It is no secret that the technology sector is booming. New technologies like cloud computing, the internet of things, machine learning and artificial intelligence are changing the way we live and work. In order to stay ahead of the curve, the big tech companies must hire more software developers and IT specialists to grow and maintain their IT services.
The major problem they encounter on their way is the IT talent gap. There are simply not enough skilled IT professionals to go around, and this is especially true in developed countries. The numbers are staggering. In the United States, for example, there are currently around 320,000 unfilled jobs in the IT sector. In the EU, that number is around 1.1 million.
The consequences of the IT skills gap are far-reaching. It is estimated that, by 2020, the global economy will lose $5 trillion because of the shortage of qualified IT professionals. This software engineers shortage is driving companies to look for talent in other places. Offshore Development Centers (ODCs) are becoming increasingly popular, as they allow companies to get access to skilled professionals at a fraction of the cost. And one of the best places to set up an ODC is actually Poland, the center of the CEE region.
Offshore development center (ODC) is a term used to describe a business model in which a company outsources the development of its products and services to a third-party company located in a foreign country. The third-party company is typically known as an offshore development center services provider.
The offshore development center model is slightly different from software outsourcing. ODC provides services or products and it’s located in another country while outsourcing is a service that offers certain services or products from a third party company, the geographical location might not be a critical factor.
The main purpose of outsourcing is to increase productivity and focus on other important tasks while saving cost can be one of the reasons but it is not the fundamental cause. On the other hand, ODC’s primary cause is to help reduce the company’s expenses by utilizing the cost difference between the two countries.
However, both ODC and outsourcing (especially offshore) share the same interest: getting access to a large talented developers pool with lower costs for development services, allowing enterprises to save funds and speeding up the productivity in recruiting, optimizing accounting, human resources, and office budgets.
ODC can provide various services like building a software development team based on your requirement, project-based development, testing services, and setting up separate ODCs for clients.
An ODC usually includes all sorts of specialists you might need: developers, QA engineers, project managers, product managers, DevOps engineers, designers, copywriters, UX/UI specialists, and marketing specialists. Sometimes they also have your back when it comes to additional problems like taxing, bookkeeping, HR management, and so on.
There are several development models that you can have a look at:
Software ODC trust: for clients who demand top-notch security levels in their design models. This model is suitable for those whose software is one-of-a-kind and needs to be confidential.
Standard software ODC: the most popular software development model in Asian ODCs. The model includes a dedicated team who has the necessary technical skills to be able to deliver the project as required and is supervised by a project manager. This kind of model is useful for projects that have a wide variety of tasks such as updating and expanding the older software, its support, migration to other platforms, or writing new code.
Branded software ODC: the best option for businesses and corporations that want to be extremely active, involve, and control the process and its development process.
Full ODC: also known as private ODC. This model allows customers to get full control over the operations, security risks, remote team management, project development and company branding. The cooperation with local ODC providers is limited only to recruitment, consulting and scaling activities.
Poland has become a popular destination for offshore development center services. The country offers a number of benefits, including a well-educated workforce, strong infrastructure, and proximity to major markets in Europe. In addition, the cost of doing business in Poland is relatively low when compared to other Western European countries.
Several big tech companies have already set up shop in Poland. These include Apple, Facebook, Google, and IBM. Offshore development centers in Poland offer these companies a number of advantages. Let’s take a look at some case studies:
In an effort to tap into the large pool of talented Polish developers, Google has announced the opening of a new software hub in the city of Krakow. The hub will serve as a regional center for Google’s operations in Central and Eastern Europe. It will be home to a number of engineering teams that will work on developing new software products and services.
The new software hub is part of Google’s efforts to expand its presence in Poland. In addition to the software hub, Google also operates a number of other facilities in Poland, including a sales office, data center, and an artificial intelligence research lab.
Apple has been able to reduce its costs by outsourcing labor-intensive tasks to Poland. In addition, the center has helped the company maintain a fast pace of innovation. The company has announced plans to expand its Offshore Development Center (ODC) in the city of Krakow. The expansion will add 300 new jobs to the center.
The Offshore Development Center in Krakow was established in 2015. It is home to a team of engineers who work on developing software for Apple’s products. The center has been successful in helping Apple reduce its costs and speed up the pace of innovation.
In an effort to better serve the European market, Facebook has announced plans to expand its Offshore Development Center (ODC) in the city of Warsaw. The expansion will add 100 new jobs to the center.
The Offshore Development Center in Warsaw was established in 2013. It is home to a team of engineers who work on developing software for Facebook’s products. The center has been successful in helping Facebook localize its products for the European market. It allowed the company to quickly and easily localize its products for the European market.
IBM has announced plans to expand its Offshore Development Center (ODC) in the city of Wroclaw. The expansion will add 200 new jobs to the center. The Offshore Development Center in Wroclaw was established in 2013. It is home to a team of engineers who work on developing software for IBM’s products. The center has been successful in helping IBM develop innovative new software products and services.
The campus in Krakow offers a wide range of services, from R&D and software engineering to contact center operations.
According to the official data, the company employs over 4 000 people in the country. Intel’s Polish operations comprise of a design center in Gdansk, a software engineering center in Krakow, and a research and development center in Warsaw.
Zowie, KP Labs, Symmetrical, Linker, Autonomous Systems, Brand24, eDrone, Booksy, Brainly, Surfer
In the years 2014-2020, thanks to the SmartGrowth operational program, co-financed by the EU, 420 research and development centers were established in Poland, which seems to be a very solid foundation for the upcoming R&D boom.
There are a number of companies in Poland that offer dedicated offshore development center services. These companies have a wealth of experience and expertise in setting up and managing offshore development centers. They can help companies from all industries get the most out of their offshore development center.
– Faster delivery time to market (it is faster to do it with the company already in place)
– Limited risks (ODC providers have more experience and know-how of the local market and they share the risks with the clients)
– Cost savings (especially in the initial stage of the project)
– Larger scaling potential (ODC vendors usually have the potential to scale development teams much more efficient)
– Quality control (the use of ODC providers usually results in better quality software products)
Over 0,8M population, 13% of total IT Engineers supply
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NxTide is a specialized company focusing on building local, Software Development Teams or larger Software Development Centers in major cities in Poland. We take care of all recruitment and quality control processes making it faster and more cost-effective for you. Here is some more information about our expertise: – Over 7 years experience in creating a variety of software development teams – Over 60 teams and 300 engineers successfully hired and deployed – Several dedicated HR and IT Project Management Teams acting on your behalf.
Please take a closer look at a dedicated and flexible offer we have prepared based on market needs:
1) Software Development Teams: dedicated to clients looking to expand their software development teams or create small remote teams from scratch.
2) Offshore Development Center: dedicated to larger and permanent projects. We’ve implemented the innovative Build Operate Transfer model to make the whole process faster, more efficient, and transparent.
3) Nearshore Software Development Office: dedicated to larger and permanent projects within the same region, continent.
Over our 7-year company activity we have helped many US and EU companies to successfully build Software Development Teams and Software Development Centers in a variety of locations in Poland.
Interested? – Let’s discuss your case on a call.
Marcin Dziedzic, CEO of Pragmatic Coders and NxTide.
IT Outsourcing, Offshoring & Nearshoring in Poland
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Pragmatic Coders Sp. z o. o.
Aleja 29 Listopada 20 31-401 Kraków Poland