Eastern Europe's tech economies grow as Germany shifts IT investment eastward

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Eastern Europe's tech markets are rapidly expanding and increasingly attracting German investment, with each country offering a distinct profile. Poland leads the region with an IT market worth around €15 billion and nearly half a million sector workers, while the Czech Republic targets €24 billion in ICT revenue by 2026. Hungary draws investors with a 9% corporate tax rate and above-average cloud adoption, and Romania is the fastest-growing market, projecting IT service exports to reach €44.8 billion by 2028. A shortage of 124,000 IT professionals in Germany is accelerating nearshoring to Eastern Europe, where over 1.3 million developers are available at an estimated 40–70% cost saving per employee. Shared service centres in the region are also evolving beyond back-office functions into high-value Global Business Services, handling analytics, consulting, and R&D for major Western clients.

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