The IT Industry in Kosovo - Country Profile and Overview

The Tech sector of Kosovo is a rapidly growing one with multiple international companies and local companies providing services to clients around the world. There is a growing pool of talent and most recently acquisitions have been going on, focused on taping into the local talent to grow international companies and boost digital transformation competency. At the same time, Kosovo's economy has shown steady growth in recent years, with a focus on industries such as information technology, agriculture, and tourism. The IT industry is one of the fastest-growing sectors in Kosovo's economy, with a lot of potential for further growth. The country has a young and tech-savvy population, which provides a pool of talent for the industry.

Why Kosovo Attracts IT Companies?

To put more light on this topic, we invited to leading IT companies' representatives from Kosovo - Celik Nimani from Frakton, and Liridona Syla from Kutia Software.

Celilk states that one of the main reasons Kosovo is attracted  is due to culture, value, and quality instead of just lower costs. Eastern Europe is not cheaper than Asia, and probably never will be, but the cultural aspect is unique and for us in Kosovo, clients have often mentioned that they like our team spirit, people are happy about the work that they do and it’s not a work-only relationship. We share success and failure together, and we try hard to make better mistakes tomorrow.

• Education - The number of graduates each year from Public and Private Universities is growing, yet their knowledge of English and German language is making them more prone to hunt for courses online to learn about programming.
• Connectivity - This is mentioned very often, but nowadays connectivity is even better. Thanks to agencies such as WizzAir, there are now quick and cheap connection flights between Prishtina and other European cities, while there is also a new highway built towards Skopje, which means that the airport next door is available for use as well for other flight options. Very convenient for going back and forth to discuss new projects, to do team building activities, etc.
• Simplified Taxation System Among other things, and you probably didn’t know this, Kosovo has a great and simple taxation system. It has a flat fee of 10% on profit, It has a 10% taxation on employee salary/benefits, and 0% VAT for exported services.
• Ease of doing business - According to the Doing Business Rating by World Bank, Kosovo has an overall score of 73.2 points out of 100, ranking 57th among 190 economies in the ease of doing business.
• Fast Internet - Internet in Kosovo is fast and cheap, and according to a study from the Kosovo ICT Association STIKK — 96% of Kosovo household is currently connected to the internet, ranking Kosovo quite high in terms of internet penetration compared to other countries in Europe.

At the same time, Liridona considers that Kosovo can be attractive to international IT companies for several reasons.

Firstly, the country has a young and skilled workforce that is fluent in English, which is essential for global businesses. Additionally, the cost of living in Kosovo is relatively low, which can result in lower operational costs for international companies.

The government of Kosovo has also implemented policies to support the growth of the IT industry, such as funding for education and training programs, which can be attractive to international companies looking to establish a presence in the region. Being responsive, motivated, highly practical in their work, informed of the latest trends and always updated, Kosovars have quickly become attractive to different companies providing customer services abroad. In the end there is also the advantageous geographic location has also allowed Kosovo to access global markets easily and develop logistics infrastructure to support these connections.

Kosovo Business Climate For Opening A New IT Company

At this particular question both Celik and Liridona were short: 

Celik told that the local business envorinment is quite open to local entrepreneurs as well as international entrepreneurs. There is lack of funding opportunities though but there is a goverment initiative to get this fixed. 

At the same time, Liridona mentioned that starting a new IT company in Kosovo as a local entrepreneur can be challenging, but there are opportunities available. By leveraging government support, taking advantage of the low cost of living, and building strong networks within the local community, it may be possible to succeed in Kosovo's rapidly developing IT industry

How does the Kosovo Government Supports the IT Industry?

Overall, the government of Kosovo is taking an active role in promoting the development of the IT sector by implementing policies to encourage investment, develop the skills of the local workforce, and provide access to funding and regulatory support. These initiatives are helping to create a more supportive business environment for IT companies in Kosovo, and are likely to contribute to the growth of the IT industry in the years to come.

Pristina - The Best Place for IT Companies in Kosovo

Pristina, the capital city of Kosovo, has emerged as a leading hub for the IT industry in the Balkans. The city is home to several successful IT companies, including Kutia Software Company. Pristina benefits from a highly educated workforce, as well as low operating costs, and the government's support for the IT industry, for education and training programs. Moreover, Pristina's central location in the Balkans allows IT companies to access regional markets easily.

