ICT

ICT

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Bosnia and Herzegovina's ICT sector has started to flourish during the past few years and represents one of growth area in the economy of the country.

It is estimated that at present there are between 2.500 to 3.500 programmers in Bosnia and Herzegovina. IT engineers from BiH, in terms of their knowledge, skills, experience and insight into modern trends, are frequently ahead of their colleagues in other European countries.

The value of software industry is reflected in the fact that 60-70% of its labour in BiH constitute young people up to the age of 35.

According to the base bon.ba by the Agency TEC, the analysis of the IT sector as well as counseling and activities related to it showed that this is one of the fastest growing fields of economy in BIH with a total growth of 72 % in the past five years.

Today, this sector contributes with around 75 million EUR to the total GDP. Operational revenues of companies from this field have increased by 60 % in comparison with 2010, the number of employed by nearly 97 %, and the net income has doubled, according to the analysis. The analysis included all companies of this field, 423 in total, of which 386 are small, 28 medium and 9 large business entities.

According to the BIT Alliance, the growth of revenue of software companies in BiH in the past few year ranged between 200% to as high as 1.400 %, and in terms of new employees almost 600%.

According to the BIT Alliance (the leading association of software industry companies in BiH), their member-companies are exported oriented, recording 20 mill EUR worth of export only in 2015 and employing 700 staff members, mainly highly qualifies ones.

According to the preliminary analysis of BIT Alliance, the annual income per software engineer ranges between 40 000 and 60 000 EUR. For example, training of a new 1.000 software engineers BiH could generate, primary from export, more than 45 mill EUR per year.

Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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