Poland vs. Philippines for Software Development Outsourcing: The Comparison

The Philippines and Poland stand out as top-tier destinations for software development outsourcing in the global market. Renowned for their robust IT sectors, highly skilled professionals, and competitive pricing, these countries are key players in the outsourcing industry.

As you dive into the exploration of outsourcing opportunities for software development, it’s crucial to conduct a thorough analysis of these nations and their unique attributes. The chosen location significantly influences the success of your outsourcing endeavors. Check out the Top 10 Countries for IT Outsourcing to get a comprehensive overview and fine-tune your preferences.

Once you’ve narrowed your options down to the Philippines and Poland, this guide will be your go-to resource. It aims to offer a detailed comparison of both countries, highlighting their strengths, unique qualities, and potential impacts on your business. This guide will empower you to make an informed decision on whether to entrust your software development to Poland or the Philippines. Let’s dive into the specifics!

Philippines vs. Poland: Differences Uncovered
At Euvic, Inc., we not only provide software development services from Poland, but also from other popular outsourcing destinations. Therefore, we not only have a great understanding of the differences and can assist you in the decision-making process, we also speak from our own experience.

This comparison is divided into 6 different categories that are essential when it comes to successful IT outsourcing:

• Global rankings and talent recognition,
• IT demographics,
• English proficiency and cultural values,
• Standard of security and data protection,
• Hourly rates and value for money,
• Approach to software development.

1. Global Rankings and Talent Recognition

Let’s kick things off by comparing global rankings and talent recognition in both countries.

The Philippines has earned its reputation as a top-tier outsourcing destination, celebrated for its service-oriented, English-proficient workforce armed with stellar technical skills. It’s the go-to choice for global companies hunting for cost-effective and high-quality outsourcing solutions.

With a robust IT infrastructure and a well-established outsourcing industry, the Philippines consistently proves its prowess in delivering a broad spectrum of services, particularly in IT. On top of that, the Philippines is emerging as a significant industry for Business Process Outsourcing (BPO), with sectors like contact centers, back office services and game development. While India has long dominated the global outsourcing scene, the Philippines is making waves, outperforming other Southeast Asian countries.

Now, let’s shift our focus to Poland, a relatively new player in the software development outsourcing arena. Much like the Philippines, Poland is gaining significant traction as an outsourcing hub, thanks to its vast pool of skilled IT professionals, a business-friendly environment, and a cultural compatibility that resonates with Western countries.

Both countries can hold their own in an international comparison. A frequently cited ranking comparing the overall quality of developer skills is HackerRank.

In a comparison of 50 different countries, this is how the Philippines and Poland rank, compared to the US:

Poland – Ranked 3rd
United States – Ranked 28th
Philippines – Ranked 46th

Clearly, Poland takes the lead here, scoring big with top-notch quality. But don’t count the Philippines out just yet, despite their lower ranking. We’re going to delve into their standout strengths later on in this article. Stay tuned!

2. IT Demographics in Poland vs. Philippines

Demographics, in simple terms, refer to the statistical data of a population, offering crucial insights into various characteristics. Now, let’s take a closer look at the IT demographics of both countries.

With a whopping 110 million people, the Philippines ranks among the most populous nations globally, nearly three times the population of Poland. In the Philippines, software development holds prestige, attracting over 40,000 IT and engineering graduates annually, proficient in Java, API development, .NET, and more. The country currently has a resident pool of approximately 190,000 developers.

Although Poland’s population is smaller at around 38 million, it packs a punch in expertise. Boasting about 300,000 developers, Poland not only surpasses the Philippines in sheer numbers but also claims the title for the highest number of software developers in Central and Eastern Europe.

But let’s put these numbers in perspective. As always, it’s not only about the quantity but the quality of professionals. A substantial number of average developers can’t overshadow the impact of a select few experts that have great analytical thinking, and advanced problem-solving skills.

Both the Philippines and Poland have carved out solid reputations in the IT outsourcing sector, offering a pool of excellent talent.

3. English Proficiency and Shared Cultural Values

Effective communication is absolutely vital in any collaboration, and sharing a language and cultural values can significantly boost the success of a partnership.

The Philippines stands out as the third-largest English-speaking country globally. Six out of ten persons aged 5 years and over can speak English, with over 70% of the population capable of engaging in fluent English conversations.

Global studies, like the English Proficiency Index 2023 (EF EPI), the world’s largest ranking of countries by English skills, rank the Philippines 20th, signaling “high proficiency.” This underscores the nation’s exceptional competency in English, enhancing its global communication and business capabilities.

In the Philippines, work culture is deeply rooted in principles such as communal bonds, family ties, a strong work ethic, respect for authority, and nuanced communication. While influenced by Asian cultures, Filipino workers tend to prefer a discrete approach, differing from the more direct communication style of their American counterparts.

On the flip side, Polish workers adopt a straightforward and honest approach, minimizing small talk, which may come across as direct to Americans. This stems from a different mentality in Poland, where task execution takes precedence over self-promotion.

