Krakow IT Market Report IN PARTNERSHIP WITH MAIN PARTNER REGIONAL PARTNERS COMMUNITY PARTNERS COMMERCIAL REAL ESTATE PARTNER REV202406A Krakow IT Market Report 2024 Michał Piątkowski CEO at MOTIFE When I landed my first job at a software company in Krakow 25 years ago, the city was home to fewer than ten international technology firms. Job options were scarce. Very few people had any exposure to foreign business culture. Fast forward to today, and Krakow has transformed into a dynamic tech hub. The city now hosts over 250 international IT companies from more than 30 countries, with over 15% of the workforce being foreign nationals. The IT talent pool has grown tenfold. Over 80% of IT specialists work for non-Polish companies. It's a globally connected city, with direct flights to over 100 destinations worldwide. The catalyst for this change was Poland’s entry into the European Union. However, the real engine of growth was the city’s inherent potential—its talented people, strong educational institutions, and a culture of dedication and innovation. Krakow IT Market Report 2024 A significant portion of this success can be attributed to US companies, which employ over a third of Krakow’s tech talent. Their influence has been instrumental in shaping the city’s professional landscape, contributing to its growth and to the maturity of the talent pool. Investors who visit the city quickly realize that the saying “in Krakow, everyone knows everyone” holds a special truth. With a population just under a million, Krakow strikes a perfect balance: large enough to offer substantial opportunities, yet small enough to maintain a close-knit community vibe. I want to extend my gratitude to everyone who contributed to this report, including over 30 local experts and leaders, the City of Krakow as well as ASPIRE and our other partners. Special thanks to the MOTIFE team for their hard work on this project. Aleksander Miszalski Mayor of Krakow An important part of the city’s mission, included in the Krakow Development Strategy, is to create an intelligent metropolis – ensuring a high standard of living and building a creative economy. The local modern technology sector and the IT industry play a huge role in the implementation of these tasks. Numerous “smart city” solutions implemented near Wawel serve residents in key areas. The development of a knowledge- based economy significantly contributes to the economic growth of the metropolis benefiting all its residents. IT sector employees constitute a significant professional group in Krakow, which proves that our city is an attractive destination for high-class specialists from various countries and cultures. The priority task of our local government is to create development opportunities for all entrepreneurs – especially those focusing on innovation and using advanced information technologies. We strive to ensure that Krakow remains the European leader in attractiveness for these industries, which is why we always focus on dialogue and build cross-sectoral cooperation with business and science. An example of openness to the needs and suggestions of entrepreneurs may be the appropriate profiling of the education system of future specialists. At the same time, we take care to provide appropriate conditions that make Krakow a great place to live, work and study, as well as a wide range of ways to spend free time. Due to the dynamic and profound changes taking place in the modern world, we must face new economic and social challenges together. Fortunately for us, Krakow has a strong infrastructure and business base that supports modern technologies, ensuring the city functions efficiently – and this allows us to look at the future with optimism. Krakow IT Market Report 2024 About Krakow Krakow, once the medieval capital of Poland, is now its second biggest city, with over 1M inhabitants including people who work and study here. Krakow is also Poland’s second largest city from the perspective of economic strength, international investments, universities and cultural institutions. Over the past 25 years, Krakow has become the leading location for business services delivery centers in the European Union. International corporations including ABB, Motorola Solutions, IBM, UBS, Shell, Cisco, and Capgemini have set up their business service centers in the city. Over 100 000 people work in the business services sector and approximately 40% of this number represents an IT function. Krakow boasts a vibrant spirit, with over 128 000 students attending local universities. More than 20 million tourists visited the Krakow region in 2023, and the city has earned recognition as a top tourist destination. Krakow is a university city with over 20 college level schools. Since 2012, computer science has become the field of education that is most often selected by the students in Poland. Krakow, with its strong academic presence, generates more than 2 600 new computer science graduates annually. Krakow is easily accessible with its airport offering direct flights to over 100 European cities and to international business hubs such as New York, Chicago, and Dubai. In 2023, the Krakow airport saw over 9 million travelers. 1.5M Population of Krakow metropolitan area 2nd Largest city in Poland Sources: krakow.stat.gov.pl, krakow.pl, 2024 Krakow IT Market Report 2024 Andrew Hallam General Secretary at ASPIRE Over the last 20 years Krakow has emerged as the kingpin of European global business services, each year adding scope, complexity and scale, many times growing in double digits. As you read through this report, you will see that upwards of 120,000 people in Krakow now work in the sector, making it the largest concentration of business services workers in Europe. Business Services is the driver of the IT market in Krakow IT is increasingly the driver of the business services sector in Krakow, accounting for 25% of all roles in business services. Equally, almost half of all IT jobs in Krakow are provided by business services centres. Understanding this interdependence, its impacts, its opportunities and its threats, is key to understanding the Krakow IT market and its future trajectory. GBS is dead! Long live GBS! Global Business Services is dead! So say HFS, the leading research and analysis firm. By this, they mean the “centralised service delivery model” that has become the “tried-and-tested modus operandi for large enterprises to save costs, drive process discipline and improve compliance.” In its place, “Generative Business Services,” a future state in which AI technologies such as large language models and autonomously-capable apps drive the speed and predictive capability of enterprises to function with greater “agility, creativity, and intelligence.” Krakow with its evolved ecosystem is well-placed to lead this new direction. Creative tension 15 or so years ago ASPIRE hosted the corporate branding guru Wally Olins at our annual conference. By this time, he had turned his attention away from the identity of companies to the identity of places. Krakow’s strength, he told us, was in our ease and familiarity with “creative tension.” What he had in mind was an ability to embrace seeming opposites - old and new, tradition and modernity, process and creativity, humanities and science. He based this analysis on Krakow’s rich history, its academic base, its mercantile past, and its creative instincts. Krakow IT Market Report 2024 Thriving in disruption To these tensions we can add new tensions of our own, from disruptions caused by war in Ukraine, to the dynamics of where and how we work, and now the breakthrough of Generative AI. Krakow this year has seen one or two high profile lay-offs in the tech and business services sector and yet overall jobs growth in 2024 is expected to exceed 6%. That leading multinationals count on Krakow to drive next level change is testimony to the scale, maturity, breadth and diversity of the Krakow ecosystem, evidenced in this report. ASPIRE – Association of IT and Business Services Companies ASPIRE is the representative body of the IT and Business Services sector in Krakow and widely acknowledged a key driver in Krakow’s rise to prominence as Europe’s top-ranked location for global services. Established in 2008, ASPIRE brings together under one umbrella more than 150 global companies and local suppliers for the purposes of networking, information-sharing and working towards a common strategy. aspire.org.pl Krakow IT Market Report 2024 Focus Geopolitical and economic update The global geopolitical and economic landscape is increasingly complex and dynamic, making it difficult to interpret and even more challenging to base decisions on. This focus section seeks to clarify the domestic and regional factors that are currently shaping Poland’s geopolitical and economic situation. 2004-2024: Poland celebrates 20 years as a key member of the European Union May 1, 2024, marked 20 years since Poland, along with a larger group of Central European countries, became a member of the European Union. Poland is one of the largest member countries boasting the 5th largest population and 6th largest economy in the union. Support for EU membership remains strong among the Polish population, with 82% of Poles believing that Poland benefits positively from being part of the European Union. Poles understand the crucial role of the EU in shaping the future of both their country and the European continent. Since 2004, Poland’s development has been remarkable, with a GDP per capita growth, compared to the 27% average for the other Central European countries that joined in 2004. Poland remains the largest beneficiary of European Funds assistance, with a total of almost 250 billion euros in funds received over the last 20 years. Poland joined the Schengen zone in December 2007, but has not yet become a member of the Eurozone. 110% Compound GDP growth rate in Poland 2004-2023, (EU countries average: 31%) War in Ukraine – Poland as a safe harbor for people and companies Since Russia's full-scale invasion of Ukraine in 2022, Poland, and particularly Krakow, has proven to be capable of providing a safe environment for both individuals and businesses fleeing the warzone. Poland has successfully accommodated nearly one million Ukrainian refugees, including around 400 000 children, with half of them attending Polish schools. Additionally, Poland has become a reliable place for Ukrainian businesses. Since January 2022, more than 30 000 Ukrainian sole proprietorships - 16% of which are in the IT sector - and over 7 000 limited liability companies with Ukrainian capital have been established. This growth has had a noticeable impact on the IT market in Poland. Number of Ukrainian IT companies, along with international firms operating in Ukraine, have relocated staff to Poland or used this as an opportunity to enter the Polish IT market, including companies like Wix, Eleks, Sigma Software, Infopulse, and Grammarly. USA as a strategic economical, trade and investment partner of Poland Since Poland joined NATO in 1999, its relationship with the United States has flourished, particularly in economic terms. In 2023, American companies invested $26.1 billion, making them the second-largest foreign investors in Poland, after Germany and ahead of France. A standout investment came from Intel, which announced plans to build a $4.6 billion semiconductor integration and testing facility, the largest foreign direct investment in Poland’s history. In Krakow, U.S. companies significantly shape the IT sector, employing 38% of IT specialists and representing 12 of the top 30 IT employers, highlighting the strategic importance of American investments in Poland’s tech industry. Source: AmCham Poland, CEIDG, EC Eurostat, Ministry of Finance, Polish Economy Institute, Eurobarometer, MOTIFE Krakow IT Market Map Q1 2024 Krakow IT Market Report 2024 Erin Nickerson U.S. Consul General in Krakow The U.S. Consulate General in Krakow is proud of the partnerships U.S. and Polish companies have created together over the past 30 years and is delighted with the positive economic impact U.S. companies are having in communities across southern Poland. We work closely with the U.S. Foreign Commercial Service, American Chamber of Commerce, and many local partners to promote corporate responsibility and private sector engagement. We also support academic exchanges between U.S. and Polish universities and provide small grants to several local nonprofit organizations working with businesses to foster inclusion and non-discrimination in the workplace. Krakow IT Market Report 2024 Key findings Growth of the talent pool 60K in Krakow 400K in Poland The IT talent pool in Krakow expands to 60 000 IT specialists, with the nationwide pool reaching 400 000. This reflects a steady growth trend enabling existing companies to scale and the new players to enter the market. This trend is partially fueled by a growing share of ICT students in Krakow, now exceeding 10% of all students population. Maturity of the talent pool Seasoned IT specialists with international exposure 63% of the Krakow IT talent pool has over 5 years of professional experience, with 83% of the IT specialists having worked in international organizations. US companies in Krakow 38% of IT specialists employed by American flrms US companies employ the largest share of the IT talent pool in Krakow, followed by Poland (17%) and the United Kingdom (12%). Largest IT employers As per IT headcount: HSBC Comarch Aptiv Cisco Motorola Solutions The top 5 IT employers list now includes Cisco. The top 30 largest companies employ more than half of the IT talent pool in Krakow. Krakow IT Market Report 2024 20+ new IT players including 5 international unicorns Over the last 12 months, Krakow welcomed over 20 new international IT companies such as ActiveCampaign, Clari and Tanium, demonstrating the city’s continued appeal as a global tech hub. Demand and salaries Stabilized in 2023 and 2024 This year has seen a stabilization in salary trends and demand when hiring IT specialists, with some roles experiencing steady salaries or moderate increase of 3%, while others, particularly entry-level positions seeing a drop of up to 8%. Shift in role demand Growing demand for IT roles beyond programming The demand for most common software development roles such as front-end or back-end has stabilized, while the need for more specialized roles such as data engineers, data scientists, DevOps and cloud engineers continues to grow. This is visible in the salary trends for these roles, with some appreciating by as much as 15%. GenAI in Krakow’s companies is already transforming how the code is engineered Companies experiment with Copilot or similar in-house built tools, automated code translation, refactoring and other. The ultimate impact is yet to be seen but will likely result in lower demand for entry-level programmers, more focus on requirements analysis, faster time to market, and increased code quality. Krakow IT Market Report 2024 Slawomir Kumka Director, IBM Software Lab Poland & IBM FinTech Software Development The IBM Poland Software, Research & Development Center in Krakow: Pioneering Innovation in Central and Eastern Europe The IBM Poland Software, Research & Development Center, headquartered in Krakow, stands as the first and largest IBM innovation hub in Central and Eastern Europe. Known as the IBM Poland Software Lab, it is unique within this region and forms an integral part of IBM’s global Software division that spans five continents. The Krakow Lab is comprised of data scientists, software engineers, support engineers, and consultants from over 20 countries. These teams collaborate on several major IBM projects, focusing on Cloud Technology, Data Engineering, Machine Learning, and Artificial Intelligence. Central to the Lab’s mission is the advancement of machine learning and artificial intelligence technologies, which are crucial to IBM’s core business strategies. IBM Krakow is dedicated not only to the technical development of AI but also to advancing AI ethics. The Lab emphasizes transparency, the explainability of AI decisions, and a thorough understanding of AI inferences, while diligently working to avoid any biases. Strategic projects underway at the Lab aim to cement IBM’s dominant position in enterprise solutions, with a particular focus on AI and governance. The Lab plays a pivotal role in developing two strategic areas of the IBM watsonx platform: watsonx.ai™: Here, we train, validate, tune, and deploy foundational and machine learning models with ease. watsonx.governance™: This platform accelerates the delivery of responsibility, transparency, and explainability in data and AI workflows. Another significant project at the Lab is the Watson Code Assistant, which utilizes generative AI to enhance development while upholding the principles of trust, security, and compliance. Powered by IBM Granite foundation models, this platform includes state-of-the-art large language models designed specifically for coding. This assists IT teams in creating high-quality code through AI-generated recommendations, either from natural language requests or existing source code. Krakow IT Market Report 2024 This developer-focused tool not only improves the quality and speed of software engineering within IBM but also has the potential to transform the broader software engineering landscape. The generative AI engine helps modernize code by translating code from one language to another or refactoring legacy code, marking a significant advance in the field of code engineering. To effectively meet these challenges, we rely on the high expertise of our specialists who are well-versed in NLP, Deep Learning - a subset of machine learning that heavily utilizes neural networks—and Big Data. These technologies are essential for processing large datasets to effectively train AI models. Our engineers are also required to be proficient in programming languages such as Python, known for its simplicity and extensive support ecosystem, Java, recognized for its speed and scalability, and C++, which is crucial for fast code execution in AI processes. Through these initiatives, IBM Krakow is shaping the future of technology not only in Central and Eastern Europe but across the globe, fostering a culture of innovation and setting new standards in software development and artificial intelligence. Krakow IT Market Report 2024 This chapter explores Krakow as a dynamic tech hub, highlighting its IT talent pool, existing IT companies, new IT players and a growing scene for start-ups. IT also provides useful information regarding the city’s academic institutions, vibrant communities and event scenes, and the dynamic landscape of its office market. Why Krakow? Krakow has become a magnet for companies of all sizes and industries seeking to engage skilled IT specialists. From teams of 10 all the way to full-scale engineering hubs with 1000+ specialists, for over 20 years Krakow attracted companies from North America, EMEA and other locations. While this trend continues to accelerate, companies already present here consistently grow their sites as well. What draws all these companies to Krakow? Here are some compelling factors that make Krakow a unique choice for establishing an IT function delivery center. Exceptional IT talent pool Scalability The IT talent pool grows consistently each year with an average YOY growth of 10% fed by fresh graduates, internationals, and people moving from other cities. It grew 10-fold in the last 25 years. Maturity Over 60% of the talent pool are individuals with 5+ years of professional experience. A typical employee has worked with multiple international organizations of various sizes, with different nationalities. Sophistication Companies hire in Poland for highly specialized roles from software engineers to DevOps engineers, data engineers, scrum masters, product owners, UI/UX designers and more. Less than 20% of the talent pool works in the more basic IT roles like helpdesk. Quality With 2 600 ICT graduates annually, a strong STEM education, and a very high ranking of Polish engineers in the international ratings, the location offers the quality of the talent that is often unaffordable to companies at their home countries. Proven business location Compelling cost advantage The cost of labor and of overhead in Poland continues to be substantially lower compared to many locations in Europe and North America. Even if this gap has shrunk significantly over the recent years, a software developer in Poland still, on average, earns 2.5 less than one in the US. Cultural and geographic proximity For the team to work efficiently, they must collaborate effectively and have the opportunity to meet occasionally. This is strongly facilitated with cultural similarity as well as ease of travel between locations. Companies value Polish IT specialists for their problem-solving skills, sense of ownership, direct communication, and appreciation for well-designed solutions. From GBS to an IT Hub As the IT market in Krakow grew, multiple organizations that came here to establish non-IT functions decided to expand their footprint. These companies leverage their presence in the city and expand the scope to tap into the local IT talent pool. Examples include Heineken, Euroclear, BNP Paribas and Jacobs. Supportive public authorities Local and regional government bodies offer tax incentives, incubator programs, and office space to support foreign businesses. Chapter 1 - Krakow IT market snapshot Krakow’s IT talent pool Key figures 60K Estimated number of IT specialists working in Krakow region 500+ IT companies operating in Krakow 30+ Companies hiring each 300+ IT specialists in Krakow 2.6K Computer Science students graduating yearly in Krakow 83% Share of Krakow IT specialists working in foreign companies 4.1K EUR Median salary to hire a mid-level software engineer with up to 5 years of experience in Krakow (gross, monthly) Sources: Krakow IT Market Map Q1 2024, Dataset by MOTIFE Insights, November 2023, N = 321, stats.gov.pl, 2024 Chapter 1 - Krakow IT market snapshot Chapter 1 - Krakow IT market snapshot 19 168 Demographics and skills Seniority With over 25 years of IT market growth, there is a substantial number of specialists with over 10 years of professional experience. In the same time, with the steady supply of fresh graduates, at least 30% of the talent pool are young engineers with not more than 5 years of professional experience. Estimated distribution of developers in Krakow by years of experience (according to Stack Overflow) More than 10 years 32% 6 to 10 years 31% 3 to 5 years 24% 1 to 2 years 10% Less than 1 year 3% Education It is estimated that 75% of IT specialists in Krakow have a degree in computer science or a related field. Poland has a strong educational system, especially in STEM (Science, Technology, Engineering, Mathematics) fields, and its universities are recognized for producing high- quality graduates. Gender In Krakow and Poland, like many places worldwide, the IT field has traditionally been male-dominated with around 80% male and 20% female IT specialists. However, gender balance is improving, as evidenced by the increasing number of women in ICT education, where they now make up to 45% in courses like Data Engineering and Analysis. Age Poland is often seen as a young talent pool of IT professionals. This stems from a late arrival of a broader IT industry to the country as well as an increasing flow of new graduates entering the market and landing IT jobs. With that, over 90% of IT professionals are under 45 years old. English proficiency IT professionals have a high English proficiency. English is commonly taught in schools, and since it’s the lingua franca of the tech world, professionals often have a good command of the language. Overall, Poland ranked #13 in the 2023 EF English Proficiency Index with a Very High proficiency mark. Distribution of developers in Krakow by age range 45+ 5% 35-44 27% 25-34 50% 18-24 18% #13/113 Rank of Poland in the 2023 EF English Proflciency Index, out of 113 countries Sources: Stack Overflow’s 2023 Developer Survey of 1 894 Polish professional developers, MOTIFE Insights, LinkedIn, Eurostat, EF Education First. Chapter 1 - Krakow IT market snapshot Tech skills As we track the proliferation of the programming languages over years, we observe that JavaScript/ TypeScript and Python are increasingly popular among developers. The following chart shows the results of self-reported professional experience with top technologies according to Stack Overflow survey. Share of developers in Krakow having experience with a specific programming language JavaScript SQL Python TypeScript Java C# C++ PHP C Go 57% Sources: Stack Overflow’s 2023 Developer Survey of 1 894 Polish professional developers. Slawo Czuż Regional Delivery Head at LTIMindtree Mentor & Career Coach at careercoaching.pl What is LTIMindtree? LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth. We employ over 84 000 professionals across the world, including 850 in Poland. The Krakow office was established in 2020 and employs more than 600 IT specialists. What are the roles LTIMindtree is hiring in Krakow? Vast majority of the roles we do hire in Krakow are cloud engineering roles with a splash of various language competencies on the top. Additionally, we do hire experts in other functions: infrastructure operations, digital engineering, data & analytics, projects management and in fact many other adapting to the demand coming from our customers. The project portfolio varies from support services, through cloud transformation to project and program management. Are you finding the required skills in the IT talent pool in Krakow? In Krakow, although we encounter a considerable pool of IT talent, there are obstacles in matching skills demanded by the IT sector with the available talent pool. And it is a skills-driven market. The fluidity of technology implies that knowledge gained at the outset of an academic program may become outdated by the time of graduation. Furthermore, the notion that only top-tier computer science graduates are indispensable for thriving in the IT field is quite a misconception. We are witnessing a broadening spectrum of Chapter 1 - Krakow IT market snapshot IT roles, spanning from less complex to highly intricate. This does not diminish the significance of lower-tier positions but rather underscores the diverse levels of complexity and expertise demanded. How does technology evolution impact this diversification? The increased accessibility of technology has democratized the field of IT, rendering it more inclusive to a broader demographic. Presently, aspiring early primary school learners engage in programming through platforms like Scratch, marking a substantial departure from the era of complex, low-level languages. This accessibility broadens the scope of the industry to individuals who may lack advanced computer science degrees but possess the requisite skills for diverse roles within the IT landscape, including support, basic configuration, and administration. How does LTIMindtree approach talent creation in this changing landscape? We have launched train-to-hire initiatives aimed at individuals with technical aptitude, regardless of whether they possess formal computer science or university qualifications. These candidates undergo evaluation across a spectrum of skills, encompassing teamwork, communication, and fast learning. Those selected participate in a rigorous month-long training program, fully funded by our organization. Through this approach, we provide a risk-free pathway into the IT field, capitalizing on the natural ability of our candidates to quickly acquire new skills. Each program receives over 300+ applications for approximately 15 available positions, indicating substantial interest. To date, we have conducted around 15 courses in Krakow, welcoming roughly 200 new talents into our organization and thereby enriching the local IT talent pool. How do you ensure these candidates are fit for the program, especially regarding their learning capabilities? At the selection stage, we employ a series of tests, discussions, and assessments, supplemented by weekly evaluations throughout the course. Our primary focus is on gauging candidates’ capacity to quickly grasp and adapt to new skills and technologies. Successful participants are subsequently extended offers and commence on-the-job training (3-month program). This approach mirrors the most efficient adult learning methodology — learning by doing. Remarkably, our new talents demonstrate exceptional proficiency in this regard, achieving in six months what typically takes others more or less two years to learn. What impact do these practices have on career progression and the larger IT ecosystem? The impact of our program is two-fold. Firstly, it offers a vital entry point for individuals in their career journey. While not all participants may ascend to high-level roles such as enterprise architects, they discover substantial growth paths aligned with their abilities and exhibit remarkable motivation for further development. And we value that. Many pursue additional certifications, while some even enroll in ICT studies to boost their skills even further. Secondly, by cultivating fresh talent, we make a meaningful contribution to the job market. This helps mitigate talent shortages that local universities may struggle to address, and the effects of salary competitions, thereby nurturing a more sustainable ecosystem. After all, we should not simply be fishing in the same pond. Chapter 1 - Krakow IT market snapshot Focus Women in IT in Krakow Despite the evolving landscape of the IT job market, it remains a male-dominated industry, however, there is a growing recognition of the need for gender diversity. An important perspective is seeing that diversity is not only about the share of women. It is also about understanding the value that female team members bring into the IT teams. It is also about noticing that a key metric is also a share of women in the leadership roles in the IT companies. Community initiatives and campaigns are increasingly spotlighting the role of women in IT, encouraging more inclusive practices. Large organizations are particularly visible in these efforts, often showcasing their female IT leaders to promote gender diversity within leadership roles. While such promotional efforts are important for raising awareness, they may not fully represent the actual gender diversity within the industry. Ultimately, the true measure of gender diversity in IT is reflected in the hard data—the share of women in the IT headcount. Survey on women in IT It is difficult to assess a precise share of women who work in IT sector across in Poland. According to Eurostat, women make up 15.5% of the IT workforce nationally. LinkedIn Insights provides a more optimistic figure, estimating 27% in Poland and 29% in Krakow, however we are quite convinced these numbers don’t reflect reality. In November 2023 and January 2024, we surveyed companies employing IT specialists in Krakow, with some questions regarding the percentage of female IT specialists in their IT headcount in the city. Out of 121 respondents, 92 companies voluntarily shared their data. These companies represent approximately a third of Krakow’s total IT talent pool and reported an average of 27% female IT specialists, totaling 5 081 women. 