Introduction: Differences in outsourcing approaches in Poland and the United Kingdom

67% of UK companies use outsourcing to access skilled talent, and 71% do so to reduce operational costs. In Poland, the IT outsourcing market takes a different shape — in 2025, the sector’s value reached approximately PLN 74 billion (around USD 15.5 billion), according to a report by Grupa Progres, positioning Poland as one of Europe’s leading outsourcing hubs.

The Business Process Outsourcing (BPO) market in the UK is expected to grow by 5.67% annually until 2029, reaching USD 38.61 billion (McKinsey & Company). In Poland, the IT services sector is projected to grow by 6.15% annually, reaching around USD 13–14 billion.

These differences stem from varying business cultures, market maturity, and the historical development of outsourcing services.

1. Market Maturity and KPI-Managed Outsourcing Models

Outsourcing in the UK – High-Level Service Integration

In the UK, outsourcing business functions is a core strategic component. It includes:

• Delegating finance and accounting processes since the 1990s
• Supplier management through SLA and KPI frameworks
• Use of offshore and nearshore solutions (India, Eastern Europe)

Poland: From Cost Centers to Value Centers

Senior developers in Poland are 33–40% cheaper than in the US — confirmed by Alcor BPO. Traditionally, Polish outsourcing has focused on cost reduction, but awareness of service value and quality is growing.

2. Regulatory Compliance as a Driver for KPI-Managed Outsourcing

UK Regulations Post-Brexit

Companies must comply with both strict UK and EU standards, requiring detailed SLAs and effective KPI tracking, especially around GDPR and data management (IT Governance).

Poland – Rising Importance of Compliance and Security

81% of Polish companies use outsourced services for data security, according to TTMS. There is growing demand for KPIs tied to GDPR, cybersecurity, and ISO/SOC audits.

3. Pricing Models and Cost Structures

UK Focus on Value and Efficiency

High labour costs (£40–£60 per hour) drive interest in outcome-based models, automation, and risk transfer to service providers.

Poland: Shifting from Time & Material to Outcome-Based Pricing

With competitive rates ($40–$56 per hour), Poland is seeing increased adoption of flat-rate and result-based projects, often linked with KPI-based performance bonuses (EY Poland).

4. Automation and KPI-Supporting Technologies

UK – Automation at Scale

Companies invest heavily in RPA, AI, and predictive system maintenance.

Poland – Technological Growth

With over 1,300 companies in the sector, automation and AI are increasingly used to support real-time KPI tracking (Bizky.ai).

5. Practical Implementation of KPIs in Outsourcing

In the UK, standard practices include:

• RFPs with clearly defined KPIs
• Penalties for SLA breaches
• Regular performance reviews and reporting

In Poland:

• Focus on long-term business relationships
• Gradual, often loosely defined KPI implementation
• Hybrid models combining T&M billing with KPI bonuses

Key Takeaways for Polish Outsourcing Firms

• Adopting UK-level KPI standards can enhance competitiveness
• Poland offers excellent value-for-money ratios
• Investment in real-time KPI tracking tools is critical
• Market education on outcome-based models should be prioritised

6. CFO Recommendations

For UK firms outsourcing to Poland

• Start with a hybrid model (T&M + KPI bonuses)
• Define baseline metrics before full KPI rollout
• Train Polish teams in UK business practices

For Polish providers

• Develop KPI definition, monitoring, and reporting capabilities
• Invest in AI and process automation
• Build case studies highlighting measurable results as a service standard

7. Frequently Asked Questions (FAQ)

Is outsourcing to Poland still cost-effective in 2025?

Yes – it’s up to 30% cheaper than the US and 20–25% cheaper than Western Europe, with increasing service quality.

How do KPI practices differ between Poland and the UK?

In the UK, KPI use is standard; in Poland, hourly billing still dominates, but this is changing rapidly.

How long does it take to implement KPI-managed outsourcing?

Around 6–8 weeks in the UK; 10–12 weeks in Poland due to required process adaptation.

Which KPIs are most important?

System availability, incident resolution time, cost per employee, user satisfaction.

Have questions or want to learn more about KPI-managed outsourcing and how it can drive value for your business?
Get in touch with Piotr Ławrynowicz — an experienced expert in outsourcing and HR transformation.

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