Software Development & IT Outsourcing to Poland - Avoid These 7 Mistakes
Outsourcing your IT and software development tasks to countries with lower costs than the domestic US market is a proven business strategy and can give you an edge over your competitors. There are significant differences to consider when it comes to outsourcing your IT operations.
The primary factor is the country you choose to invest in and rely on.
At Euvic Inc, we firmly believe that Poland is the next go-to destination for top-notch IT services and talent, exceptional work culture, enhanced security, and a favorable cost-to-value ratio. Based on average scores across all HackerRank challenges, Poland places third and therefore is known to have some of the best developers worldwide.
In this guide, we want to shed light on the most common mistakes that can jeopardize your outcomes or your entire project when outsourcing, especially to Poland.
By reading this, you’ll gain valuable insights into what to expect if you decide to outsource your IT and software development projects to Poland. Plus, you’ll discover how to steer clear of the most significant pitfalls.
Why Are We Qualified to Share These “Bold” Statements?
You might be wondering if we really know what we are talking about, but rest assured, it’s no speculation.
Our US team from the state of New Jersey is a blend of Polish Americans. We are fluent in the language, some of us were even raised in Poland while others grew up in the US. We’re not just familiar with the cultural nuances; we’ve even got a track record of building IT companies with Polish talent. This gives us a unique value proposition that can truly help you gain competitive advantage.
Euvic S.A., our global parent company, combines a team of 6000+ specialists, making it one of the largest, privately owned companies in Poland. Our expertise comes from years of hands-on experience, close ties with Poland’s top universities, and continuous growth.
As a result, in this guide, you will find nothing but real experience. Many of the statements come directly from Grzegorz Bebenek, our CTO, who has been with us for over 18 years. He started out as a software engineer in Poland. Working his way up, he helped found the US group more than a decade ago. He’s been working with US business as a close consultant and CTO lead since.
Let’s jump right in, starting off with a major mistake you must avoid when setting yourself up for success.
1. Not Having a Dedicated Product Owner on Your Team
One of the biggest mistakes when outsourcing to another country is not having a product owner in charge who knows exactly what your company’s requirements and your business objectives are while at the same time being able to understand the technical processes.
Many companies only hire a project manager, which often leads to complications. There is a slight but decisive difference between the two:
Project managers usually only report to their managers, making sure the work is delivered on time and all the general requirements like cost and deadlines are met.
Product owners on the other hand should have in-depth knowledge of any business components with a strong focus on strategy:
- Who is the customer?
- What does the customer want to achieve?
- Which actions lead to which consequences?
In software development, there are usually multiple options and paths to achieve the discussed outcome. While all paths might eventually lead to the desired results, there still may be crucial differences and long-term consequences.
Having an experienced product owner by your side who is empowered to make business decisions that will affect the user and technical experience can be a total game-changer. They set clear business requirements and objectives with you and are able to oversee the quality and progress of the deliverables – something that can make or break an entire project.
How to Avoid this Mistake
To get the best support for the development process and your peace of mind, assign an empowered, dedicated product owner to the project who understands the business and will dedicate time to ensuring that all business needs are being met. A project owner typically deals with tasks like:
- Making important decisions without delay.
- Creating briefings for the tech team in Poland.
- Setting the vision and the requirements for your company.
- Ongoing communication between Poland and your team.
- Fully understanding the development process and options along the way.
Note: Not all businesses call this position “product owner”. No matter which term you choose, the person you hire should definitely be equipped with the skills and responsibilities mentioned above.
2. Not Choosing The Right Outsourcing Partner
Not all development teams in Poland are up to the same standard.
Just like elsewhere, there are black sheep out there who are either not experienced enough to do the work or unwilling to stick to agreements and will instead just do what they want and the way they want it. A lot of software outsourcing companies are just “body shops” – meaning, they will often find software developers off the street and assign them to your project. They will often come and go, leaving your projects with no stability and ongoing disruption.
Obviously, that is not a good foundation for a successful collaboration and not working with the right team will leave a lot of potential on the road. Therefore, finding a partner with the right mindset and skills is a crucial part of your outsourcing process.