27% Share of women among companies that voluntarily shared their gender data (N = 92) According to our dataset, women in IT in Krakow are more prevalent in non-core IT industries, holding 30% in Finance and 26% in Telecommunications / Networking, versus 21% in IT Consulting and Services and 19% in Software, indicating potentially a sector-specific cultural or hiring practice differences. This data, however, represents only a fraction of the market and primarily includes companies that agreed to share their information. Consequently, the results may present a somewhat optimistic perspective, highlighting best-in-class companies rather than offering a comprehensive market snapshot. Nevertheless, the trend is positive. We estimate the overall share of women in IT in Krakow at about 19%, corroborated by the growing number of female ICT students in the city. Moreover, a significant rise in the number of women holding leadership positions within major IT firms like Google, Backbase and Akamai is evident, suggesting a broader shift towards greater gender diversity in the sector. Chapter 1 - Krakow IT market snapshot Largest employers of women in IT in Krakow and Services Networking Networking and Services International Source: Dataset by MOTIFE Insights, November 2023, January 2024, N = 92 Chapter 1 - Krakow IT market snapshot Agnieszka Majeran People and Communities Country Lead at Cisco Poland Cisco is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. We have been present in Krakow for 12 years, and over that period, we have grown to become the largest site for Cisco in all of EMEA, with 2500 people currently, 1800 of which are in tech roles. Our key focus areas in Krakow are Customer Experience, Cybersecurity and Software Engineering. One of the things we have always been most proud at Cisco Krakow, is the diversity of our teams. We are very proud of the fact that we ranked as the 3rd largest female IT specialists employer in Krakow in the latest Krakow IT Market Map report by MOTIFE, with 35% of our engineer population being female. As a leader in collaboration technology, Cisco has always been a hybrid work organization, and after the pandemic we made hybrid work our global policy, which means that it’s up to the employees and their teams to decide whether they work from home or from the office. We want the office to be a magnet, not a mandate. This benefits women in their careers, as it gives them more flexibility in balancing between work and life. One of the biggest challenges for women in the workforce is being able to return to work after a career break. From starting or raising a family to caring for a loved one or focusing on one’s own personal health, there are a variety of reasons why women may take a career break. There is incredible talent in this demographic, and to tap into that Cisco has launched a program for technical professionals who are looking to return to the workforce after a career break. Our engineering function, in particular, has significantly engaged with the program and is finding great benefit from the talent reentering the workforce through the program. Chapter 1 - Krakow IT market snapshot Additionally, we have various other programs and initiatives which support and help develop the careers of female IT specialists at Cisco: Women of Impact, Women in Science and Engineering (WISE), or various mentoring programs. In order to ensure that pathways to success are opened for all, particularly for underrepresented groups, we’ve put great emphasis on sponsorship. Through our Multiplier Effect initiative, leaders are asked to sponsor someone in the company who is different from them, spending time to get to know them and the unique talents they bring to the company. We also continue focusing on the retention of top talent. At Cisco, this includes offering a care concierge service, expanding back-up childcare resources, increasing our critical time off and regularly reviewing pay parity across the organization. Combining these resources with a culture of connection and proximity that focuses on listening and engagement helps ensure that our talent, including our Cisco women, feel like their leaders know them well which leads to greater satisfaction. Chapter 1 - Krakow IT market snapshot IT talent by company size There are over 500 companies employing a total of 60 000 IT specialists in Krakow. As per the research conducted by MOTIFE Insights in November 2023 on 321 companies in Krakow, more than half of these IT companies employ between 11 and 100 people in Krakow. Large companies do however employ the largest share of the local talent pool, with the 30 largest employers totaling over 50% of the IT specialists in Krakow. Overview of companies employing IT specialists in Krakow, by company size IT Consulting and Services Share of the Krakow IT talent pool employed by IT companies and non-IT companies Three out of four IT specialists work for technology companies. Meanwhile, 26% of IT specialists in Krakow are employed by non-IT companies, most commonly banks and Fintech companies. For the purpose of this analysis, we use a term technology company to describe organization where IT function constitutes over 50% of their headcount in Krakow. IT companies Non-IT companies Source: Dataset by MOTIFE Insights, November 2023, N = 321 Chapter 1 - Krakow IT market snapshot IT talent by company’s origin At 38%, American companies employ by far the largest share of Krakow’s IT talent pool. Surprisingly, the share of IT talent employed by foreign companies originating from countries in the European Union is relatively small, at 11%, and it reaches 28% if we include Polish companies. In comparison, non-EU companies account for 72% of IT employment. United States Poland United Kingdom Switzerland France India Sweden Finland Japan Norway 0% 10% 20% 30% 40% Focus – Polish companies The second largest IT employer in Krakow, and the largest Polish IT company in the city is Comarch. Established in 1993, Comarch, an enterprise software vendor, is a unique example of a local corporation that achieved international success. Among Krakow’s IT specialists working for Polish firms, over 40% are employed in the IT Consulting and Services industry, a figure that is higher than overall share of specialists employed in this industry in Krakow, which stands at 27%. Recognized Polish companies in this industry include j-labs, Software Mind, Avenga, Miquido along with a multitude of smaller companies that employ between 10 to 100 IT FTEs. Source: Dataset by MOTIFE Insights, November 2023, N = 321 17% Share of IT talent pool that works in Polish companies 40%+ Share of IT specialists employed by Polish companies who work in the IT Consulting and Services industry Chapter 1 - Krakow IT market snapshot 29 168 Industries We have identified 9 key industries employing IT specialists in Krakow. The top 3 employ almost 60% of the talent pool. Two out of three are strictly IT related: IT Consulting and Services and Software. The 3rd that made to the top is Finance, which shows the continued focus on digital transformation of this sector. IT talent by industry The IT Consulting and Services industry employs the largest share (27%) of IT specialists in Krakow. The Finance industry comes in second place (16%), fueled by large institutions like HSBC, UBS and Alior, as well as the arrival of new Fintech players. It is followed closely by Software (15%), Telecommunications (13%) and Engineering and Manufacturing (11%). IT Consulting and Services Finance Software Telecommunications Engineering and Manufacturing Travel Consumer Goods Energy Retail 0% 5% 10% 15% 20% 30% Source: Dataset by MOTIFE Insights, November 2023, N = 321 Chapter 1 - Krakow IT market snapshot Krakow IT Market Map Open dataset In the second half of 2023, MOTIFE conducted an extensive survey and research on the Krakow IT market. With 321 companies researched and 43 500 IT specialists mapped, we estimate that the dataset covered 80% of the Krakow IT talent pool at that time. Our survey results continue to be open to submit and browse the dataset. On the Krakow IT Market Map web page, you can update your organization’s information at any time, add your organization’s information if it has not been submitted yet and access the raw data submitted by survey participants. Focus IT Consulting and Services industry in Krakow The IT Consulting and Services industry employs the largest share (27%) of IT specialists in Krakow. IT Consulting and Services companies provide 27% different forms of outsourcing such as managed services and staff augmentation. Two main groups of companies compose this industry: large foreign groups operating globally and, secondly, a multitude of Polish software houses and IT consulting companies. Most of the large IT Consulting and Services companies, such as SII Group, EPAM, and Luxoft, offer software development capabilities to large organizations through staff augmentation services. Large financial institutions like UBS and HSBC are the primary users of these services. A smaller proportion of FTEs in this sector are engaged in non- development roles, such as technical support, at companies including HCLTech and Capgemini. It is worth noting that IT Consulting companies from non-EU locations such as India establish hubs in Krakow to be able to serve their clients requiring consultants to be located in the EU. Share of IT talent pool working in IT Consulting and Services companies in Krakow 16K Estimated number of IT specialists working in IT Consulting and Services companies in Krakow Largest IT employers in Krakow – IT Consulting and Services industry Source: MOTIFE Insights, Krakow IT Market Map Q1 2024, Dataset by MOTIFE Insights, November 2023, N = 321 Chapter 1 - Krakow IT market snapshot Krystian Sperka Managing Director at Infogain Poland Infogain is a digital global technology solutions and services company that enables businesses to accelerate their digital transformation journey. Our solutions drive growth, enhance operational efficiency and improve customer experience Four years ago, we boldly entered the Polish market with a clear vision of expanding our global footprint to bring digital services closer to our clients. Infogain in Poland has a total headcount of 250 people, and more than 6000 employees globally. Our growth trajectory soared in 2023 and to accommodate this growth, we moved into a larger, modern office space at The Park Krakow. The new office has enabled us to nurture our employer brand, collaborate with clients, and host community events within its quiet workspace and dedicated areas for private meetings, events, and workshops. In 2024, we will continue strengthening our employer brand and support our business growth globally by tapping into Poland’s best-in-class talent pool for digital platform development and software engineering expertise. As a customer- centric organization, we will excel in service delivery, add new clients and diversify our services with generative AI. We consider people our most important assets, and Poland Infogainers succeed in an environment working with the latest tech on high value projects. Our engineers’ competencies span microservices, React JS, native cloud apps (Google, Azure, AWS), DevOps and more. Infogain is positioned for the digital era through our global delivery, innovation mindset, embracing new tech and thought leadership. We aspire to stand out as a leader in Poland’s technology sector as a strong contributor to its future growth. We are excited to lead the way for organizations and industries that are ready to thrive in this digital age. Chapter 1 - Krakow IT market snapshot Focus Finance industry in Krakow Consisting of banks, Fintech companies, trading platforms and insurance firms, the Finance industry is the second largest industry employing 16% 16% of Krakow IT specialists. The industry leader is the Financial Services group HSBC, employing close to 2 500 IT specialists in Krakow. This industry in Krakow is growing steadily, fueled by the growth of existing sites, as well as the arrival of new Fintech players such as Backbase, OANDA or Zilch. Over 20 years of growth of the IT hubs in Finance sector contributed to the growth of the IT talent Share of IT talent pool working in Finance companies in Krakow 9.5K pool with finance acumen. From payments and pricing to trading and funds management, there is a strong representation of different subdomains in the area. Estimated number of IT specialists working in Finance sector in Krakow Largest IT employers in Krakow – IT Consulting & Services industry Source: MOTIFE Insights, Krakow IT Market Map Q1 2024, Dataset by MOTIFE Insights, November 2023, N = 321 Chapter 1 - Krakow IT market snapshot Ania McLaughlin General Manager at StoneX Poland StoneX Group Inc., a Fortune 100 Financial Services company, employs over 4,000 staff worldwide and supports a vast client base including 54,000 commercial and institutional clients, along with 400,000 retail accounts through its 80+ offices across six continents. The Polish branch is pivotal in developing digital platforms for Forex.com and City Index, employing around 400 professionals across various IT development and business support operations. In 2024, StoneX is launching key projects from Krakow to boost customer engagement and operational efficiency. These include a Real-Time Operations Tool to enhance service quality, an Enhanced Onboarding Experience for new and existing clients, a Real-Time Equity Trading and Investing Platform tailored for UK and US markets. Additionally, to support the StoneX global payments strategy the team are delivering a modern cloud-based platform that will continue to provide best in class FX and payments execution globally to our clients via modern low latency API’s. StoneX’s Krakow base is a hub of IT innovation, engaging a robust Agile Development Management Team and specialists across diverse software development roles. The technology stack includes .NET, Java, Angular, and React, supported by a robust infrastructure capable of handling over 1.4 million requests per hour. Recent expansions include a Customer (UX) Research Team to refine technologies based on user interactions. We are also very proud of the significant growth in the Early Careers program, raising the number of internship positions from 7 to 24 to nurture future talent. Krakow is a prime location for FinTech companies due to its vibrant ecosystem of global firms, dynamic growth in the FinTech sector, and a stable investment climate. According to the latest Map of Polish Fintech Report 2023, the number of FinTech firms in Poland increased from 167 in 2018 to 417 in 2023. Krakow’s appeal stems from its blend of Western work culture and robust economic growth within the EU, making it an investor-friendly environment. The city’s universities attract young, talented individuals from across Poland and abroad, who are agile and innovative, continually adapting to the evolving market. This creates a deep talent pool that FinTech companies can tap into. StoneX, originally a technology company in Krakow, plans to expand its operations here, capitalizing on the city’s potential for both technological and financial development as it plans for growth in 2024 and beyond. Chapter 1 - Krakow IT market snapshot Focus Sotware industry in Krakow The Software industry is the third-largest industry in Krakow in terms of IT specialists employed, accounting for 15%. For the purpose of this 15% analysis, we defined the software sector as comprising companies that develop industry- agnostic software tools, applications, and platforms. Examples include ERP, CRM, BPM platforms, or cybersecurity tools. The largest employer in the Software industry by far is the Polish company Comarch - a Krakow success story that originated on the AGH University campus and is now present around the world with an impressive portfolio diversification. The companies operating in this industry include large foreign listed companies and unicorns, such as Qualtrics, Splunk, Kaseya, or Google, as well as local start-ups like SALESmanago, Tronel, Quantum Software, and edrone. Boasting a strong pool of small and medium-sized firms, Software companies present a significant opportunity for Krakow’s start-up ecosystem. Employees can learn, be mentored, and gain exposure to the founders’ journeys, inspiring them to start their own entrepreneurial ventures. Share of IT talent pool working in Software companies in Krakow 9K Estimated number of IT specialists working in Software industry in Krakow Largest IT employers in Krakow – Software industry Source: MOTIFE Insights, Krakow IT Market Map Q1 2024, Dataset by MOTIFE Insights, November 2023, N = 321 Chapter 1 - Krakow IT market snapshot Andrzej Przewięźlikowski Vice-President of the Management Board, Director of Financial Services Division at Comarch Founded in 1993 and headquartered in Krakow, Comarch is one of the biggest IT companies in Europe and carries out projects for leading Polish and global brands. We currently employ over 6,500 experts around the world, but the company’s main business center is in Krakow. We are consistently pursuing our diversification strategy so that our business is not dependent on one business area, geographic market or single client. We see great potential in the rapidly growing ASEAN market, but we increase our footprint in other regions as well – the United States, Middle East, Benelux, France and of course CEE. New technologies open new opportunities. Cloud computing, microservice architecture and artificial intelligence (AI) are just a few which we not only have in our laboratories but have actually deployed in some of our solutions, for example in telecommunications projects, ERP systems or ecosystems for financial institutions. Our SME customers can benefit from our Apfino FinTech platform, which offers dedicated financial solutions such as services for monitoring receivables, debt collection, factoring, foreign payments and currency exchange. Business development is not possible without investing in the growth of our employees. It is not only programmers who can find a job here, but also specialists in the areas of marketing, sales, project management and administration. We focus on ensuring that the people who join our teams are motivated, well-organized and open to development. Communication skills and the ability to cooperate are also very important. We strive to build mixed teams - thus utilizing the best qualities of employees from all generations. At Comarch, we believe in developing people, and through our training management programs we ensure that our team members can grow from entry level internship positions to experts or managers, or even reach board level. Chapter 1 - Krakow IT market snapshot New foreign IT players Evolution over time 20+ Krakow, drawn by the city’s vibrant tech ecosystem and highly skilled talent pool. This trend has accelerated notably over the last six years. This surge is partially attributed to new tech companies relocating their IT staff due to the war in Ukraine. The influx of new IT players is not limited to traditional software companies or IT Services and Consulting firms. It also includes enterprises from non-IT industries such as Finance, Retail, and Manufacturing. Significantly, some large, established non-IT companies in Krakow are now expanding their operations to include IT functions within their existing centers. These developments are contributing to the robust annual growth of Krakow’s IT market. Timeline of main new foreign IT players in Krakow (2012-2023), with over 10 IT FTE, as per year established in Krakow New IT players in Krakow in the last 12 months Brown Brothers Harriman Cisco System Poland Euroclear Genpact Heineken Herbalife Lumesse Open GI Oracle Perkin Elmer Sappi Zooplus ALK FedEx GE Healthcare Getinge Grid Dynamics IAG GBS Lundbeck Pegasystems Relativity SoftServe SolarWinds Airhelp Arrow Electronics Cobbabera Digital Poland Ericsson N-iX Qurate Retail Group Uber Zurich Insurance OpenX Poland Parasoft Polska 2017 Ocado Technology 2013 2015 2016 Forte Digital Kingfisher Qualtrics VRP Consulting 2012 Accenture ASSA ABLOY 2014 Architech Poland GlobalLogic Playbook Engineering Nordic Semiconductor Samsung Amartus Polska Guidewire IG Sperasoft 38 168 Chapter 1 - Krakow IT market snapshot First Advantage Futurehome iTechArt Keeplt L&T Technology Services AML RightSources Branch Equiniti Esatto Poland Abbvie Backbase Poland BitPanda Cytvia KION Business Services OANDA Unit8 2021 LegalZoom Papaya Global Shares Tealium 2022 2023 Clari FLYR Labs IMI Hydronic Engineering Kimberly-Clark Revolut Splunk StoneX TE Connectivity 2020 Concentrix Forte Group Imperial Brands Genuine Parts Company Moatable NeuReality Persistent Systems Tesco Technology Zendesk 2018 2019 ALDI Tech Apptio, an IBM Company Basler Bystronic CAE DataArt Tanium Volvo EQTek Gravity 9 Poland Havi Hitachi Energy Infogain Technologies Intellias Poland Inuits Kitopi MindMics Polska PepsiCo Global Business SpotOn Transact Telenor Linx Polska Universal Investment WP Engine Poland Dyson Eleks FDM Group Kaseya mpeople Project44 Real Time Poland Sigma Software Sylvamo Westinghouse Electric Wix Zilch Chapter 1 - Krakow IT market snapshot 39 168 Tony Newcome Chief Technology Officer at ActiveCampaign What is ActiveCampaign? ActiveCampaign helps small teams power big businesses with the must-have platform for intelligent marketing automation. Customers from over 170 countries depend on ActiveCampaign’s mix of pre-built automations and integrations (including Facebook, Google, WordPress, Salesforce, Shopify, and Square) to power personalized marketing, transactional emails, and one-to-one CRM interactions throughout the customer lifecycle. Why did ActiveCampaign choose Krakow? We knew we wanted to expand our technology and product teams in EMEA in order to better serve our European customers and strengthen our position as a market leader. When looking at where we should expand, we found Krakow has a rich pool of technical expertise and talent that will help us further elevate our platform to meet the evolving needs of businesses globally. What roles is ActiveCampaign hiring for in Krakow? We envision our Krakow hub having 50 people in the next 12 months to start. We are building technology teams consisting of leadership positions and mid/senior IT specialists with PHP, React, and SRE skills for our platform and data engineering team, as well as our product engineering team. Beyond technology, we are also hiring for our new HR function in Krakow. You can find all of our open roles in Krakow and how to apply on our careers page. What projects will ActiveCampaign colleagues in Krakow work on? To start, we are focusing on building out our technology and product teams in Krakow, so those hired onto these teams will be focused on how to make our platform the best it can be for our global customer base. What is one thing you want people to know about your culture at ActiveCampaign? One thing that we often say at ActiveCampaign is don’t go global, be global. We started global, making it a part of our culture. Our first customer was a scuba diving company in Mexico, and today, 55% of our business is international. This happened intentionally as we translated the product from day one and have always made sure we have people who can speak the same language as our customers. We’ve developed amazing partnerships with global leaders who have helped us grow and thrive as a business. This mindset of ‘be global’ is the whole reason we are coming to Krakow. We want to be where our customers are and we know there is incredible talent here that will help us provide an even greater experience to the businesses we serve. Chapter 1 - Krakow IT market snapshot Sotware Software / Canada Software / United States activecampaign.com Absorb is a provider of a Learning Experience platform and a Learning Management System for businesses, education, government, and more. ActiveCampaign is a SaaS platform for small-to-mid-sized businesses, offering email marketing, marketing automation, sales automation, and CRM functionality. Software / United States Software / United States Axon is a software engineering company that specializes in the building of end-to-end software solutions for government agencies and private companies. Clari provides the enterprise revenue platform to improve efficiency across the revenue process, used by companies like Okta, Workday, and others. Software / United States Software / United States Grammarly is an AI writing assistance company that delivers real-time writing feedback. Grammarly team members work primarily remotely, with the possibility for team members to meet in physical hubs in San Francisco, Kyiv, New York, Vancouver, Berlin, or Krakow. Moatable provides management expertise, support services, and capital to help SaaS businesses grow, scale, and reach their full potential. E-commerce / United States cart. Software / United Kingdom Cart.com is a provider of unified commerce and logistics solutions that enable B2C and B2B companies to master omnichannel commerce, from product discovery to order delivery. Cart.com acquired DataFeedWatch, that was already established in Krakow. Mobica is a global software services company offering Talent-as-a- Service, headquartered in Manchester UK with offices across Europe and the USA. Chapter 1 - Krakow IT market snapshot Software / United States NexHealth offers a platform for online doctors’ appointment scheduling, digital forms, and messaging, aiming to modernize the healthcare experience. Software / United States Tanium is a cybersecurity and systems management company building a Converged Endpoint Management (XEM) platform. IT services and consulting IT services and consulting / United States Forte Group provides end-to-end enterprise software product development and quality engineering services. IT services and consulting / United States innovecs.com Innovecs specializes in digital transformation in various sectors like Healthtech, Fintech, Software, or Hi-tech. They plan to hire 50 people in Poland, working in Krakow or remotely from Poland. IT services and consulting / United States IT services and consulting / India persistent.com Exadel is a global consulting and engineering company that delivers technology transformation to help its customers become digital leaders. Exadel acquired the Polish software house Codete, rebranded into Exadel Europe in May 2024. Persistent Systems is a multinational technology services company specializing in cloud computing, IoT, endpoint security, big data analytics, and software product engineering services. IT services and consulting / India Sonata Software provides services, like cloud, data modernization and digital contact center setup, to brands such as Microsoft or Amazon. Chapter 1 - Krakow IT market snapshot Zbigniew Stankowicz Head of Global Center of Excellence at Tanium Tanium, the industry’s leading provider of Converged Endpoint Management (XEM), has set up a Centre of Excellence in Krakow in 2023 to deliver on its vision for Autonomous Endpoint Management (AEM). Tanium unifies IT operations and security teams on a single platform, providing real-time control and visibility for more than 33 million endpoints worldwide. Krakow was identified as an advantageous location for our company due to its immediate access to top European universities and computer science programs, convenient time zone, high English proficiency, and alignment of culture and values. Our Centre of Excellence in Krakow will enable Tanium to better serve its global customers, recruit top talent in the region, and accelerate its product development and innovation. Tanium plans to invest in the Polish market and expand its headcount over the next five years, with a focus on customer success engineers and technical experts. Our goal is to create a highly cross-functional location that supports our global business operations and administration. We anticipate triple digit team members in Krakow over the next 18-24 months, with our Polish engineering teams joining us in the 2nd half of 2024. Tanium’s AEM solution is the first to market that combines real-time data with the ability to act through AI, allowing organizations to mitigate risks and remediate incidents before damage occurs. The Centre of Excellence in Krakow will play a key role in delivering this quantum leap forward for endpoint management and security. Chapter 1 - Krakow IT market snapshot Ewelina Usarek-Nowak Head of Digital & Data Solutions Poland at Jacobs Jacobs is a global professional services company that provides services not only in technical consulting, design and project management but also delivers digital and data solutions for companies, organizations, and government agencies across the globe. Established in Krakow in 1991, Jacobs has recently launched a new Digital & Data Hub in Krakow, Poland, in a strategic move aimed at enhancing its digital capabilities and expanding its