The Cost of Software Development in Poland

 

Software development implies the creation of software products, such as applications, and and tools that serve individuals and organizations in their purposes. Software development is different from Mobile App Development and Web Development as the last two have specific targeted devices - mobile devices and desktop devices. 

Just like for web development, Poland is one of the leading countries next to Ukraine in providing software development services in the CEE region. 

According to Alcor-BPO, Poland had in Q4 2023, 607, 000 qualified software developers, more than France, Ukraine, or UK.  Also, by 2026, Poland expects to increase the income from Software Development services to $13B according to ReporterLink, which is $3B more compared to the data from 2021. 

Besides this, Polish software developers are specialized in providing their services both on the national and international markets, which makes the country and the companies located in Poland a great attractiveness for outsourcing. 

In terms of pricing for software development services, we will be analyzing below the data of 444 Polish companies that provide these services, with a segmentation per major location, and aggregating the data on a national level. 

Software development prices in Warsaw

Warsaw, the largest city and the Polish capital sums up 165 software development companies as of February 2024. After a careful analysis of the pricing structure of thee 165 companies located in Warsaw, here is what we found out: 

 

 The majority of software development companies in Warsaw charge an hourly rate between $30 and $70. This range accounts for a significant proportion of the market, suggesting that it's a competitive and common pricing tier for software services in the area.

The next substantial category falls within the $70 to $150 per hour range. This indicates a healthy presence of companies that likely offer more specialized or advanced services, justifying their higher rates. The existence of this tier suggests that there is a market for higher-end software development services, which could cater to clients requiring more complex or niche expertise.

In contrast, the <$30 and $150 - $250 hourly rate categories have a minimal presence. The very few companies charging less than $30 per hour might be new entrants, freelancers, or companies using aggressive pricing strategies to gain market entry. Meanwhile, those charging between $150 and $250 per hour are likely to be premium service providers with advanced skills, reputation, and experience, serving clients who require top-tier services and are willing to pay a premium for them.

The data indicates a bell curve distribution, with the center around the $30 to $70 range, tapering off towards the higher and lower ends of the spectrum. This kind of distribution is common in competitive markets where a majority of providers aim for a 'sweet spot' in pricing that balances affordability with profit margins and perceived value.

Software Development prices in Krakow

Compared to Warsaw, Krakow has a bit more than half, and more precisely  - 108 specialized companies in software development. Also, there are no declared companies that charge more than $150/hour for their services. 

Nonetheless, the pricing structure for software development services is similar to the one in Krakow: 

 

We can observe that the most common hourly rate is between $30 and $70, which is the case for over half of the companies. This is followed closely by the $70 to $150 range, indicating a competitive market with a significant number of providers offering more advanced services. The least common rate is below $30, representing a very small portion of the market, which might suggest that such a low rate is less sustainable in Krakow's software development industry. This distribution suggests a market with a focus on value and quality, with less emphasis on low-cost services.  In the end, the average hourly rate for software development services in Krakow, calculated from the provided data, is approximately $76.71.

 

The Cost of Software Development Services in Wroclaw

Wroclaw's tech scene is quite the gem of Poland, seamlessly blending centuries-old history with the rush of modern innovation. It's a place where cobblestone meets code, and the academic spirit from its renowned universities spills over into a bustling network of tech firms and start-ups. It's become a magnet for bright minds and big ideas, turning the city into a hotbed of tech activity that's hard to overlook.

 

When you dive into the numbers, especially the hourly rates for software development, you get a real sense of Wroclaw's market. Most companies there are charging between $70 to $150 per hour, which tells you they're confident in their skills and services. They're not just playing in the minor leagues; they're aiming for the majors, offering sophisticated and advanced tech solutions. There's a smaller group hitting that sweet spot between affordability and quality, with rates of $30 to $70, which makes sense for businesses after solid work without the bells and whistles. And barely anyone's dipping below $30, which really speaks to the city's commitment to quality—there's a certain standard they're not willing to drop below.

Wrapping all this up, Wroclaw's average hourly rate stands at a neat $86.01, underscoring a city that's clearly upping its game. It's not just about competing on cost; it's about delivering value and pushing the envelope of what's possible in tech. So, all in all, Wroclaw isn't just keeping up with the global tech race—it's setting the pace.

Final Thoughts - And Poland’s Hourly rate for Software Development. 

As we discussed in this article, three major cities were analyzed in terms of pricing for Software Development, and now it’s time to draw the line and make the final count. 

The country profile on software development looks like in the image below, considering all 444 specialized companies across Poland. 

 

More than half of the companies charge between $30-70/hour, and 42.59 of companies have their hourly rate up to $150/hour. 

Companies providing budget services, on a rate below $30/hour are less than 2%, and you can find few of them in Warsaw, Krakow, Wroclaw, Poznan, and other cities across the country. But even fewer companies are those that are charging between $150-$250/hour - 0.69%.  The average hourly rate for software development services in Poland is $76.03.