Where to Nearshore IT: Poland, Romania, or Croatia?

Companies across Europe, especially UK Small and Medium Enterprises (SMEs) and start-ups  are increasingly nearshoring their IT and software development teams to Central and Eastern Europe. With a severe tech talent shortage in the UK (an estimated 70% shortfall in tech specialists) and nearly half of UK companies outsourcing overseas (Robert Walters & YouGov, 2023). Poland, Romania, and Croatia are all excellent nearshoring destinations, boasting extensive tech talent, cost-effectiveness, and seamless integration with Western business models. This article will analyze these three nearshoring centers, focusing on talent pools, English proficiency and cultural compatibility, salary expectations and operational costs, legal and compliance frameworks, infrastructure quality, and time zone synchronization with the UK.

Tech Talent Availability and Specialisations

All three countries boast strong IT talent pipelines, though their scale and niches differ:

• Poland: As Central/Eastern Europe's largest tech hub, Poland boasts over 650,000 tech professionals (Maryna, 2025) and a highly skilled, well-educated developer population, with Polish programmers ranking among the world's best (HackerRank, as cited in Alcor BPO, 2025). Key specializations include gaming, where Poland has Europe’s second-largest game development workforce, along with fintech, cybersecurity, and AI. Major tech companies like Google (with a new PLN 2.7 billion Warsaw campus creating 2,500 IT jobs, Ntiative, 2023), Microsoft, IBM, and Cisco operate large R&D centers in the country.
• Romania:.Romania stands out as a major outsourcing hub, boasting over 202,000 software developers (Lesniak, 2024). The country is a prolific producer of STEM graduates and certified IT specialists, holding the top spot in Europe for the highest number of IT-certified professionals. Romanian engineers are particularly skilled in Java, JavaScript, C++, and Python (N-iX, 2024). Major tech companies have a significant presence here; Oracle employs approximately 4,000 staff in Romania, and Amazon's development center in Iași was its first R&D hub in Eastern Europe (N-iX, 2024). Adobe, HP, Ericsson, and other leading companies also maintain large engineering offices in the country.
• Croatia: A smaller but rapidly growing tech talent pool, up from 60k+ ICT specialists in 2022 to nearly 70k in 2024 (N-iX, 2025). Croatian developers are known for high quality and niche expertise. LinkedIn counts ~13,000 software engineers in Croatia, with especially strong communities in JavaScript, Java and Python (N-iX, 2025). The country has also produced tech success stories like Infobip and hosts R&D operations of foreign firms like Ericsson Nikola Tesla, which employs 2,900+ professionals (Ericsson Nikola Tesla, n.d.).

English Proficiency and Cultural Compatibility

One big advantage of nearshoring to these EU countries is seamless communication. All three countries have high English proficiency, far above the global average. According to the EF English Proficiency Index, Croatia ranks 5th in the world (World Population Review, 2023), and both Poland and Romania are in the top 15. In fact, Croatia and Poland boast the best English levels in Eastern Europe (Brainhub, 2024).

Culturally, compatibility is strong. As EU members, these countries share many business values, work ethics, and legal standards with Western Europe. Workplace culture is described as “Western and progressive,” with younger tech professionals having an open, innovation-oriented mindset (Emerging Europe, 2024).

Salary Ranges and Cost Savings vs. UK

Eastern European developers offer top talent at a fraction of UK costs. Companies can save ~40% on development costs per employee through nearshoring (Brainhub, 2024).

Average Annual Software Developer Salary as per location

Poland ~€33,200 (Joberty, 2023)

Croatia ~€22,300 (Joberty, 2023)

Romania ~€19,000 (Joberty, 2023)

United Kingdom ~£51,600 (WeAreDevelopers, 2023)

Romania offers perhaps the best value for money, with very competitive salaries and tax incentives such as 0% income tax for IT employees (Lesniak, 2024). Poland also offers R&D tax relief and economic zone incentives (Maryna, 2025).

