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Central and Eastern Europe’s Country Profile:

Poland

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Area: 312,679 km2Population (est. 2009): 38.483 millionHuman Development Index (est. 2007): 0.880GDP/capita (est. 2009): 12,109€GDP growth rate (est. 2009): -0.05%IT Outsourcing market value (est. 2009) – 256.7€

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* Based on the 2009 Legatum Institute estimation

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Factors Rank of 104 (where 1 is excellent and 104 is very poor)

Economic Fundamentals 33

Entrepreneurship and Innovation

35

Democratic Institution 24

Education 27

Health 32

Safety and Security 25

Governance 32

Personal Freedom 45

Social Capital 68

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DS Information & Communication

Technology (ICT) Market Trends

Poland is the largest Eastern European ICT market in size. However, its value accounts for only 3% of the entire European market.

The market is characterized by a certain number of mergers and acquisitions, following the current market situation and aimed to gain certain solidity on the market and allow Polish ICT companies better compete with their multinational fellows.

The software market remains relatively small when compared to the Western European average. It is boosted by application software, including ERP, and CRM for small and mid-sized businesses (SMBs). The e-markets are strong potential markets. E-government, e-learning and e-health are promising sectors. Best prospects also include all kinds of specialized and security software.

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DS The Internet market continues to be constrained by high

telephone charges and relatively low levels of computer penetration. Moreover, there are wide regional disparities, with internet penetration about twice as high in urban as in rural areas. How broadband will develop in the longer term will greatly depend on the Polish regulator’s success at forcing Telekomunikacja Polska (TPSA) into a functional split, as well as its continued liberalisation of the market. According to Poland IT Report Q1 2010 (by ReportLinker), the regulator believes that the split will happen in 2010 or 2011, but there are high risks that it could be delayed longer than this.

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DS IT Outsourcing Market Trends

The Polish IT service spending is about to reach USD 3 billion in 2010. It is the fastest-growing sector of the national IT market and is expected to rise to USD 4.5 billion by 2014. Systems integration as well as hardware and software support and installation still collectively account for more than one-half of the total IT spending, while software market accounts for around 20% of the total IT market.

The most active users of the Polish ITO services are large multinational companies such as ABB, Avio, Fujitsu, Glaxo Smith Kline, IBM, Intel, Lincoln Electric, Motorola, Oracle, Siemens, TRW Automotive and Whirlpool. Germany accounts for almost 35% of all IT outsourcing deals in Poland.

Polish companies, more and more present internationally, are very competitive from both a price and quality standpoint, as their offering is aligned to the current EU standards.

THANK YOU

by:IT Sourcing Europe Limited 2010

www.itsourcing-europe.comInfo(at)itsourcing-europe.com