How to Avoid this Mistake
A big difference in a partnership and experienced approach is bringing curated teams that are outcome focused to the table. Look for a software development company that treats you like a partner, comes up with options, and walks you through the process. Review their references and case studies.
Before signing a contract, make sure to do your due diligence and ask yourself the following questions:
- Are they trying to understand the problem?
- Do they have relevant teams that have prior expertise with the suggested solutions?
- Depending on what you’re looking for, are they focusing on the problem you’re trying to solve, or just providing you with bodies without attention to your intended outcomes?
- Do they provide great communication and responsiveness? Do they help you understand all possible options and solutions available?
Pay attention to their behavior from the first day on. If they are unresponsive even before signing a contract, chances are this reflects their level of service and quality.
Additionally the retention rate of employees is just as important in building a successful partnership. Continuity is key! Therefore, pay close attention to the culture of the company you’re hiring as it plays a role in keeping great team members and having them bring experience from their years in the organization to the table to solve your challenges.
Interested in lowering software development costs without sacrificing quality?
Euvic offers proven, curated Polish software development teams.
3. IT Outsourcing exclusively to the Warsaw Area
Many companies who decide to outsource to Poland often choose the Warsaw area. This comes as no surprise since Warsaw is Poland’s popular capital, the largest city, and also the country’s center of business.
However, creating a center solely in Warsaw isn’t necessarily the best idea, especially if you don’t need the infrastructure and resources there. The cost of living is 39.1% more expensive than the average in the rest of Poland – and so are the expected salaries.
Outsourcing to Warsaw is comparable to outsourcing to New York.
You can find incredible talent in pretty much every part of Poland. The country boasts a rich pool of talented IT professionals with a strong educational background in technical disciplines.
Polish universities have earned a reputation for producing skilled graduates. And Polish people still have the mentality of staying close to their roots. This means they don’t usually go to the bigger cities to study or work and prefer staying close to the area they grew up in.
How to Avoid this Mistake
Instead of choosing the Warsaw area to create your team or hub, try to leverage talent from other areas too. From our experience, some great alternatives are
- Katowice/Gliwice
- Poznan
- Wroclaw
Companies like Euvic, that have a presence there, will assist you
4. Assuming Poland Is The “Wild Wild East” With No Rules
Another common mistake is to fear that Poland is the “Wild Wild East” and it’s a law-free zone that will put your company at risk. Quite the opposite is the case. Poland is a member of the European Union (EU) and therefore obliged to follow strict European Union Law, which all member states, no matter whether it’s Poland, Germany, or France, have to follow.
For example, Poland generally complies with strict data protection regulations such as the General Data Protection Regulation (GDPR) and also Intellectual Property laws.
If your company owns a specific patent, for example, there are laws that protect it and unlike other countries like India, China, or Russia, there are solid ways to enforce them too.
So it’s by no means a law-free zone and working with Polish companies is a lot safer than you may think.
How to Avoid this Mistake
If you plan to outsource to Poland, do some research and you will soon realize that there are many regulations in place that protect your work. Don’t make the mistake of confusing it with other popular outsourcing or offshoring countries that may offer cheap labor but come with a lack of security.
Poland has a reputation for adhering to strict ethical standards, safeguarding intellectual property, and protecting sensitive data. Such robust legal frameworks offer peace of mind to clients concerned about the security and confidentiality of their projects.
5. Not Understanding the Difference in Culture And Work Mentality Between the US And Poland
Another mistake we often see has to do with cultural differences. Poland culturally is a Western country but compared to the US there are more differences than you might realize at first sight. You will notice these differences, especially when it comes to work mentality.
To give you an idea of the differences, here are some examples:
USA | Poland |
Colorful representation of everything, strong salesmanship mentality. | Less focus on selling the work, but on doing it. Focus on concrete things and getting the job done. |
Lots of self-aggrandizing. | Honest, straightforward approach: What you see is what you get. |
Small talk is part of the culture. | Little to no small talk, less communicative. |
Some people, especially those who work in the United States, may interpret the lack of small talk as rude and won’t consider working with people from Poland due to the lack of cultural similarities – but those will also miss out on the enormous value that comes with it.
