Emerging ICT market in Kosovo
The ICT field in Kosovo is one of the most developing and growing division of Kosovo’s economy. Since the last 10 to 12 years Kosovo is experiencing rapid progress in this sector. From foreign IT enterprises to local IT and IT Outsourcing Companies, different diversities of organizations have made a huge impact on the development of this sector.
Educational aspects
The ICT education in Kosovo is improving very fast, and all educational stakeholders understood its importance, since country is facing with high demand of IT professionals on local and international market as well. The number of universities and colleges are offering different IT related courses are very awe-inspiring. According to a report of Kosovo Accreditation Agency, around 13 higher education institutions, both private and public, accredited to offer ICT related training programs in their curricula. Students are being prepared with both traditional and cutting-edge information and technology education in these educational institutes. Kosovo has the youngest population in Europe. Almost half of the population is under 25 years old. A huge number of this young population graduated in ICT every year. These highly trained young individuals become striking assets for the ICT sector of Kosovo.
Economic aspects
The ICT sector of Kosovo plays an important role in the overall economic development of the country. Although the majority of the ICT companies in Kosovo are comparatively fresh and young. Most of these companies are established after 1990. Around 54% of the ICT companies are individual businesses and most of them are relatively small companies with around 20 to 25 employees.
Despite being such a young and small industry, the ICT sector of Kosovo showed super impressive growth and development in the past few years. These small companies with young enthusiastic workforce have outperformed its neighbor countries and are making a comprehensive impact on Kosovo’s general financial progress.
IT Outsourcing
The outsourcing sector of Kosovo is playing a major role in the swift growth of Kosovo’s ICT sector. Right now Kosovo is one of the most anticipated outsourcing spots in Europe. Suitable time zone and geographical position have helped Kosovo turned into a sweet spot to outsource ICT services. Growing small outsourcing companies like Proper ICT has been working hard towards the improvement of this sector. With more than 10 years of experience and highly skilled young workforce. ICT companies in Kosovo has given tremendously contribution to make a great impact on the outsourcing field and bringing foreign currency into the Kosovo economy.
Cultural diversity and a mix of language are some other reason which makes outsourcing to Kosovo much easier than other top outsourcing destinations like India or Pakistan. A huge part of international businesses is turning towards Kosovo for their outsourcing requirements. These global transactions are making robust connotation in the development of Kosovo’s ICT sector.
Telecommunication and Internet
The Telecommunication and Internet industry of Kosovo is making a steady yet impactful growth over the years. More and more companies are getting associated in providing telecommunication and internet services ensuring the swift digitization of the country. According to an old report from 2011 of Regulatory Authority of Electronics and Postal Communication, the number of issued telecommunication license is 86. Now, the number is higher than that. Around 40 licensed companies are providing internet services using different technologies. The sector is growing at immense speed after launching 3G and 4G in 2014.
Law regarding ICT in Kosovo
Lately, Kosovo has renovated its laws and regulations to improve economic growth. The laws and regulations become more responsive to newer ICT businesses. The tax system of the country is transparent, simple and easy to understand. And the official currency is Euro which makes it much easier to expand ICT business outside the country. In 2015, Kosovo and the EU signed the Stabilization and Association Agreement. Being an active associate of CEFTA, Kosovo has turned into a profitable economy for ICT startup.
Financial environment
Kosovo Government has understood the ICT capacity of the country and promoting a financial environment to stimulate the sector. Since the establishment of the Ministry for Innovation and Entrepreneurship, more than ten million Euros has been assigned for the augmentation of the ICT sector. The government also cut off all the custom tax for basic ICT tool import at the beginning of 2019. This decision has opened a huge hope for more resourceful and innovative ICT startups in Kosovo, where Innovation Centre Kosovo (ICK) is giving significant contribution on promoting and helping Kosovo ICT Startups.
Final words
ICT is a bright sector in Kosovo’s overall economy. The government has perceived its potential and are trying to make sure this sector gets optimum attention so that it becomes a massive source of economic revenue. Proper ICT is eager to promote, share its experiences and help IT startups in Kosovo in order to give our young generation better opportunity, thus contribute to Kosovo’s digital economy.
