative country
Poland was always famous for its innovation skills, which is confirmed by the no. 15 position in Tholonos’ 2020 Global Innovation Index.
Why should U.S. companies consider outsourcing IT services to Poland too?
For U.S. companies, Poland is culturally close on one hand but geographically distant on the other hand. The solution to this problem is the concept implemented by Multishoring. It connects the two “shores” of IT sourcing to give you an as-my-own-team experience based on a nearshoring and offshoring basis.
It means easy and flexible access to over 3,000 software developers in one of the best countries to outsource from (Poland) and several hundred experienced consultants and senior developers located in 5 offices in the U.S.A., including Austin, Chicago, New York, San Francisco, and Seattle.
We employ business analysts, software architects, and project managers in these locations. They are easily accessible within working hours and their role is to advise you on a solution you have in mind for your current IT problems and guide you through the whole cooperation.
Our local U.S. team strictly cooperates with our remote developers that are based in Poland. Using our frameworks we can take you through the whole digital business transformation journey, starting from the idea verification to prototype building and its production deployment in the cloud or hybrid-cloud environment.
Several benefits are associated with our smart approach to IT delivery for U.S. companies. They include:
- Multi-shoring development team – we can provide you with IT teams based on an integrated nearshoring (from your country or nearby) and offshoring (from Poland) basis
- Highly competent software developers – listening and willing to adapt to your needs and with expertise confirmed by numerous certificates and many successful projects
- IT teams right there where you need them – you can have them only in the U.S.A., or only in Poland, or we can create for you a mixed development team
- A similar culture – we have a similar history and believe in common values. This very same background will make our cooperation easier
- Like-your-own-team experience – the model of cooperation with personal meetings whenever needed ensures that you feel our Polish developers as your own on-site development team, even if most of the work is done remotely
- Costs are ok – our services won’t cost you an arm and a leg
Poland codes while the U.S. sleeps
You can talk in your time zone with our senior business analysts, architects and project managers, who have a good understanding of the problems your company and industry face, and then while the U.S.A. sleeps our developers in Poland start coding. This approach can bring several benefits to your company including:
- Faster work – Arrangements between you and the project manager on the Multishoring side can be made over the course of the day. And soon after our programmers in Poland begin their work. Due to the time differences, these software development tasks are usually performed while you are asleep, and when you get up, you can pick up your work, provide feedback, and set the next tasks. The effect is as if you were working on a project in two shifts. It means a huge acceleration of the pace of the custom software development project.
- All the typical benefits of IT outsourcing – including no need to manage the software development team and equip it with necessary resources for work (as it is handled by a software company / a staff augmentation company), and great flexibility in scaling resources depending on your needs.
- Like my own team experience – you have full control of the cooperation. You can meet in person with a project manager or an architect or an analyst if needed. You can also communicate with them during working hours. It is also not a problem for other team members to join meetings because office hours in Poland and the U.S.A. overlap to a greater or lesser extent, depending on the company’s location.
You can find out more about how our work is organized in the U.S.A. in the blog post “How we provide IT staff augmentation services in the U.S.A.”.
IT outsourcing to Poland based on a multi-shoring basis
Our smart approach to IT delivery based on a nearshoring and offshoring basis can be very beneficial for both Western European and U.S.-based businesses searching for an IT outsourcing company. It gives you access to highly-trained software developers located in Poland and experienced business analysts, software architects, and project managers who are located on-site. You can reach out to them whenever you need them and use them in the way you want. All this while enjoying an as-my-own-team experience. Give us a try and send us your RFP!
24 June 2022
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