As part of our new series drawing on the original analysis and data collected by Emerging Europe as part of our Future of IT report, we look at the region’s largest IT sector, Poland.
Poland is emerging Europe’s largest economy, a powerhouse of manufacturing and innovation, and its IT sector is no exception.
Blending robust technical expertise with a booming start-up ecosystem that’s hard to ignore, Poland’s technology landscape attracts substantial international investment, with tech giants and dynamic start-ups alike flocking to cities like Warsaw, Kraków, and Wrocław.
This surge is fuelled by a highly skilled workforce, cost-competitive talent, and government incentives aimed at boosting digitalisation and R&D.
As Poland cements its status as a leading tech hub in Central and Eastern Europe, its IT industry is not only reshaping the national economy but also setting the pace for regional innovation and development.
While the country slipped from third place in 2023 to fourth in the 2024 edition of Emerging Europe’s IT Competitiveness Index, part of the Future of IT report, this fall was in large part a result of the stellar performance of all three Baltic states (which occupy the first three positions).
Talent: A well-educated workforce
Poland’s talent pool is a significant contributor to its continued high ranking in the index. In the Talent subcategory, which represents 40 per cent of the total index score, Poland is placed fifth with a score of 18.83.
Poland’s IT workforce—around three per cent of the country’s total workforce—is renowned for its skills, which are continually enhanced by the country’s strong educational institutions. These institutions produce a steady stream of IT graduates equipped with the knowledge and skills needed to succeed in a digital economy. Furthermore, government-backed upskilling initiatives have helped keep the workforce competitive and resilient.
According to the Emerging Europe report, Poland also benefits from a growing pool of IT students and graduates. The country ranks well for its emphasis on IT education, with a significant number of students enrolling in relevant courses. These trends reflect Poland’s commitment to sustaining and developing its IT workforce, which is one of the largest in emerging Europe.
IT infrastructure: Enabling digital transformation
Poland ranks fifth in IT infrastructure with a score of 11.49, reflecting its substantial investments in digital infrastructure.
The country has prioritised broadband expansion, increased mobile network coverage, and invested in data centres to support the growth of its IT industry.
These developments have been critical in positioning Poland as an attractive location for IT businesses and foreign investments.
In line with its Smart Poland Strategy, the government has focused on enhancing digital services and increasing internet accessibility. Digital transformation initiatives like these bolster Poland’s connectivity and prepare the country for future technological advancements, attracting both talent and investment.
Economic impact: A steady source of growth
While Poland ranks ninth in the Economic Impact category, it remains a key player in the region’s IT economy, with a score of 10.32. The IT sector contributes around 4.4 per cent of Poland’s overall GDP.
The economic contribution of Poland’s IT sector has been bolstered by the country’s strong export market for IT services, which has seen consistent growth. The IT sector has also benefited from a favourable cost structure, making Poland an attractive destination for foreign investors looking for cost-effective solutions within the European market.
The country’s mature IT ecosystem and relatively low costs compared to Western Europe allow it to compete effectively, offering value without compromising quality.
These factors have made Poland a preferred location for companies seeking outsourcing and IT services in Europe.
Business environment: Creating opportunities for growth
Poland ranks eighth in the Business Environment category, with a score of 13.98. This reflects a supportive ecosystem that facilitates growth for technology firms through strong intellectual property protection, cybersecurity measures, and industry support.
The Polish government has consistently implemented business-friendly policies that encourage innovation and entrepreneurship within the IT sector.
The expansion of special economic zones and the development of innovation centres further exemplify Poland’s commitment to fostering a dynamic tech ecosystem.
These hubs provide start-ups with the resources and networks needed to thrive and expand, creating a vibrant environment that fuels the sector’s growth.
In September, the European Commission gave Poland the green light to support an Intel chip assembly and testing plant with almost two billion euros in state aid. The Wrocław plant will work closely with Intel’s microchips production site in Magdeburg, Germany, and is scheduled to be operation in 2027.
A look ahead
Poland’s strategic focus on developing its IT talent, infrastructure, economic resilience, and business environment positions it as a major player in the European IT landscape.
With continued investments in digital infrastructure, support for education, and policies that nurture innovation, Poland is well-prepared to maintain and expand its influence in the IT sector.
Indeed, the country’s strengths in talent and infrastructure, combined with a stable business environment, position it as an attractive destination for investment.
Poland’s IT sector is not only a contributor to the nation’s economy but also a symbol of its potential on the global stage. The outlook remains promising as Poland continues to capitalise on its strengths and embrace a digital future.
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