In terms of language proficiency, Poland keeps pace, ranking 13th in the English Proficiency Index 2023, indicating “high proficiency,” just like the Philippines.

Ultimately, it boils down to understanding what you’re signing up for and being willing to adapt to the differences, especially in communication styles. Both countries boast excellent English language proficiency, minimizing language barriers. Despite some distinctions, the cultural traits align well with Western values.

4. Standard of Security and Data Protection

Let’s delve into the crucial aspects of security and data protection, pivotal for your company’s reputation and the trust of your customers.

In the Philippines, the Data Privacy Act of 2012 (Republic Act No. 10173) is the cornerstone legal framework safeguarding personal data. The National Privacy Commission (NPC) enforces and oversees compliance with this law. Notably, organizations in the IT sectors of the Philippines are increasingly prioritizing data security, aligning with global standards. Many companies make substantial investments in robust cybersecurity measures, conduct regular audits, and implement data protection policies to meet local regulations and address international concerns. The Philippines ranked 37 out of 55 in the International IP Index by the U.S. Chamber of Commerce with a total overall score of 41.58%.

Poland, being an EU member, adheres to stringent legal frameworks like the General Data Protection Regulation (GDPR), IP, and copyright laws, establishing a secure foundation. In the Cyber Defence Index 2022/23, which assesses the collective cybersecurity assets of major economies, Poland secured an impressive 6th rank, surpassing countries such as the United Kingdom and Switzerland. Poland ranked 19 out of 55 in the International IP Index by the U.S. Chamber of Commerce with a total overall score of 70.74%.

While both the Philippines and Poland have strengthened their security and data protection standards, differences exist in their approaches and regulatory frameworks. Given that the GDPR sets higher standards for data protection, the overall security level in the EU, including Poland, remains elevated compared to the Philippines. After all, Poland is recognized as one of the safest outsourcing destinations.

5. Hourly Rates and Value for Money

IT outsourcing offers a strategic opportunity to break free from the rising cost trends, and both Poland and the Philippines are known for their strong reputation in providing cost-effective labor. But let’s dig into the numbers and see if it holds up.

In the past, the Philippines emerged as a cost-effective alternative for IT services, challenging the dominance of India. Over time, it has not only maintained competitive pricing but has elevated its capabilities, providing high-quality services. While specific hourly rates can vary based on individual skills and experience, the Philippines tends to be more budget-friendly than Poland, averaging around 20 USD per hour for developers.

In Poland, the average hourly rate typically falls between 35 and 65 USD. It’s essentially to note that the cost factor alone doesn’t guarantee the best quality, so the key is to carefully select team members for optimal outcomes. While Poland may not be the cheapest outsourcing destination, it offers the best value for money. With a large pool of highly skilled professionals, you gain access to a comprehensive range of services, covering everything from fundamental tasks to complex assignments. To delve deeper into hourly rates, learn more about popular IT outsourcing countries.

In Poland, It is the sweet spot that balances high-quality work with affordability, coupled with a wealth of expertise and specialization.

6. Individual Approach to Software Development

In the final phase, let’s take a closer look at each country’s approach to software development to figure out which style aligns better with your vision.

Software developers from the Philippines are driven to deliver top-notch work and ensure client satisfaction, with over 80% of clients usually pleased with the results.

The national government recognizes the potential of the local BPO and IT industry, actively supporting its growth through infrastructure development and policy initiatives. Consequently, it has become a substantial economic pillar.

In Poland, IT services make up almost 10% of the country’s GDP.

Polish developers specialize in creating enterprise software solutions and Fintech projects. Poland is even the largest FinTech market in Central and Eastern Europe.

Furthermore, Poland is renowned for its high proficiency in Agile methodology, ensuring effective project management, on-time delivery, and streamlined project execution. Similar to their counterparts in the Philippines, Polish developers prioritize delivering high-quality work that is well thought-through with little to no careless mistakes.

As evident, the approach to software development shares striking similarities in both countries. Both the Philippines and Poland emphasize quality, client satisfaction, and efficient project execution, making them strong contenders in the software development arena.

Conclusion: Outsourcing Software Development to The Philippines vs. Poland

You’ve come here to figure out what the major differences between the Philippines and Poland are and which destination you should outsource your business development to.

What the “better” choice is for you depends on your specific outsourcing requirements.

What is more important to you: Cost-effectiveness or great software work? Do you want to outsource lower skilled IT jobs like BPO or call centers? Then the Philippines might be your best choice. If skill set, cultural alignment around work and communication, or proven track record in enterprise and security are priorities, Poland may be a better fit.

It’s advisable to conduct a detailed analysis, possibly through consultation with outsourcing experts, to align your choice with your business objectives and preferences.

At Euvic, Inc., we can walk you through all steps necessary to be perfectly prepared for your one-off or ongoing software development projects and needs.

Check out our service portfolio, client work, and about page to learn more.

Give us a call or reach out using the contact form.