Polish professionals are known for their strong work ethics, professionalism, and dedication to their tasks. They are committed to delivering high-quality results and meeting project deadlines, which aligns perfectly with the requirements of global businesses.
How to Avoid this Mistake
You simply need to be aware that these cultural differences exist and have to look at things from a different perspective.
Don’t expect great salesmanship on the work that is done and take things like CVs at face value. What you see is what you get!
The time that you would typically spend on sales or small talk, Polish workers much rather use to get things done. If you think it is rude, remind yourself of the mentioned differences, accept them as normal, and adjust your approach.
6. Underestimating Working with Software Development Teams Who Are Located in Another Time Zone
Another thing to consider is that working in different time zones can be tricky. This gets more clear when looking at the different working hours:
When it’s 9 AM in Poland, it’s 12 AM in California and 3 AM in New York.
By the time it’s 5 PM in Poland, it’s 8 AM in California and 11 AM in New York.
It’s harder to schedule meetings with Poland from the US West Coast than it is from the Eastern or Central part of the United States.
Here is an example of what working with a Polish team could look like:
- 8 AM – 11 AM EST – Because of the time overlap in the morning of US time, this is your main work time with the Polish teams as it enables real-time interaction. This is where you will have most meetings to brainstorm, pass the knowledge, and transfer ideas.
- 11 AM – 3 PM EST – Once you’ve established a routine, you may be able to schedule follow-ups later in the day. Experienced engineers can return to check on things in the evening after their family time to close the day.
- After 3 PM EST – To prepare for the next day, you can sum up the important tasks like maintenance, monitoring, and support after you finish your work day in the US. This way, your team in Poland can get started ahead of you right in the morning. Polish engineering teams are used to being self-sufficient and working synchronously with a tech team lead meeting with the product owner to pass over information.
How to Avoid this Mistake
Plan ahead and set cadence to past business requirements in the morning overlap, allowing the team to work through the evening. Preparation is key to making things work.
If you prefer to have one point of contact, you can consider hiring experienced developers in Poland as technical team leaders, and trust them to deliver results with the rest of the team.
If you want to ensure your partner understands the American way of doing business, you can work with a partner like Euvic that has US-based project management resources to help bridge the gap.
7. Taking Poland for an Extremely Cheap Place for Labor
Compared to Western European and North American markets, labor costs in Poland are considerably lower. On average, Poland is 30 to 50 percent less expensive. This allows businesses to save on operational expenses.
But when it comes to the quality of work, especially in the tech industry, Poland is in no way inferior to Western European countries or the US. You will find a vast pool of skilled IT professionals, including software developers, web designers, cybersecurity experts, data scientists, solutions architects and more.
That means you aren’t sacrificing quality for cost when outsourcing your IT to Poland.
Poland is actually a proven center for outsourcing, especially in the tech sector, and has grown into the go place for Western Europe driving up demand. Numerous global tech companies have already placed centers there, for example:
- IBM,
- Microsoft,
- Intel,
- Samsung,
- Google.
How to Avoid this Mistake
Poland is not the cheapest place to outsource work but one with the best value for money. Because of the highly skilled professionals, you can get it all there. Don’t just outsource the simple tasks but the more sophisticated ones as well to get the best outcome. Utilize the software teams in Poland to help you come up with the best solutions architecture and technical approach. There is a big software development culture in Poland and the teams generally have experience with the latest technology frameworks and complex solutions development.
Conclusion on IT Outsourcing to Poland: It’s on You to Avoid These Common Mistakes
The combination of a highly skilled talent pool, robust IT infrastructure, and adherence to strict IP and data protection regulations makes Poland a unique place for outsourcing.
Not only because of the low cost but also because of the quality and culture.
It’s on you to pick the right partner and set yourself up for success. If you avoid the 7 mistakes we’ve just shared with you, you’re already ahead of most of your competitors.
At Euvic Inc., we can take you by the hand and walk you through all steps necessary to be perfectly prepared for your one-off or ongoing IT projects and needs.
Successful IT outsourcing relies on collaboration, communication, and careful planning.
Please check out our service portfolio, client work, and about page to learn more.
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Euvic has been assembling high-performing teams in Poland since 2005.
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