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Entry risk map: the 12 risks foreign companies miss when launching in Poland

By MOTIFE Insights, 27 February 2026

Poland consistently appears on the shortlist of European expansion destinations for technology companies. A large IT talent pool of over 400,000 professionals, EU membership, and a strong cost-to-quality ratio make the market appear relatively easy to enter and scale. And in many ways, that impression is justified.

What tends to surprise foreign companies is not the difficulty of entering Poland itself, but how many small, early-stage decisions quietly shape the success, or friction, of the first 12 to 18 months. Entry challenges rarely come from one major mistake. They emerge from underestimated legal nuances, local talent market realities, and operational assumptions imported from other countries.

This is where the entry risk map becomes useful. Based on recurring patterns observed during real market entry projects, it helps identify the 12 risks most often overlooked when launching in Poland, and shows how to mitigate them before they slow down hiring, delivery, or growth.

Across multiple market entry projects in Poland, these risks tend to appear in consistent and predictable sequences, regardless of company size or country of origin.

Check out also: Krakow IT Market Report 2025

Choosing the wrong legal setup for the first 12–18 months

For many foreign companies, setting up a Polish legal entity feels like the “proper” first step. In practice, this decision is often made before hiring volume, operating scale, or long-term presence are fully validated.

A local entity provides long-term stability, but it also introduces fixed administrative costs, regulatory obligations, and setup timelines that frequently conflict with early hiring plans. The risk is not the legal form itself. The risk lies in committing to it too early, when flexibility matters most.

Mitigation options

  • Start with a phased entry model (EOR or hybrid) to validate hiring assumptions
  • Treat the first year as a testing phase, not a final structure
  • Align legal setup decisions with realistic headcount and timeline forecasts

Misunderstanding employment vs B2B classification

B2B contracts account for an estimated 30–40% of new IT hires in Poland, particularly in software engineering roles. Unlike freelance models common in some markets, Polish B2B cooperation is often long-term and functionally exclusive.

Problems arise when B2B is treated primarily as a cost-optimization shortcut rather than as a distinct legal and operational cooperation model. If contractors work under conditions that closely resemble employment, the risk of reclassification—and associated tax or compliance consequences—increases significantly.

Mitigation options

  • Clearly define independence, scope, and delivery-based cooperation
  • Avoid employment-like structures hidden inside B2B agreements
  • Review contracts against Polish practice, not only HQ templates

Underestimating timelines and bureaucracy

Poland is business-friendly, but it is not instant. Company registration, banking, VAT setup, and qualified signatures often take several weeks, and sometimes longer for foreign shareholders. The real risk is not bureaucracy itself but planning hiring and delivery milestones based on optimistic legal timelines.

Mitigation options

  • Build buffer time into market entry plans
  • Separate the decision to hire from legal readiness to hire
  • Use interim hiring models when speed is critical

Assuming EU compliance equals local compliance

EU regulations provide a framework, not a complete operating manual. Local interpretation of matters, particularly in labor law, taxation, and documentation standards.

Companies relying solely on global compliance templates often discover misalignment only after operations are already underway.

Mitigation options

  • Validate HQ policies against Polish legal and operational practice
  • Treat local legal input as an operational necessity, not a formality
  • Update compliance processes as headcount grows

People and talent risks

Overestimating senior talent availability

While Poland’s IT talent pool exceeds 400 000 professionals, senior and highly specialized profiles represent a much smaller and more competitive segment, especially in areas such as data, AI, and cloud engineering.

Many companies plan hiring timelines based on aggregate talent numbers rather than role-specific availability and seniority distribution. The risk becomes visible when hiring stalls but delivery expectations remain unchanged.

Mitigation options

  • Validate role availability before finalizing hiring timelines
  • Balance expectations between seniority, speed, and cost
  • Consider mixed senior–mid team structures

Salary benchmarking based on outdated or inaccurate data

Salary expectations in Poland evolve quickly, particularly in the IT sector. In 2025, median salaries declined slightly year-over-year, with the correction slowing to around 5–6%, signaling stabilization rather than a broad cost drop. However, salary data in market reports always reflects past transactions. It shows what companies paid in a previous period, not what they need to offer today for a candidate to accept an offer.

