Nearshoring: Poland’s growing role in global services and production

Author: Bartłomiej Zagrodnik, Managing Partner, CEO of Walter Herz

Strategic Dispersion of Business Services

Nearshoring—the relocation of business processes and production closer to home markets—is reshaping industries worldwide. In sectors such as BPO/SSC, technology, consulting, and finance, companies are increasingly establishing smaller, strategically located branches. This distributed model enhances risk management, improves response times, and tailors services to regional needs, moving beyond the traditional reliance on large operational centers.

By setting up local satellite offices, firms reduce the demand for traditional office spaces while aligning with the flexibility of hybrid work models. These regional hubs, which also serve as coworking or project spaces, allow access to highly skilled employees in areas with optimized operational costs.

Poland: A Nearshoring Hotspot for Business Services

Poland has become a prime destination for nearshoring, offering competitive labor costs, a skilled workforce, and proximity to Western Europe and the U.S. According to the ABSL report on Poland’s business services sector, 60 new business service centers began operations between early 2023 and Q1 2024, primarily in Poznan, Wroclaw, and Cracow. These investments have created nearly 5,000 jobs, with IT and shared services leading the charge.

Notable players like Capgemini, Infosys, and Google have established regional hubs in Poland, taking advantage of its growing talent pool. Similarly, smaller cities like Cracow and Wroclaw are increasingly attracting investments from consulting and financial firms, including Deloitte and Revolut, eager to diversify their operations.

Poland’s Role as Europe’s Warehousing Hub

The pandemic, geopolitical tensions, and global trade disruptions have accelerated the relocation of production and logistics to Europe. Poland’s strategic location, robust logistics infrastructure, and competitive costs have made it a leading destination for nearshoring. The country is now Europe’s fourth-largest warehousing market, following Germany, France, and the Netherlands, with 30% of warehouse space dedicated to the booming e-commerce sector.

Manufacturing Rebounds to Poland

To mitigate risks associated with distant supply chains, international companies are increasingly choosing Poland for manufacturing investments. Sectors such as automotive, electromobility, and wind energy have seen significant growth, supported by foreign direct investment over the past three years. Poland is now Europe’s top producer of lithium-ion batteries for electric vehicles and a major hub for household appliances.

Panattoni has observed rising demand for production facilities from industries such as electronics, space technology, and renewable energy components. Additionally, Asian manufacturers, particularly from South Korea, Japan, and China, are viewing Poland as a gateway to Western Europe, driven by rising costs in Asia and EU regulatory pressures for greener supply chains.

A Future Built on Nearshoring

Poland’s strategic location, highly skilled workforce, and advanced infrastructure position it as a critical hub for nearshoring in Europe. As companies continue to prioritize operational efficiency and resilience, Poland’s role in global services and production is set to grow, further strengthening its reputation as a leader in business services and manufacturing.