expertise in various areas such as Consumer & Manufacturing, Defense & Security, Energy & Utilities, Financial Services, Government & Public Services, Health & Life Sciences, and Transport. With a team of 70 skilled IT professionals, the Krakow Digital & Data Hub is ready to undertake a range of digital projects aimed at driving cultural awareness, business continuity, and more. Leveraging cloud technologies, the hub’s capabilities will focus on products and innovations, data engineering, machine learning, development and automatization/automation. The establishment of the Krakow Digital & Data Hub is a testament to Jacobs’ dedication to innovation and excellence, and it represents a significant milestone in the company’s efforts towards fostering a sustainable future through digital transformation. The hub will play a pivotal role in developing solutions that integrate data engineering components into production systems, ensuring the efficient handling of substantial volumes of structured and unstructured data. Jacobs is actively looking for IT professionals, including software engineers, Data & Cloud engineers, DevOps specialists, full-stack developers, and many others. Additionally, the company is recruiting the core of its business services teams, architects, HVAC specialists, process & piping, and project controls. Chapter 1 - Krakow IT market snapshot Other industries Financial Services / France BNP Paribas Corporate and Investment Banking (CIB) is a leading provider of solutions to a wide range of clients including corporates, sovereigns, financial institutions and investors worldwide. BNP Paribas CIB is looking to hire over 200 IT specialists in Krakow, that will join the BNP Paribas Group office already established in Krakow. Manufacturing / United Kingdom Imperial Brands is a dynamic fast-moving consumer goods company born out of a strong tobacco heritage. It is the world’s fourth-largest international cigarette company measured by market share. They plan to hire 500 employees in various fields, such as finance, IT and data analysis. Professional services / United States Retail / United Kingdom Jacobs provides a full spectrum of professional services including consulting, technical, scientific, and project delivery for the government and private sector. Already present in Krakow, Jacobs recently announced the launch of a new Digital & Data Hub in Krakow. Kingfisher is an international home improvement company with operations in 8 countries in Europe under retail banners like Castorama, Brico Dépôt, or TradePoint. Kingfisher opened a Global Business Services (GBS) Centre in Krakow in 2017, and recently launched an expansion of their technology hub in the city. Manufacturing / Finland Manufacturing / Israel Metso is an industrial machinery company providing technology and services for mining, oil & gas, recycling, and more with sustainability as a priority. NeuReality is a semiconductor start-up that designs AI-as-a-service infrastructure. It addresses the challenges posed by the growing deployment of AI. Sports betting / Malta Tipico is an international provider of sports betting and casino games, named the leading sports betting provider in Germany. Chapter 1 - Krakow IT market snapshot Large companies The largest IT employers in Krakow Approximately 120 000 people work for corporate business centers in Krakow, a number which grew four-fold in the last 10 years. An estimated 40% of this pool is employed in IT functions. HSBC Largest IT employer in Krakow, with 2 500 IT specialists 30+ Large companies hiring each 300+ IT specialists in Krakow USA 12 of the top 30 largest IT employers in Krakow are American companies Large companies have been pivotal in developing the IT job market in Krakow The influence of these major corporations on the job market cannot be overstated. In the early 2000s, only a few large firms such as Comarch and a handful of foreign companies operated in the city. As the demand for engineers increased, the landscape began to change. This prompted universities to introduce more computer science courses, encouraged engineers from other disciplines to transition into software engineering, and attracted talent from other Polish cities to Krakow. Furthermore, it spurred additional IT companies to establish offices in the city. Currently, at least 70% of large international corporations in Krakow built an IT function here, focusing on software development and service delivery, solidifying the city’s status as a major IT hub in Europe. Top industries and countries of origins The three leading industries among the top 30 companies are IT Consulting & Services, which accounts for 24% of these largest companies' IT headcount, Telecommunications & Networking at 20%, and Finance at 18%. The top three countries of origin for these companies are the United States with 40%, the United Kingdom with 14%, and Switzerland with 11%. Sources: Krakow IT Market Map Q1 2024, Dataset by MOTIFE Insights, November 2023, N = 321, ASPIRE, 2024 Chapter 1 - Krakow IT market snapshot Map of Krakow’s largest IT employers Chapter 1 - Krakow IT market snapshot Kamil Dowlaszewicz Country Head at EPAM Poland EPAM is a global digital transformation services and product engineering company. Headquartered in the United States, the Company has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious startups. EPAM has been active in Poland since 2011, has its headquarters in Krakow, and now employs nearly 7,000 people, including nearly 2,000 in Krakow. EPAM Poland’s six main hubs are located in Gdansk, Warsaw, Wroclaw, Katowice, Lodz, and Krakow. At the end of last year, EPAM opened a new office in Krakow (in Brain Park, Fabryczna 1), designed with a focus on cross-disciplinary cooperation, learning, and innovation. It includes an easily accessible event hub, Client Workshops Center, as well as Innovation Lab Space. 2023 was a year during which the Company consolidated its position as one of the leading representatives of the IT industry in Poland. It was also a time when EPAM Poland celebrated many employee successes. We are especially proud of our EPAM XR team which won the main prize in the NASA MarsXR Challenge - a competition for enthusiasts from around the world to propose the best technology solutions for Mars exploration readiness. We also received the SoDA Award for our Cloud Excellence L&D Program. At the moment most of our employees in Poland, i.e. several thousand specialists graduated from one or more of its tracks. Moreover, 2023 was obviously also the time when the teams in Poland, working closely with global experts connected through our AI-X hub, focused on developing and scaling the capabilities related with many aspects of AI and its potential for uncovering business value. As a result, we created an AI-X Accelerate team and community which is already engaged with tens of clients. In 2024, we will continue our focus on AI and Data solutions. We will also invest to further develop and scale our Enterprise capabilities related with SAP, Salesforce and MS Dynamics. Moreover, we will continue our efforts oriented on specific business-domain expertise. Finally, we intend to further extend and diversify our client base. Chapter 1 - Krakow IT market snapshot List of the largest IT employers in Krakow (1000+ engineers/IT professionals) Company Name Number of engineers/IT professionals in Krakow Number of employees in Krakow Country Krakow office setup year Key competencies Solutions Corporation ABB 1 000* 2 200 Switzerland 1997 .NET, Java, Sources: based on data provided by companies mentioned. * Estimation based on online sources. Chapter 1 - Krakow IT market snapshot 50 168 Chapter 1 - Krakow IT market snapshot List of the largest IT employers in Krakow (from 500 to under 1000 engineers/IT professionals) Networks Sources: based on data provided by companies mentioned. * Estimation based on online sources. Chapter 1 - Krakow IT market snapshot Timothy O’Brien Managing Director, Office Co-Head at Brown Brothers Harriman Brown Brothers Harriman is a privately-held, global financial services firm headquartered in New York City. For over 200 years our client-centric approach has fostered deep and lasting relationships built on commitment and trust. We serve the world’s leading asset managers, financial institutions, institutional investors, privately held companies, foundations and endowments, high-net-worth individuals and families. Operating in over 90 markets worldwide, we are located across 18 offices and employ approximately 6 000 professionals. In an industry defined by change, BBH stands apart for its stability. BBH is known for our client experience, which brings together expert service, highly specialized teams, and senior leaders committed to exceeding expectations. We believe in designing creative solutions to our clients’ toughest challenges, and delivering results that fuel success. As a private partnership, free from the distractions of outside shareholders, every investment we make is in the relationships, technologies, products and people, we believe are in the long-term interests of our clients. Our Krakow location opened in 2012 and is a strategic component of our global service model. Tapping into the deep local talent pool, the office co-locates a mix of capabilities— across technology, service delivery and client management—providing a unique platform for innovation and collaboration that helps better serve the needs of clients within Europe and Asia. Today, our Krakow office is home to 1 600 BBHers, making it the largest operational location in Europe and BBH’s global technology and innovation hub. Our dedicated Innovation Lab is a center of inspiration and creativity, delivering automated solutions for our clients that leverage emerging technology, such as Artificial Intelligence, Robotics Process Automation, and Automation Platforms. Operating like a start-up, colleagues across our technology and business teams partner to introduce, research and mature new ideas and solutions. No one is too junior or senior to pitch a compelling idea that helps our clients. We believe diversity of thinking and collaboration is essential to delivering better solutions. The key to our success is our exceptional people who are known for their expertise, character, and integrity. Whether you are just starting your career or an experienced professional, BBH provides a variety of opportunities to learn new skills, work across different disciplines or move into new challenges. Delivering for our clients energizes us, as does supporting the professional goals and ambitions of our people as we collectively advance our business. With a 200-year legacy and a shared passion for what’s next, this is an unparalleled place to build a fulfilling career. Chapter 1 - Krakow IT market snapshot List of the largest IT employers in Krakow (from 300 to under 500 engineers/IT professionals) year Ocado 380* 420* United 2010 Java, Linux, Networking PMI Service Center Europe 300 2 300 United States 2005 Cybersecurity, Node.js, JavaScript, Typescript, SAP Grand Parade 300 310 United Java, React, node.js, Angular Sources: based on data provided by companies mentioned * Estimation based on online sources. Chapter 1 - Krakow IT market snapshot Alexei Savulkin Director IT GBS at Philip Morris International IT Hub in Krakow is one of the global locations where Philip Morris International (PMI) is making historic changes. As the company is actively evolving its product portfolio for the long term, PMI Information Technology (IT) is a vital partner in this exciting journey and continues to lead a digital business transformation that’s changing how we work, our systems, processes, and culture. The IT Hub Krakow works with topics such as Cloud, Big Data, Cyber Security, Network & Platform Engineering and DevSecOps. We support PMI’s Manufacturing, e-Commerce, Product Development, HR processes and more. With 300 specialists, 28 nationalities serving 82 markets globally, the IT Hub Krakow is the biggest delivery centre in PMI. Currently 32% of employees in IT Hub are women. Moreover, we are proud to be the first international company being globally EQUAL-SALARY certified. Last year, we made a solid progress in the journey to integrate AI. We have evaluated 40+ AI use cases and launched a wide range of pilot programs to further assess proof of value and understand the path to wider adoption within PMI. The newly implemented Gen-AI tools, including Copilot, have enhanced productivity by streamlining day-to-day tasks and freeing up time for impactful activities, resulting in measurable benefits for the company. In 2024, we aim to continue integrating AI to accelerate PMI’s journey towards a smoke-free future. In 2023 we also invested in cloud-based horizontal capabilities. Our centralized cloud infrastructure DEEP enabled us to store, manage and access data, applications, and resources remotely, while delivering greater resilience, scale and agility. Additionally, we continued strengthening our security in response to growing cyber threats and narrowing tolerance for cyber risks due amid stricter compliance requirements. Looking ahead, executing a robust cyber strategy remains vital to our business continuity. Chapter 1 - Krakow IT market snapshot Start-ups Krakow is a cosmopolitan city, characterized by its vibrant and multicultural atmosphere. As you stroll through its streets, you can hear a variety of languages, reflecting the city’s rich cultural diversity. This diversity is mirrored in Krakow’s start-up scene, which features a mix of local Polish start-ups and numerous foreign start-ups that have set up in Krakow to leverage the city’s skilled talent pool. Rapid growth and international recognition In recent years, the start-up scene in Krakow has experienced rapid growth. Local startups employ hundreds of people and offer innovative solutions used worldwide. The city attracts young and creative individuals, promoting economic growth. The Krakow ecosystem hosts both locally-born companies and international branches of foreign startups, including 22 foreign unicorns. 150+ Estimated number of start-ups in Krakow 11 Number of start-ups exits in Krakow over the past 6 years Krakow’s start-up creation is driven by a well-connected ecosystem that includes incubators, mentors, investors, and organizations collaborating with start-ups. Examples of such organizations are the Krakow Technology Park, and OMGKRK. Early-stage teams have access to various support programs, including incubators like KPT Incubator and Academic Incubation Programs, pre-accelerators such as OMGKRK, Dragons Cave Pre-Accelerator, and KRK InnoTech Starter, accelerators including #StartUP Małopolska, and acceleration programs of Krakow Technology Park such as Poland Prize, KPT ScaleUp, and EIT Digital. Chapter 1 - Krakow IT market snapshot Dominika Walec CEO at OMGKRK With over 500 tech companies, nearly 60 000 IT professionals, and over 10 000 students specializing in IT, Krakow stands as 2nd top tech ecosystem in Poland and premier innovation hub in Europe, drawing early-stage startups and established entities alike. What sets Krakow apart is its vibrant innovation ecosystem, top-tier educational institutions, local communities, supportive organizations, and electrifying atmosphere of the city. This rich tapestry is further enriched by a vast pool of talent and business acumen nurtured by international business centers. The Krakow startup ecosystem, born from grassroots enthusiasm, owes much of its cohesion and vitality to the OMGKRK community. Over the past decade, OMGKRK has been at the forefront of building the local community, stimulating knowledge exchange, and fostering networking among founders through multiple events and initiatives. Success stories like Brainly and Kontakt.io exemplify Krakow’s prowess in edtech and IoT. Brainly, with over 350 million global users monthly and $150 million in funding, showcases Krakow’s potential for impact, while Kontakt.io’s recent $47.5 million funding infusion from Goldman Sachs fuels its expansion and hopefully initiates a new wave of angel investors from its core team. To support further growth and sustainability of the ecosystem, closer collaboration and support from local authorities are essential. Let’s hope that the recent elections will offer an opportunity for enhanced cooperation between the startup community and governmental bodies, paving the way for targeted initiatives to fuel Krakow’s entrepreneurial spirit. Are you intrigued by startups? Join us at OMGKRK events and dive into the vibrant world of innovation! Chapter 1 - Krakow IT market snapshot Focus Krakow start-ups exits One of the key measures of the maturity of a start-up ecosystem are exits. Both M&As and IPOs lead to the domino effect of new ventures funded by the former employees after exits are completed. Below we are listing exits in Krakow in the recent years based on the publicly available resources. The list doesn't include exits of software houses. Selected Krakow start-ups exits since 2018 Original start-up Acquiring entity and date Description Zendesk September 2018 Visma January 2019 Nets January 2019 ShelfWise FORM CentralNic October 2020 Visma December 2020 Advent International January 2021 Meliuz March 2021 Silver Tree Equity November 2021 Lunching Benefit Systems SaaS Labs October 2023 Sales solution provider, founded in 2009 offering integrated tools for communication, lead scoring, and reporting. Provider of software for companies and accountants to automate and facilitate processes, founded in 2009. Comprehensive online payments provider founded in 2000, currently consolidates with eCard and Przelewy24. Start-up founded in 2013 building a tool that offers image recognition software for retail valuable insights. Start-up delivering tools to measure the effectiveness of online marketing campaigns, founded in 2011. Online accounting services and software provider founded in 2008. The most successful operator of automated parcel lockers in Europe, founded in 2006. E-commerce platform providing discount coupons for online stores and cashback to its users founded in 2010. Start-up creating the end-to-end AI commerce growth platform, founded in 2014. Platform, founded in 2016, that enables companies to deliver lunches to their employees countrywide. ICT SaaS company, founded in 2015, that converts website visitors into sales calls. Chapter 1 - Krakow IT market snapshot Krakow start-up ecosystem in numbers There are over 150 companies in Krakow that meet the criteria of a start-up. According to the OMGKRK survey in the Krakow Startups Report, the city’s start-ups are relatively young, with 60% established within the last five years. The majority have up to 50 employees, with 33% having a maximum of five team members. About half of the start-ups cater primarily to Polish clients, while 42% operate predominantly in international markets. In the national start-up scene, Krakow ranks as the second leading start-up ecosystem in Poland as per the Startup Blink Report 2024, after Warsaw and ahead of Wroclaw. According to the 2023 Polish Startups Report by Startup Poland, 12% of Polish start-ups are registered in the Krakow region, compared to 19% in the Warsaw region and 28% in the Wroclaw region. Additionally, 30% of Polish start-ups declare that they operate in the Krakow region, with 19% in the Warsaw region and 28% in the Wroclaw region. Start-ups specializations Krakow start-ups specialize in various areas. This is a selection of the main areas and start-ups operating in these specific fields. Sales and Marketing IoT ventures Game studios MedTech CallPage Synerise SALESManago edrone Silvair EMBETECH Airly SEEDia Husarion Findair Estimote Elmodis Kontakt.io Infinity Ward/Activision CD Projekt RED Teyon Gamesture Intelliseq Upacjenta Cardiomatics Start-ups born in Krakow This list highlights 15 top start-ups from Krakow, ranked by their Crunchbase Rankings. So far, there isn’t a better way to evaluate these companies since up-to-date valuation information is mostly not available. Together, these companies have gathered more than $300M in funding since they started. Although they began in Krakow, firms like Estimote and Kontakt.io have moved their main offices to the United States, but they keep growing their research and development centers in Krakow. The most successful start-ups from Krakow according to Crunchbase ranking Name and sector Year founded and total funding Description and Crunchbase ranking #1 Brainly (EdTech) #2 Kontakt.io (IoT) 2009 $148,5M 2013 $68.8M Brainly is a leading learning platform worldwide with the most extensive Knowledge Base and 300 million users from over 35 countries relying on it as the proven platform to accelerate learning. CB ranking: 1 385 Kontakt.io builds secure and configurable beacon hardware and software to power competitive proximity-based solutions. CB ranking: 4 358 #3 Stonly (Software) #4 edrone (CRM, Marketing & Sales automation) 2018 $25.5M 2016 $10.9M Stonly is a Polish - French start-up offering a platform for businesses to teach audiences and users more effectively, enabling creation of step-by-step guides that can be embedded anywhere. CB ranking: 6 770 Edrone is an autonomous e-commerce CRM platform that provides advanced marketing automation solutions. CB ranking: 9 381 #5 Synerise (Sales, Marketing) 2013 $42.2M Synerise produces a Big Data and AI platform that allows users to process data in real time from various sources based on proprietary database systems and proprietary artificial intelligence algorithms. CB ranking: 11 636 #6 SALESmanago (Marketing automation) 2011 $7.7M SALESmanago operates a cloud-based online marketing automation platform used by over 10 000 customers in over 40 countries. CB ranking: 21 028 Chapter 1 - Krakow IT market snapshot #7 Estimote (IoT) #8 CallPage (Software, Sales) 2012 $29.6M 2015 $6.7M Estimote is a technology start-up, building a sensor-based context and micro-location platform for mobile developers. CB ranking: 24 964 CallPage is an ICT SaaS company that converts website visitors into sales calls. CB ranking: 28 055 #9 SATIM (Software) #10 LiveKid (EdTech) #11 Orbify (Software) 2012 $3.1M 2017 $5.6M 2021 $1M SATIM develops AI software for object detection and classification using SAR satellite imagery and synthetic SAR signatures, for quick training of their AI model to classify objects with 90% accuracy. CB ranking: 28 721 LiveKid is the most popular system for kindergartens and nurseries in the EU and includes tools for communication with parents, settlements and documentation. CB ranking: 29 650 livekid.com Orbify offers professional Earth observation solutions allowing users to create their own applications and digital solutions without codes. CB ranking: 36 048 #12 Intelliseq (MedTech) #13 Upacjenta (MedTech) 2014 $4.7M 2018 $4.9M Intelliseq offers an automated genome interpretation platform tailored for next-generation genome sequencing (NGS) data, producing comprehensive reports, and providing clinical insights for doctors, genetic counselors, or patients. CB ranking: 37 540 Upacjenta.pl is an online platform that enables patients to search, book medical appointments and receive healthcare-related services. CB ranking: 37 594 #14 Cardiomatics (Software) 2017 $3.7M Cardiomatics offers AI analysis of Holter ECG data in the cloud. The system provides healthcare providers with clear reports. They collaborate with physicians and Holter device providers globally. CB ranking: 46 513 #15 Certifier (Software) 2020 $0.7M Certifier streamlines the creation and distribution of high-quality certificates with its platform. Users can design personalized certificates using professional templates or their own designs, and manage recipients efficiently. CB ranking: 49 182 Source: crunchbase.com, April 2024 Chapter 1 - Krakow IT market snapshot Kris Dąbrowski Co-founder & Head of Design at Stonly What is Stonly? Stonly is a knowledge and automation platform for customer service founded in 2018 by repeat entrepreneurs. We’re a venture-backed b2b SaaS company with offices in Krakow, Paris, and NYC. We raised a $20M Series A in early 2022, and over 1 000 companies use our product. As customer service is being reshaped, we have strong ambitions and will probably add more capital to the company to accelerate our growth. How did it all start? While at Dashlane, my cofounder Alexis and I realized support teams are overwhelmed with issues customers could solve on their own. We came up with the idea of interactive guides as a more effective format for guiding customers to self-serve. So we built a beta and validated our idea. Our third cofounder, David, who was leading revenue at Calendly, joined and we brought Stonly to market. We went on to raise VC funding from Accel and Northzone, and have built a strong team across the US and Europe. What are your top competencies? We deeply understand high volume customer service teams. We’re building a platform that provides everything they need to offer automated, world-class customer service. Other companies focus on small pieces of it, but we add efficiency at every touchpoint. We’re also extremely agile. We learn from customers and adapt to the market. Recently, AI has shown a lot of promise in the customer support space so we’ve built a tech team that’s at the forefront of generative AI, and a product that maximizes its impact. What have you achieved with Stonly? We’ve built a unique product that companies love. We currently have around 1 000 companies using Stonly, and help them serve millions of their customers more effectively. Our customers have been able to drastically improve their customer service metrics with more self-serve leading to fewer tickets and more automations for their agents leading to improved efficiency and quality. We’re continuing to grow quickly, and plan to accelerate that growth as the Customer Service market is being redefined towards automation and AI. Chapter 1 - Krakow IT market snapshot Chapter 1 - Krakow IT market snapshot International unicorns in Krakow Despite the absence of a Polish-born unicorn, the unicorn scene is well represented in Krakow, with over 20 such organizations operating in the city. These companies have established R&D teams and are tapping into the city’s pool of IT talent and expertise. Their presence in Krakow highlights the attractiveness of the city as a tech hub and provides valuable entrepreneurship exposure to the local start-up ecosystem and talent pool. As of April 2024, there are approximately over 1 200 privately owned companies valued at $1 billion or more worldwide, according to data from CB Insights. Although no Polish-born company has yet made the list, Brainly (an EdTech company) seems to be the most likely contender for the title of the first Krakow-born unicorn. 22 The establishment of international unicorns in Krakow not only contributes to the market’s diversity by including businesses in the pre-exit stage, but it also offers employees invaluable opportunities to gain exposure to the intricacies of building, managing, and expanding such ventures. This exposure serves as a valuable learning experience for individuals, providing them with firsthand knowledge of the processes involved in creating and scaling successful enterprises. International unicorns with R&D teams in Krakow Artificial intelligence Mountain View, United States E-commerce Marina del Rey, United States E-commerce Austin, United States Fintech Amsterdam, Netherlands Fintech New York, United States Fintech San Francisco, United States Chapter 1 - Krakow IT market snapshot Fintech New York, United States Fintech London, United Kingdom Fintech London, United Kingdom Fintech London, United Kingdom Foodtech Dubai, United Arab Emirates IT services and consulting Kirkland, United States Software Chicago, United States Software Redwood City, United States Software Sunnyvale, United States Software Santa Clara, United States Software San Francisco, United States Software Miami, United States Software Chicago, United States Software San Francisco, United States Software San Diego, United States Supply chain Chicago, United States Source: cbinsights.com, The Complete List Of Unicorn Companies, February 2024. Chapter 1 - Krakow IT market snapshot Dagmara Bocoń General Manager at Backbase Backbase, a Dutch innovator in the fintech industry, has been pivotal in transforming banking around the globe through its Engagement Banking Platform. This open platform is designed to modernize banks and pivot them towards being more customer-centric. With a legacy stretching over two decades, Backbase supports more than 150 banks worldwide in their quest for digital transformation. The recent injection of $120 million from Motive Partners highlights the company’s strong market presence and its commitment to future technological advancements. Globally, Backbase employs more than 2 000 people, with a significant team of over 300 professionals based in Krakow, Poland, further solidifying its stance as a leader in the fintech space. Krakow was selected for its rich pool of top-tier IT talent, crucial for driving cutting-edge customer experiences, and its geographical and cultural proximity to our Amsterdam headquarters. This strategic choice supports our collaborative and agile development processes, allowing us to innovate and swiftly respond to market needs, making Krakow an ideal location for expanding our capabilities. Our operations in Poland are powered by key competencies in i.e. Java, JavaScript, Angular, Android, and iOS technologies, pivotal to our R&D and Customer Success efforts. These skills ensure our Engagement Banking Platform remains at the forefront of technological advancement and user experience excellence, with our talented Polish team playing a crucial role in our global success story. In 2024, we are ambitiously expanding our office space in the HighFive Building, doubling its size to accommodate our growing team. Furthermore, we’re enhancing our Research and Development capacities in Poland by adding new staff to our existing teams and creating new teams dedicated to product development. This expansion aims not just at scaling our physical footprint but also at deepening our R&D capabilities to accelerate innovation, enhance global client support, and reinforce our commitment to leading the fintech revolution. Chapter 1 - Krakow IT market snapshot Foreign start-ups with engineering teams in Krakow The Krakow start-up ecosystem does not only consist of Polish start-ups, but also includes foreign businesses that have decided to set up teams in Krakow. Here are examples of foreign start-ups that opened a subsidiary in Poland and are well-established in the city. Selected foreign start-ups with engineers in Krakow Name and sector Country and year founded Description Beekeeper (Software) Switzerland 2011 Beekeeper is a workplace app that connects the non-desk workforce to operational systems and communication channels. Equativ (Advertising) France 2001 Equativ is an advertising technology company that offers a digital marketplace to help advertisers. FutureHome (Software/IoT) Norway 2013 Futurehome is a smart home and security solutions company helping apartment buildings and private homes digitalize and smarten up their homes to be safer, more energy efficient and building management. FLYR Labs (Mobility) USA 2012 FLYR Labs is a provider of commercial intelligence and automation across the travel and transportation industry. It has developed a deep learning platform to help airlines price and plan flights. Talixo (Mobility) Germany 2012 Talixo specializes in pre-booked transfers, partnering with major travel brands to simplify transportation. The company collaborates with various travel platforms and agencies to provide reliable transport services globally. Unit8 (AI/Data) Switzerland 2017 Unit8 is a Swiss data services and consulting company, specializing in helping non-digital native companies in industries such as chemical, pharma, automotive, and finance turn data into value through data science, analytics, and AI. Chapter 1 - Krakow IT market snapshot Polish sotware houses Polish software houses play an important role in Krakow’s IT scene, as they employ over 2 000 IT specialists and act as ambassadors of Poland tech savoir-faire to their clients. Krakow’s software houses would typically work with foreign start-ups acting as an outsourced engineering team or augmenting the existing development. Additionally, some of these firms collaborate with large companies helping by augmenting the existing teams. K+ IT specialists working in Polish software houses in Krakow Polish software houses with the largest teams in Krakow Source: MOTIFE Insights, Krakow IT Market Map Q1 2024, companies career sites, LinkedIn data. Chapter 1 - Krakow IT market snapshot Sebastian Malczyk General Manager at Miquido Miquido is a leading AI & software development agency with 12 years of experience, over 250 digital projects delivered, and strong endorsements from big names like Warner, BNP Paribas, and Skyscanner. Based in Krakow, a key European tech hub, it taps into a rich talent pool of over 50 000 developers, driving innovation and expertise in a city known for its strong tech community. 