By MOTIFE Insights, 7 November 2023
Pioneering firms like Motorola Solutions and UBS ventured into Krakow early on. Their presence and expansion reflect their commitment to the city. As the business climate in the city evolves, it continues to attract a range of enterprises, from startups to established giants. There's also a notable uptick in local Polish companies making their mark. Furthermore, the city's influence in the start-up realm is expanding, with an increasing number of high-value start-ups and venture-backed entities choosing Krakow as their base.
Check out also: Krakow IT Market Report 2024
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From the 1990s onwards, Krakow began its growth as a premier IT hub within Europe. This transformation was a mix of strategic planning and sectoral evolution.
A milestone in this journey was the establishment of Krakow Technology Park in 1997. With its focus primarily on sectors like information technology and modern services, KTP played a significant role in inviting both domestic and international firms to the city. The presence of such infrastructures led to a rapid expansion of Krakow's IT landscape. Progressive policies, advanced infrastructure, and economic incentives placed the city at the center of IT innovation in Europe.
Along with its infrastructural growth, Krakow witnessed a remarkable rise in its IT talent pool. From newcomers to seasoned professionals, the city became a beacon for diverse tech minds. These experienced individuals increasingly began to see Krakow as not just a career stepping stone but as a long-term hub of opportunity.
The growing IT sector has significantly influenced Krakow’s academic scene. Universities and colleges have adapted their offerings to include IT-focused programs. As a result, the city now boasts a consistent output of industry-ready graduates.
Seniority: Krakow's IT landscape is a mix of varying experience levels, encompassing both budding enthusiasts and seasoned veterans. While the city's tech growth has attracted senior professionals from various regions, there's also a fresh influx of talent emerging from local educational institutions.
Age: Diversity in age is another characteristic feature of Krakow's IT sector. Predominantly, professionals here fall within the age bracket of mid-20s to mid-40s, resonating with the sector's appeal amongst the younger generation, given its promising career trajectory and lucrative remuneration.
Gender: Historically, the IT domain in Krakow, mirroring global trends, has seen male predominance, with males making up 84.5% of the workforce. However, changes are evident. Recent times have marked a growing emphasis on narrowing this gender gap, with a number of initiatives propelling more women to venture into the IT industry.
English skills: Krakow's IT professionals are notably proficient in English. Facilitated by its introduction to academic curricula and its indispensability in the global tech arena, many are skilled in English. In fact, in 2022, Poland ranked 13th on the EF English Proficiency Index, with Krakow being the top region in Poland.
Tech skills: Krakow's IT professionals boast a broad range of technical competencies. They are proficient in multiple programming languages, including Java, Python, JavaScript, and C#. Beyond this, their expertise extends to areas like machine learning, data analysis, cloud computing, and cybersecurity, to name a few.
Diversity in the IT sector, particularly gender diversity, is key to innovation and growth. In Krakow, a focus on encouraging women in IT has led to an increase in their presence in the sector.
Several strategies have driven this change. Investments in education tailored for young women make the IT field more accessible to them. Partnerships with local schools and tech programs provide clear pathways into the industry. Many Krakow IT companies are also launching programs to attract and support women.
Furthermore, mentorship initiatives and scholarships are becoming more common, creating an environment that supports women's professional growth in the IT industry. Krakow's IT companies are not only recognizing the value of a diverse team but are taking active steps to ensure women are well-represented.
Local businesses and startups also play a role, frequently collaborating with educational institutions to bridge the gap between academia and industry. This collaboration ensures that as young women graduate, they have the skills and opportunities needed to succeed in the IT world.
As Krakow continues its trajectory as an IT hotspot, the city's commitment to gender diversity will only bolster its reputation, drawing in more companies and talent from around the world. With sustained efforts, Krakow can set a benchmark for IT cities globally in championing diversity.
During the initial three years of employment, the likelihood of a professional transitioning to another job fluctuates between 11% to 15% annually. However, after this initial period,this probability diminishes to less than 10% annually and continues to decline as the tenure increases.
In 2022, roughly 11% of Krakow's developers, translating to about 6,000 individuals, made a job switch. Concurrently, an estimated 5,000 new professionals entered the job market. This stability speaks volumes about the conducive work environment and growth opportunities present in the region.
Retention rates in Krakow's IT sector come from a mix of reasons. Companies here give fair pay and opportunities to grow. The tech scene in the city is active, letting people work on interesting projects, which makes the job more fulfilling. Many companies also focus on ensuring a good work-life balance. Krakow itself, with its mix of old charm and new facilities, is a nice place to live. All these factors make IT professionals in Krakow more likely to stick with their current jobs.
Krakow is a city with a significant emphasis on learning. Around 10% of its inhabitants are students, contributing substantially to the city's dynamic IT talent pool. With roughly 13,000 students enrolled in Computer Science across the city, the educational institutions, including prominent ones like UJ and AGH, play a pivotal role in nurturing this workforce.
A noteworthy fact is that many of these students begin IT roles even before their graduation, ensuring a balance between junior and senior roles once they officially step into the professional world. This early professional involvement allows them to gain practical experience alongside academic learning. Each year, the city sees around 2,550 students completing their Computer Science degrees, further fueling the IT sector.
Education stands as a robust foundation for Krakow's IT prowess. An impressive 77% of IT specialists in the city have degrees in computer science or related disciplines. This speaks volumes about Poland's strong educational system, especially in STEM subjects, and the capability of its universities to produce adept graduates.
The continual growth of the IT workforce in Krakow, witnessing an approximate rise of 10% annually, can largely be attributed to the city's substantial student population, with 130,000 students in total. The provision of free education in Poland further amplifies this growth trajectory, cementing education as a primary driving factor.
Krakow has built its reputation as an attractive destination for IT firms, and this appeal can be attributed to several reasons. Main is a vast talent pool, renowned for its high-quality skill set. Cultural alignment and a high degree of English proficiency ensure smooth interactions and collaborations. Moreover, when benchmarked against regions like the United States and Western Europe, Krakow presents a significant cost benefit. A good example of the city's working environment is the loyalty of its workforce; a notable 63% of professionals have committed to their roles for over three years. Even more strikingly, 36% dedicate six years or more to the same position.
Krakow's IT sector has witnessed impressive growth, thanks in large part to the presence of over 500 IT companies and a workforce of 55,000 IT specialists. A significant chunk of this workforce is employed in Business Services and Shared Services Centers, which altogether have nearly 125,000 employees. Notably, IT specialists make up between 25-30% of this number.
The impact of the leading companies on Krakow's IT job market is clear and substantial. The top ten IT firms in the city employ around 17,000 specialists. When you expand that to the 30 biggest companies, the number grows to about 27,000 IT professionals. The presence and growth of these major entities have been instrumental in shaping Krakow's vibrant IT talent pool.
In Krakow, international IT companies like HSBC, Aptiv, EPAM Systems, and Motorola Solutions have over 1,000 IT employees each. Along with local firms such as Comarch and Alior Bank that are also significant IT employers in the area.
Check out also: Krakow IT Market Map the community-built database of IT employers in Krakow
Learn more about what international companies have achieved with their Krakow tech labs by downloading our Krakow IT Market Report 2024
If you are interested in setting up your own engineering hub in Poland, contact us at MOTIFE to learn more.
If you are looking for interesting job opportunities in tech companies in Poland, check out open roles at motife.com/jobs.
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