"Kosovo's IT Talent Pool is Constantly Growing..."

 

Kosovo has a growing talent pool in the IT industry, which is largely driven by the country's focus on education and training programs to develop the skills of the local workforce. The country has a high percentage of young people, with over 50% of the population under the age of 25, which provides a large pool of potential talent for the IT industry. Moreover, Kosovo has a strong tradition in mathematics and computer science education, with several universities offering programs in these fields.

The University of Pristina, for instance, has a Faculty of Electrical and Computer Engineering that offers a variety of undergraduate and graduate programs in computer science and engineering. There are also several private companies and organizations, such as Beetroot Academy, that provide IT education and training programs in Kosovo. Beetroot Academy, which was founded in 2020, has become one of the most successful IT companies in Kosovo, providing training programs in web development, design, and quality assurance, and partnering with local businesses and organizations to provide internship opportunities for its graduates. The desire and attraction towards the IT industry among young people in Kosovo is high, due in part to the industry's potential for high-paying jobs and career growth.

Additionally, many young people see the IT industry as a way to contribute to the development of Kosovo's economy and society, and to participate in the country's transition to a more knowledge-based economy. Overall, the local talent pool in Kosovo is well-educated and highly motivated, with a strong interest in pursuing careers in the IT industry. With the right training and support, this talent pool has the potential to contribute significantly to the growth of the IT sector in Kosovo.

Why One Should Choose A Kosovar IT Company for Their Project?

Liridona from Kutia Software has listed a series of reason why it's good at least to try working with a Kosovar IT company. Among them, here are the most important: 

• Cost-effectiveness: Local IT companies in Kosovo often offer services at a lower cost compared to their counterparts in Western Europe and North America. This can be especially beneficial for small and medium-sized businesses with limited budgets.
• Cultural and language familiarity: Working with a local IT company in Kosovo can provide a greater level of cultural and language familiarity, which can help to improve communication, build trust, and ultimately lead to better project outcomes.
• Quality talent pool: Kosovo has a growing talent pool in the IT sector, with many highly skilled and motivated professionals. Working with a local IT company can provide access to this talent pool, which can be leveraged to develop high-quality solutions and products.
• Innovation and flexibility: Local IT companies in Kosovo are often agile and innovative, with the ability to quickly adapt to changing market needs and provide custom solutions that are tailored to the specific needs of their clients.
• Social responsibility: By working with a local IT company in Kosovo, businesses can contribute to the development of the country's economy and society, and help to create new job opportunities for local professionals.

This can be seen as a form of social responsibility and can contribute to a positive image for the company.

What You Should be Aware of When Working with Kosovo-based IT Companies?

• Cultural differences: While cultural and language familiarity can be an advantage, it's important to be aware of potential cultural differences that may impact communication or business practices. It's important to establish clear lines of communication and expectations to avoid misunderstandings.
• Infrastructure challenges: Kosovo is still developing its infrastructure, which can sometimes present challenges in terms of access to resources such as high-speed internet, reliable power supply, or transportation. Clients should be prepared to work with the local IT company to navigate any potential infrastructure challenges that may arise.
• Time zone differences: Depending on where the client is located, there may be a significant time difference between Kosovo and the client's location. This may impact communication and project timelines, and clients should be prepared to work with the local IT company to establish effective communication channels that take into account the time difference.

Kosovo IT Industry vs Neighboring Countries

The IT industry in Kosovo has been growing steadily over the years and is generally considered to be competitive with other neighboring countries in the Balkan region. While Kosovo is a relatively small country, its IT industry has a lot of potential due to the country's strategic location, skilled workforce, and supportive business environment. Compared to other countries in the region, Kosovo has a favorable tax regime for IT companies, and this has helped to attract international investment and encourage the growth of the industry. Additionally, Kosovo has a high percentage of young and well-educated people, which is a valuable resource for the IT sector.

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This article was created together with prominent figures and professionals coming from reputable Kosovar IT companies. Special credits: Liridona Syla, Celik Nimani.