Legal Ease, Contracting and Compliance

Poland, Romania, and Croatia all have stable, business-friendly legal environments. As EU members, they benefit from a strong legal framework on business, data protection, and IP. Contracts are enforceable and transparent.

Each country offers tax incentives and public support for the IT sector. Romania’s 0% income tax for software developers contributes to a business-friendly environment (Lesniak, 2024). Croatia offers tax incentives and maintains stable regulations (Emerging Europe, 2024). Poland ranks high in ease of doing business and has the lowest corruption level in the region (Brainhub, 2024).

Many companies use an Employer of Record (EOR) or local outsourcing partner to simplify compliance. An EOR hires your team on your behalf and manages payroll, taxes, and legal compliance, allowing you to scale without a local entity (Brainhub, 2024).

Infrastructure and Remote-Work Readiness

Poland, Romania, and Croatia offer reliable internet, power, and co-working hubs. Romania ranks 2nd globally for download and 1st for upload speed (Lesniak, 2024). Croatia ranks 12th in Europe for IT infrastructure competitiveness (Emerging Europe, 2024).

Remote work culture is strong. Developers are experienced with remote tools like Slack, Jira, and GitHub. According to Brainhub (2024), 13 Eastern European countries, including these three, rank among the top for remote-work capabilities.

Time Zone and Proximity to the UK

Poland and Croatia operate on GMT+1, while Romania is GMT+2. This 1–2 hour time difference from the UK allows for significant overlap in working hours, facilitating real-time collaboration and avoiding scheduling conflicts (Brainhub, 2024). This alignment in time zones, coupled with cultural similarities, fosters smoother cooperation and shared business practices (Brainhub, 2024).

Conclusion

Poland is ideal for scaling large teams. Romania provides the best cost savings. Croatia offers boutique-quality talent with excellent English. All three are compliant, well-connected, and culturally aligned with the UK.

If you're considering expanding your development team or exploring nearshoring opportunities in Central and Eastern Europe, get in touch with us. We’ll help you find the right fit for your business needs.

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References

• Alcor BPO. (2025, May). Software Development in Poland in 2025. https://alcor-bpo.com/software-development-in-poland/
• Brainhub. (2024). Nearshoring to Eastern Europe – Top 5 Locations [2024]. https://brainhub.eu/library/nearshoring-to-eastern-europe
• Emerging Europe. (2024, December). IT Sector in Focus: Croatia. https://emerging-europe.com/business/it-sector-in-focus-croatia/
• Ericsson Nikola Tesla. (n.d.). Research and Development. https://www.ericsson.hr/en/about-us/research-development
• Joberty. (2023). Developer Salaries in Eastern Europe: 2023 Breakdown. https://joberty.com/blog/en/developer-salaries-eastern-europe-2023
• Lesniak, O. (2024, January). Software Development in Romania: A Market Overview. N-iX. https://www.n-ix.com/software-development-romania/
• Maryna, P. (2025, May). Software Development in Poland in 2025. Alcor BPO. https://alcor-bpo.com/software-development-in-poland/
• N-iX. (2025, February). Software Development in Croatia: Tech Talent and Market Overview. https://www.n-ix.com/software-development-croatia/
• N-iX. (2024). International companies with R&D in Romania. https://www.n-ix.com/international-companies-romania/
• Ntiative. (2023, July). Google's Move in Poland: Tech Giant's Talent Pool. https://www.ntiative.com/google-in-poland
• Robert Walters & YouGov. (2023). UK Tech Talent Shortage & Outsourcing Stats. https://www.robertwalters.co.uk/tech-talent-shortage-report.html
• WeAreDevelopers. (2023, May). Software Engineer Salary in the UK. https://www.wearedevelopers.com/magazine/software-engineer-salary-uk
• World Population Review. (2023). EF English Proficiency Index Rankings. https://worldpopulationreview.com/country-rankings/ef-english-proficiency-index

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