2023 showed us that crisis and change are two sides of the same coin. Like many IT companies, Miquido faced challenges at the start of the year. Galloping inflation, a recession affecting nearly all global markets and industries, and customers investing more cautiously in innovation and progress pushed us to seek answers more fervently than ever: What can we offer our customers to provide real value in these new times? The answer emerged swiftly. Miquido has been executing commercial projects in AI, data science, and machine learning for over six years. Leveraging this experience, we quickly embraced innovation, dedicating most of our resources to research and development in generative artificial intelligence and LLMs. Our professional AI team completed over 20 projects across various industries in just one year. We also developed products allowing our clients to build their knowledge bases or AI-based customer support chatbots quickly. In 2023, our organization evolved significantly. Today, Miquido comprises business units specializing in comprehensive solutions ranging from consulting and strategy to design and development and tailored to specific industries like fintech, eCommerce, and entertainment. We’re committed to better understanding the needs and specifics of our clients’ projects to provide them with the most efficient business solutions. In 2024, we plan to continue on the path we set last year. The growing number of larger projects, especially in AI, and the scale of clients we’re currently in talks with (which include some very well-known and inspiring brands) confirm that we’ve made the right decision. Chapter 1 - Krakow IT market snapshot Education Walking through Krakow, it’s easy to notice the city’s youthful and dynamic vibe. With one in ten inhabitants in Krakow being a student, the universities and campuses significantly contribute to the city’s lively atmosphere. This large student presence influences Krakow’s character, ensuring a continuous supply of fresh graduates who find employment in the many local and international companies based there. Within Krakow, there exists a robust selection of computer science programs offered at the B.Sc. level by various universities. These programs collectively produce close to 2 600 graduates annually. Remarkably, a significant portion of computer science students typically begin working in their respective fields during their third year of studies, thereby acquiring professional experience prior to graduation. 23 Higher education schools in Krakow 9 Higher education schools with IT courses in Krakow 128K Students in Krakow 14K Computer Science students in Krakow 2.6K Computer Science students graduating yearly in Krakow Free Higher education in Poland Source: krakow.stat.gov.pl, agh.edu.pl Chapter 1 - Krakow IT market snapshot Increased interest in ICT studies There has been a significant rise in the number of students who enrolled in Information and Communication Technology (ICT) courses. In 2022-23, the number of ICT graduates was by 73% higher than that of 2017-18. This increase in the popularity of ICT programs is evident from the application rates at top universities, where there were ten applicants for every available spot in 2023. This stands in contrast to the demographic trends clearly seen in the overall numbers of freshmen. Similarly to other EU countries, the birthrate is consistently dropping, which is resulting in shrinking younger population. Between 2018 and 2023, the number of students gradually decreased from 144 000 to 128 000. The city is making an effort to reverse this trend by attracting students from abroad. ICT courses – number of students and graduates in Krakow universities, 2017-2022 16 000 14 000 12 000 10 000 8 000 k 6 000 4 000 2 000 2017 2018 2019 2020 2021 2022 ICT students ICT graduates annually Main universities AGH University of Science and Technology AGH University of Science and Technology has been recognized as the number 1 top technical university in Poland in 5 foreign rankings in 2023/24 including Academic Ranking of World Universities 2023 and The Center for World University Rankings 2023. The quality of education is reflected in the graduates of the university being well-received in the job market with over 65% finding employment before graduation. At a glance Founded in 1913 18 500 students 5 500 ICT students 1 300 ICT graduates yearly 10 ICT courses offered Computer science courses offered at diverse faculties Electronics and Telecommunications Software development methods Data Science Modern Technologies in Forensics IT technologies and business processes ERP systems on the example of SAP ERP Database systems Cybersecurity in practice IT - design, programming and operation of systems Automatics and Robotics Focus ACK Cyfronet AGH supercomputers Located on AGH University campus, Helios is the most powerful supercomputer in Poland. It is ranked 3rd on the Green500 list evaluating supercomputers by energy efficiency, and 55th on the TOP500 list in terms of computing capacity. Each year, Helios will support several hundred research projects across fields including chemistry, physics, energy, medicine, and Artificial Intelligence. Helios can achieve the theoretical computing power of 35 PFlops. ACK Cyfronet AGH provides computing resources, storage systems, and specialized software to support the scientific community. Cyfronet boasts several other high-performance computing solutions and systems, including other notable supercomputers like Athena, Ares, and Prometheus, which have also been recognized in the TOP500 rankings. The impact of supercomputers extends significantly into fields such as artificial intelligence. This computational power enables scientists to advance their research in the areas like large- scale neural networks/machine learning, natural language processing, and predictive analytics. Chapter 1 - Krakow IT market snapshot Jagiellonian University Jagiellonian University itself is the oldest university in Poland with over 600 years of tradition and this year the faculty of Mathematics and Computer Science at the Jagiellonian University celebrates its 20th year. The year 2023 also brought recognition of the Computer Science course by the national ranking by Perspektywy magazine as the 2nd best in the category in Poland. And as of the academic year 2024-25 a new Bachelor's degree program will be offered - Artificial Intelligence. At a glance Founded in 1364 34 000 students 1 500 ICT students 320 ICT graduates yearly 3 ICT courses offered Courses offered Computer Science, including software engineering, modeling, artificial intelligence, and machine learning Analytical Computer Science, including algorithms, software engineering, programming, operating systems, and web Computer Mathematics, including mathematics analysis, combinatorics and probability theory, programming languages, algorithms, and software engineering Krakow University of Technology (Politechnika Krakowska) Krakow University of Technology (Politechnika Krakowska) is a university focusing on educating Krakow’s engineering staff and persistently improving local scientific and technical thought, with their involvement in the creation of KPT in 1997 as an example. It was recognized in the 2024 edition of QS World University Rankings along with 33 other universities from Poland. The graduates of University of Technology ICT courses are well recognized and appreciated in the job market. At a glance Founded in 1945 12 000 students 3 000 ICT students 400 ICT graduates yearly 3 ICT courses offered Courses offered Computer Science, including Python and Java programming, operational systems, data analysis, and Artificial Intelligence Data Science, including data analysis, statistics, machine learning, and symbolic programming languages like R, Python, and more Cybersecurity, including databases, AI in cybersecurity, and blockchain technology Public institutions There are numerous institutions at different levels of local government supporting foreign investors and the city’s growth as a knowledge-based economy. The most active are the offices of the Municipality of Krakow, the Region of Małopolska, and the Krakow Technology Park. Krakow Municipality Krakow Municipality enhances the city’s business landscape through the activity of Krakow’s Department for Entrepreneurship and Innovation responsible for programs and initiatives fostering economic growth and favorable business conditions in the city. How does Krakow Municipality help investors and companies? The city supports investors by running investment and business support programs, organizing meetings between investors and city officials, providing guidance during the initial stages of the investment, promoting Krakow as a business location, and providing official representation at important events organized by investors. Department for Entrepreneurship and Innovation The Department for Entrepreneurship and Innovation enhances Krakow’s economic image through institutions like the Investor and Innovative Economy Support Centre, Entrepreneurs Growth Centre, and Business Service Point. The Support Centre aids investors, oversees investment processes, organizes meetings, and collaborates with municipal units. The Entrepreneurs Growth Centre assists small and medium-sized enterprises and coordinates start-up community efforts. The Business Service Point streamlines business setup and operations. Innovation Cluster Zabłocie The Department for Entrepreneurship and Innovation manages the Socio-Economic Innovation Cluster Zabłocie 20.22, a multi- functional center combining technology, business incubators, and community activities. Opened in 2023, it includes areas for business, creativity, and social innovation. The Cluster supports entrepreneurship, investor services, and community cooperation, hosting meetings, workshops, and conferences for diverse sectors. It is an open space for residents and entrepreneurs to collaborate and innovate. Krakow’s professional workforce, combining linguistic competencies with expertise in other areas, such as ICT, engineering, administration, and human resources management, is an undeniable asset of the city. Katarzyna Wysocka Director of the Department for Entrepreneurship and Innovation, City of Krakow 76 168 Over just a few years the amount of modern office space available in Krakow has increased fourfold, currently standing at over 1.8 million square meters. The city also boasts user-friendly and functional public space, high-quality municipal services, as well as a wide range of cultural, sports, and recreational activities, making Krakow the perfect place to work and live, as shown by the city’s high level of recognition in numerous prestigious rankings. Today Krakow is a modern and harmoniously developing metropolis, with a focus on cooperation between all partners. Chapter 1 - Krakow IT market snapshot Chapter 1 - Krakow IT market snapshot 77 168 Małopolska Region Marshal Office of the Małopolska Region supports the region with multiple programs and activities contributing to economic growth, innovative initiatives, and high quality of life making the Małopolska region one of the top destinations for investment in Poland. How does Małopolska Region help investors and companies? The Region supports investors by providing funding, business support, innovation programs to enhance economic growth, attracting investment, and ensure the region’s visibility at European level. Why Małopolska? Małopolska is a prime investment destination due to its strong economic potential, vibrant business environment, high-quality education, and commitment to innovation. The Region supports businesses with substantial funding through the European Funds for the Małopolska Regional Program 2021-2027, earmarking over EUR 300 million for R&D and entrepreneurship. Demonstrating its commitment to growth and entrepreneurship, Małopolska became the first region ever to receive a special mention in the European Entrepreneurial Region (EER) awards for 2024, highlighting its excellence in fostering entrepreneurial spirit. Activities supporting entrepreneurship and innovation Małopolska supports economic growth and innovation through initiatives like the Business in Małopolska Center, which aids investors and exporters. The #StartUP Małopolska acceleration program offers mentoring and workshops for young companies. The Region organizes tech events, promotes entrepreneurship, and provides consulting through SPIN Małopolska Centers. It supports hydrogen technology development and is part of the NEREUS Network for space technologies, fostering regional space tech development. Małopolska Region partners with numerous events on economic development and entrepreneurship, including HackYeah! – Europe’s largest and the world’s third-largest stationary hackathon, Digital Dragons – Central and Eastern Europe’s largest gaming industry conference, OMGKRK Hangouts and Summer Jam – the region’s largest start-up and innovation community events, the European Labour Mobility Congress – the largest cyclical international conference on labor mobility in the EU, and the Polish Entrepreneurship Congress – a platform for Polish entrepreneurs and scientists to exchange knowledge and opinions. Jerzy Kopeć Director, Department of Corporate Governance and Economy, Marshal Office of the Małopolska Region Małopolska is one of the leading Polish regions in terms of economic potential. We offer wide opportunities for the development of people and a modern economy based on innovation and sustainable development. Our efforts are also focused on creating favorable conditions for the region’s priority areas, such as hydrogen and space technologies. All these actions were recognized by the European Committee of the Regions and Małopolska, as the first Polish region, received the prestigious title of European Entrepreneurial Region (EER) 2016 and last year, as the only region in Europe, was also awarded the special mention of the EER 2024. 78 168 Chapter 1 - Krakow IT market snapshot Krakow Technology Park (KPT) Krakow Technology Park (Krakowski Park Technologiczny or KPT ) has been shaping the specialized business environment in Krakow for 26 years. One of the pillars of their activity is the management of the Polish Investment Zone while the other is fostering the development of start-ups by dedicated support initiatives as well as organization of events aiming to inspire the start-up community for growth. How does KPT help investors and companies? KPT supports investors by offering incubation, reduced-cost office spaces, and specialized support for start-ups, particularly in ICT, gaming and industry 4.0. On-site start-up incubator At Krakow Technology Park, businesses can rent office spaces ranging from sixteen to almost two hundred square meters, with public aid that reduces overall costs. Currently, over 100 companies operate daily in the two buildings located on Podole and Życzkowskiego streets. In KPT’s on-site incubator, companies benefit from a reduced rental price under the de minimis aid, alongside dedicated business mentoring and matchmaking with experts or investors. The architecturally distinct building on Podole Street features conference rooms accommodating up to 200 people, a data center, and a film post- production studio equipped with a green screen room. Incubation and acceleration programs KPT actively supports entrepreneurship through business and thematic workshops, and organizing hackathons, while also supporting universities and academic circles. Notable programs include the Eastern Business Accelerator, an incubation program for innovative early-stage start-ups, and Accelerator KPT Scaleup for start-ups with at least a working prototype in Industry 4.0 or video games. These programs offer business mentoring, grants, and opportunities for technology collaboration. Recruitment for both programs is currently underway. By this time, their incubation and acceleration initiatives have aided over 500 start-ups and game studios. Focus on Gaming industry KPT also hosts the Digital Dragons conference, a premier B2B event for the gaming industry in Europe, attracting hundreds of creators and entrepreneurs annually for lectures, business meetings, and product presentations. With over a decade of experience, KPT has developed additional support tools for the gaming industry, including an incubator, an accelerator, an academy, and a comprehensive report on the gaming industry in Poland. Sonia Bazan Manager of the Technology Incubator at Krakow Technology Park (KPT) If you’re in need of office space for your startup or tech company, you’ve come to the right place. We strive to moderate our ecosystem so that founders can share knowledge and experience among themselves. Our tenants can take advantage of dedicated events, both networking and inspirational, as well as training sessions and workshops. From coffee cupping sessions through meetings with successful founders, training on obtaining funds from European funds, to conferences dedicated to export and international expansion. Chapter 1 - Krakow IT market snapshot 79 168 Communities and associations Krakow, renowned as a university city, boasts a vibrant community of young individuals drawn to various aspects of technology. This diverse group comprises students, recent graduates, and passionate individuals eager to invest themselves in their areas of interest. Over the past 15 years, these individuals have formed specialized community groups centered around specific technologies. These communities, consisting of enthusiasts, tech aficionados, and programmers, host regular meet-ups to share knowledge and educate one another. These communities provide a platform for members to connect and engage in networking activities. They also allow companies to enhance their brand visibility through sponsorships, partnerships, or delivering keynote presentations at these gatherings. Below, we present a selection of Krakow IT communities, categorized into areas such as Start-ups, Technology & Programming languages, Software Development, Women in Tech, Quality Assurance & Technical Communication, with essential details on each. Start-ups communities in Krakow The leading start-ups and innovation foundation in Krakow. OMGKRK aims to create an innovation environment in Krakow by helping to build a #OMGKRK Kraków Miastem Startupów Krakow Technology Park OpenCoffeeKRK La French Tech Krakow hub:raum community, promote the ecosystem, and educate tech professionals and entrepreneurs. The purpose of the Foundation’s activity is to support start-ups by building relationships between them and businesses, government administration, and higher education institutions. A community committed to enhancing Małopolska’s economy and innovation. Offers support across all technology sectors, with a focus on Industry 4.0 and gaming. The community organizes meetings for start-up representatives, offering a platform for discussion and knowledge sharing in the industry. A dynamic community connecting the French and Polish technology ecosystems, dedicated to fostering partnerships and cultivating success stories across borders. Deutsche Telekom’s tech incubator, bridges early-stage start-ups with leading European telecom companies, facilitating innovation transfer and creating business opportunities. Chapter 1 - Krakow IT market snapshot Chapter 1 - Krakow IT market snapshot 81 168 Technologies & Programming languages communities in Krakow Krakow JS Polish Java Users Group Pykonik AWS User Group KGD .NET Krakow Scala User Group Krakow Ruby User Group Angular Krakow Erlang & Elixir Group Krakow React Native Community Krakow C++ User Group Flutter Krakow The community organizes regular meetups aimed at bringing together JavaScript professionals for learning and networking, fostering a vibrant environment for enthusiasts in the city. A community of people who enjoy programming on the Java Virtual Machine (JVM). They host frequent gatherings to share tips, learn, and meet fellow users of Java. The community serves as the meeting point for Krakow’s Python community, focusing on face-to-face exchanges of experiences and channeling their interest for this programming language into actions. A community for developers and enthusiasts passionate about the potential of cloud technology. The group offers a platform for enhancing AWS knowledge and networking. A community that brings together .NET technology enthusiasts, welcoming both experienced professionals and beginners. They offer a platform for talks and meetups. The group connects enthusiasts of the Scala programming language and its related technologies through regular meetups, offering a community of learning and exchange. A community of Ruby developers and enthusiasts gathering in Krakow for meetups. Open for those interested in speaking or assisting with event organization. A community for Angular enthusiasts, hosting regular meetups in and around Krakow to unite web developers in sharing knowledge, trends and best practices in Angular development. The group unites enthusiasts eager to explore Erlang and Elixir languages through knowledge sharing and networking. They welcome everyone from architects to newbies in an inclusive environment. The community invites mobile app developers and offers a platform for networking, sharing ideas, and tackling diverse challenges in an open-source environment. The community welcomes C++ programmers of all skill levels to exchange experiences and enhance their coding skills, meeting monthly at the AGH University of Science and Technology. An open community welcoming individuals eager to explore Flutter technology. Their events offer a platform for learning, sharing experiences, and connecting with fellow Flutter enthusiasts. Chapter 1 - Krakow IT market snapshot Michał Adamczyk CEO at Kraków Miastem Startupów (KMS) Foundation A well-functioning startup ecosystem is like a funnel into which innovative ideas fall in. They are validated and some are converted into profitable businesses, a few of them manage to make a breakthrough on a global scale. The fun part is that we never know which one will succeed. In order for innovative technological, business and social ideas to develop, their founders must constantly experiment, gather new information and make iterative modifications. This requires resources, such as experienced mentors, industry contacts, and financial capital. Those assets are provided by various types of supporting organizations working on different stages, such as investment funds, accelerators, incubators and technology parks. Krakow has a good number of institutions and communities of this type, but our biggest challenge is building effective cooperation between themselves and also actors from other industries. Fortunately, the quality of this cooperation is improving year by year, strengthening the Krakow innovation ecosystem. One of the key startup organizations in Krakow operating at the earliest stage of the innovation funnel is KMS Foundation (Fundacja Kraków Miastem Startupów). It helps to take the first steps in the world of innovative business, builds bridges between startups, universities, public authorities and non-governmental organizations. KMS organizes networking events, scientific and business conferences, hackathons and dozens of business training courses every year. Also offers mentoring and 1:1 consultation – always pro bono. Since 2018, the foundation has been implementing its own acceleration program for aspiring technology start-ups named KRK InnoTech Starter. On average, every fifth graduate of the program obtained an investment or other form of financial support at the level of PLN 1 million. Chapter 1 - Krakow IT market snapshot Software Development & Data communities in Krakow GDG Krakow OWASP Poland Data KRK DDD-KRK PyData CocoaHeads Krakow Data Community Krakow Segfault Hackerspace Krakow Cloud Native Group A community for users and developers of Google technologies, sharing their knowledge. The group is independent of the company Google. A non-profit dedicated to enhancing software security through visibility, enabling informed decisions about software risks globally. Open to all interested in software security. The group promotes Data Science, focusing on Big Data, NoSQL, and Machine Learning. They organize regular meetups for data enthusiasts and professionals seeking to explore and share innovative ideas. The community focuses on the learning and adoption of Domain-Driven Design, aiming to share knowledge, ideas, and experiences while promoting DDD in Krakow. The Krakow group is a part of the global PyData.org network. A community dedicated to Data and Machine Learning enthusiasts, fostering a space for sharing knowledge and innovations. The Krakow Mac and iOS specialists community inspires innovation and collaboration among Apple technology enthusiasts. They offer a hub for the latest trends exchange and networking. The Krakow branch of the Data Community brings together professionals focused on Microsoft’s data platform, fostering a network for sharing expertise and innovations in the field. An interdisciplinary hub for programming enthusiasts. With events like the Segfault Unconference and regular meetups, this community fosters collaboration and knowledge exchange. A creative playground and meeting hub for IT enthusiasts, offering a space where great ideas meet the tools and community needed to bring them to life. The community, focused on modern cloud tooling and building cloud-native applications, organizes regular meetups for enthusiasts to share and explore the latest in cloud technologies. Chapter 1 - Krakow IT market snapshot Women in tech communities in Krakow Women in Technology Women Techstyle Krakow Woman Techmakers Krakow Girls.js Krakow Try IT A community of women united by a passion for IT and new technologies, for both experts and those looking to develop their skills, creating a supportive space that encourages knowledge exchange and growth. The community connects IT professionals with leading global tech voices and innovative companies. They organize the Women TechStyle Summit, one of Poland’s largest IT conferences for women. An integral part of the global Google Women Techmakers initiative empowering women in technology by offering visibility, a supportive community, and resources. The community empowers women and girls by teaching JavaScript, challenging the „women are non-technical” stereotype, and encouraging their participation in IT. The foundation aims to empower women to enter the IT industry and encourage them to pursue education in the field. It builds a community supporting women in starting their education and professional careers. Girls Go IT Mamo Pracuj w IT This community built around a free course by AGH University of Science and Technology and Try IT Foundation, aims to equip women with tools and skills for a career in technology, promoting their rise as valued experts in the tech sector. This community dispels myths that IT is not for women, offering guidance on entering the industry, finding jobs, and showcasing IT as an inclusive, rewarding field for women, especially moms after maternity break. Quality Assurance & Technical Communication communities in Krakow KRAQA ITCQF TechWriter.pl Connects Krakow software quality enthusiasts, from testers to QA professionals, offering a platform for learning, networking, and creativity through regular educational and social events. The community enhances the technical communication field by setting and upholding certification standards, increasing visibility, and connecting global professionals, fostering a supportive international network. The community is a group of professionals passionate about creating, distributing, and managing technical documentation. Members range from humanities to engineering graduates. Chapter 1 - Krakow IT market snapshot Industry events The growth of Krakow’s tech community has fostered a variety of initiatives and events. Tech conferences, hackathons, and other knowledge-sharing events provide opportunities for community members to share and gain knowledge. Career days and IT job fairs allow companies to boost their brand awareness and connect with potential employees. Thus, Krakow is not only a hub for IT businesses but also a thriving community that supports continuous growth, networking, and innovation. Krakow: A hub for IT events Krakow stands as a key host for significant IT job fairs and conferences in Poland. Each year, at least 14 major conferences are organized, together attracting around 10 000 participants. Additionally, hundreds of smaller meetups and tech talks take place regularly, providing continuous opportunities for learning and networking. The city’s strength lies in its combination of event venues and a well-established IT ecosystem, which makes it a fitting location for industry gatherings. Krakow’s tech events serve a vital role in fostering professional connections. IT conferences in Krakow We have compiled a list of annual tech conferences held in Krakow. The events are arranged in chronological order with an indication of when these events usually take place during a year. Name & Occurrence Description DevOps Days Kraków Paid entry Once a year in March The Krakow edition of a global series of conferences for individuals involved in IT development and operations, fostering collaboration and improving operational efficiency. Through talks, workshops, and networking, attendees explore the latest DevOps practices, tools, and culture. Mobile Trends Conference Paid entry Once a year in March The event connects experts and enthusiasts of mobile technology, offering knowledge about creating and implementing apps. It is for both beginners and pioneers, promoting collaboration and knowledge sharing. It presents case studies, trends, and tips from market leaders. SFI Academic IT Festival Free entry Once a year in April An annual international conference organized by students, welcoming IT enthusiasts from all professions. Attendees have the opportunity to listen to speakers, participate in practical workshops, and expand their skills in a diverse range of IT topics. Hacknarök Free entry Once a year in April An original hackathon event where participants embark on a 24-hour journey through the worlds of Norse mythology, where battles are fought with code lines written by participating teams. Chapter 1 - Krakow IT market snapshot APE Conference Paid entry Once a year in May Lambda Days Paid entry Once a year in May Confidence Paid entry Once a year in May Soap Conference Paid entry Once a year in June Code Europe Paid entry Once a year in June ACE Paid entry Once a year in June Devoxx Poland Paid entry Once a year in June Segfault Unconference Paid entry Once a year in September HackYeah Paid entry Once a year in September Test Dive Paid entry Once a year in October An Agile, product and experience conference for professionals passionate about advancing in Agile methodologies, comprehensive product management, and creating enriching work environments. A conference on functional programming, covering Scala, Erlang, Haskell, F#, and Elixir languages. It is suited for IT professionals, software developers, ICT students, and functional programming enthusiasts. The two-day event features around 40 experts across six tracks. One of the leading European IT security conferences. IT professionals, security experts, and developers can anticipate in-depth discussions and learning opportunities about the latest trends in cybersecurity technologies. A conference for technical communication professionals. Focused on all things related to software, online, and API documentation. Participants can expect engaging sessions and workshops on content strategies, document design, and tech comm tools. One of the largest coding conferences in Poland for software developers, architects, DevOps Engineers, Security Experts, Product Owners, and more. It offers an array of workshops, lectures, and presentations on the up-to-date trends in coding and software development. The largest IT and Agile community regional conference highlights lean thinking, Agile methodologies, and management innovations. Attendees engage with international experts in interactive sessions across process and product paths. This conference for developers and IT professionals hosts international speakers and covers the latest technologies and methodologies in software development in Java, Android, cloud, Big Data, artificial intelligence, robotics, programming languages, and more. A developers’ conference covering IT topics such as delivery, quality, and software development. It is divided into two days, the first of which is dedicated to lectures while the second is called the open source unconference and is the time for open discussions within the community. The largest stationary hackathon in Europe. During the event participants come together to tackle tasks from the event’s partners and work on open challenges in the field of cybersecurity and others. A highly regarded event where Testing industry specialists gather to learn, network, and stay up-to-date with the latest trends. The conference features a diverse range of talks delivered by leading experts in the field of IT testing. Chapter 1 - Krakow IT market snapshot Dominik Wiegand Founder & CEO at Absolvent Group Code Europe, organized by Absolvent Group, is the Polish central IT event of the year for developers, software architects & engineers as well as tech- related managers. The event consists of two days full of knowledge exchange and networking with keynote lectures and workshops divided into 6 technology tracks: Infrastructure/DevOps, Programming languages, Cybersecurity, Future & Inspire, Data & AI, and Development execution. The upcoming Code Europe 2024 boasts a lineup full of tech star speakers such as George Hotz (hacker Geohot) and the CEO of Comma. ai, Venkat Subramaniam – founder of Agile Developer, Robert Gentleman – co-creator of the R programming language or Håkon Wium Lie – inventor of CSS, and numerous other experts. They will be leading workshops and networking sessions live on the festival stages, sharing invaluable insights and their know-how. Additionally with organizations like GETITJOBS, No Fluff Jobs, Code:Me, 4programmers and many more, the event organizers have made sure to include and engage the prominent Polish tech community. Code Europe is held June 10-11 at the prestigious ICE Krakow Congress Center, and the city, its rich history and evolving tech industry in the region make for an ideal setting for the festival. It’s exactly what attracts companies to join as the event’s Partners. With 15 000+ IT specialists over the years, opportunities to create new investments and contacts or reach top-tier talents increasing efficiency and employment prospects, it is the place to be for tech companies. Don’t miss this year’s edition if you want to stay up-to-date with the latest and most important trends, gain knowledge from world-famous experts and network with like-minded specialists. Join Code Europe 2024 Tech Festival by yourself or with your company and experience the event that’s connecting the world of Software Development. Chapter 1 - Krakow IT market snapshot Job fairs in Krakow A list of the most significant job fairs and career days organized in Krakow throughout the year. These events are opportunities for businesses to showcase their brand, and meet potential candidates face- to-face. Name & Occurrence Description AGH Career Days Free entry Once a year in March An annual job fair organized by the leading technology university in Krakow, aimed at connecting students and graduates with IT companies. Emphasizes the fields of science and technology with a focus on innovation and start-ups, gathering around 100 companies each year. Jobicon Free entry Once a year in March A job fair organized by Pracuj Group that gathers companies from various sectors, including IT. The event is joined by almost 100 exhibitors. During the event, participants can attend various lectures and workshops. Jagiellonian University Job Fair Free entry Twice a year in April and October This event is a 3-day job fair providing the space for students and graduates of the university to interact with potential employers across various industries. The fair also includes seminars and workshops. Cracow University of Economics Job Fair Free entry Twice a year in March and October A job fair focused on business and economics sectors with many of the top-tier companies in the finance, business, and economics sectors offering seminars and workshops on skills needed in the modern economy, and networking opportunities. Engineering Job Fair Politechnika Krakowska Free entry Once a year in October A job fair targeting engineering students and graduates from the Krakow University of Technology, presenting opportunities in related fields. With a strong focus on engineering and technology companies, the event gathers over 30 companies each year. Talent Days Free entry Twice a year in May and October One of the largest career fairs in Poland. It serves as a meeting point for companies, start-ups, and young professionals. This job fair hosts hundreds of companies from all sectors and offers free career counseling, workshops, and CV consultations. Chapter 1 - Krakow IT market snapshot Office space in Krakow In cooperation with CBRE MLN m2 Offlce space surface in Krakow 6% Growth of offlce space surface in Krakow in 2023, with approx. 100 000 m2 completed Krakow offers a variety of office options. Some of them are large building complexes with a capacity of 5 000+ people such as Fabryczna Office Park, High5ive or Quattro Business Park. There are also smaller buildings offering a unique vibe and a more private, low-key experience. In this section we present an overview of the office market in Krakow with different options for office space leasing and the associated costs. In 2017, Krakow became the first regional market in Poland with modern office space exceeding 1 million square meters. In just 7 years, this number has increased to 1.8 million square meters. In addition to the modern, A-class office space that is available, there is also a supply of office space in old, often historic, buildings. Some firms look for space with unique character and choose office space in the Old City or in the post-industrial areas of town. Office stock evolution in Krakow (in m2) 200 000 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Completions Under Construction Total Supply (000) Source: CBRE, 2024 Chapter 1 - Krakow IT market snapshot Office locations The map below illustrates the office locations of almost 40 000 IT specialists employed by the 100 largest IT employers in Krakow. The IT headcount at these companies ranges from 70 to 2 500 IT specialists. The density is represented by the heatmap colors. A distinctive feature of Krakow’s office market is the geographic dispersion of complexes across the city, rather than a single, large business district. A large popular central area is clearly visible from Old Town, through Main Train Station area to Fabryczna complex. Some of the dense points represent the new office complexes built in past five years, which account to ca. 600 000 m² surface added. Their central locations and modern amenities have enticed companies to move from older buildings, leading to increased vacancy rates in some of the more remote locations, such as the former Krakow Business Park (now Eximius Park) in Zabierzów. Heatmap of Krakow’s 100 largest IT employers offices Source: Dataset by MOTIFE Insights, November 2023, N = 321 Long-term lease 13-17EUR Krakow’s central office locations are the most willingly chosen by tenants. This puts pressure on rental values, which reach over 17 EUR in existing buildings in prime locations. On the other hand, less popular Lease per 1 m² of offlce space/ month in an A-class building 60% locations struggle with vacancies of over 20%, which gives tenants an advantage when negotiating their leases in these locations. What is unique about Krakow office space is that 60% of the space was built in the last 10 years. As tenants have a strong preference for new projects, the older buildings see a shrinking demand. In the same time, most of the companies can benefit from brand of Krakow total offlce space was built in the last 10 years new, sustainability-certified spaces. The usual lease period for an A-class office space is 5 years. For B-class office space, the lease period is 3-5 years, with a cost of 11-13 EUR per 1 m² per month. Long-term lease arrangements are beneficial for established businesses that anticipate consistent growth and can accurately project their spatial and locational needs over the upcoming years. Rafał Oprocha Director, Head of Krakow Office In 2024, the office market in Krakow is expected to experience a stable but not overly dynamic inflow of investments. The city continues to be recognized as one of the main potential locations for the development of business processes in the Central and Eastern European (CEE) region. The presence of skilled employees and the development of local labor market high competencies contribute to its attractiveness for investors. For companies in the IT and R&D sectors, the work environment plays a crucial role. They require an inspiring and collaborative atmosphere that fosters creativity and the exchange of ideas. These companies have unique needs that must be considered when choosing an office space. Along with the flexibility and hybrid nature of work, IT companies expect access to advanced technological infrastructure, fast and reliable internet connectivity, and energy security within the building. They often operate in a dynamic environment where rapid scalability is necessary. While smaller companies or those opening new branches may opt for coworking spaces that offer flexible workplace management, a significant portion of IT and R&D companies, especially larger ones, still prefer traditional offices. This allows them to have greater control over their work environment, tailor the space to their specific needs, and maintain a greater level of privacy or security. Regardless of the size of the company, flexibility and the ability to adapt to changing market conditions and employee preferences are key considerations. The office market in Krakow is experiencing a shift due to reduced developers’ activity and the popularity of the hybrid work model. While vacancies are relatively high in non-central areas, centrally-located properties continue to be in high demand. The focus on sustainability, well-being, and technology infrastructure will shape the office market in 2024 as companies prioritize creating spaces that promote employee well-being and align with ESG principles. Chapter 1 - Krakow IT market snapshot Flexible office space ~7K Workstations in Krakow flex offlce spaces 20+ Flex operators in Krakow 350EUR Standard monthly rental cost per desk in a serviced offlce in Krakow (range 250-420 EUR) The widespread adoption of hybrid work models has reshaped the office market landscape within the last few years. Coupled with economic uncertainties, these shifts have propelled tenants toward embracing flexible workspace solutions. A prime example is the opening last year in Krakow of Fabryczna Flex, Poland’s largest flexible office center. These flexible offerings provide fully furnished and equipped office environments shared among multiple companies, along with comprehensive administrative and maintenance services. A key advantage is their immediate availability, and scalability within the flexible ecosystem – distinct benefits over traditional long-term lease agreements. As cost optimization and workplace agility take center stage, the demand for flexible office spaces continues gaining momentum across Krakow’s thriving business community. Providers of these solutions are well-positioned to cater to evolving occupier needs. Selected coworking and serviced offices operators in Krakow 1000+ workstations Loftmill (6 locations) Fabryczna Flex (1 location) 100-1000 workstations Chilliflex (3 locations) Business Link (1 location) Regus (6 locations) City Space (1 location) Cluster Cowork (3 locations) Biznes Lab (2 locations) Memos Mogilska35 (1 location) Skład Kreatywny (1 location) 10-100 workstations Kalafiornia (2 locations) Krakusa 11 (1 location) Yolk (1 location) Chapter 1 - Krakow IT market snapshot Focus Trends in the Krakow office market Krakow maintains its status as Poland’s preeminent and most mature regional office market, offering a diverse array of leasing opportunities tailored to desired location, workplace environment, and spatial requirements. The city caters to organizations across industries and sizes, solidifying its reputation as a pivotal commercial hub. Office space stock 2023 marked a successful year for Krakow’s real estate sector, with the total office market size approaching the 2 million square meter milestone. Over 97 000 sq m of new office space was delivered, accounting for one- third of the total supply across Poland’s regional cities, excluding the capital market. This remarkable growth underscores Krakow’s significance as a prime business destination. Demand for office space Despite the challenges posed by hybrid work models and frequent office space reductions, demand for office space in Krakow remains robust and on an upward trajectory since the pandemic. Renegotiations accounted for a substantial 48% share of total leasing activity in 2023, although this figure was influenced by the exceptionally large requirements of a single tenant. While various companies are downsizing their office size, this trend is often driven by a pursuit of quality and innovative workplace design, priorities shared by many international corporations. The IT sector has emerged as the primary contributor to Krakow’s leasing activity over the past decade, accounting for 35% of the average annual leasing volume in the last seven years. Although recent years have witnessed a noticeable shift toward business and financial services, the IT industry remains the most active sector in the local office market. Demand for office space by transaction type (in m2) in Krakow office market 300 000 250 000 200 000 150 000 100 000 50 000 0 2017 2018 2019 2020 2021 2022 2023 Net demand Renewal Source: CBRE. 2024 Chapter 1 - Krakow IT market snapshot Availability of office space We have observed reduced activity of developers in the central area of the city, which will translate into limited availability of office space in this area in the next 2 years. Due to the popularity of the hybrid work model and frequent reductions in the occupied office space, the market has experienced a significant increase in the vacancy rate and is currently close to 20% for the entire city, with this indicator significantly diversifying for central and non-central locations. While outside the city center this rate was relatively high, central locations boast a very low vacancy rate. Main market indicators in Krakow: Vacancy rate (in%), absorption, and annual supply (in m²) in Krakow office market 300 000 25% 250 000 20% 200 000 15% 150 000 10% 100 000 5% 50 000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Demand Absorption Vacancy (%) Source: CBRE, 2024 This chapter is specifically targeted to HR teams and HR Executives. Topics covered include: talent pool, salaries, labor law, local customs, and latest trends. IT talent pool in Poland K Engineers and IT professionals in Poland 8-10% Approximate growth of the IT talent pool in Poland each year 17K Computer Science students graduating yearly in Poland Young, well-educated, with high English proficiency, solid international business experience, and problem-solving attitude, the 400 000 people strong IT talent pool of Poland is the magnet for international companies who build IT hubs here. The top three cities by the size of talent pool are Warsaw, Krakow, and Wroclaw, each with unique features. Warsaw is favored by companies establishing their Polish headquarters to enter the country’s market and grow business here, while Krakow is a destination for organizations who look to build IT delivery centers out of Poland. Wroclaw, on the other hand, is a popular destination for IT companies from DACH region. This talent pool quadrupled in the last 15 years and continues to grow, supported by a strong educational foundation where nearly 17 000 computer science students graduate annually. Additionally, immigration from Ukraine and other European countries contributes to this growth, as talented individuals are enticed by the appealing lifestyle and career opportunities at attractive companies in Poland. Today, foreigners account for approximately 15% of the talent pool. Source: MOTIFE Insights, stats.gov.pl 2023 Chapter 2 - Hiring in Poland Samantha Rist Vice President Human Resources at First Advantage What is First Advantage? First Advantage is a leading provider of employment background screening, identity, and verification solutions supported by award-winning customer care. We opened our hub in Krakow in 2022, and now have over 50 technology team members across our product development, product management, and IT Operations organizations. How does Poland’s IT market contribute to First Advantage’s global success? Poland is a prime location for experienced, cost- effective talent for global organizations, with an abundance of technology and development experts both in and out of Krakow. The multilingual, technical, and customer-focused skills of the engineering, product, operations, and customer care team members we’ve welcomed to First Advantage have enabled the rollout of product and service enhancements that allow us to continue to “Hire Smarter, Onboard Faster” without compromising the stellar support we provide to our customers and teams. What strategies has First Advantage used to attract and retain talent in Poland? When we first launched, partnering with MOTIFE was integral in spreading brand awareness, introducing our organization to the market, and getting an initial draw of top talent. Now that we are about 1.5 years into our journey, we recruit in- house, and focus in three key areas for our team members in Poland as well as around the world. First, our global Total Rewards team reviews our benefits programs on an ongoing basis to ensure what we offer our people is on target within the market, which helps us attract talented team members. Additionally, we take significant time and care at the beginning of the recruitment process to understand the skills and competencies our hiring managers need long- term, so we can clearly articulate our business objectives and bring on team members whose competencies will enable them to evolve with the organization. Lastly, and very importantly, the depth and challenge of the work is integral when it comes to retention, and we provide ample opportunities for innovation, growth, and learning to keep our team members engaged and excited about their careers with us. Chapter 2 - Hiring in Poland What HR strategies have been effective, and what challenges have arisen in Poland? Our recruitment and onboarding processes went extremely smoothly before and after we opened our hub, thanks to the local business savviness and global know-how of MOTIFE’s team. They were an extension of our in-house team and helped us elevate our candidate and new hire experiences. One area we will continue to focus on and put energy into is in increasing our brand awareness in the local market, wherein hiring referrals, and facilitating tech talks and candidate events go a long way with our passive candidates and partners. What advice would you give HR executives planning to establish and hire in Poland? Our introduction to the Polish market went incredibly smoothly as we went into this endeavor with a team of experts who have established hubs in Poland before, and partnered with MOTIFE to ensure all bases were covered and no step was missed. My top tips for fellow HR executives or technology leaders looking to establish a thriving hub in Poland would be: Assess your gaps. Determine which roles you want to hire in Poland and then make sure the market reflects you will get what you are looking for in the talent pool Get familiar with the locale. Tap into your network to understand working norms – process requirements, holidays, time off, standard hours – and whether they will work well with your current business model or require you to focus on local solutions Partner with on-the-ground experts when you’re ready to go. MOTIFE was integral in enabling operational readiness and in ensuring we were set up to be competitive and able to retain top talent Once established, clarify and communicate your organizational goals and make sure the tools and processes provided to your team members will empower them to deliver. We look forward to continuing to empower our Poland-based team members to flourish, and to learning even more about our people and partners in Poland as we operate within the market. If any fellow HR executives would like to reach out to learn more, please feel free to connect with me at any time. IT talent pool key figures Poland's IT talent is centered in 7 major cities where over 70% of country's IT professionals work. Each city has a unique vibe, its advantages, and a value proposition for investors. There are also some contenders that aspire to the 1st league such as Rzeszow, Lublin, Szczecin and Bydgoszcz. IT professionals and graduates per main city in Poland Chapter 2 - Hiring in Poland During the academic year 2022-2023, over 17 000 Information and Communication Technologies (ICT) students earned their degrees from Polish universities. A significant portion of these graduates are expected to secure employment in major cities like Warsaw, Krakow, or Wroclaw, thereby bolstering the local talent pool. Additionally, these cities continue to draw computer science graduates from other parts of Poland and even from international locations, further strengthening the region’s tech industry. Number of ICT students and graduates in Polish universities, 2017-2022 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 2017 2018 2019 2020 2021 2022 Source: stats.gov.pl The IT job market in Krakow and Wroclaw is dynamic and offers a number of job opportunities yet it is not as large as the capital city, Warsaw. Number of IT job ads per main city in Poland, Q4 2022-Q4 2023 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1000 Warsaw Krakow Wroclaw Poznan Katowice Tri-City Lodz Q4 2022 Q1 2023 Q2 2023 Q3 2022 Q4 2023 Source: inhire.io, IT Market Snapshot 2022, 2023 Evolution of demand – Number of IT job ads in Poland per quarter, Q4 2019-Q4 2023 (moving average) 25 000 20 000 15 000 10 000 5 000 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 Source: inhire.io, IT Market Snapshot 2019-2023 Chapter 2 - Hiring in Poland Salaries New hires salaries In this section, we provide a comprehensive overview of the gross monthly salary ranges for software developers, IT professionals, and selected non-programming roles in Poland under employment contracts. Our analysis takes into account the most popular programming languages, profiles, and varying levels of seniority. This is how much a new hire will expect to be paid on a permanent employment contract. 