Krakow IT Market Report: Key Trends & Conclusions
Krakow is a vibrant city in Poland. It has become a big player in the global IT landscape. The latest Krakow IT Market Report highlights several key trends and conclusions that comprehensively understand the city’s IT sector’s growth, maturity, and evolving areas. This blog will discuss these trends, exploring the factors driving Krakow’s IT market.
Growth of the Talent Pool
Krakow’s IT talent pool has expanded impressively, reaching 60,000 specialists. Nationwide, Poland has a substantial 400,000 IT professionals. This growth trend has enabled existing companies to scale their operations while attracting new players to the market. A significant factor contributing to this expansion is the increasing number of ICT students in Krakow. They now exceed 10% of the city’s student population. This influx of new talent ensures a steady pipeline of skilled professionals ready to meet the demands of the growing IT industry.
Maturity of the Talent Pool
The maturity of Krakow’s IT talent pool is another noteworthy trend. A remarkable 63% of IT specialists in the city have over five years of professional experience. Additionally, 83% of these professionals have worked in international organisations. They therefore bring a wealth of global exposure and expertise to the local market. This seasoned talent pool enhances Krakow’s attractiveness to multinational companies seeking a knowledgeable and experienced workforce.
US Companies in Krakow
American firms have a strong presence in Krakow, employing 38% of the city’s IT specialists. This is the largest share, followed by Polish companies at 17% and UK companies at 12%. The large representation of US companies underscores Krakow’s appeal as a strategic location for American businesses looking to tap into the European market. The presence of these multinational firms also encourages a competitive environment, driving innovation and growth in the local IT sector.
Largest IT Employers
The top IT employers in Krakow are shaping the city’s tech landscape. According to IT headcount, the largest employers are HSBC, Comarch, Aptiv, Cisco, and Motorola Solutions. Notably, Cisco’s inclusion in the top five reflects its growing footprint in the region. These top 30 companies collectively employ more than half of Krakow’s IT talent pool, highlighting the concentration of major players in the city.
New IT Players
Over the past year, Krakow has welcomed over 20 new international IT companies, including five unicorns. Companies like ActiveCampaign, Clari, and Tanium have established a presence in the city, demonstrating Krakow’s continued appeal as a global tech hub. The influx of these new players contributes to the dynamic and competitive nature of the local IT market, providing ample opportunities for collaboration and innovation.
Demand & Salaries
In 2023 and 2024, the demand for IT specialists and salary trends in Krakow has stabilised. While some roles have experienced steady salaries or moderate increases of up to 3%, others, particularly entry-level positions, have seen a drop of up to 8%. This stabilisation indicates a maturing market where supply and demand are beginning to balance out. It also reflects the evolving landscape of IT roles and the shifting focus towards more specialised positions.
Shift in Role Demand
The demand for traditional software development roles, such as front-end and back-end development, has stabilised. However, there is a growing need for specialised roles like data engineers, data scientists, DevOps, and cloud engineers. This shift is evident in the salary trends for these positions, with some roles appreciating by as much as 15%. This increasing demand for specialised skills highlights the importance of advanced technical expertise in today’s IT landscape.
Generative AI in Krakow’s Companies
Generative AI (GenAI) has taken over Krakow’s IT sector. Companies are experimenting with tools like Copilot, automated code translation, refactoring, and other AI-driven processes. While the ultimate impact of GenAI is yet to be fully realised, it is expected to lead to lower demand for entry-level programmers, a greater focus on requirements analysis, faster time to market, and improved code quality. This technological advancement shows Krakow’s position at the forefront of innovation in the IT industry.
Conclusion
The Krakow IT Market Report outlines Krakow as an evolving and innovative tech hub. The growth and maturity of the talent pool, the significant presence of US companies, and the influx of new IT players all contribute to Krakow’s status as a key player in the global IT landscape. The stabilisation of demand and salaries, coupled with the growing need for specialised roles and the advent of GenAI, reflect the city’s readiness to embrace future challenges and opportunities. As Krakow continues to attract top talent and international companies, its IT sector is perfectly placed for sustained growth and innovation.
*You can download the full „Krakow IT Market Report 2024” here.
Author: Mark Ollerton
