IT outsourcing is not a new thing. Companies have been doing it for years, especially those in North America and Western Europe who used to hire Central and Eastern European IT companies to do the work for great quality, but with much lower costs.
Only in 2022, the number of employees in the IT industry in Croatia has reached the number of 35 000, which make up for 3.5% of the total number of employees in the Croatian economy. In the same year, total revenue for the industry has reached 27,81 billion HRK, which is 3.7% of the total GDP.
It is not unfair to say that the ICT sector became one of the most important drivers of economic development in the Republic of Croatia.
35 000 IT experts
In just about 10 years, Croatia has lost around 400 000 people, or nearly 10% of its population. Due to the low fertility rate, but mostly due to emigration, more and more Croatians decide to look for a brighter future in some of the world’s best economies, such as Austria, Germany, and Ireland. Even though these numbers decrease Croatia’s population, there is just the opposite situation in the IT industry, as the number of those working in the IT sector rose from 25 420 to 34 762, or 37%!
Number of employees in IT in Croatia, Source: Digital Chamber
Those who decide to stay in Croatia have a bright future in the IT industry, widely known as the one with constantly increasing demand for IT experts. Hence, we can expect this trend to continue, and to see a lot more employees in the Croatian IT industry in the next 5 years.
Very High Proficiency in English
Education First is the world’s largest ranking of countries by English language skills. The ranking is based on test results of over 2 million people in 112 countries and regions. It ranks English language skills in the following categories: very high proficiency, high proficiency, moderate proficiency, low proficiency, and very low proficiency. In the elite company of Western and Northern European countries, such as the Netherlands, Austria, Denmark, and Belgium, Croatia stands in the 10th place with very high proficiency in the English language.
Many IT companies in Croatia also provide free English classes for their employees, which also increases their fluency level. Many companies, besides English, also provide German language classes.
Competitiveness, Growth and a Great Reputation of Croatian Developers
Besides their vast knowledge and fluency in English, the Croatian IT industry grows at a higher rate then the European average. IT industry in Croatia grows 4-times faster than the Croatian GDP.
In 2020, the World Bank published its Doing Business Report 2020, which compares 190 world economies. In that report, Croatia made significant progress and jumped 14 positions from the previous report, and is now positioned in the top third. Over the past years, the Croatian IT industry has become more modern, and deregulated. Its location and natural beauties attract people and drive many to stay, despite their possibility to work in any other EU member.
Croatia has high-quality developers and excellent IT/tech univerisites, with strong focus on practical skills. In 2020, almost 30% of all students were enrolled in STEM fields of study, so we can expect number to rise in the years ahead.
Here are just some of the good reviews we noticed on Clutch, mentioning the expertise and communication of Croatia IT companies. A UK client mentioneds that their Croatian partners’: „responsiveness and ability to turn constructive feedback into implementable, on-time deliverables are hallmarks of their work. Their calm demeanor and can-do attitude make them a valuable partner.“
A client from New York, USA, comments the following on their software vendors: „Their versatile and action-oriented team provided effective project management in the workflow. The team’s work ethics were established impressively.“
Valuable Leads and Proper Dev Teams, instead of Cheap Outsourced Labour
When hiring Croatian development teams, you should always try to find a Team Lead with prior experience. Their leadership and managerial perspective, alongside coding expertise is more than necessary. Especially when you need someone to supervise, modify the course of action, and ensure that everyone follows the original plan.
Instead of just being a pair of developer’s hands that you outsource like any other freelance contractor, they have a ton of practical experience in software development, leads to better suggestions, ideas, and can steer their team of developers in the appropriate direction. Any client should be more than pleased with the lead’s capacity to run the course of the project and give advice and solutions to problems developers encounter or for embracing work with alternative technologies.
Cheap and questionable developers might not be able to complete the project within the intended and anticipated scope.
Excellent Value/Cost Ratio
Unfortunately, its economy did not grow as quickly as others in Central and Eastern Europe. Compared to salaries in Poland, the Czech Republic, Slovakia, and Slovenia, Croatia still falls behind them, which affects IT experts’ hourly rates, which are lower in Croatia.
The hourly rate for software development goes from 35€ to 65€ for the Senior and Team Lead roles. It is much lower rate than the ones in Scandinavia, with above 150€, and in the US with over 120$.
40 Hours a Week, part of the EU, and a friendly ICT regulations
Full-time employee in Croatia works 37.5 hours per week, which is more than in Germany (34.8), Denmark (37), or the USA (34.4). There are 14 public holidays, which are non-working days for most employees in Croatia.
Croatia has been a part of the European Union since 2013 when it became the 28th member. That was a turning point in their path in the following years, which simplifies export of the IT services and software and trade with other EU members.
Over the past few years, the Croatian government has adopted several laws, and initiatives which loosen regulations and improve the ease of doing business for and with Croatian companies.
What collaboration models do you prefer? We can offer you Extended (augmented) team model, IT outsourcing model, project outsourcing, and several others.
Are you considering hiring software developers in Croatia? Send us a message, and schedule an informative call with our experts at Ekobit.