18 000PLN ~4 150EUR Median salary to hire a mid-level software engineer with up to 5 years of experience in Poland (gross, monthly) Gross salary ranges for hiring a software engineer in Poland (monthly, in PLN and EUR) 14 500 PLN 3 350 EUR 18 000 PLN 4 150 EUR 21 000 PLN 4 850 EUR 24 500 PLN 5 700 EUR 28 500 PLN 6 600 EUR Junior Engineer (0-3 years) Regular Engineer (3-5 years) Senior Engineer (5+ years) Sources: MOTIFE Insights, inhire.io IT Market Snapshot 2023, nofluffjobs. com, justjoin.it. 1 EUR = 4.3 PLN Chapter 2 - Hiring in Poland Enjoying the report? Meet the authors and work with us! New hires salaries over time Over the last 5 years, median salaries for regular and senior engineers in Poland exhibited a general upward trend, with senior roles experiencing more pronounced growth. A notable exception is a slight decrease in salaries of specialists with experience up to 5 years in 2024, while senior salaries continue to rise. Evolution of median salaries for newly hired regular and senior engineers in Poland, 2019-2024 (monthly, in PLN) 30 000 PLN 20 000 PLN 20 000 PLN 15 000 PLN 10 000 PLN 2019 2020 2021 2022 2023 2024 Regular Engineer (3-5 years) Senior Engineer (5+ years) As Poland's economy expands, the average salaries across entire private sector grow, with the gap between salaries here and in EU or North America shrinking. This pattern applies to all jobs, not just IT. In fact the growth rate in IT is on par with the growth in the entire private sector. This trajectory was fueled by a relatively high inflation in the most recent years. This is also an inevitable consequence of the Poland's economic success and this trend is not new - it has continued for at least 20 years. Despite the gap shrinking, it is still substantial, particularly if comparing average software developer's salaries in Poland and the US. 9.8% Average annual salary increase of a newly hired regular developer in Poland in the last 5 years 10.9% Average annual salary increase in the private sector in Poland in the last 5 years Source: MOTIFE Insights, wynagrodzenia.pl, stats.gov.pl, US Bureau of Labor Statistics Chapter 2 - Hiring in Poland Dominik Biga Tech Recruitment Partner, Sourcing Team Leader at MOTIFE The IT job market in 2024 shows varied salary trends across different technologies and experience levels compared to 2023. Middle-level roles in JavaScript, and PHP have seen salary cuts, while Java’s decrease was smaller. This shows changes in the demand for these skills. In contrast, salaries for middle-level engineers in Machine Learning have significantly increased. At the senior level, salary changes are mixed. Java professionals have seen a small increase in salary (about 4%), showing steady demand for experienced specialists in this field. However, roles like Data Scientist and Data Engineer have seen salary increases, emphasizing the growing need for skills in managing and analyzing data. Overall, these trends show a dynamic IT job market where the value of specific skills can change a lot from one year to the next. This is due to factors like new technologies, market saturation, or changes in business needs. The market for mid-level IT roles hopefully achieves stability, while senior roles remain in demand, especially in specialized areas, keeping competition for these jobs high. In the IT industry, demand varies by technology: areas like Machine Learning and Big Data are increasingly in demand, especially for senior roles. For newcomers, focusing on emerging technologies, continuously updating skills, enhancing soft skills, gaining practical experience, and networking are essential strategies for building a successful career in this dynamic field. Chapter 2 - Hiring in Poland Focus Salary reports and candidates’ expectations There are numerous compensation reports available that present salaries in the IT sector in Poland. Also, websites like Glassdoor and Payscale provide insights into typical pay across the country. The majority of IT job ads include salary brackets, offering relatively transparent access to compensation data. The information found in these sources can be misleading, as it primarily represents current average salaries of employees or median salaries advertised on job portals. These figures may not accurately reflect the expectations of potential new hires, nor the salaries ultimately agreed upon in employment or B2B contracts. Consequently, there can be substantial discrepancies between the reports and the actual candidates’ expectations. Methodology The research was conducted by the MOTIFE Insights team between February 2024 and May 2024. Our aim was to produce a set of salary range data that would be representative of new hires’ current salary expectations in Poland (vs. salaries earned in previous position or salaries advertised in job offers). We chose a methodological approach that combined quantitative and qualitative methods. The quantitative research involved a meta analysis of industry reports and portals (qualified sources: inhire.io, nofluffjobs.com, justjoin.it), salary brackets of jobs advertised on motife.com, salaries offered to candidates by IT companies via MOTIFE, and acceptance rates for those offers. The quantitative analysis included checking the datasets for outliers, normalizing the values (gross, monthly salary on employment contract; In this report we present salaries offered to candidates when they receive and accept a job offer. Also, there are companies that offer above- market salaries when hiring new employees, typically for one or more of the following reasons: Attracting senior engineers Facilitating the rapid hiring of engineers by foreign companies entering the market Providing higher salaries in start-ups to offset the „risk-factor” associated with joining a potentially less stable organization Navigating the challenges of hiring in Q4, which may influence salary levels; candidates are less likely to change jobs before year-end, partly due to anticipated bonus payouts definition of regular and senior profiles; definition of popular technologies, popular programming and non-programming roles), and then merging data from the different sources with their respective weights. The result was a calibrated salary range for each selected technology or roles, consisting of three salary data points (minimum regular, maximum regular/minimum senior, maximum senior). Qualitative analysis included a series of interviews and dataset reviews with IT recruiters and hiring managers, in order to correct the values by up to 10% if required. Assumption: 1 EUR = 4.3 PLN. Values in EUR are rounded. Chapter 2 - Hiring in Poland New hires salary expectations in Poland in PLN Per most popular technical roles (monthly, gross in PLN) Mobile Developer Manual Tester Test Automation Engineer DevOps Engineer Data Scientist Data Engineer Cyber Security Engineer Machine Learning Engineer Salesforce Engineer Data Architect Cloud Architect 5 000 PLN 10 000 PLN 15 000 PLN 20 000 PLN 25 000 PLN 30 000 PLN 35 000 PLN 40 000 PLN Regular (3-5 years) Senior (5+ years) Sources: MOTIFE Insights, inhire.io IT Market Snapshot 2023, nofluffjobs.com, justjoin.it. Chapter 2 - Hiring in Poland Per most popular languages (monthly, gross in PLN) Java Python* C#/.NET JavaScript PHP C++ 5 000 PLN 10 000 PLN 15 000 PLN 20 000 PLN 25 000 PLN 30 000 PLN 35 000 PLN 40 000 PLN Regular (3-5 years) Senior (5+ years) *For regular Python development, not Data Science Per most popular non-technical roles (monthly, gross in PLN) UI/UX Designer Technical Support Specialist Business Analyst/ Product Owner Project Manager Scrum Master 5 000 PLN 10 000 PLN 15 000 PLN 20 000 PLN 25 000 PLN 30 000 PLN 35 000 PLN 40 000 PLN Regular (3-5 years) Senior (5+ years) Sources: MOTIFE Insights, inhire.io IT Market Snapshot 2023, nofluffjobs.com, justjoin.it. Chapter 2 - Hiring in Poland New hires salary expectations in Poland in EUR Per most popular technical roles (monthly, gross in EUR) Mobile Developer Manual Tester Test Automation Engineer DevOps Engineer Data Scientist Data Engineer Cyber Security Engineer Machine Learning Engineer Salesforce Engineer Data Architect Cloud Architect € 1 000 € 2 000 € 3 000 € 4 000 € 5 000 € 6 000 € 7 000 €8 000 €9 000 Regular (3-5 years) Senior (5+ years) Sources: MOTIFE Insights, inhire.io IT Market Snapshot 2023, nofluffjobs.com, justjoin.it. 1 EUR = 4.3 PLN Chapter 2 - Hiring in Poland Per most popular languages (monthly, gross in EUR) Java Python* C#/.NET JavaScript PHP C++ € 1 000 € 2 000 € 3 000 € 4 000 € 5 000 € 6 000 € 7 000 Regular (3-5 years) Senior (5+ years) *For regular Python development, not Data Science Per most popular non-technical roles (monthly, gross in EUR) UI/UX Designer Technical Support Specialist Business Analyst/ Product Owner Project Manager Scrum Master € 1 000 € 2 000 € 3 000 € 4 000 € 5 000 € 6 000 € 7 000 Regular (3-5 years) Senior (5+ years) Sources: MOTIFE Insights, inhire.io IT Market Snapshot 2023, nofluffjobs.com, justjoin.it. 1 EUR = 4.3 PLN Chapter 2 - Hiring in Poland It’s not about salary alone There are companies offering top-range salaries, while others focus on creating a comprehensive Employee Value Proposition (EVP). Companies seeking to enhance their attractiveness should consider the following levers: Brand Beneflts Work model flexibility Contracts flexibility Technology Culture Well-established companies can expect to pay the lower end of the salary range, while new or less visible brands may need to pay the higher end. Offering a comprehensive benefits package can make an offer more attractive during recruitment. Consider providing stock options/ESOPs, paid holidays, paid sick leave for B2B contractors, and trips abroad to the headquarters. Catering to various work preferences, such as fully remote, occasional hybrid, work-from-anywhere, and fully flexible schedules, can increase appeal to candidates. Offering choices between permanent and B2B contracts, as well as options for preferred payment currency, can make a difference. Embracing cutting-edge technology and ensuring its proper use are crucial. This includes maintaining a tidy codebase, avoiding technical debt, and implementing effective quality assurance practices. Fostering an organizational culture that promotes and encourages positive behaviors is vital. Consider aspects such as equal treatment, hierarchy levels, decision- making autonomy for team members, and practicing genuine transparency. Chapter 2 - Hiring in Poland Chapter 2 - Hiring in Poland 115 168 Employment and benefits Labor law cheat sheet Polish labor code is very detailed and outlines precisely the rules of employee - employer relation. In addition, there are number of practices and customs that are not implied by law, but became a norm and need to be observed. In many aspects the Polish Labor law is aligned to the other European countries’ Labor regulations with comparable working time, paid holidays allocations and contractual principles. Polish regulations are considered as business-friendly, while caring for employee status and ensuring a family-friendly environment boasting one of the most generous maternity leave schemes in Europe. 40 Hours per week 8 hours per day, 40 hours per week working time 251 Working days on average 13 days of public holidays annually 20or 26 Days of vacation Vacation entitlement depending on experience 1 or 3 Months’ notice 50-100% Overtime pay 50% regular overtime pay, 100% overtime pay for working nights, Sundays and public holidays 80% Paid sick leave From flrst day of sick leave with medical certiflcate 55-65PLN Remote work subsidy monthly Amount of subsidy an employee working in remote or hybrid setup will receive monthly from employer to cover the costs of home offlce 100% Paid maternity leave (up to 20 weeks) The termination period depends on the length of employment with a given employer: 2 weeks’ notice for < 6 months 1 month notice for > 6 months 3 months’ notice for > 3 years That can be extended by a 41-week parental leave (70% paid). Paternity leave lasts 2 weeks (100% paid). Maternity and parental leave can be split between mother and father Chapter 2 - Hiring in Poland Forms of employment Contract for an indefinite period of time The most popular form of employment in Poland is the permanent contract, referred to officially as contract for an indefinite period of time (in Polish umowa o pracę na czas nieokreślony). Hiring on a permanent employment basis usually starts with a 3 months’ probation contract, followed by a contract for an indefinite period of time. For most employees, this type of contract is synonymous of stability and job security. Fixed-term employment contract The Polish Labor Law also offers employment contracts to respond to shorter or unique needs to hire. First of all, the fixed-term employment contract (umowa o pracę na czas określony) for a maximum period of 33 months and maximum 3 consecutive fixed-term contracts. This contract is common for temporary replacements such as maternity/parental leaves. Contract of mandate & employment contract for specific task There is also the contract of mandate (umowa zlecenie) for performance of a specified activity on a given period (for example SEO analyst support for a 3-month campaign), and employment contract for specific task (umowa o dzieło) for the achievement of a specific result (for example a freelance graphic designer creating a set of web banners). B2B contract In addition to the regular employment contracts, the so called B2B contracts have become prevalent in the market. Rather than an employment contract between an employer and an employee, the B2B contract is a service agreement between a company and an individual for specific services. Typically, an individual is acting as a sole entrepreneur. This type of engagement is attractive particularly for more experienced engineers for its financial benefits and self-entrepreneurial freedom. Focus B2B contracts perception in Poland and the United States It is important to highlight that in the IT industry in Poland, B2B contracts and self-employed status are not seen as a freelancing or entrepreneurial model, as is often the case in the United States. Instead, a typical contractor is dedicated to one client and this relationship is long term. A typical engagement period is one year, renewed annually, or sometimes indefinite. The contractors receive a daily rate which is not substantially different from the salaried employees. Often times, the contracts include strong non-compete clauses which prevent contractors from undertaking other jobs without explicit permission. Chapter 2 - Hiring in Poland 117 168 B2B contracts 30-40% Estimated share of B2B contracts vs. permanent contracts for new hires in the Poland IT market % Extra income an employee can get after taxes on B2B contract compared to permanent contract The popularity of B2B contracts in the IT industry can be attributed to two primary factors. Firstly, these contracts may give contractors the freedom and independence to provide services to multiple companies, unless explicitly restricted by contractual agreements. This flexibility enables them to diversify their client base and expand their professional opportunities. Secondly, B2B contracts offer contractors the opportunity to increase their net income without imposing additional costs on the employer. This is achieved through advantageous taxation and social insurance regulations. By operating under a B2B contract, an employee can take home up to 20% higher income compared to traditional employment arrangements. Moreover, during the initial two years of self-employment, B2B contractors benefit from a preferred social insurance rate, further enhancing their financial gains. When considering the hiring process, it is essential to understand the key distinctions between employing an individual on a permanent contract and engaging the services of a B2B contractor. The table on following page outlines the primary differences from the perspective of the hiring company. Focus How to calculate a B2B contract compensation A common practice is that the amount offered on the B2B contract may be up to 15% higher compared to a gross salary for permanent employees and this largely depends on the other terms of B2B contracts. Considering more working days of contractors who don’t have a paid leave, the annual total can grow even higher. The custom is that the amount would be also different depending if a company is employing B2B contractors directly from abroad, or from its entity in Poland. 118 168 Chapter 2 - Hiring in Poland Primary differences between permanent employment and B2B contracts Chapter 2 - Hiring in Poland Market customs around B2B contracts B2B contracts leave a level of flexibility in terms of contractual details and benefits. These are the trends observed for custom agreements in the Poland IT market. Probation period None. The first month is usually regarded as a trial period, but can be ended at any time as per notice period. Notice period 1 month, however this can be 2 or 3 months for key individuals in senior positions. Holidays There are no paid annual leave and public holidays on B2B status. It is up to the contractor to take unpaid days off, in agreement with the company hiring his services. Companies can ask a B2B contractor to align his number of days off with the permanent employees’ limit, i.e. 26 days of annual leave. Sick leave There is no paid sick leave on B2B status. The contractor needs to take unpaid absence if he is unable to perform his work duties. We observed that some companies allow flexibility in the form of remote and flexible work, or sickness days off fully or partially paid. Non-exclusivity Contractors are allowed to offer services to other companies unless this would violate competitive clauses of their contracts. Benefits package B2B contractors are not guaranteed to receive the same benefits package offered to regular employees such as medical coverage, a gym pass or life insurance. In order to keep attracting talent, we observed that some companies would offer access to these benefits packages to B2B contractors with costs recharged to contractor. Office perks and integration events In terms of company and team integration, we observe that most companies do not create significant differences between regular employees and contractors. For instance, contractors are invited to company events, and benefit from office perks. Opting for a B2B contract can be beneficial for both the employer and contractor. However, this requires legal advice and must be done with greatest care to comply with Polish law. Improperly written B2B contracts can be questioned and considered to be employment contracts. Chapter 2 - Hiring in Poland Non-statutory benefits Commonly referred to as „benefits”, non-statutory benefits enclose all perks offered by employers to attract and retain employees. These perks are distinct from statutory benefits like paid holidays, 150EUR sick leave, and parental leave, which are mandated by labor law. It is important to note that statutory benefits do not apply to B2B contractors, but companies often extend similar benefits to them. Popular non-statutory benefits within the IT sector include gym/fitness cards, professional training, and private healthcare. These offerings are often considered the baseline components of an attractive benefits package. Estimated monthly cost of beneflts package per employee Most popular benefits offered by companies in the IT industry in Poland Professional trainings 98% Hybrid work 98% Private healthcare 97% Sport and recreation vouchers 97% Flexible work time 94% Life insurance 93% Language lessons 89% Partial cover of study cost 49% Company loans 45% Vouchers / prepaid cards 22% Additional retirement program 22% Additional paid days off 18% Occasional lunch vouchers 16% Company car 2% Fuel vouchers 1% Source: Sedlak & Sedlak IT salary survey, winter 2023, N=85 companies Other types of benefits, more seldomly encountered in Poland include: Reserved parking space, especially when offices are in the hyper-center Mobility or car bonus integrated in compensation Premium office well-being, in-house gyms, massages, nutrition coach Permanent indefinite contract from Day 1, without trial period Company loans and additional retirement plan Workations and longer company retreats Chapter 2 - Hiring in Poland Piotr Sedlak, Ph.D. Project Manager / Managing Partner at Sedlak & Sedlak Despite a slowdown in the IT industry and cases of significant layoffs, IT specialists remain among the most highly paid employees. According to the Sedlak & Sedlak Autumn 2023 salary survey, which included 843 companies, IT specialists earn approximately 25% more than their counterparts in other industries. However, when looking at managerial positions, the gap narrows, with IT managers receiving approximately 10% more compared to those in non-IT firms. Regarding benefits, there is a solid standard across the market. Nearly all IT specialists—98%— are offered at least partial remote work, 96% can expect flexible working hours. Additionally, 97% of IT specialists receive additional medical care and a sports card. For 2024, IT companies have planned salary increases of 8%. Despite this, there is a perception that the „Eldorado of IT is gone”. Is it true? Well, it depends on one’s perspective. On the one hand: new opening, advancements are frozen, travel expenses are cut and especially junior specialists are afraid of being replaced by AI. On the other hand: those with high skills are always needed and one may always find many companies still recruiting. Chapter 2 - Hiring in Poland How to recruit IT talent in Poland? weeks Time to recruit an experienced IT specialist Recruitment projects for IT specialists in Poland usually take between 4 and 8 weeks. After accepting an offer, candidates have a 1-month, or in some cases 3-month, notice period. Companies adopt four main approaches to sourcing talent in Poland: utilizing in-house recruitment function, hiring external recruitment services, RPO or staff augmentation services. In-house recruitment function When entering a new market, an obvious choice for many companies is to hire candidates using their own recruitment team. To be successful with this option, a company needs to build a recruitment function in the chosen location, as hiring with a remote recruitment team comes with challenges. Building one’s own team, however, is an investment which requires time and can slow down initial growth. Recruiting for senior IT roles can be particularly difficult with only an internal team due to a limited database, relations with candidates, and a need for in-depth knowledge of the market. An in-house recruitment scenario is often chosen when the demand for recruitment is high in the longer perspective, but a slow start is acceptable and when there is no budget for external recruitment agency fees. To decrease the hiring cost, but to keep a fast pace, companies often choose a hybrid mode when they start with an agency and then continue with a mix of internal, agency and potentially RPO consultants. External recruitment services There are numerous local and global IT recruitment agencies operating in Poland. The scope of involvement of the agencies differs from one to another, but usually consists of advertising the roles and actively attracting candidates, screening interviews, coordination of the process with hiring managers and other interviewers, and finally issuing an offer. With experienced technical recruiters, agencies use their in-depth knowledge of the local IT job market and professional recruiting tools to accelerate the hiring process. Some companies offer a success-fee based model, whereas some other agencies offer additional variants such as retained search. The agency fee is anywhere between 15% and 20% of the new hire’s yearly gross salary. The value can be different for the most senior roles. Chapter 2 - Hiring in Poland Recruitment Process Outsourcing (RPO) In addition to traditional external recruitment services, some agencies propose Recruitment Process Outsourcing (RPO). In RPO a team of recruitment professionals is plugged-in into the in-house function of the hiring company and often uses the company’s branding for a seamless experience for the candidate. RPO is increasingly popular among companies that have substantial hiring plans, but don’t have know-how, or need to staff a large wave of hiring, which might be followed by a period of smaller demand. The typical fee structure for RPO consists of several components including monthly cost and a reduced placement fee. The monthly cost may cover various additional scope elements such as recruitment administration or recruitment management. RPO can take many shapes and does not only apply to candidates’ acquisition roles such as sourcers or recruiters. An entire array of recruitment roles can be subject to the RPO model, including Recruitment Lead or Talent Acquisition Business Partner. Staff augmentation services Staff augmentation, also known as team augmentation, is a solution when an outsourcing partner provides engineers who are plugged-in into existing teams. This option is different from a managed service practice where a whole project is outsourced to a third-party provider. With staff augmentation, the candidates are onboarded as members of the company’s team and the project ownership remains in-house. Staff augmentation is used when a company cannot or does not want to hire engineers on a traditional employment contract. Typical scenarios are: company is unable to hire sufficient number of people in a short period of time a project has a budget for limited time company doesn’t accept B2B agreements with candidates company doesn’t have a legal entity in Poland to hire permanent employees company has a limit on the headcount There are several models of staff augmentation: a rapid staff augmentation which involves the outsourcing of engineers already on the outsourcing partner’s payroll or dedicated staff augmentation when candidates are hired from the market to match a precise set of skills. The costs structure of staff augmentation can vary from one outsourcing partner to another. Most common models include hourly and daily rate, or a mark-up on monthly gross salary, and is inclusive of social security, benefits, payroll and HR support. Chapter 2 - Hiring in Poland Agnieszka Widacka Recruitment Manager at MOTIFE When recruiting IT specialists in Poland, there are some key specifics of the local market to keep in mind to make your hiring process smoother and more effective. You may notice that candidates in Poland tend to have brief CVs, typically one to two pages long. This is a standard practice in Poland, where detailed career histories are not commonly included. In addition to the format of CVs, cultural norms also differ, particularly regarding salary discussions. Asking about a candidate’s current salary during interviews can be seen as inappropriate in Poland. Polish candidates highly value feedback on their performance and explanations for decisions made during the recruitment process. Offering these, whether a candidate is successful in the end or not, can greatly enhance the candidate’s experience and your company’s reputation. By making quick decisions, you can maintain candidate engagement and trust. A lengthy process on the contrary can lead to losing potential hires to competitors or diminishing their interest. It is also important to note that Polish IT specialists are accustomed to working for international companies and will not automatically be impressed by a company’s foreign origin. Therefore, increasing your brand awareness in the Polish market, and effectively communicating your company’s value are important steps in attracting top talent. Lastly, while an attractive benefits package can support your offer, compensation remains a very important factor for IT specialists in Poland. If you consider offering stock options as a benefit or salary compensation, explain their value clearly, as some candidates might not be familiar with these concepts. Krakow IT Market Report 2024 Comparison of talent acquisition models Talent acquisition model When recommended? What to be careful about? In-house recruitment You expect constant staffing needs over time You are able to accept slow start Your budget is tight Everything will depend on the team you build In-house hiring is a long-term commitment Performance management is more difficult Agency offering success-fee / contingency recruitment Your recruitment needs fluctuate over time The roles are difficult and niche You are ready to pay premium for premium service Pick a local agency/company that has recognizable brand and knows your industry Bigger agency/company can perform not as good as the smaller ones Pick a provider that will care about your culture RPO (Recruitment Process Outsourcing) You are planning a significant wave of recruitment You may need to scale it down after a certain period The price point for success-fee recruitment is too steep Make sure the KPI/SLAs are clear Make sure the fees are competitive for large volumes Pick a provider that will care about your culture Staff augmentation / Contract / Outsourcing You need staff quickly You want to test the idea of offshoring You are not certain about the length of the need You will want to have an influence over the staff selection You will want to make the team feel as part of organization The investment you make in the training of staff might be lost Focus Executive Search - when to use an external partner? Executive Search is a specialized recruitment service used to identify and attract candidates for high-level and specialized positions. In-house efforts offer direct control and potentially lower costs but may falter due to limited network or no in-house expertise around recruitment for senior positions. Conversely, using specialized external search provider brings extensive market knowledge, broader candidate access, and proven methodologies, significantly enhancing the quality and speed of the search. However, this expertise comes at a cost, in Poland typically 20%-25% of the hired executive’s annual salary. Factors to consider when choosing an Executive Search company Experience in similar roles. Make sure the potential provider has a track record in recruiting for executive positions in your industry or particular company functions. Local network. Choose a company with a strong local network. This allows access to passive candidates including those who do not have proper visibility on LinkedIn or other platforms. Transparent process. Make sure you agree on the complete recruitment procedure, including search methods, candidate sources, recruitment steps, and how candidates are approached. Strategic advisory. The best Executive Search firms act as strategic advisors. They should be able to provide valuable insights into the market, compensation benchmarks, and other trends. Guarantee. It is common to expect an extended guarantee, typically in the range from 6 to 12 months or more. Trust. Executive search often includes maneuvering through delicate, confidential topics related to your organization. You need to feel you can trust the partner with such information. 