This creates a common entry risk. Companies base budgets on outdated or inaccurate benchmarks, assuming they represent the current hiring price. In reality, published medians describe historical trends, while the compensation required to secure a specific candidate.

Mitigation options

  • Treat salary reports as reference points, not hiring price guarantees
  • Validate benchmarks against live recruitment data and candidate expectations
  • Compare total engagement cost, not salary alone
  • Revisit compensation assumptions every 6–12 months during growth

Check out: The 2025 Krakow IT Market Report for the full IT salaries in Poland overview

Hiring before defining the operating model

Before starting recruitment, define how the future team will operate. Clarify reporting lines, ownership of decisions, escalation paths, and the division of responsibilities between the Polish team and HQ. Early hires will shape processes, culture, and internal expectations — and ambiguity at this stage tends to scale faster than headcount.

Avoid hiring into structural uncertainty. Do not recruit key roles while fundamental questions about decision-making authority, project ownership, or communication flow remain unresolved. The risk is not hiring early — it is allowing the organizational model to emerge accidentally rather than by design.

Mitigation options

  • Define responsibilities, reporting lines, and escalation paths before launching recruitment
  • Clearly separate local execution from HQ decision-making authority
  • Validate the operating model at a small scale before increasing headcount

Operational and cost risks

Cost structure rigidity too early in the entry phase

Many companies lock in long-term cost structures, office leases, fixed employment models, and permanent administrative functions before validating hiring pace and operational stability.

In early market entry, flexibility has a measurable financial value. Committing to fixed structures too early reduces the ability to adjust hiring velocity, change cooperation models, or redesign the operating setup.

The risk is not high cost. The risk is reduced optionality.

Mitigation options

  • Phase fixed commitments alongside headcount growth
  • Keep structural costs variable during the first 12 months
  • Align infrastructure investments with validated hiring demand

Assuming scalability without local operational support

What works operationally for a team of five often becomes ineffective once the team grows to fifteen or more people. At that stage, informal coordination is no longer enough. Without clearly defined local leadership and operational support — including management presence, HR coordination, and day-to-day decision ownership — scaling introduces decision delays, communication bottlenecks, and increased compliance exposure.

This risk is structural rather than tactical. It does not stem from individual performance, but from the absence of defined local accountability for people management, operational processes, and regulatory alignment.

Mitigation options

  • Appoint a local team lead or engineering manager with real decision authority
  • Establish local HR and administrative coordination as headcount grows
  • Define operational ownership for compliance, documentation, and people processes
  • Review and formalize structure at each growth milestone

Cultural and organizational risks

Treating Poland as a delivery location only

Polish tech hubs, particularly cities like Krakow, have evolved beyond pure delivery centers into centers of expertise. Teams positioned only as execution units tend to disengage over time, affecting retention and ownership. The impact is rarely immediate, but it is predictable.

Mitigation options

  • Involve local teams in decision-making
  • Create visible ownership beyond delivery tasks
  • Invest in leadership pathways early

Lack of a local decision-making layer

Escalating every decision to HQ slows execution and weakens accountability. Teams wait, managers hesitate, and momentum fades. Even a minimal local authority layer significantly reduces friction.

Mitigation options

  • Define which decisions can be made locally
  • Appoint a local lead or trusted partner
  • Align HQ expectations with local autonomy

Reducing entry risk without slowing growth

Entry risk does not mean hesitation to enter the market. It means designing the initial expansion phase with realism, flexibility, and structural foresight.

Most risks described above are manageable when identified early, before they compound across hiring, operations, and compliance. The companies that succeed in Poland are rarely those that avoid risk entirely, but those that structure their entry to learn, adjust, and scale with confidence.

If you are looking for information about setting up your presence in Poland, download our Krakow IT Market Report 2025

If you are interested in alternatives to outsourcing, contact us at MOTIFE to learn more.

If you are looking for interesting job opportunities in tech companies in Krakow and remote, check out open roles at motife.com/jobs.

Krakow IT Market Report 2024


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