While US Tech Giants Suffer Mass Layoffs, Europe’s Thriving Tech Hub Can Help Cut Costs

Bartosz Majewski, President of Software Development Association Poland (SoDA) and CEO at Codibly, differentiates Poland, a rising star in Europe’s tech scene, from the tech layoffs landscape in the United States and how the two can work together to be mutually beneficial

Just three months into 2023 and over 600 tech companies have announced mass layoffs globally, impacting over 180,000 employees. This is compared to 161,411 tech company layoffs in 2022 as a whole. While most of these layoffs occurred within some of Silicon Valley’s most notorious tech giants, there is no doubt that this stream of job cuts has impacted businesses both large and small across the globe – reportedly fuelled by ongoing global macroeconomic conditions.

Effecting Western companies the most, these layoffs provide Europe’s emerging tech hub with the opportunity to support international businesses trying to cut costs. Poland for example, while not crisis-proof, has been showcasing itself as a major provider in the tech space with a growing presence of both big tech and SME technology companies. With outsourcing being one of many reliable services offered by Polish IT companies, Poland can act as the saving grace to US and UK companies who are attempting to cut costs while maintaining productivity and delivery.

The Layoff Trend 

In January of this year, Amazon, Salesforce, and Microsoft were among the first to announce layoffs that would affect thousands of employees. The following two months were no better, with other notorious tech names like Twitter, Sophos, and Alphabet following suit. While these layoffs give the impression of a struggling business, it is evident none of these companies are on the verge of collapse – but rather restructuring for the benefit of the business.

Small and medium-sized enterprises (SMEs) are not as safe as their goliath counterparts. With smaller profits to rely on in this turbulent time, businesses need to get creative with their budgets by implementing a course of action that does not break the bank.

Poland’s Thriving Tech Scene

Poland has been rising in popularity in the tech industry, mainly for its central location in Europe, economic potential, and abundance of tech talent. Outside of the US, some European countries are experiencing major growth, with Poland being one such country. While not immune to crises, Poland has seen continued growth during this difficult macroeconomic period within its tech industry, taking on new projects, and recruiting experienced employees who can provide niche expertise.

Poland has become home to 131,000 technology companies and ten unicorns. With these businesses successfully raising investment while maintaining staff and profits, tech giants are catching on to Poland’s potential with Google, Samsung, Facebook, Amazon and Intel all having establishments in Polish cities. In addition to these current companies, Microsoft and Google have announced projects to be carried out in Poland – with investments that total £2.45 billion.

Offering a Helping Hand With Outsourcing 

Poland’s IT industry has built strong ties with Europe, and subsequently become a top performer in the outsourcing industry and the ideal option of retaining IT excellence while on a budget. Poland ranks third globally within the developer tech industry. It is also 30% cheaper to outsource from Poland than the US, and 20-25% cheaper than Western Europe.

With flexibility and experience in programming and customer relations, business collaborations with Polish IT companies are more dynamic and effective. In addition, Polish businesses are open to various forms of new contracts, including short-term, which allow for a tailor-made contract that suits the needs and budget of the inquirer.

The benefit of similar time zones, niche specialisation, and cultures and ethics, make Poland a competitive contender in IT outsourcing, proving to be a popular method of creatively allocating funds. With the rise in popularity, IT outsourcing alone is expected to be worth £324 billion by 2025.

With mass layoffs affecting thousands of employees and businesses, outsourcing can be excellent for lowering costs, freeing up resources, and streamlining processes in the wake of uncertainty.

Collaborating With Tech 

With parts of the world currently experiencing a decline in the tech sector and others experiencing growth, outsourcing brings promise to those navigating the uncertainty of today’s economic climate.

Cutting costs and staff may be necessary for some, but service delivery and customer experience must remain the same to remain competitive. This is true for tech companies who should turn to one another in this uncertain time to maintain quality and costs.