20-25% Executive Search agency fee range in Poland 2-4months Standard duration of an Executive Search process Chapter 2 - Hiring in Poland Anna Komasa Senior Executive Search Consultant at MOTIFE While the executive search process in Poland may appear similar to that in other regions, it presents unique challenges, particularly regarding the Polish job market, work culture, employment regulations, and taxation. However, the influence of international companies significantly shapes business practices in Poland, bringing notable similarities as well. For new companies entering Poland and seeking to recruit high-level managers, partnering with a local expert is advantageous. Such a partner offers deep knowledge of recruitment intricacies, legal and fiscal frameworks, and is well-versed in the Polish ethos and communication styles. Additionally, their proven experience in securing executive-level candidates for international companies ensures hires are culturally attuned and globally competent, at the same time. One key piece of advice we offer our clients is not to underestimate the importance of the first hire. This initial leader, for example, an Engineering Director, will define the tone for the local office, recruit new team members, assimilate your company culture, and likely attract former colleagues. A mismatch could delay the development of a hub by weeks or, in the worst scenario, jeopardize its success for both the project sponsor and the management board. This guidance is even more critical for subsequent executive hires that expand your regional team. At MOTIFE, we approach the search and vetting of top executive talent with discretion. We focus on identifying passive candidates by engaging our network, inquiring discreetly about individuals’ reputations, and utilizing best practices based on over ten years of experience. On top of that, our data-driven insights are integral to our process, enabling us to provide clients with a comprehensive understanding of the executive search landscape. Chapter 2 - Hiring in Poland How to employ IT talent in Poland? Before finding the right talent, it is crucial to answer a fundamental question: how will we engage the people? Answering is not always simple, and often depends on the specificity of the company and the needs. Hire through own entity For companies with long term strategy for Poland, the most viable option is to setup own entity. This entity then employs the Polish team. Setting up and running a subsidiary with in-house team In this scenario the company establishes a separate legal entity in the foreign country. This option gives full control over the process and then operations, and prepares for a potential significant growth. In the same time, setting up and running a subsidiary in a new country relying mostly on own team can be expensive and time-consuming, requires understanding of local laws and regulations and may require significant ongoing management. This would be advised to companies who have internal teams with know-how and capacity to do it. 400+ Software companies established in Poland in 2023 with foreign owners from EMEA or North America Softlanding: setting up and running a subsidiary with a partner In the softlanding model, a local partner provides an end-to-end support in establishing and running a legal entity in Poland. Local partner will provide staff e.g. HR, Finance, Legal and processes e.g. finance, HR, templates, tools, recommendations related to vendors, best practices etc. The staff engagement will scale depending on the needs of the organization. This allows to significantly reduce an overhead with setting up own subsidiary, particularly associated with learning, handling remotely supporting functions in a new market, and employing full- time supporting functions in Poland. There is still an overhead associated with global supporting functions involvement in the process. In this model, a company has full control over their operations in Poland. Chapter 2 - Hiring in Poland Hiring model When recommended? What to be careful about? Setting up and running a subsidiary with in-house team You have a capacity and know- how in the organization to manage, coordinate, execute the process yourself You have substantial hiring plans of at least 30 to 50 people You have in-house experience doing It is always significantly more difficult and more complex compared to what it may seem at first glance The most time consuming are non- value added elements You don’t know what you don’t know Significant learning curve this, preferably in Poland Softlanding - Setting up and running a subsidiary with a partner You want to have your own entity, but you don’t have a sufficient know-how and capacity in the organization You don’t want invest in the supporting functions on the ground upfront You want the entity up and running quickly Your global supporting functions will need to be involved The more you trust your local partner, the easier and faster the process will be Don’t go this direction if you are uncertain about your plans for Poland or if you are not planning to have more than 10 people in the next 24 months Hire without own entity in Poland If setting up own entity is not possible when building a team in Poland, there are several alternative options available that provide similar benefits without the overhead of running a subsidiary. Umbrella Company, EOR, PEO Using a local partner who acts as an umbrella company, Employer of Record (EOR) or Professional Employer Organization (PEO) allows hiring without establishing an entity. In this scenario an external organization employs staff on behalf of the company, but it also provides additional services like benefits administration and HR. No local subsidiary is established to avoid overhead. This approach helps reduce administrative burden, assures tax and payroll and compliance with local laws are handled, and is most of all quicker, easier and cheaper to set up than any other option. Local partners can also help understand local practices and regulations. Some of them can also offer additional benefits’ packages to the team members. Using an umbrella company can be also useful when a company has a subsidiary in Poland but would like to offset the risk of engaging individuals on B2B contracts. Hiring independent contractors directly As an alternative do-it-yourself option, companies can choose to hire Polish contractors directly. In this case a service contract is signed directly between a contractor and a foreign company. This is a very good option when a company is looking to hire only a handful of specialists and is able to coordinate the HR and payment process. In addition, this approach requires the contractors to be comfortable with such setup. It also usually excludes employment on employment contract and allows for B2B contractors only. Potential risks include limited control and compliance. This approach allows eliminating the cost of a local provider handling of HR and payments, but also typically won’t allow for any local benefits like private health care or life insurance. In this option, companies can also use one of the global payroll providers to facilitate the process although it does come with an additional cost. Chapter 2 - Hiring in Poland Build, Operate, Transfer (BOT): Setting up and running a subsidiary by a partner Build, Operate, Transfer is a model in which team and organization are incubated outside the company’s organization and later transferred to the company. This option is an enhancement to the softlanding practice, where typically a substantial involvement from the global supporting functions will be needed. In the Build, Operate, Transfer model, the engagement of the in-house staff can be reduced even more. Staff augmentation / Contract / Outsourcing In this approach independent contractors provided by a partner are used. They are either recruited from the market or already available in the partner’s team. They are usually fully dedicated to a client and can eventually be hired by a client. This approach provides greater flexibility, scalability and offsets all risks to a partner. It also may allow for a faster start. The downsides include the fact that the team doesn’t have a sense of belonging to the client’s organization and the setup may implicate compliance risks, or continuity and knowledge retention issues. Hiring model When recommended? What to be careful about? Umbrella Company / EOR (Employer of Record) / PEO (Professional Employer Organization) You are not yet sure about building a full team in Poland and want to test the approach When you don’t have an internal capacity to handle any complex setup and want to have the ease of outsourcing, but benefits of own, dedicated team Make sure you clarify who owns what part between the partner and your own HR team Do treat every person as a member of your team You will need to learn bits and pieces of Polish labor code or market practices Hiring independent contractors directly When you are hiring a small number of team members in Poland When you are hiring in multiple locations in parallel When you already have contractors in other locations Effectively, you will not be building a team in Poland, it will be a group of contractors Loyalty and sense of belonging to an organization are more difficult to achieve This solution won’t scale Build, Operate, Transfer: Setting up and running a subsidiary by a partner You need to have a team inside your organization and not through another organization You have no ability to handle the process of set up and running, even with support of a partner You need to fully trust your partner to use this option Consider how to build your culture in the team outside your organization Consider the cost of transfer Staff augmentation / Contract / Outsourcing You want to have a team as quickly as possible You are not certain if you will be able to sustain the team beyond certain period of time Make sure you have control over who is assigned to you, ideally do participate in the recruitment process Make sure you try as much as possible to treat the contractors as members of your team Chapter 2 - Hiring in Poland Still in doubt which option is the best? Get in touch! Focus Remote and hybrid work models in Krakow’s business and technology sector One of the enduring effects of the pandemic is the widespread acceptance of hybrid working. Within the Polish IT sector, this model has become the norm, with very few companies insisting on full-time presence at the office. Equal split between flexible and one-rule policies According to ASPIRE Tracker May 2024, approximately half of the companies adhere to a unified hybrid work model policy. The other half have adopted more flexible approaches that differ by department or specific roles within the company. Double-clicking on the policy details, 31% of companies surveyed inherit their policies from global policy, 40% offer flexibility but make it team-dependent, 26% role-dependent days in office, and 7% allow complete flexibility, Fully remote work remains minimal In Krakow, among large business and technology companies, the fully remote work model is typically applied on a case-by-case basis unless it is widely adopted throughout the organization. In most companies, the proportion of fully remote workers does not exceed 20% of the headcount. Work from abroad Close to half of the companies surveyed now permit their employees to work from abroad, a practice that was marginal before the pandemic. This option has become increasingly popular for employees, whether for a workation or to combine work with a trip back home, particularly significant given that 15-20% of employees in business and technology companies are foreigners. It is important to note, however, that companies dealing with sensitive information may restrict this policy to certain countries. 1-3 days in the office became the new norm Most employees now expect to spend 1-3 days in the office each week, a criteria that has become an integral part of their job selection process. Companies that require office presence only 1-3 days per month have the advantage of broadening their talent search geographically, appealing to a wider pool of candidates. Hybrid work and choosing an office space Initially a response to the pandemic, the hybrid work model has become a key topic in today’s employment discussions. While it offers a flexible alternative to strict office mandates, many organizations still face challenges, leading to stricter policies. The demand for hybrid workspace goes beyond headcount and is driven by a combination of workplace policy and employee work styles, which can be understood by examining office attendance and use patterns. The more flexible the hybrid work policy is, allowing for higher access to remote work, the harder it can be to predict employees’ behaviors, and, by extension how much total space is needed. Source: CBRE, 2024, ASPIRE Tracker, May 2024 Chapter 2 - Hiring in Poland Human centric workplace design As the trend of returning to office workplaces gains momentum, the concept of a quality work environment is evolving rapidly. Several key factors are shaping this evolution, including office location, commute time, and access to public transportation. However, what’s particularly noteworthy is the renewed emphasis on workplace design and office technology. Employees now highly value environmental features such as natural light and better air quality, alongside dedicated spaces for individual online meetings and focused work. To attract the Gen Z and Millennial workforce, occupiers must get creative with offerings like parking, food and beverage options, and apps that inform when colleagues will be present. Currently, 69% of organizations said they will revise their space design standards to reflect this new way of working – to encourage teams to collaborate, and enable casual meetups and face-to-face gatherings for networking and relationship building. Most changes in space design are focused on enhancing collaboration spaces and amenities to accommodate those aspects of work that „cannot be done remotely.” However, something often overlooked is the importance of access to quiet spaces where employees can focus, re-energize, and concentrate. This is particularly important for more introverted employees, many of whom thrived while working remotely. For those with sensory sensitivities, the prospect of returning to an office with more collaborative spaces, may not be appealing and could actually create an exclusionary environment. Number of days worked in the office 1-3 days per week 1-3 days per month 19% 4-5 days per week 5% N/A 2% Other 7% Share of companies’ headcount working fully remote Below 10% of headcount 57% 10-20% of headcount 21% 21-30% of headcount 5% 31-40% of headcount 3% 40%+ of headcount 17% Number of working days employees are allowed to work from abroad yearly N/A or not offered 55% Up to 10 days 3% Up to 15 days 5% Up to 20 days 12% Up to 30 days 16% 30 days and more 7% Unlimited 2% Source: CBRE, 2024, ASPIRE Tracker, May 2024 Chapter 2 - Hiring in Poland Working model options and their impacts on key organizational aspects in the Polish IT sector 100% remote Hybrid 100% Less/no need to provision office facilities Lower need for office facilities, but solution required to accommodate varying in-office presence Office facilities (e.g. designated workstations) required for all employees Attrition Long-term impact, with potentially weaker ties in the team; More effort is required by employers to promote unity and team spirit Potential impact of attrition of those who want to – now or in the future – work fully remotely; Regularity of in-office interaction and presence can positively contribute to team spirit and culture High probability of attrition caused by lack of flexibility; Potentially easier for an employer to gauge the mood of the team and to build company/team culture Productivity Difficult collaboration; Too many meetings Days can be designated as collaboration or individual contribution, according to location Easy collaboration; Easy ad-hoc interactions Cost Savings on office space; Potential need to subsidize home office costs Potential for savings to be made by provisioning fewer work stations (e.g. hot desking or partial hot desking) High office cost and potential lack of flexibility in case of future turbulence Culture & Employer Branding Potentially difficult to build teams with all members in different locations; Greater effort required to build and communicate culture (internally and externally) Right balance between demonstrating an understanding of employee needs and maintaining company and team culture Company can be perceived as overly rigid (even old fashioned) Onboarding Very difficult to onboard some roles (e.g. juniors) and team members remotely Limited/no impact; Can be organized around in-office/remote schedule Limited/no impact; Can be done easily, in office Chapter 2 - Hiring in Poland Małgorzata Niewińska Director, Head of Corporate Consulting at CBRE While hybrid work policies aim to provide flexibility, they are also causing tensions between organizational goals and employees’ expectations. Real vs. expected utilization: Strategic organizational ambitions to have employees working on-site are clashing with budgetary constraints, especially for companies bound by long-term leases negotiated with a hybrid work model in mind. Employers frequently anticipate around 60% average daily office occupancy to justify their real estate footprint. However, actual utilization rates are hovering around merely 30% across most sectors, dipping even lower in the IT industry. Employee expectations vs employers’ interests: Employees value autonomy over rigid schedules. Whereas employees increasingly look for remote work as key working environment, employers’ expectations are often that people will be about 60% of their working time on average in the office. Office space is designed under this expected utilization, 60% of headcount (a ratio of 0.6). Companies that want to reduce office space due to the current situation face a challenge: while they will save money, there is a risk that the new space will not be absorbent (unable to accommodate new growth, if any) and may require employees to adjust their schedules, which is a limitation of flexibility for those who expect it. The organization’s cost-saving ambitions can lead to employees becoming less collaborative, losing their connection to the organization, and ultimately resulting in a decline in long-term efficiency. Employees often point out the problems they have and what is holding them back from coming to the office, such as commuting problems, well- being, a weak team, a weak leader (human and cultural factors are the most difficult to grasp and prove), an office that is not tailored to their needs, a lack of solutions to support their way of working, e.g. technology at home is better than in the office, the office is too loud, it is stylish but not functional. Chapter 2 - Hiring in Poland Neurodiversity in IT A talent pool waiting to be unlocked The IT sector thrives on innovation, problem-solving, and a keen eye for detail. These very skills are often hallmarks of neurodivergent individuals, a group encompassing those with autism spectrum disorder (ASD), attention hyperactivity disorder (ADHD), dyslexia, and other neurodevelopmental or neurological conditions. While estimates vary, research suggests that as much as 15-20% of the global population is neurodivergent. A striking recent study of young workers has found that more than a third (38%) of 16–24-year-olds self-identify with neurodivergent conditions. And in fact, diagnoses of both ASD and ADHD have been consistently rising – research shows that diagnosis of ADHD in adult men under 30 has increased twenty-fold between 2000-2018. Similarly, a 2021 UK study found a 787% rise in the number of diagnoses between 1998 and 2018. As such, we can assume that neurodivergent talent makes up a sizable portion of companies’ current and potential workforce (even if they don’t officially disclose their diagnosis). Is this a good thing? A bad thing? Do you need to care? Benefits Neurodivergent individuals often have unique perspectives and thinking styles. They can see patterns, solutions, and ideas that others might miss, driving innovation and problem-solving within your organization. The presence of these unique strengths within neurodivergent population is well documented in academic literature. Research has found that as many as 60% of individuals with autism have so-called special isolated skills in math, science, memory, reading, music, or art. These skills usually far exceed those of the neurotypical population and according to Harvard Business Review, lead to a 30% increase in productivity seen in neurodivergent teams. Neurodiversity best practices for IT employers Tailored recruitment: Standard recruitment processes can inadvertently filter out neurodiverse talent. Consider implementing work trials, portfolio reviews, and structured interviews focused on practical skills rather than purely social or communication skills. Work environment adaptations: Simple adjustments, such as providing noise-canceling headphones, flexible lighting options, or allowing for remote or quiet workspaces, can significantly improve productivity and comfort. Continuous education: Educate HR and management teams about neurodiversity. Training should cover understanding different neurodiverse conditions, effective communication strategies, and the benefits of integrating neurodiverse employees into the workforce. Employee support systems: Establish mentorship programs and regular check-ins to foster a supportive network. Customize support to suit individual needs, which can vary widely even within the same neurodivergent condition. Feedback mechanisms: Implement clear, consistent, and constructive feedback systems. Many neurodiverse individuals thrive with precise and direct communication about expectations and performance. Inclusive culture: Get buy-in at all levels, and promote an inclusive culture that values different perspectives and ways of thinking. Highlighting the success stories of neurodiverse employees can also encourage a welcoming environment and reduce stigma. Sources: Brain Architects, theHRDIRECTOR, University College London, NIH National Center for Biotechnology Information, Journal of Autism and Developmental Disorders, Harvard Business Review Chapter 2 - Hiring in Poland Condition (Prevalence) Description Strengths Challenges Best practices for Autism Spectrum Disorder (ASD) (1-2% of population) A developmental disorder characterized by difficulties with social interaction and communication, and by restricted and repetitive behavior. Pattern recognition, memory, intense focus Social communication, sensory sensitivities Provide structured tasks, quiet workspaces, clear communication, and sensory- friendly environments. Asperger’s Syndrome (as part of ASD) ADHD (Children ~11%, Adults ~3%) Dyslexia (5-10%) Now considered as a part of ASD. Characterized by significant difficulties in social interaction, alongside restricted and repetitive patterns of behavior and interests. Attention Deficit Hyperactivity Disorder involves issues with inattention, hyperactivity, and impulsivity. A learning disorder characterized by difficulty reading due to problems identifying speech sounds and learning how they relate to letters and words. Deep focus, expertise in specific areas, systematic thinking Creativity, rapid problem-solving, hyperfocus Enhanced spatial reasoning, narrative thinking, big-picture insights Social nuances, rigid routines Distractibility, time management, impulsivity Reading, writing, spelling difficulties Offer predictable schedules, clear rules and expectations, and training on social interactions. Offer flexible scheduling, breaks for physical activity, and organizational tools. Use text-to-speech software, provide written materials in clear, easy-to- read fonts, and allow extra time for reading-intensive tasks. Tourette Syndrome (~1%) A nervous system disorder involving repetitive movements or unwanted sounds (tics). Out-of-the-box thinking, resilience Involuntary tics, which can be socially and physically challenging Create a tolerant atmosphere that understands involuntary tics, and provide private work areas if needed. Dyspraxia (2-6%) A neurological disorder that impacts an individual’s ability to plan and process motor tasks. Strong verbal skills, creativity, strategic problem-solving Coordination, fine motor skills Provide ergonomic workplace tools, allow use of speech-to-text software, and ensure physical workspace adjustments. Chapter 2 - Hiring in Poland Dominika Pikul Managing Director at Brain Architects Dominika Pikul is a consultant, trainer and researcher specializing in neuroscience and its applications to business, leadership and personal development. Dominika holds a MSc degree in Neuroscience and Psychology (King’s College London) and she is currently a PhD candidate researching the neurobiology of attention deflcit hyperactivity disorder (ADHD). In her daily work, she educates on creating neuro-inclusive workplaces and consults on processes friendly to neurodivergent individuals (recruitment, talent, performance and team management). brainarchitects.pl Why embracing neurodiversity is a strategic business decision? Few companies that implemented support programs for neurodivergent individuals have seen some amazing results in terms of productivity and studies by Microsoft and SAP have shown that neurodivergent employees excel in IT roles. Their unique cognitive styles, often stemming from underlying neurobiological differences, can bring fresh perspectives and strengths to the table. For example, individuals with autism spectrum disorder (ASD) often have enhanced perceptual processing. This means they may notice minute details others miss. It is easy to imagine how a software tester meticulously examining lines of code can identify a critical error that could have caused a major system crash. Other than exceptional attention to detail, many neurodivergent individuals, particularly those with ASD, excel at identifying patterns. This can be attributed to increased connectivity in certain brain regions involved in forming connections between disparate pieces of information. In the IT world, this translates to spotting patterns in complex datasets, leading to more efficient algorithms or uncovering hidden security vulnerabilities. Chapter 2 - Hiring in Poland Studies have also shown that individuals with attention deficit hyperactivity disorder (ADHD) are more likely to generate creative ideas due to their tendency to “think outside the box” and make novel connections between ideas. This may be because people with ADHD tend to have less immediate filtering of information in their brains, which allows them to make more connections between seemingly unrelated ideas. What are the main myths associated with neurodiversity in the IT sector? The IT sector thrives on skills often associated with neurodiversity. However, several myths persist, hindering the inclusion of neurodivergent individuals, particularly autistic women. The misconception that ASD is almost entirely a male condition (the most recent data points to the male-to-female ratio of 3:1) leads to underdiagnosis and without a diagnosis, autistic women may not receive support or accommodations they need to thrive in the workplace, especially if these workplaces don’t promote neuro-inclusion. Secondly, existing biases against "difficult" women or those lacking traditional social skills can hinder hiring and promotion opportunities, leading to frustration and impacting mental health. And thirdly, social pressure to conform can lead autistic women to internalize their struggles with anxiety or sensory overload which can easily lead to serious burnout. The other myth revolves around communication. It is true that social interaction can be challenging for some, but certainly not for all neurodivergent people. Many excel in one-on-one interactions or written communication. So rather than deciding that a person with ASD won’t like to share their opinion or ideas, it is good to think about providing different means of communication. What is the first step in building a neuro-inclusive culture? The first step in building a neuro-inclusive culture is raising awareness and dismantling stereotypes through education. Negative stereotypes surrounding neurodiversity can create a culture of fear, bias, and discrimination. Education helps address these misconceptions and fosters understanding. I have also noticed that implementing a hard science approach is especially useful in the IT sector. Explaining the neurobiological basis for neurodiversity and challenges associated with different cognitive styles really helps with building understanding and empathy for neurodivergent team members. It is important however to provide extra training sessions for managers, as they have a key role to play when it comes to fostering a neuro-inclusive environment. Separate sessions allow them to delve deeper into topics like implementing practical accommodations in the workplace or managing performance reviews and career development for neurodivergent individuals. Chapter 2 - Hiring in Poland This chapter is designed for CFOs and other decision-makers responsible for evaluating costs and formulating a business model for market entry in Poland. Within the following pages, you will gain essential information about cost of running a center in Poland, such as office space, professional services, taxation, and notably, the cost of employment. Key figures 21.7K EUR Average gross annual salary in the business sector in Poland PLN Polish zloty Currency of Poland 5.3% Unemployment rate in Poland in March 2024 (Krakow: 2.1%, Warsaw: 1.4%) NATO member since 1999 31.7K EUR Average gross annual salary in the business sector in Krakow 2.8% GDP growth forecast for 2024. EU countries average: 1%. Eurostat 2.7% Annual Inflation rate in Poland in March 2024. EU countries average: 2.6%. Eurostat EU member since 2004 and Schengen Area member since 2007 Source: stats.gov.pl, krakow.stats.gov.pl, Eurostat Chapter 3 - Cost of doing business in Poland Employment cost When setting up a tech hub in Poland, the salaries of the team members hired will represent the major part of the budget. Understanding the salaries component is a key to build the right business case for "Poland project". Total employment cost in Poland To assess the total annual employment cost in Poland we are using as a reference a median monthly salary of a regular engineer on an employment contract, 18 000 PLN or 4 150 EUR gross, and top it with additional employer cost, the social security contribution, to obtain the total amount. Since apart from regular employment contracts, approximately 30%-40% of engineers choose B2B contracts, we include also the expected cost for these types of agreements. Permanent employment contract 60K EUR Annual total cost of employment on permanent employment contract for a regular engineer in Poland, inclusive of social security The total employment cost will consist of the annual gross salary, topped with the social security contribution paid by the employer (on average 20%). B2B contract 50-60K EUR Annual total cost of employment on B2B contract for a regular engineer in Poland The total cost of employment on B2B doesn’t include the social security contribution for B2B contractors as it is entirely at the charge of the contractor. Beyond employment cost The part of the budget beyond employment costs differs depending if you have your own subsidiary or employing through an umbrella company. The umbrella company model simplifies the setup. The primary expenses include the cost of employment, the provider’s mark-up, and recruitment cost. There might be additional expenditures if you opt for benefits, office space, or equipment. Setting up your own subsidiary offers more control but also involves a broader range of costs. These include the cost of employment, benefits, supporting functions, recruitment, and equipment. Depending on your needs, you may also need to factor in office costs. When operating your own entity, it’s also essential to factor in the obligations associated with transfer pricing. Most companies use a cost-plus model to comply with tax regulations in Poland. This means that a minimal profit, referred to as a mark-up, is generated in the country. The good news is that this can be recovered in the form of dividends from your Polish entity. 