Articles | October 15, 2020

IT outsourcing – will Polish companies save digital transformation?

Poland is a market of almost 255,000 IT specialists, and the industry generates annual revenues of $1.35bn. It is no secret that for years now Polish companies have been offering strong support to countries such as Germany, Great Britain, Finland and Sweden in the area of digital transformations.

   

We help especially in times of rapid changes, when an increasing number of companies face a shortage of IT specialists with unique competences. Outsourcing companies are able to help, reacting in an agile manner by providing specialists and entire remote teams.

Where is the focus? 4 main trends in IT outsourcing services in 2020

The year 2020 began with budget freezes for project implementation and considerable uncertainty. It has also caused many companies to redefine their development strategy when it comes to implementing innovative solutions, and the digital transformation has gained pace. As an outsourcing partner, based on our observations and clients’ inquiries, we present 4 areas that we predict will be the key to digital transformation.

CLIENT STORY

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E-commerce – according to the IBM Retail Index report, the Covid-19 pandemic expedited the development of the e-commerce industry by 5 years. In Poland alone, 3400 new online stores were registered in the first half of 2020, and the demand for specialists who implement e-commerce solutions has increased. In the era of online shopping, the competences of PHP specialists, as well as iOS and Android developers and experts implementing mobile payment solutions, are in great demand. It seems that e-wallets and the trend of cashless payments will stay with us for longer, not only because of the pandemic, but also due to the convenience of such solutions. The need for a stable and efficient e-commerce system has resulted in a shift towards WordPress sites built on a stable AWS environment, which is why the clamor for already in-demand cloud specialists has increased even more.

Cloud services – during the pandemic, entrepreneurs were not afraid to dip into their pockets and invest in cloud services. According to PWC data, expenditure on the cloud in the first quarter of 2020 increased by 37%. This forced entrepreneurs to consider whether their structures contained specialists with competences enabling migration to the cloud, as well as whether the structure itself is prepared for challenges, risks and changes in this area. IT consulting and outsourcing are one of the recommended strategies in the transition process.

Tools for remote work – the first quarter of 2020 brought with it the growing importance of tools for remote communication. In March, videoconferencing tools were downloaded 62 million times, and the subsequent daily installation records were broken by applications for remote work such as Microsoft Teams. Distributed teams use these tools in their daily work, and with their growing popularity, the demand for specialists such as Unified Communication Specialists or Teams Administrators has increased. According to many forecasts, companies will also maintain the remote work model or a hybrid model after the pandemic, so it is worth considering this aspect while planning the budget for 2021.

Reporting tools – the specter of the crisis and the need for savings have forced an increasing number of companies to look for business data analysis tools. Strategic decisions are more often based on hard data, and their analysis is becoming easier and more intuitive thanks to Self-Service solutions such as Microsoft Power BI. Microsoft’s tool has been a leader in Gartner’s Magic Quadrant for years, and 2020 has only strengthened its position as a leader.


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Outsourcing companies and the speeding train of transformation

The coronavirus pandemic has turned digital transformation into a speeding train. In this context, outsourcing companies are like a locomotive that helps it to stay on track and move in the right direction. Polish technology companies have shone in the rankings for years now, attracting entrepreneurs from all over the world, including in times of crisis. Extensive access to specialists, high-level programming competences and flexibility mean that Polish outsourcing companies are able to emerge unharmed in the depths of the crisis. What distinguishes IT outsourcing services in Poland from other countries?

Cooperation based on partnerships

Foreign companies are willing to invest in Poland. According to the latest ABSL Business Services Sector in Poland report for 2020, foreign capital allows for the creation of 82% of jobs in almost 1000 centers established by investors from over 40 countries. Polish IT companies place strong emphasis on openness and cooperation and specialize in the implementation of projects in the nearshoring model. The main strength of Polish software houses is the focus on cooperation in a partnership model, striving for good relations with their neighbors; thanks to geographic proximity and a similar organizational culture, they can easily take on projects that would be difficult to implement in the offshoring model in China or India.

Remote project implementation

Working from home is one of the most common benefits in IT. In Poland, remote job offers appear regularly in the most popular technologies and programming languages, such as JavaScript – 34.3% of offers, Java – 16.8%, Angular – 15.1%, React – 13.9% or PHP – 9.6%. The IT industry is well-prepared for the implementation of projects from anywhere, for any client, regardless of whether it is FinTech, HealthTech, Industry 4.0, Biotech, Telecom or IT consulting. As a result, the pandemic had minimal impact on their operations, and dispersed teams continued to implement the digital strategy efficiently.

Agile software development

An increasing number of companies recognize the advantages of Agile software development, such as better team efficiency, faster project implementation and more efficient communication. At JCommerce, for example, we say that “we were agile before we knew there was a name for it”. In the era of organizational changes, Polish companies eagerly opt for the self-management model, rather than using the cascade model, which complements an approach based on cooperation and a willingness to face challenges together.

Modern service models

Thanks to their inherent flexibility, Polish companies can adapt their offer to the current needs; they do not stick rigidly to the rules but try to find the optimal solutions. In 2020, the Build-Operate-Transfer model turned out to be a hit, as it allows companies to set up a subsidiary in a chosen location with the help of a local partner. It is very important in times when visiting a given country in person is not always possible.

Reasonable price for competitive quality

Many outsourcing companies’ clients admit that the price of IT services is one of the main factors that makes them decide to entrust the implementation of their projects to an external company. Polish IT specialists offer a high quality of IT services at a competitive rate. For example, software engineers’ rates range from $2224, and those of a mid-level Java developer from $2295. According to the SkillValues 2019 Report, Polish developers are among the best in the world, and they are ranked 3rd in terms of their competences.

Extensive supply base of specialists

Poland has a rich base of 255,000 IT specialists who work using the most popular programming languages, such as Java, JavaScript or Python. However, Poland is increasingly often referred to in the context of niche IT competences, such as cloud services or DevOps. According to the Gartner report, Poland has the chance to become a leader in cloud services, and thanks to carrying out a number of international projects in niche technologies, there are many specialists on the Polish market that are hard to find in other locations, such as Cloud Services Engineers, DevOps or Cloud Solutions Architects. Thanks to interesting foreign projects and an extensive tertiary education system, Poland is an excellent place for the development of technological competences. Polish specialists eagerly take advantage of opportunities for development and work using the latest technologies for clients from all over the world.

Summary

In the dynamic situation associated with the need for digital changes, IT outsourcing has become an important element of strategy. Thanks to their extensive background and experience in agile and remote project implementation, Polish technology companies are an important partner for companies in Europe.

Agata Padalska
Business Development Manager

Agata has years of experience in a software development environment, which helps her to understand how to manage internal and external IT product development. It is her role to help clients to maintain control in outsourced software development projects, reach deadlines and maximize business goals. In her private life, she is an enthusiast of antique jewelry and escape rooms.