Poland vs. Serbia for Software Development Outsourcing: The Comparison

When it comes to software development outsourcing, Poland and Serbia are both great locations. Each of the two countries provides unique benefits and is an excellent option for any business.

With its robust IT infrastructure and skilled workforce, Poland has become one of the most popular outsourcing hubs in Europe. The country is known for high-quality IT services and adherence to international standards. On top of that, it provides a mature IT market and an attractive business environment.

Serbia, on the other hand, has emerged as a cost-effective alternative. The fairly small country may still be less known but is becoming more and more popular in the IT outsourcing environment. Its growing pool of talented developers and its strategic location are only some of the examples of why Serbia is worth taking a closer look at.

In this blog post, we will compare some of the key factors that are essential in software development outsourcing to help businesses make informed decisions. Let’s dive right in!

Serbia vs. Poland: Differences Uncovered

At Euvic, Inc., we not only provide software development services from Poland, but also from other popular outsourcing destinations. As a result, we not only have a great understanding of the differences and can speak from our own experience, but we can also use our knowledge to assist you in the decision-making process.

In our country comparisons, we always focus on the following 6 categories we think are important 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.

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1. Global Rankings and Talent Recognition:

We’ll start off with global rankings and talent recognition first.

Poland has gained significant recognition as an outsourcing hub in recent years thanks to its vast pool of skilled IT professionals, a business-friendly environment, and a cultural compatibility that resonates with Western countries.

According to the “Ease of doing business ranking” which compares business operations in 190 economies, Poland ranks 40th. This ranking measures and compares factors such as opening a business, getting a location, accessing finance, dealing with day-to-day operations, and operating in a secure business environment.

Now, let’s switch over to Serbia, where Belgrade and Novi Sad are thriving centers for technology and innovation. They provide top-notch universities and a growing IT outsourcing industry that attracts numerous outsourcing companies and young talents seeking new opportunities for development. 

In the “Ease of doing business ranking”, Serbia ranks 44th and therefore is only shortly behind Poland. 

Comparing these results, it is very clear that both Poland and Serbia are exceptional locations for outsourcing your software development. Both countries are able to adapt to recent market trends. On top of that, it is expected that the industry in both countries will continue to grow rapidly.

2. IT Demographics in Poland vs. Serbia

In the next step, let’s take a closer look at the IT demographics of both Poland and Serbia.

With a population of around 38 million and about 300,000 developers, Poland claims the title for the highest number of software developers in Central and Eastern Europe.

With a population of only 6.7 million, Serbia is a lot smaller than Poland. However, in 2022, more than 47,000 people were employed in the Serbian IT sector. And this number is constantly growing. The Serbian government has been investing a lot in building an IT infrastructure to help the IT industry prosper. And this recent development is already paying off. According to the government of Serbia, in 2022, every other job that has been created was connected with the IT sector.

In both countries, there is a big pool of experts to choose from. However, the Serbian IT market is still quite young, and therefore, some workers might lack experience. There are a lot of highly skilled professionals available, but given this fairly new business environment, it may take a bit longer compared to Poland to find experts that align with your project’s needs and the skill sets required. 

3. English Proficiency and Shared Cultural Values

Moving on to the next point: the importance of proficiency in English and alignment with cultural values. To maximize the benefits of collaboration, it’s crucial to eliminate language barriers and cultural differences that could result in misunderstandings. A reliable partner should not only have good English skills but also share similar work ethics and cultural values to ensure a beneficial work relationship.

Global studies, like the English Proficiency Index 2023 (EF EPI), the world’s largest ranking of countries by English skills, rank Serbia 24th out of 113 countries, signaling “high proficiency.” 

Poland keeps pace, ranking 13th in the English Proficiency Index 2023, indicating “high proficiency,” just like Serbia.

When it comes to cultural values and work mentality, Serbia and Poland share many similarities. Collaboration is key in Serbian and Polish software development. Developers often work closely with clients to understand their needs and maintain open communication throughout the development process. Workers typically adopt a straightforward and honest approach, minimizing small talk, which may come across as direct to Americans – but it’s definitely something you can get used to if you know what to expect. 

