Kraków’s technology sector shifts from delivery to strategic development
Kraków, Poland
Kraków is shedding its cost-centre reputation. The Polish city’s technology sector is entering a new phase of maturity, marked by specialisation, workforce stability, and a growing role in artificial intelligence development. According to the newly released 2025 Kraków IT Market Report by ASPIRE and MOTIFE, the city now hosts over 62,000 IT professionals and has attracted 15 new international technology companies in the past year alone.
Key Findings
| Metric | Value | Change |
| IT professionals | 60 000 | – |
| New international companies (2024) | 15 | – |
| Median salary (mid-level programmers) | PLN 17,000 (~EUR 4,000) | Stabilised |
| Voluntary turnover rate | 6% | Down from 8% (2023) |
| US company dominance | 12 of 30 largest employers | – |
| Foreign-owned employment | 84% of IT professionals | 40% US, 33% European |
| AI start-ups | 50 | – |
| Women in tech | 17,5% | – |
| Top industry sectors | IT Services (28%), Software (21%), Finance (14%) | – |
The end of the growth spree
The days of exponential expansion appear to be over. Salaries have stabilised after years of rapid increases, with mid-level software engineers earning around PLN 17,000 monthly. More tellingly, voluntary turnover has dropped to 6%, down from 8% in 2023—a sign that the market is no longer characterised by job-hopping.
“After years of hyper-growth, the market is catching its breath. The question now isn’t how many engineers you can hire—it’s whether they have the deep expertise to build something strategic.”
Michał Piątkowski, Founder & CEO, MOTIFE
This stabilisation comes despite headlines about layoffs in the technology sector. Local journalist Zbigniew Bartuś reports a more nuanced picture: “In Kraków, despite record group layoffs in some companies (1,200 people lost jobs), employment grew by 3.5% last year… 58% of firms plan new hires.”
The artificial intelligence advantage
Kraków’s transformation is perhaps most visible in its embrace of artificial intelligence. The city now hosts over 50 AI start-ups alongside R&D centres from global leaders including Google, IBM, and ABB. A significant milestone will be reached in 2025 when Kraków launches Poland’s second AI Factory at AGH University’s Cyfronet, backed by nearly EUR 16 million in public funding and co-financed by the European Commission.
This AI focus represents a broader shift from service delivery to strategic co-creation. Companies such as Pegasystems, Capgemini, and Motorola Solutions are now developing proprietary platforms locally, spanning digital twins, healthcare tools, and telecommunications infrastructure.
“Cost used to be Kraków’s selling point. Today it’s capability. The value now lies in innovation, not just execution.“
Przemysław Roth, Chairman, ASPIRE
American dominance, European growth
The city’s international character remains pronounced, with 84% of IT professionals working for foreign-owned companies. American firms continue to dominate, employing 40% of Kraków’s IT talent, while European companies account for 33%. Of the 30 largest IT employers, 12 are American—including Sabre, Cisco, IBM, and Motorola—though seven European companies established operations in the city last year.
This foreign investment has created industry clusters in finance, logistics, medical technology, telecommunications, and cybersecurity. Local R&D hubs of unicorn companies such as Revolut, Grammarly, and Papaya Global further diversify the ecosystem.
“Kraków’s business potential lies in its human capital, academic environment and the dynamic growth of the IT, BSS and MICE sectors.“
Dominika Walec, Plenipotentiary of the Mayor for Business Cooperation
Persistent challenges
Not all trends favour Kraków’s ambitions. The gender gap in technology remains stark, with women comprising just 17.5% of tech professionals. Despite targeted initiatives by global companies, most teams remain male-dominated, prompting calls for more proactive collaboration between universities, employers, and city authorities.
A skills mismatch is also emerging. While demand surges for specialists in cloud infrastructure, data engineering, and cybersecurity, entry-level opportunities have shrunk significantly. Junior developers now face longer lead times to find relevant employment, creating potential pipeline problems.
“There’s a new premium on specialisation. Generic coding skills no longer guarantee employability. Niche expertise—particularly within regulated industries—is now a differentiator.“
From the 2025 Kraków IT Market Report
The next chapter
The report concludes with what it calls a “quiet but urgent provocation”: Kraków’s next 12 to 24 months will determine whether it emerges as a true innovation hub or remains merely a delivery centre for others’ roadmaps. The city possesses world-class talent, a strong academic base, and deep trust from international investors. But success will require confronting structural challenges, aligning curricula with market needs, and reducing regulatory friction.
“The moment for passive growth has passed. This isn’t about being cheaper or faster—it’s about being smarter, more connected, more courageous. We need to shape the next chapter—not just follow the last.“
Przemysław Roth, Chairman, ASPIRE
The upcoming ASPIRE Festival—The Dragon’s Teeth, scheduled for October—offers a platform for Kraków’s tech ecosystem to showcase not just what it has, but who it wants to become. As the report notes, Kraków has every reason to lead in Europe’s digital economy. The only question is whether it will choose to do so.
