Trends and Challenges in the IT Market: How Polar Night Software Adapts

Polar Night Software offers software development nearshoring services. PNS currently employs around 20 people. One team member focuses on sales and account management from Finland, while the rest are based in Poland. The team is highly experienced, with an average experience of approximately 8-10 years. The team's technological expertise includes popular technologies such as JavaScript, C#/.Net, React, Angular, Vue, TypeScript, Python, Node.js, Java, and React Native. Tuomas spoke to Henri Jääskeläinen – CEO of Polar Night Software – who discussed the transition from an employee-driven market to an employer-driven one in 2024.

From a totally employee market to a somewhat employer market in 2024 – do you agree with this phenomenon?

I would say that the market is certainly heading in that direction, but slowly, not very rapidly. The number of applications for open positions has skyrocketed compared to 2022, and even 2023. A large proportion of the applicants are juniors, who we cannot hire at the moment. Personally, I feel bad for them - it's a tough time to start a career. However, there are also many more talented mid- to senior-level candidates available. 

Have you noticed any differences in salaries, pay rises, or other conditions?

The salary race has been on pause for a while. Many candidates are now willing to accept more reasonable offers compared to a year or two ago. In addition, people seem to be a bit more flexible. They are no longer chasing the hottest opportunities, but are instead seeking a good employer and "interesting enough" projects are acceptable. 

Is Poland now also attracting IT talent from abroad?

The changes in the market have affected many countries, which is reflected in applications from abroad as well. However, we currently hire only people living in Poland, so we have to skip most of these applications.

What scenarios could you predict if the war in Ukraine ends? Would it affect the Polish IT market?

If the war ends, we hope to start working with Ukrainian developers, but it's too early to make any specific plans. In general, the market will warm up and, if the war ends, there will be enough business for Ukrainian companies too, even with more developers returning to normal work. So, I don't expect any significant effects on the Polish IT market directly.

AI hype has been booming since 2023. Are your clients curious about it?

AI has already moved from hype to practice in many areas. For example, we have implemented AI-related developments for several customers. For one AI-focused start-up, we built their core system, which uses sentiment analysis, AI summarization features, and similar tools to support sales in analyzing their customer interactions.

You have carried out some AI projects. Could you share a few examples, including any internal ones?

Internally, we have transitioned from fun experiments to supporting sales activities with our own tool. This tool identifies and analyzes potential companies within our target group. Once the tool selects companies with the help of AI, the sales team takes over and contacts them.

What trends are shaping the current IT market?

Companies have expanded their internal development teams as the labor market has become more favorable for hiring. We’ve had to work harder to demonstrate our value, offering risk-free starts with money-back guarantees. Data science, engineering, and other data-related fields are growing rapidly, and a portion of the software development market will likely shift toward data-focused work. We’ve also provided data experts to customers. Startup funding is slowly recovering, though many VCs still face challenges with exits. Overall, I expect 2025 to be better for IT, with stronger growth in the second half of the year.

How is the current job market affecting developers' preferences?

Right now, developers everywhere are less picky. For sure, long-term opportunities are tempting in these times of increased insecurity, even on a global level. I bet the public sector is more attractive too, but I haven't seen this myself because we work only in the private sector at the moment. The global experience that developers have is a big plus for us. It means our customers notice that they are getting up to speed more quickly, and the environment feels familiar. Mostly, they are more international than most Finnish developers.

What other benefits do they have?

The B2B model is common and people are ready to work, maybe even a bit harder than in the Nordics. Cultural differences exist, but mostly they are small and usually don't show in working life.

What was the most memorable moment in 2024?

The most memorable moment in 2024 was definitely closing a deal with a very international company with a Finnish background, after working hard to find new long-term customers. We had to navigate several challenges and invest a lot of effort into understanding the unique needs of this company, but the outcome was incredibly rewarding.