International Companies with R&D Centers in Poland

Poland is open for business. The country is in an almost privileged position due to its geographical location, the quality of the tech education offered to its youth, beneficial tax laws, and many other factors.

This piece delves into why international companies choose Poland to establish their research and development (R&D) centers, and discusses specifically what Offshore Development Centers (ODC) are, and how to set one up.

Benefits of Doing Business in Poland

Poland offers a stable, affordable, and supportive framework that favors foreign investment for the creation of research and development facilities.

Some of the benefits that Poland offers to multinational companies are:

• Great location - Poland is just a few hours' flying time away from major European business hubs, including Frankfurt, Paris, Berlin, or London. Timezones are also quite similar.

• Thriving IT market - With so many IT professionals in the country, Poland's IT community is a lively one. The IT services market is the fastest-growing, with figures projecting a 7.4% growth year-on-year. As a whole, Poland is home to a very solid and broad-ranging ecosystem of developers, tech companies, and entrepreneurs that support a growing and thriving community.

• Member of the European Union - Poland has been a member of the European Union since 2004. This enables the country to have close financial ties with other European countries, easy cross-border mobility, and convenient regulatory environment.

• A solid, stable economic framework - Following a rocky few years during the country's fight for sovereignty, Poland has achieved a rather stable and solid economy. Back in 2018, Poland entered the top 10 European countries with largest Gross Domestic Product (GDP). In fact, Poland's GDP has grown more than 7-fold since 1990.

• Good level of business English language - English is undoubtedly the language of business, and Polish developers are well aware of this. English is in fact taught in most schools as a second language. By some estimates, some 14m Poles are able to speak English. This facilitates communication with clients abroad, and supports the outsourcing community.

• Western cultural values - When it comes to software development, many might think that culture doesn't (or shouldn't) be a factor. But software development is a business practice just like any other, and culture does affect business. As such, Polish developers are quite adept at understanding Western values and abide by established standards.

• Tax incentives - The bottom line is important for any business, and one of the things that mostly affect it is taxation. Most major Polish cities have the standing of 'special economic zones,' which means that investors and foreign companies are granted exemptions favorable tax conditions. This has led to steady investment growth.

What is an R&D Center

The definition of research and development (R&D) center might be a little fluid, depending on the specific of the business involved.

But generally speaking, an R&D center is a facility (or set of facilities) where the company carries out activities that seek to innovate by either improving existing products or creating new ones. These activities are essential to the long-term viability of any company. If products are not enhanced, or if new ones are not developed, they will gradually fall behind the competition's and the business will ultimately fail. It is because of this need to stay ahead of competing businesses that companies invest sizeable amounts of their budget in R&D. This investment pays off, however, as the returns are usually far greater.

List of Foreign R&D Companies in Poland

Because of the set of benefits described above, many companies have chosen to set up an R&D facility in Poland.

These include:

• Google
• IBM
• Motorola
• Delphi
• Fujitsu
• Roche
• Pfizer
• Merck

and many others.

What is an ODC

Offshore Development Center (ODC) is a business model that enables companies to avail of several advantages:

1. Minimization of software development costs
2. Access to local talent pool
3. Minimum investment in infrastructure
4. Enables focus on core business goals
5. Supports compliance with corporate policy
6. Tends to increase customer satisfaction

ODCs are valuable and versatile tools that help multinational companies thrive by addressing local talent shortages while minimizing the cost of doing business. By resolving these two factors, companies can focus on their core objectives and get ahead of the competition.

Guide to Set Up an R&D or ODC Center with a Local Partner

Setting up and opening an R&D center on your own can incur certain risks, particularly if the client is not familiar with local customs, employment law, and other idiosyncrasies. In the long run, it pays off to partner up with an specialized agency like AllSTARSIT, which has the expertise to address and resolve issues like logistics and legal arrangements, and also provide efficient hiring services.

Irrespective of the nature of the business, there is a set of common steps to follow when setting up an R&D center with a local partner:

• Definition of goals and requirements
• Understanding whether or not an Offshore R&D center suits your business needs
• Select the most suitable country
• Choose the right  partner

Definition of goals and requirements

Companies need well-defined business plans to advance and evolved, and setting up an ODC is part of that planning process. But every business is unique in terms of what its goals and requirements might be, so stakeholders should meet to map out a clear and relevant strategy and decide where the business needs to be to grow further.

Understanding whether or not an ODC suits your business needs

Because of the singular nature of every business, an ODC might or might not be the best solution. For example, a company might require staff with a very specific set of skills, the business needs scaling fast because of current situation, etc. The factors can vary, and it is up to the stakeholders to decide whether or not an ODC is the best way forward.

Select the most suitable country

Many countries provide outsourcing services, and each country presents its own set of advantages and disadvantages.

When choosing one country over another, businesses should take aspects like language proficiency, tax exemptions, and developer rates into consideration.

Poland offers these favorable aspects and many others, so the country should be high in the list of possible offshore destinations.

A few quick facts to illustrate this point:

• Poland features no fewer than 697 outsourcing companies
• There currently are just over 450,000 software developers (that's 1.4 people out of every 100!)
• A junior developer can earn about $2,000 per month, while senior developers can command up to $8,000 monthly
• The country is home to no fewer than 400 R&D centers. These include big industry names such as Microsoft, Oracle, Google, and Cisco.
• 25% of offshore programmer staff in Eastern and Central Europe is located in Poland.
• Poland features in Gartner’s top 30 countries for offshore services.

Choose the right R&D partner

Going solo when establishing an ODC can work, but it's a risky and potentially costly enterprise. A client company might not be aware of local culture and traits or legal conditions for example.

Setting up an ODC tends to work out better when it's done in partnership with a partner, and these are the factors to consider when choosing an ODC partner:

• Proven track record
• Knowledge of local customs and traditions
• Expertise in local legal framework, particular related to labor laws
• Cost
• Flexibility

Why Trust AllSTARSIT with an Opening Offshore R&D Center?

AllSTARSIT is an international Software R&D, Technical Support, and Talent Acquisition service provider established in 2004. We specialize in software development services for clients across industries as diverse as cybersecurity, healthcare, Fintech, telecommunications, media, and more.

We use our deep expertise in recruitment and talent scouting to find the best software developers and build the best teams of developers in the CEE and LATAM Regions. Our driving principles are growth, integrity, and synergy.

With almost two decades of recruiting expertise behind us, our clients trust us to provide a top-class service when fulfilling their hiring needs. We can offer faster recruiting timelines and a very cost-effective solution to get your project off the ground.

Get in touch today to discuss your project.