Czechia's membership in the EU is and will be a key driver of ICT growth, facilitating increased trade between European markets. Over the next years, the process of EU convergence, which still has far to go, will drive spending on IT projects. Funds such as the EU Cohesion fund are already providing funding for IT projects related to modernization initiatives in both public and business segments. As the government remains the major investor in ICT in Czechia.

The combined government sector also remains the largest spender on IT products and services, unsurprising bearing in mind that the state still owns a wide range of companies across sectors like transport, telecoms, oil and gas, and insurance. Despite all the difficulties, the ICT sector in Czechia is one of the best sectors of the Czech economy, especially since a large part of it is focused on exports. The ICT sector in Czechia has annual revenues of around 4.7B Euros.

Why working with Czech IT companies

IT companies from Czechia are relatively new to the market and rely on the already existing infrastructure when providing web & software services and solutions to the local and international markets. Based on a report of Belgian company ”Wallonia”, Czech IT companies managed to implement the newest IT standards and are specialized in the subsector of software development more than the web, and cloud computing. 

The choice is based on local market demand, as 45% of products and services provided by Czech IT companies are sold to the government and implemented in the local public sector, which is supposed to increase the digitalization rate of the country overall. Nonetheless, some other 55% of IT services are designed for regional export and are considered a part of the regional IT backbone in the western Balkans. 

What to pay attention to when working with Czech IT companies

It is important to know that most Czech IT companies were at the startup phase in 2013, and this makes them new and probably inexperienced in providing competitive services on the global IT market. However, working with Czech IT companies may be an interesting experience after all. 

How reliable are Czech IT companies

Czech IT companies are at an early stage of creating their reputation on the global market. Since not so many IT companies located in Czechia managed to highlight their performance, it is challenging to relate to how reliable they are.  But taking into account that in the XXI century all companies have a chance to create a name for themselves, most probably Czech IT companies will manage to break the ice, and why not - make out of their country an important regional IT hub. 

How well does the Czech IT industry relate to the neighboring countries?

On the regional background, the Czech IT industry is neither a shiny country nor an underdeveloped IT environment. But is one of the promising destinations for international clients and foreign companies ready to invest or work with Czech IT companies and bring the entire region closer to what the Western-European IT industry is. 

What Local Czech Companies Say About The IT Industry

When asked about the IT industry in the Czech Republic, local tech companies, explained that there are both reasons to invest, and also things people should be aware of.  Richard Boura, Business Development Director at Profinit, said "The Czech Republic is one of the best European destinations for investments in information and communication technologies (ICT). 
This is confirmed by the strong inflow of projects with high value added from leading global companies in this area and the local tradition of outstanding technical fields.  The combination of a skilled workforce, a focus on emerging technologies, language skills, and cost-effectiveness has made the Czech IT sector and workforce an attractive destination for foreign companies. The list of successful investors in the country includes, for example, Novartis, Commerzbank, Deutsche Börse, Microsoft, Amazon, Skype, Tieto, Red Hat, SolarWinds, IBM, Cisco, Oracle, H2O.ai, HP, Dell, Zebra Technologies, NNIT, CA Technologies, Infosys, Deutsche Telekom, CGI, DXC Technology, SAP and MSD IT."

Richard added that the business environment is generally favourable for entrepreneurs, including those looking to start an IT company. The country has a stable and growing economy, a well-educated workforce, and a relatively low cost of living compared to countries from Western Europe. The Czech government has been supportive of the development of the IT sector, with initiatives such as the new national AI strategy aimed at supporting research, innovation, and entrepreneurship in the field. There are also various start-up incubators and accelerators in Czechia that can help entrepreneurs with resources, mentorship, and networking opportunities. These include organizations such as StartupYard and CzechInvest.

Best tech places in the Czech Republic

According to Profinit.eu - a prominent tech company from the Czech Republic, Brno is considered the actual tech hub in the country. Richard explained that "thanks to investments in ICT infrastructure, not only Prague, but also other Czech regions are becoming attractive destinations. Brno, the second largest city in the Czech Republic, is considered to be the Czech IT centre, where the needs of companies are fulfilled by skilled specialists from institutions focusing on research and development and advanced ICT infrastructure. Ostrava has also received international recognition in recent years thanks to projects such as IT4Innovations."

 

 

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