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Published: 29/11/2023

Outsourcing vs In-house Developers - Real Cost Comparison and Benefits of Having a Dedicated Software Team in Poland - Pt 2

This article is sourced from Radosław Szmit’s Linkedin newsletter. If you want to delve deeper into the IT business and stay abreast of the latest updates, follow Radek on Linkedin for continuous insights!

From whom do insights come? 

At DAC.digital, Radek performs the role of Head of Growth and executes growth and business strategies for one of Europe’s fastest-growing software and AI companies. With over 14 years of experience in the IT industry, he has helped numerous clients and partners achieve their digital transformation goals and create value for their end customers.

Outsourcing vs In-house Developers

In the previous “Software Development Insights” issue, I compared the costs of hiring and employing a single senior backend software developer in New York and Poland. Today it’s my turn to elaborate on hiring an entire team of developers.

New York-based team vs Poland outsourced team Cost Comparison

Now, let’s compare the prices of a full New York-based team supporting a project for three years with those of an offshore dedicated team of 10 engineers based in Poland.

A full team of developers in New York, 10 software developers:

  • 5 developers for 36 months (3 years)
  • 5 additional developers for 30 months

New York Annual Cost per Developer: 170,887.61 USD

New York Monthly Cost per Developer: 14,240.63 USD

Costs:

  • 5 Developers for 36 months: 5 * 14,240.63 * 36 = 2,573,313.40 USD
  • 5 Additional Developers for 30 months: 5 * 14,240.63 * 30 = 2,144,094.50 USD
  • Total Cost for New York team: 4,717,407.90 USD

A full team of developers in Poland, 10 software developers:

  • 5 developers for 36 months (3 years)
  • 5 additional developers for 30 months

Poland Monthly Cost per Developer (in USD): 10,322.48 USD

Costs:

  • 5 Developers for 36 months: 5 * 10,322.48 * 36 = 1,858,246.80 USD
  • 5 Additional Developers for 30 months: 5 * 10,322.48 * 30 = 1,548,539.00 USD
  • Total Cost for Poland team: 3,406,785.80 USD

Comparison:

  • Total Cost difference: 4,717,407.90 USD (New York) – 3,406,785.80 USD (Poland) = 1,310,622.10 USD
  • Percentage difference: (1,310,622.10 / 4,717,407.90) * 100 = 27.76%

The total costs of having a dedicated/outsourced team of ten developers in Poland for the given time frames are approximately 27.76% lower than in New York.

The numbers above demonstrate mathematically that collaborating with Poland can result in significant financial savings. Our prior research showed that compared to New York, the cost of hiring a software developer in Poland was almost 28% lower. Since your firm will save money in this area, it can put those savings towards growing the business in other ways, like advertising and R&D.

Additional benefits of a dedicated team in Poland

However, it’s not just the Maths. There are several additional benefits of creating a dedicated team with a technology partner in Poland:

Highly-skilled Developers

Poland has a strong focus on developing talented IT experts. The country performs well in international programming competitions, demonstrating the outstanding talent of its developers. Polish software engineers are well-known for their proficiency in various programming languages, including Kotlin, Java, and Python, making them an ideal fit for your project requirements.

Strong English Proficiency

Polish developers have high English proficiency, facilitating seamless communication between your New York-based team and the dedicated engineering team in Poland. Effective communication is crucial for the success of any project, and partnering with a country that emphasizes English education ensures minimal language barriers.

Time Zone Compatibility

Poland’s time zone (CET) is only six hours ahead of New York (EST). This overlap allows for convenient real-time communication and collaboration between your New York-based team and Poland’s dedicated software engineering team. The time difference ensures that your project can progress efficiently and that critical decisions can be made without unnecessary delays.

Strong and Stable Economy

Poland has a robust and stable economy, continuously growing in recent years. This economic stability ensures a reliable environment for long-term partnerships and provides a sense of security when investing in the country.

Government Support for IT Sector

The Polish government recognized the IT sector’s potential and has been actively supporting its expansion. Several programs and initiatives have been created to promote IT education, boost innovation, and make collaboration between tech businesses and educational institutions easier. This government assistance has produced a favorable business environment for the IT sector, luring global technology behemoths and aiding the industry’s rapid growth.

Robust Infrastructure

Poland’s strong, well-developed infrastructure includes modern office spaces, high-speed internet connectivity, and reliable transportation systems. The development of Poland’s IT sector may be directly attributed to the country’s superior infrastructure, which removes obstacles to business operations and facilitates cooperation between Polish firms and their worldwide collaborators. In addition, Poland’s government is spending money on infrastructure improvement, ensuring that the country remains an attractive destination for businesses.

Cultural Compatibility

Polish developers are known for their adaptability and strong work ethics. They are culturally compatible with their peers in Western countries, which is essential when working on international projects.

Innovative Mindset and Problem-Solving Approach

Polish developers are noted for their ingenuity and ability to find new and unique solutions. They can use current tools to solve old problems in novel ways. Polish developers are crucial to any technology project due to their innovative thinking and problem-solving abilities.

Booming Startup Ecosystem

Poland has experienced a surge in its startup ecosystem, with numerous innovative startups emerging across various industries. This thriving ecosystem has not only attracted international attention and investment but has also fostered a spirit of entrepreneurship and innovation among the local tech community. Partnering with a Polish technology team can provide access to the region’s network of the most important ecosystem players, opening up opportunities for collaboration and potential synergies with other tech stakeholders.

Access to Diverse Technical Expertise

Polish developers are proficient across a wide range of technologies and programming languages, making it possible to find the right expertise for any project. Poland offers a diverse talent pool to meet your requirements, from popular languages such as Java and JavaScript to more specialized technologies like Kotlin, Swift, and AI/ML. This access to diverse technical expertise allows you to scale your team quickly and effectively, ensuring that your technology projects remain on track and up-to-date with the latest trends.

Strong Focus on Quality and Security

Polish software development companies prioritize delivering high-quality solutions while maintaining a high level of security. They are familiar with industry standards, best practices, and methodologies such as Agile and DevOps, which emphasize continuous improvement and adaptability. Furthermore, they recognize the significance of data security and privacy, particularly in today’s digital age.

By partnering with a dedicated software engineering team in Poland, you can expect a solid commitment to quality assurance and testing, which ensures that your projects are developed to meet the highest standards. Additionally, Polish developers are experienced in implementing extensive security measures, such as secure coding practices, regular security audits, and up-to-date encryption technologies, to protect sensitive information and mitigate potential risks. This focus on quality and security gives you peace of mind, knowing that your projects are in capable hands and that your business interests are safeguarded.

Summary

In conclusion, your New York City team can profit significantly from Poland’s highly competent and reasonably priced talent pool. Thanks to its advanced information technology industry, supportive government, solid infrastructure, cultural similarity, and inventive mentality, Poland is a great place to look for a long-term technology partner. Your organization may stay ahead of the competition in today’s fast-expanding technology landscape by taking advantage of the benefits provided by a specialized software engineering staff in Poland.

If the arguments above convinced you to try a Poland-based software development team, tell me about your project, and I’ll share the dedicated team opportunities at DAC.digital.

We are here to help you improve your software development projects and enhance your skills with the help of our dedicated teams.

Radosław Szmit
Radosław Szmit Business & Growth Expert

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