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The IT/ICT industry constitutes about 8% of Polish GDP, employing over 430 thousand people, of which three quarters are employed in the services sector. Every year, the number of employees increases by approx. 6%. The domestic market includes around 60 thousand companies, both Polish and foreign.
The revenues of the Polish IT sector in 2018 amounted to EUR 16 billion, increasing by 7.2% compared to the previous year, almost double the average growth for the global IT market, which according to the leading research and advisory company Gartner showed the increase of 3.9%.
In 2017, sales of IT equipment constituted as much as 55% of the Polish market. Services came in second, with 29% of the market. The smallest share belonged to software, with 16%.
The two main business models of IT companies operating on the Polish market are sales of infrastructure under public contracts and production of custom software together with staff outsourcing.
The domestic IT services market is driven primarily by the digitization of public administration, the enterprise sector and services. In 2017, expenditures in the cloud technologies in Poland amounted to nearly EUR 200 million, while a year later it reached almost EUR 300 million. The potential for growth is high, because, statistically, one in ten companies uses this type of services, and the demand increases. The International Data Corporation (IDC) forecasts that by 2022 the cloud technology market, which alone is developing five times faster than the entire Polish IT services sector, will reach a value of approx. EUR 450 million.
The largest part of the cloud technology market is Software as a Service (SaaS) and it amounts to around 60%, while Infrastructure as a Service (IaaS) constitutes 20% of sales, and the remaining part of the market belongs to Platform as a Service (PaaS). The market for SaaS is mostly dominated by project management and communication solutions, but the CRM, sales and marketing support segments are growing rapidly. The 12% increase of mass storage sales, to the amount of PLN 132 million, derives from cloud development.
The Polish IT/ICT market is the second largest when it comes to the number of mergers and acquisitions in Central and Eastern Europe. In 2017, 288 transactions worth a total of EUR 10.6 billion were concluded. The record high merger, i.e. the takeover of Netia (provider of television, mobile internet and telephone services) by Cyfrowy Polsat, amounted to almost EUR 150 million.
Poland is a regional leader providing modern business services to global corporations. In the first quarter of 2018, there were a total of 1236 Business Process Outsourcing (BPO) entities, Shared Services Centres (SSC), IT, and R&D (Polish and foreign) service centres in Poland, employing 279 thousand staff.
Among the 831 companies having their own service centres, 10% (83 investors) are companies from the Fortune Global 500 list (2017). The most important target countries for which services in Poland are provided are Germany, the United Kingdom and the United States. Next on that list is Poland itself and France closes the top five.
The development of the domestic IT/ICT market is also influenced by the increasingly successful online shopping market. The value of the Polish e-commerce market in 2018 amounted to almost EUR 10 billion. Forecasts indicate that in 2019 it will grow by another EUR 2 billion. Poland is currently the 13th fastest growing e-commerce market – in 2018 the number of online stores exceeded 30 thousand.
The gaming industry is playing an increasingly important role on the IT market. There are around 250 game developers in Poland, including small studios as well as internationally and even globally recognized companies. However, the number of major production studios listed on the stock exchange is less than 20. The Polish gaming market in terms of revenue currently ranks 23rd in the world, generating almost EUR 500 million from the sales of games.