After all, it comes down to comprehending the commitments you’re making and being open to adjusting to differences, particularly in how to approach communication. Both Polish and Serbian workers have good English skills, so language barriers shouldn’t be an issue when outsourcing to either country. Despite minor discrepancies, the cultural characteristics and work ethics align well with Western values.

4. Standard of Security and Data Protection

When considering outsourcing for software development, it’s essential for businesses to assess the specific safety measures and certifications adopted by service providers in Poland and Serbia. 

Poland, as an EU member state, adheres to the GDPR, ensuring a high standard of IP and data protection. The country has well-established legal and regulatory mechanisms to safeguard sensitive information, emphasizing transparency and individual rights. Poland is ranked #6 globally in The Cyber Defence Index

Similarly, Serbia, although not an EU member, has taken steps to enhance its data protection measures and align them with international standards. The country has its data protection laws and authority overseeing compliance, striving to ensure the secure handling of personal data. 

While both Serbia and Poland have security and data protection regulations in place, the overall security level in the EU, including Poland, remains higher compared to non-EU countries like Serbia. Poland is recognized as one of the safest outsourcing destinations and, therefore, the best choice if security, compliance, and data protection are important to you.

5. Hourly Rates and Value for Money

IT outsourcing is a great strategy to escape the rising cost trend. Both Poland and Serbia are known to attract international consumers with their cost-effective labor.

Let’s have a closer look at the average hourly rates.

The average hourly rate in Poland typically falls between 35 and 65 USD. In Serbia, you should also expect hourly rates starting from 35 USD. Learn more about the hourly rates in popular IT outsourcing countries

Please note that the cost factor alone isn’t what counts. For optimal outcomes, it is important to focus on quality and find team members who are able to deliver high-quality work.

While Center and Eastern European countries may not be the cheapest outsourcing destinations, they offer the best value for money. Especially if you decide to outsource to Poland, you gain access to a comprehensive range of services, covering everything from fundamental tasks to complex assignments. On average, project costs are 20-40% lower than in the US, but outsourcing to Poland is so much more than just a cost-cutting measure. Polish workers can provide a unique mix of quality, experience, and speed that even some US software development companies can’t match. 

6. Individual Approach to Software Development

In the last step, let’s take a closer look at each country’s approach to software development to find out which location is the better fit for you. 

Nearly 10% of Poland’s GDP is contributed by IT services, with a focus on specialized areas like enterprise software solutions and FinTech projects. Poland stands as the largest FinTech market in Central and Eastern Europe. Moreover, Poland is recognized for its strong proficiency in Agile methodology, guaranteeing efficient project management, punctual delivery, and smooth project execution. 

Serbia has been gaining recognition for its growing and dynamic software development sector. The approach to software development in Serbia aligns well with global industry standards, with an emphasis on quality, innovation, and adaptability. The Serbian IT sector is able to adopt new technologies and industry trends. Similar to Poland, in Serbia, Agile methodologies are commonly employed in software development projects.

Both countries share similarities when it comes to their approach to software development. However, as Serbia is fairly new in the software development arena, there is still lots of room for further development.

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Conclusion: Outsourcing Software Development to Serbia vs. Poland

You’ve come here because you want to outsource your software development needs and want to figure out what the differences between Serbia and Poland are.

Choosing one of two locations depends on your specific requirements. There is no “better” choice, but you need to evaluate what’s important to you: Cost-effectiveness, great software work, or a proven track record in enterprise and security are priorities?

While there are many similarities between Serbia and Poland, they each have their unique set of advantages. Serbia’s growing pool of talented developers and its strategic location definitely stand out. But Poland is one of the safest and most reliable places for nearly any business. It provides the perfect balance between high-quality work by highly experienced workers and affordable prices. Check out this post if you want to find out more about why Poland is such a good (if not the best) choice for US companies seeking IT and software development services

In any case, we highly recommend conducting 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 the steps necessary to be perfectly prepared for your one-off or ongoing software development projects and needs.

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