Why companies from Finland outsource software development to Poland?
Finland, as well as other Nordic countries, experienced a tech transformation. The growing number of digital companies are in constant demand for qualified developers ready to support their solutions. The need for specialists is of course followed by a significant increase in developers’ salary in that region. However, not all companies are willing to spend that much on a development team. What is then a good way to deliver IT projects and afford the maintenance? Software development outsourcing!
Outsourcing software development – how does it work?
Just a quick reminder of the very process. Outsourcing is a method of delegating part of the business processes to an external partner. When we talk about outsourcing in general, the delegated work can be for example, accounting or design but at this moment we limit it just to the outsourcing of software development.
In this case, a company, startup, or an individual client wanting to build, scale, or maintain their software would outsource the work on their project to another company. What has that company what the other hasn’t? Usually, lower prices of software development, more developers experienced in a particular technology, or just better performance because they devote all their time to that specific project.
Why outsource software development to Poland?
The perfect outsourcing destination will be Poland – a nearby neighbor to Finland. There are a few reasons for that.
The talent shortage in the Nordics
As we mentioned before, companies in Finland need more and more qualified specialists to support their products. However, there are not enough people with the needed skills in that region. According to a report on global talent shortage by ManpowerGroup, Finland is among the countries that currently experience that problem on a big scale. The list also includes Sweden and Norway.
To overcome talent shortage, Nordic countries can reach out to software houses in Poland where there is more than enough people specialized in modern technologies. According to the SkillValue report from 2019, Poland ranks 2nd among the top 5 countries with the best developers. A similar conclusion we can draw from a report by Hackerank where Poland is placed 3rd in the ranking after China and Russia. The criteria based on which the assessment is made are data structures, algorithms, mathematics, functional programming, problem-solving, speed, and accuracy.
Average developer’s salary in Finland
Another reason is the cost of software development in Nordic countries. Payscale reports that the average salary of a software developer in Finland is about €56,213 / year. In comparison with Poland, the average software developer earns about €20,000 / year. We can all agree that in Finland the price of software development is among the highest and the difference is quite big – it’s more than half the salary of a Finnish developer!
Of course, projects differ in complexity and sometimes it’s better to know the hourly rate to be able to better estimate your investment. If you choose to outsource software development to a company in Eastern Europe, it should cost you around $25 to $45 per hour.
What else makes Poland the best direction to outsource software development? Language skills. At Redvike we follow the Agile methodology that ensures the project is developed at the right pace and everyone is on the same page. One of the principles of Agile is continuous communication with the client. When working with remote software developers, keeping daily communication is key.
As people from Finland have an excellent level of English they can expect the outsourcing partner to keep this standard. Fortunately, software developers in Poland know English very well! In the EF English Proficiency Index Poland has 16th place in the world (for the comparison India – 50th).
Check out the project we delivered for our client from Finland → GDPR and Data Protection Software.
Outsourcing software development to Poland brings another very important benefit. From a business perspective, it’s good when you can visit your client from time to time. It allows for a successul project kick-off. Polish companies can conveniently travel to their European clients, strengthening their business relationships. What’s more, despite delegating IT project to a company outside of your country, it’s a collaboration in the same time zone. It means the communication stays easy and effective!
How to choose your outsourcing partner
Finland companies willing to start their journey with outsourcing, have a big decision to make. There are hundreds of software houses in Poland ready to take care of your software. However, to choose wisely, consider the following points.
A smaller Software house is better than a corporation
Aim at mid-sized software houses that have enough people to deliver the satisfying results and at the same time treat you specially. Huge corporations and businesses hiring 100+ people will most likely treat your project just like another deal. They won’t commit to the product as much as you would like. Middle-sized software houses enjoy growing together with their clients and deliver more personal and user-focused approach.
Read reviews before your contact a company
Seems obvious but is very often neglected. Even though the list of software houses in Poland can be overwhelming don’t give up easily. I’m sure you know about all sorts of rankings and listing with trusted client reviews. I recommend using Clutch which is the holy grail of company reviews 😉
Avoid companies with limited skills
If you work with a software development company where all employees are engineers, your product will be full covered only from one perspective – technical. That’s why it’s better to choose a company where next to developers there are also UX designers. This way you can build something that meets users expectations.
To sum it up,
Considering the location, cost-efficiency, performance, and flexibility, Finland couldn’t find a better destination to choose to outsource software development. Now that you have all information needed, it’s time to start working with the right people and achieve better results in less time! Let’s build something together!