70% Approximate average portion of the cost of running an IT Hub Poland that goes to the employment cost and beneflts 30% This is an approximate average amount that goes to cover supporting functions cost, recruitment, offlce, equipment 7% A typical mark-up used in the cost-plus model added to the total cost of IT Hub Poland cost in order to conform with transfer pricing obligations Comparison of total employment costs in different countries Level of additional costs an employer has to incur on top of salary (in %) in selected countries UK ~17% SWEDEN ~31% NORWAY ~19% GERMANY ~20% USA ~10 to 13%* FRANCE ~32% POLAND ~20% Sources: Eurostat, US Bureau of Labor Statistics, Papaya Global Paymentspedia 2024, Pwc Tax Summaries 2024 *USA – mandatory contribution, varying per state. Up to 30% with private healthcare and retirement in the private sector. Find the detailed breakdown of salaries in Poland per roles in Chapter 2 – Hiring in Poland pages 105-114. Chapter 3 - Cost of doing business in Poland Rafał Korczynski Director, GBS Consulting at PwC Polska PwC is a global auditing and consulting firm, present in 151 countries with 364 000 employees. GBS Consulting Team located in Poland, an EMEA GBS sector leader is part of the Global GBS Network of 1 500+ professionals working with Companies on embarking on their IT GBS/Hub journey. Poland remains a key player on the European and global business services landscape. With its strategic location in the heart of Europe and a sizable market of 38 million consumers, it continues to attract foreign investors. As the world’s third-preferred destination for foreign investment, Poland boasts around 450 000+ people employed in the GBS industry. Over the past decade, Krakow has ascended as a premier technology hub in Europe, drawing considerable investment attention. Boasting nearly 260 Business Service Centers and a rich talent pool of around 128 000 students and 60 000 IT specialists, Krakow has evolved into an agile, globally-oriented city. Here, many Fortune 500 companies have taken advantage of Krakow’s resources and have established vital components of their international business services strategy. Amidst the ongoing globalization of the IT market, the disparities in costs and salaries worldwide are gradually diminishing. Nonetheless, the Polish IT industry remains appealing as the industry evolves towards greater maturity delivering increased business value. As part of the shift, PwC is increasingly helping well-established SSCs expand their IT functions due to Poland’s ease of hiring and lighter market requirements. This is especially true in developing technological areas such as off-the-shelf platform integration, public clouds and artificial intelligence. Moreover, automation and ubiquitous artificial intelligence, though just evolving, is already driving changes in the ways of working. PwC is partnering with MOTIFE to mutually share best practices, to leverage MOTIFE’s IT staffing capabilities, and to contribute to the local ecosystem of the IT companies. Chapter 3 - Cost of doing business in Poland Michał Ciecierski Manager Digital & Technology Hub at HEINEKEN Global Shared Services HEINEKEN, the world’s most international brewer, is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 350 international, regional, local and specialty beers and ciders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ over 85 000 employees and operate breweries, malteries, cider plants and other production facilities in more than 70 countries. And we always ask our consumers to enjoy our brands responsibly. HEINEKEN and Krakow ways have intertwined since the establishment of Heineken Global Shared Services in 2012. Starting off with transactional finance processes, and robustly building our expert pool, we have managed to become a major business partner to HEINEKEN entities. Being accoladed as the 2nd Best Employer in Krakow by Forbes, twice as Most Vibrant Employer, and awarded Fair to Women, and Best Employer Branding Initiative we are proud to present ourselves as the ‘company to work for’ on the market, with a unique atmosphere and work environment. Chapter 3 - Cost of doing business in Poland Information Technology was always present in HGSS, supporting the infrastructure and fintech solutions but we made THE big step in February 2021, by founding the Digital & Technology (D&T) Hub in Krakow for Global HEINEKEN D&T teams, developing from 50 IT professionals to 600+ in 2024, with strong development plans in the coming years, not shy of exceeding a thousand of Digital & Technologies engineers in coming years. Our purpose is to deliver the D&T Global Strategy, as One Team, complementing teams in the D&T Head Office with skilled D&T talents and fully leveraging on our Agile Ways of Working. Last, but certainly not least, by building our experiences, as well as sharing these with the rest of our Organization, we shall create an expertise platform for future hubs of the HEINEKEN Company. HEINEKEN Digital & Technology delivers its goal to be the best-connected brewer by working with all Business Functions to connect the dots (End-to- End) and accelerate the digital transformation of HEINEKEN. We shape the future by looking outside, learn from others, experiment and scale with pace across HEINEKEN. We deliver the goods, by driving digital solutions and supporting change programs of Functions and Operating Companies. With such a strong development agenda, we are investing into development of our teams in Security, Analytics, agile ways of working, cloud engineering, IoT and especially in our latest project: Software House, to help HEINKEN develop eCommerce business and products. In HEINEKEN we believe that Krakow, with its culture, education, universities and students, dynamic GBS/GPO business, is a future- proof location to build Digital & Technology competencies and host those services with great pride. Focus Krakow BPO/SSC centers expansion into IT function Companies such as HEINEKEN, Herbalife, or Euroclear, built their Krakow shared service centers with non-IT functions a decade ago. Since then they grew to several hundred FTEs. More recently they have decided to expand their footprint to IT function. Adding IT function presents a strategic advantage for companies already based in the city. It’s not only faster but also more cost-effective to augment services in an existing location than to establish a new one. These companies benefit from a established presence, with robust infrastructure and management practices already in place, and most often a recognized employer brand. Chapter 3 - Cost of doing business in Poland Professional services K EUR Monthly cost of accounting services and payroll for a small limited liability company 500EUR Yearly cost of insurance (hardware, liability) for a small limited liability company When operating in Poland, companies need to comply with local regulations. Most of foreign firms choose to outsource most of the work associated with bookkeeping, payroll or legal. Poland offers competitive pricing for these types of services, which minimizes the overhead costs of running a business here. Business services providers are often familiar with elements of foreign legal and tax laws as well. When selecting an accounting and payroll vendor in Poland, both local companies and large international accounting firms are available options. Although larger firms may cost two to three times more than smaller vendors, they offer a broader range of services. These large firms bring extensive experience with sizable organizations and generally provide more consistent fluency in English. 50-100EUR Hourly fee for legal services Chapter 3 - Cost of doing business in Poland Taxes in Poland There are 3 primary taxes that a company pays in Poland: The Personal Income Tax paid by companies for their employees by deducting it from their salaries, the Value-Added Tax and the Corporate Income Tax. CIT Corporate Income Tax 9% for companies with <2M EUR annual revenue and 19% over that threshold VAT Value-Added Tax 23% standard VAT rate PIT Personal Income Tax 12% under 120K PLN (~28K EUR) annually, and 32% over that threshold Tax incentives Tax-Deductible Costs (TDC) for IT professionals The Polish Personal Income Tax Act allows for special tax-deductible rates for authors of copyrighted works. If they receive a remuneration for the transfer of the copyright, they may apply tax-deductible costs in the amount of 50% of a portion of earned income. This scheme is sometimes also informally referred to as „creative tax”. The scheme has gained popularity throughout the IT industry. Both smaller IT firms and large international software companies with 1 000+ employees utilize its benefits. In terms of benefits, the TDC scheme allows employees to reduce their personal income tax and therefore increase their net income. Without increasing employer costs, the employee’s net income can increase by as much as 13% per year. As an alternative, some employers use the TDC scheme to reduce the cost of salaries, by offering lower gross compensation but still an attractive net compensation. Implementing the TDC scheme in an organization requires a thorough process that can take up to 6 months and the support of a local partner and legal verification. The cost of necessary legal services has to be taken into account when planning. IP Box tax relief for IT businesses Introduced in 2019, the IP Box tax relief encourages innovation by implementing a preferential 5% tax rate on income derived from eligible intellectual property (IP) rights. This incentive is accessible to entrepreneurs, partnerships, and corporations. Unlike Creative Tax mentioned earlier, IP Box specifically targets businesses, therefore applies to the sole entrepreneurs operating under B2B contracts and not the individual salaried employees. The IP Box relief is particularly relevant for software developers. The basic requirement that a taxpayer must meet in order to take advantage of the IP Box is to conduct research and development activities that have led to the creation, development, or improvement of qualified intellectual property. Developers can benefit from the relief when they transfer intellectual property rights to developed applications or source code. To claim IP Box relief, taxpayers must separately identify each qualified IP right and maintain separate records for each type of right. The relief can only be claimed in the annual tax return, accompanied by a specific PIT/IP or CIT/IP attachment, which indicates the portion of income subject to the 5% tax rate. Chapter 3 - Cost of doing business in Poland Tax relief for Research and Development (R&D) Tax relief for R&D is a fiscal advantage for entrepreneurs. It allows them to deduct specific R&D-related costs from their taxable income. This deduction reduces the taxes they owe, making R&D projects financially attractive. Eligible R&D costs can be deducted twice. First, they are removed as operating expenses (100%). Then, the same amount (100%) is deducted from revenue. This results in a total deduction of 200%. The tax relief is available to all entities engaged in R&D. It covers both Corporate Income Tax (CIT) and Personal Income Tax (PIT) payers. Businesses must participate in R&D throughout the tax year. They must also document all related expenditures carefully. Eligibility for this relief does not depend on the success or innovation level of the R&D efforts. Projects in progress, even if started in previous years, are eligible. A special provision applies to entities in a Polish Investment Zone (PIZ) with a support decision, allowing them to benefit from the R&D tax relief. However, they cannot classify eligible R&D costs as expenses for activities supported by the PIZ decision. This stipulation ensures that businesses can optimize their tax benefits while complying with regulatory guidelines, promoting sustained investment in innovation and development. Income tax break from the Polish Investment Zone (PIZ) The Polish Investment Zone program offers options for CIT tax breaks for companies who set up their operations in Poland. Tax break depends on company size, following the European Commission’s guidelines: large enterprises get a 40% break, medium-sized 50%, and small/micro 60%, as applicable in Krakow. To qualify, companies must meet a minimum investment outlays/costs and adhere to criteria promoting sustainable growth. The tax break can be granted to services sector companies, including IT services, research and development in natural and technical sciences, bookkeeping and book control, accounting services (except tax statements), research and technical analysis services, call center services, architectural and engineering services, as outlined in the New Investment Support Act. For companies seeking to benefit from the Polish Investment Zone (PIZ) incentives, the application process involves obtaining a Support Decision, issued on behalf of the Minister of Economic Development and Technology, by the management of one of the 14 Special Economic Zones located in Poland. Chapter 3 - Cost of doing business in Poland Focus Tax incentive for new investment in Krakow and Małopolska region Polish Investment Zone program offers options of tax break for companies who set up their operations in Poland. This income tax incentive is available for investments in the Krakow and Małopolska region, and is granted by a regional entity (Krakow Technology Park) on behalf of the Polish Minister of Economic Development. The amount of tax break is calculated by multiplying investment costs by 40%, 50% or 60% depending on the size of the company (e.g. a ”large” company that plans to hire 50 developers and incur 10M PLN as 2-year- employment cost will be granted 4M PLN income tax break). Income tax break From 40% to 60 % of 2-year- employment cost depending on the size of the company in Krakow For service sector companies and certain production companies Investment is allowed in the location of your choice The Krakow Technology Park issues a Decision of Support for projects in Krakow and the Małopolska Region 300 companies have been granted income tax breaks by the Krakow Technology Park since 2018, following the introduction of the Polish Investment Zone program Companies that used this tax incentive in Krakow Companies of all sizes can apply and receive tax breaks if they incur minimum investment costs and declare to meet quality factors related to sustainable economic and social development. As stated on the previous page, tax break can be granted to services sector companies, including: IT services, research and development in natural and technical sciences, bookkeeping and book control, accounting services (with the exception of tax statements), research and technical analysis services, call center services, architectural and engineering services. Chapter 3 - Cost of doing business in Poland Justyna Czyszek Deputy Director at Krakow Technology Park In 2023, Krakow Technology Park (KPT) endorsed 60 new investments totaling over 2 billion PLN in Małopolska as part of the Polish Investment Zone (PIZ), aiming to create over 1 000 jobs. This marks KPT’s second-highest annual performance in terms of support decisions and third in declared investment volume. All of this despite economic uncertainty, inflation, energy crisis and supply chain disruptions exacerbated by geopolitical tensions such as the Russia- Ukraine conflict. 2023 also celebrated the fifth anniversary of the Polish Investment Zone program, which has surpassed the achievements of the special economic zone operating for two decades. For the first time in the history of the KPT, our efforts were recognized by fDi Intelligence, a specialist division of Financial Times Ltd., as KPT was named Europe’s best Industrial Champion zone. This accolade recognizes both the investment activity of Polish and foreign businesses that KPT supports, and the rich activities of the technology park, culminating in joining the European Digital Innovation Hub (EDIH) in 2023. Legislative changes this year made the Polish Investment Zone more business-friendly, extending tax relief from 12 to 14 years and increasing the public aid cap, from €50 million to €55 million and from €100 million to €110 million, aligning it with current EU standards. Every company that wants to join our growing business environment in Krakow should definitely consider this tax break and can learn more at Chapter 3 - Cost of doing business in Poland Office market in Poland In cooperation with CBRE MLN m2 Total offlce space surface in Poland 25-27EUR m2 Lease per 1 m² of offlce space/month in an A-class building in Warsaw center Office space resources Poland’s office market has witnessed rapid growth in recent years, with over 1.5 million square meters of new office space delivered since the beginning of 2021. However, by the end of 2023, the development pace has slowed, resulting in a supply gap, particularly evident in Warsaw and some of the largest regional markets. This section provides an overview of the main features of the office market in nine key Polish cities: Warsaw, Krakow, Wroclaw, Tri-city (Gdansk/ Gdynia/Sopot), Katowice, Lodz, Poznan, Lublin and Szczecin. Each city has its own unique characteristics, such as location, infrastructure, and local economic conditions, that have contributed to the development of its office market. By examining the office markets in these cities, our aim is to provide investors with a comprehensive understanding of the current state of the office market in Poland before they decide on the city (or cities) in which to set up their software hubs. At the end of Q4 2023, the total supply of modern office space in Poland amounted to over 12.9 million square meters, including almost 6.68 million square meters in regional cities. In 2023, the modern office stock in regional cities increased by over 279,600 square meters across 21 new projects, while only 40,600 square meters was delivered in Warsaw. At the end of Q4 2023, Warsaw had 14 office projects under construction, totaling approximately 221,700 square meters of office space. A significant portion of this pipeline, 84% or 186,500 square meters, is to be located in the Warsaw central zones. We have been observing an upward trend in the amount of constructed space since Q4 2022 – prior to that the amount had been falling for 10 consecutive quarters. Moreover, construction of further 215,800 sq m of office space is planned to commence in coming quarters. However only one out of these planned projects has a chance to be completed before the end of 2025. The supply gap in Warsaw became a fact, and even with the number of schemes under construction on the rise, the new pipeline may not cover the market’s needs. While this poses an obvious chance for developers, the events of recent years, as well as high construction costs, seem to make their decisions more cautious, slowing the overall pace of new schemes development. In regional cities, there are currently 312,800 square meters of office space under construction, with 181,200 square meters scheduled for delivery by the end of 2024. However, projects slated for completion by late 2024 are only 7% pre-let, and the development pipeline across regional markets is at a ten-year low. Chapter 3 - Cost of doing business in Poland Office stock evolution in Poland (in m²) 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 14 000 1 2 000 10 000 8 000 6 000 4 000 2 000 0 Completions Under Construction Total Supply (000) Source: CBRE, 2024 Lease costs With little new supply, and a supply gap in full swing in Warsaw, CBRE observes a strong upward pressure on rents. Apart from Warsaw, the most noticeable increases were recorded in the first half of the year 2023. In Q4 2023 prime headline rents noted only a slight increase to 16.00 EUR/sq m/month in Poznan (an 0.10 EUR increase q/q). The increases, however, were different among regional markets with Lublin reaching a 0.50 EUR y-o-y rise, while no changes were recorded in Krakow, Tricity, Katowice or Lodz. On the other hand increases in Warsaw were evident. Prime headline rents in Central Warsaw reach a level of EUR 27.00 sq m/month in the CBD, EUR 26.50 sq m/month in the City Centre East and EUR 25.50 sq m/month in City Centre West zones. Average rents in the City Center vary between EUR 18.95 and 22.80, whereas in Non- Central locations average rents reach EUR 12.80 – 17.50. Office space overview in the 7 largest cities in Poland Source: CBRE, 2024 Chapter 3 - Cost of doing business in Poland Demand for office space Demand for office space in Poland remains strong and has already returned to pre-pandemic levels, although the share of renegotiations in total leasing activity continues to be higher than before 2020. The total volume of lease transactions registered in 2023 reached 1,490,100 square meters, an amount 1% higher than in 2022. The most active local markets were Warsaw, Krakow, Wroclaw and Tricity, with 748,800 square meters, 201,300 square meters, 165,500 square meters and 143,900 square meters leased, respectively. In Q4 2023, Warsaw experienced an unexpectedly high demand of over 255,600 square meters. The total demand recorded in 2023 equaled 748,800 square meters, which, while 13% lower than the previous year, is nearly 20% higher than the average for the pandemic years of 2020-2021. Leasing activity across regional cities in 2023 was similar to the figures observed in Warsaw, with a total of over 741,300 square meters leased. The most active regional markets in terms of demand were Krakow, Wroclaw, and Tricity, constituted 13.5%, 11.1%, and 9.7% of the total demand in Poland, respectively. In comparison, tenant activity in Warsaw represented 50.2% of the total demand. Demand for office space in Poland (in m²) 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 2017 2018 2019 2020 2021 2022 2023 Net demand Renewal Source: CBRE, 2024 Chapter 3 - Cost of doing business in Poland Availability of office space At the end of 2023, modern office space available for immediate lease in Poland amounted to 1,815,100 square meters, which constituted 14.06% of the total stock. The vacancy rates, however, vary considerably depending on the city. While regional markets noted a 2.2 percentage point yearly increase, the vacancy rate in Warsaw decreased by 1.21 percentage points. In Warsaw, as the supply gap continues, tenants looking for prime, top-class office spaces located in central zones such as the City Center West (CCW) or Central Business District (CBD) have very few options to choose from. This puts visible pressure on prices and lease incentives, as well as begins to shift some tenants’ attention to pre-letting and older stock options. While developer activity is visibly decreasing among most regional markets, many of those cities are still in the process of commercializing their newly built projects. With vacancy rates on the rise, many developers have decided to postpone the construction of their newest schemes. At the same time, a healthy demand level promises a prompt market stabilization. Vacancy rate (in %), demand and absorption (in m²) in Poland office market 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 16% 14% 12% 10% 8% 6% 4% 2% 0% Demand Absorption Vacancy (%) Source: CBRE, 2024 Chapter 3 - Cost of doing business in Poland Focus IT sector and office market in Poland While the IT sector remains a strong contributor to demand in several markets, Krakow stands out as the highest regional contributor when it comes to the amount of space leased to this sector, with almost 67,000 square meters leased. In total, over 285,000 square meters of office space has been leased to the IT sector in Poland, translating to over 19% of the total take-up IT sector’s share in take-up in 2023 by city 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Warsaw Krakow Wroclaw Tricity Katowice Lodz Poznan Szczecin Lublin 40% 35% 30% 25% 20% 15% 10% 5% 0% Space leased to IT tenants (m2) % of total take-up Kamil Tyszkiewicz Director, Head of Regional Operations at CBRE The Polish office market is undergoing significant shifts driven by occupier optimization strategies and the pursuit of quality office spaces. In Warsaw, the two dominant trends are rightsizing and quality enhancement, as tenants aim to improve workspace appeal while managing costs. Poorer quality spaces face higher vacancies and obsolescence, while presenting upgrade opportunities. The availability of prime assets in central Warsaw diminishes due to limited new construction and pre-leased pipeline. Tenants have limited options, leading to forecasted modest prime rent growth. Overall Warsaw leasing activity is expected to increase 10-15% compared to 2023, driven by business services, manufacturing, and energy tenants. In regional markets, the landscape adjusts with high tenant activity, up 22% annually and exceeding pre-pandemic levels. Companies redesign workplaces, reducing space in some cases. After years of supply growth, developers moderate activity with a record-low pipeline under construction and very limited 2024 completions forecasted, expected to gradually absorb currently high vacancies. Notably, a two-speed market is visible in developed regional cities, with some microlo- cations struggling with 20-30% vacancies, while prime zones have limited availabilities. This highlights the importance of location and quality in attracting and retaining regional tenants. Chapter 3 - Cost of doing business in Poland Chapter 3 - Cost of doing business in Poland Liked the report? Let’s work together! About MOTIFE Our services Trusted by great companies Krakow IT Market Report 2024 Nicolas Cormier Marketing and Growth Manager at MOTIFE Board Member at La French Tech Krakow MOTIFE is a recruitment and consulting firm based in Krakow and operating across Poland. We specialize in helping international tech companies establish, manage, and expand their tech teams in Poland. Over the past five years, MOTIFE has assisted more than 50 companies in forming technical teams in Poland, working with businesses across EMEA and North America. Our portfolio includes collaborations with large-scale public companies aiming to create a footprint in Poland and smaller enterprises seeking to access Poland’s thriving talent pool. MOTIFE provides a comprehensive range of tailored services, from the formulation of a "Poland strategy" to recruiting staff and managing operations of subsidiaries in Poland. We also offer employer of record/umbrella services, staff augmentation, and advisory. Our mission is to expedite the process of establishing an engineering presence in Poland while mitigating risk and minimizing overhead costs. This report reflects MOTIFE's dedication to supporting Krakow's IT ecosystem and was created through the collaboration of our entire team and our ecosystem partners. We hope you found it it both enjoyable and useful. If you need more information, feel free to contact us at Krakow IT Market Report 2024 AUTHORS MOTIFE Sp. z o.o. Krupnicza 3 31-123 Krakow Poland PROJECT COORDINATORS MAIN PARTNER REGIONAL, COMMUNITY AND CRE PARTNERS Michał Piątkowski, Nicolas Cormier ASPIRE Krakow Municipality, Małopolska Region, OMGKRK, Krakow Technology Park and CBRE PHOTOS Unsplash, MOTIFE, Istock, Depositphotos SPECIAL THANKS TO Aleksander Miszalski, Katarzyna Wysocka and Dominika Urbańska (Municipality of Krakow), Andrew Hallam (ASPIRE), Dominika Walec (OMGKRK), Barbara Wityńska, Sonia Bazan and Justyna Czyszek (KPT), Jerzy Kopeć and Elżbieta Sztorc-Szcząber (Małopolska Marshal office), Jan Banasikowski, Rafał Oprocha, Małgorzata Niewińska, Kamil Tyszkiewicz and Anna Lau (CBRE), Erin Nickerson and Natalia Wabersich (U.S. Consulate General in Krakow), Sławomir Kumka (IBM), Slawo Czuż (LTIMindtree), Agnieszka Majeran and Łukasz Dąbrowski (Cisco), Krystian Sperka and Daria Stefanowicz (Infogain), Ania McLaughlin and Aneta Bochenek (StoneX), Andrzej Przewięźlikowski and Anna Bajorek (Comarch), Tony Newcome and Meg Murphy (ActiveCampaign), Zbigniew Stankowicz (Tanium), Ewelina Usarek-Nowak and Patrycja Wydmanska (Jacobs), Kamil Dowlaszewicz and Aleksandra Lagawa-Brusik (EPAM), Timothy O’Brien, Katarzyna Kwiatek and Anna Jawor (BBH), Alexei Savulkin and Ewa Medyńska (PMI), Kris Dąbrowski (Stonly), Dagmara Bocoń (Backbase), Sebastian Malczyk and Justyna Zawada (Miquido), Michał Adamczyk (KMS Foundation), Dominik Wiegand and Wiktoria Lachowska (Absolvent Group), Samantha Rist (First Advantage), Rafał Korczynski (PwC), Michał Ciecierski and Dominika Nawrocka (Heineken), Michał Gąszczyk (inhire. io), Piotr Sedlak (Sedlak & Sedlak), Dominika Pikul (Brain Architects), Monika Wojkowska, Jakub Szufnarowski, Kris Grzegorczyk, Aleksandra Czerwiakowska and Atelier XIV, Marcelina Polak and the whole MOTIFE Team. 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