IT Sector in BiH: Will COVID 19 Increase its Outsourcing Potential?

IT Sector in BiH: Will COVID 19 Increase its Outsourcing Potential?

With the recent changes in the way, business is performed due to the effects of the coronavirus pandemic, the impact on IT in BiH is stronger than ever. In fact, in the post-coronavirus world, businesses are projected to undergo a transition, and the biggest winner could just be the IT industry. Businesses, mainly those in the services sector like banking and other financial services, education, retail, healthcare and food & grocery delivery, will further embrace technology and automation to better leverage growth. In the following text, find out will COVID 19 increase its outsourcing potential.

Many organizations have already incorporated cloud and mobility trends through the rapid adoption of digital transformation. Every sector will move towards digitization and automation. As working from home is becoming the new normal, more businesses will need to be migrated to cloud-based software to ensure that they can function without disruption.

The expanding IT industry, along with the rising trend of digitalization, is one of the key factors that will continue to drive the growth of IT companies. Out of these companies, only 1.9% are large and more than 90% are small businesses. The recent boom in the IT sector in BiH is best illustrated by the fact that a quarter of these companies have opened their doors in the last 1-3 years while more than 50% have been operating for over 5 years (a third over 10 years) which is proof of their business stability and sector stability in whole.

In order to get the best overview of the IT sector in BiH and its potential for outsourcing, we present you an analysis of its business over the past three years.

Number of companies over the past three years 

In 2017, 557 companies were registered within the IT sector. That number increased to 632 in 2018, and to 701 in 2019. In the period from 2017 to 2019, the number of IT companies in BiH increased by 144.

Chart, Graph showing registered companies within IT Sector in BiH, IT sector in BIH: Will COVID 19 increase its outsourcing potential?

Types of companies

In 2019, out of the total number of companies in the IT sector in BiH, 75.2% generate revenue of up to half a million KM, 20.7% of companies up to 5 million KM, and 4.1% of companies more than 5 million KM

Number of employees and average salary

Number of employees in BiH’s IT sector recorded a constant increase in recent years. In 2018 the number of employees increased by 724 or 16%, while in 2019 it increased by 845.

Chart showing increase in revenue, will COVID-19 increase outsourcing?

The average monthly gross salary of employees in companies in the IT sector in 2019 amounted to BAM 2,722.00 , or EUR 1,391.00 . This shows that employees in accounting companies are paid an average of BAM 16 per hour, or EUR 8  per hour.

Staff costsAmount in BAMAmount in EUR
Total salaries cost197,452,924100,956,077
Number of employees6,046
Yearly salary per employee32,65816,698
Monthly salary per employee2,7221,391
Daily salary per employee13066
Hourly fee per employee168

Monthly income per employee is BAM 108,897.00, or EUR 55,678.00. The average hourly income per employee is BAM 54, or EUR 28.

Type of revenueAmount in BAMAmount in EUR
Revenue per employee in a year108,89755,678
Monthly revenue per employee9,0754,640
Daily revenue per employee432221
Hourly revenue per employee5428

Sales and export revenue

Total sales revenue in 2018 increased by 84 million BAM compared to 2017. The trend of revenue growth continues in 2019 and amounts to 181 million BAM. Which means it’s doubled over the previous year. Sales revenue growth also increased by 62% in the period 2017-2019.

Chart showing increase in revenue, will COVID-19 Increase Outsourcing?

Top 20 companies by revenue

20 Companies by revenue in BiH, Increase in Outsourcing

Top 10 companies share in the industry by revenue

Increase in Outsoutcing, COVID-19

Total profit

The total annual profit of the IT sector in BiH has been constantly growing in the last 3 years. Specifically, in 2019, it recorded an increase of 54% compared to 2017.

COVID-19 and the increase in Outsourcing

Top 20 companies by total profit in industry

20 Companies by total profit in industry. COVID-19

The top 20 companies share in industry by profit

20 companies COVID-19

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