Poland: top outsourcing destination in Europe

Move over, Bangalore. Poland is the new top-spot for outsourcing. The country is already a leader in providing business services to foreign entrepreneurs, with numerous BPO centres in several Polish cities. According to the Global Trade Forecast prepared by HSBC, the services market in the country by the Vistula river is going to grow even further. In the next 15 years, it is expected to be expanding at the rate of 7% a year.

Outsourcing is paying other companies do the work you do not want to do yourself. In the business sector, this usually means taking care of all sorts of business processes, e.g. accounting and payroll calculations. It is an easy and popular way to cut down costs. What is more, a company may concentrate on its core activity and let others do the boring stuff. Outsourcing does not necessarily mean company operations are moved abroad, yet in practice the most common forms of outsourcing are offshoring and nearshoring.

Offshoring is outsourcing to far off countries. A good example of an offshoring destination is India. However, more and more businesses are inclined towards nearshoring, i.e. outsourcing to the nearby countries. Both options save costs, but setting one’s operations in a neighbouring country means being in the same time zone and sharing similar work culture. Not to mention the fact that Poland is a member of the EU, which makes doing business oh so much easier.

Polish cities are homes to such BPO centres as Accenture, Shell and Campgemini. Sales of services, business and IT services in particular, is continually growing. At present, a third of Polish export is export of services. The country is an excellent destination for outsourcing or offshoring/nearshoring. It offers low costs, qualified workforce and is also located in the proximity of the biggest European economy, Germany.

Poland is still growing on the BPO/SSC scene. It is estimated that as much as 300 thousand people will be employed in the sector in the near future.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our corporate tax advisory, or contact us for a free consultation.