By Andrew Hallam
Kraków’s tech sector is maturing from a service delivery hub into an innovation powerhouse. With 60,000+ IT professionals, 50+ AI startups, and major multinationals building strategic capabilities here, the city faces a defining moment. Will we seize Europe’s tech leadership or risk being left behind?
From Growth to Depth
Kraków’s technology sector is growing up. For two decades, we’ve been one of Europe’s go-to cities for IT delivery. But today, we’re entering a new phase – defined less by rapid expansion, and more by depth, direction, and specialisation.
This year’s Kraków IT Market Report, produced by ASPIRE and MOTIFE, captures the shift. Yes, the city continues to grow. Over 62,000 professionals now work in IT roles. Fifteen international firms entered the market last year. But the tone has changed. Salaries have stabilised. Voluntary attrition is down. And the headline question is no longer “how fast?” – it’s “what for?”
As Michał Piątkowski from MOTIFE puts it: “The question now isn’t how many engineers you can hire – it’s whether they have the deep expertise to build something strategic.”
Beyond the Headlines
The report cuts through the noise. Despite the news cycle’s focus on layoffs, employment in Kraków’s IT sector rose 3.5% last year. While simpler roles are being offshored or automated, demand is rising fast for specialists in artificial intelligence, machine learning, and cybersecurity.
And here’s where things get interesting.
The AI Revolution
Kraków isn’t just adopting AI. We’re helping to build it. Over 50 AI startups call the city home. Multinationals like Google, IBM, and ABB have opened AI-focused R&D units here. Later this year, AGH University’s Cyfronet will launch Poland’s second AI Factory – a EUR 16 million facility co-funded by the European Commission and designed for AI model training on one of the fastest supercomputers in the region.
It’s not just about scale – it’s about intent.
Companies like Pegasystems and Capgemini are now building entire product lines in Kraków. Motorola Solutions’ 1,600 engineers are developing AI-powered platforms for public safety. What used to be back-office work is now front-line innovation.
From Cost to Capability
The shift is clear in how people describe the city.
“Cost used to be Kraków’s selling point. notes ASPIRE Chairman Przemysław Roth. “Today it’s capability. The value now lies in innovation, not just execution.”
This shift is also visible in industry clusters—from finance to logistics, medtech to telecoms. U.S. companies still employ around 40% of local IT talent, but Kraków is increasingly a strategic location for European firms too. Unicorns like Revolut, Grammarly, and Papaya Global are building product teams here, not just local support.
Key Market Findings
| Metric | Value |
| Total IT Professionals | 60 000 |
| New International Companies (2024) | 15 |
| AI Startups | 50 |
| Median Programmer Salary | PLN 17,000 (~EUR 4,000) |
| Employment Growth | 3.5% |
| Voluntary Turnover | 6% (down from 8%) |
| Women in IT | 17.5% |
| Foreign-owned Employment | 84% (40% US, 33% European) |
The Maturity Challenge
But with maturity comes responsibility. And the report doesn’t shy away from what still needs work.
Gender Balance: A Critical Gap
First, gender balance. Just 17.5% of Kraków’s IT professionals are women. Progress is being made – Cisco, ABB, and Luxoft have launched targeted initiatives – but the report calls for more systemic action. Employers, universities, and public institutions need to align around inclusive pipelines that start early and go deep.
Early-Career Access
Second, early-career access. There’s a growing mismatch between what’s taught and what’s needed. Entry-level roles are drying up, and graduates are struggling to land that crucial first job. If Kraków wants to remain competitive, this is a gap we can’t afford to ignore.
Infrastructure Pressures
Then there’s infrastructure. The issue here is not so much about availability of office space, but space which is fit for our new purpose. Hybrid work is here to stay – but expectations are changing. Offices now need to do more than just house people. They must enable connection, collaboration, and creativity. And what applies to offices also applies to city infrastructure in general. According to Forbes, Kraków is among the best 10 commutes globally and we need to keep developing infrastructure which supports interaction and connection. That not only applies to public transport but also to small shops and cafe’s and places to bump into each other, which is something Kraków has always been good at.
The Culture Question
And that brings us to culture.
Most companies have adapted well to hybrid models, but leadership teams need to ask harder questions. What’s lost when teams stop sharing space? How do we maintain innovation culture and build cohesion without the spark that comes from bumping into someone at the coffee machine?
The answer isn’t going back to 2019. But it’s not fully remote either. It’s thoughtful, flexible, and intentional – designed with people and purpose in mind.
The Coordination Challenge
Finally, the report points to a structural challenge. Kraków has the ingredients for innovation – world-class universities, strong corporate presence, active communities – but the ecosystem remains fragmented. Incubators, researchers, and investors still operate in silos. If we want to scale innovation, we need to invest in coordination.
Because the real opportunity is this: to become a place not just where things are built, but where ideas are born.
The Path Forward
One moment to showcase that potential is the upcoming ASPIRE Festival – The Dragon’s Teeth. Designed as a celebration of talent and insight, it offers Kraków a platform to show not just what it has -but who it is. And who it wants to be.
This year’s market report ends with a quiet provocation: What comes next is up to us.
We have the talent. We have the infrastructure. We have the trust of global investors. But now we need the courage to lead. That means rethinking education. Investing in women. Fixing market entry for startups. Connecting innovation to real-world impact.
Because this isn’t about being cheaper or faster anymore. It’s about being smarter. More connected. More collaborative. More ambitious.
The foundations are in place. It’s our move.
Andrew Hallam is Co-Founder and General Secretary of ASPIRE, Kraków’s network of technology and business services companies. He has lived and worked in Kraków since 1995.
