Cortex analyzes the ICT industry, achieves record numbers
Based on the ICT analysis and research conducted by CEED Consulting, we can conclude that the ICT sector is one of the fastest-growing, at least in the context of Montenegro. This is evident from the rapid increase in the number of companies involved in this activity, their impressive financial revenues, and the growing interest of people in our community in this field. ICT Cortex, a cluster with a primary focus on education, internationalization, and digital transformation, has analyzed the business performance of the Montenegrin ICT sector. The criteria for ranking success were total revenues, net results, the number of employees, and the number of companies. An important contribution to the analysis was made by the research conducted by the consulting company CEED Consulting. Additionally, BI Consulting, with its portal BInfo.me, was a significant source of data on specific industry codes. ICT Sector in Montenegro This analysis covered 1,049 companies that were part of the Montenegrin ICT sector in 2022 alone. However, to make the analysis comprehensive, the period from 2019 to 2022 was considered, tracking the trends of growth or decline in the three specific groupings of the ICT sector: IT services and products, telecommunications, and trade of IT equipment. Regarding the revenues generated in the ICT field during the previous year, the figures were more than impressive. The total revenue for the ICT sector in 2022 amounted to as much as 602 million euros, which is 23 percent higher than in 2021. The majority of the revenue comes from the telecommunications sector, followed by IT services and products, and trade of IT equipment. Net earnings have also significantly increased over the past four years, with a growth rate of 102 percent compared to 2019. Some of the companies that particularly stood out in terms of revenue in the previous period and made significant contributions to the revenue growth in the Montenegrin ICT sector are M-tel, Crnogorski Telekom, One, Kodio, Comtrade, and Coinis. Below, you can see the individual contributions of each of the mentioned areas to the information and communication technology sector. IT Services and Products Regarding the IT sector, we analyzed 725 companies actively operating in the local and international markets. The largest number of these companies are engaged in computer programming and consulting activities in the field of information technology, while specialized areas such as computer game development and software publishing are represented in a smaller number. It is worth noting that this field has seen a significant increase in the number of companies, with a growth rate of 46 percent compared to 2021 and a remarkable 109 percent compared to 2019. Companies in the IT services and products sector have made the most progress in the past four years when considering parameters such as total revenue, net results, and the number of employees. Total revenues increased by 45 percent compared to 2021, net results increased by 87 percent, and compared to 2019, the same parameter increased by an impressive 450 percent. The number of employees adequately follows the revenue growth, as indicated by the fact that over 3,400 workers have been employed in the IT products and services sector, which is 61 percent more than the previous year and a remarkable 161 percent increase compared to four years ago. When looking at the specific specialization, the largest number of companies are engaged in computer programming and IT consulting activities. Some of the companies that achieved the best results are Epam Systems Montenegro, Domen, Data Design, Čikom, and Logate. Telecommunications In the field of telecommunications, we analyzed 66 companies operating in our market. Over 60 percent of them are registered under the activity code “other telecommunications activities,” while a smaller number are involved in satellite and wireless communications, as well as cable telecommunications. Here, we have a slightly different picture compared to the IT sector. The growth rate of the number of companies over the past four years is only 1.5 percent, indicating that the telecommunications sector is relatively stable, with few changes in the number of firms in the previous period, averaging 64. Companies in the telecommunications sector have traditionally continued to generate impressive revenues. However, these revenues do not show significant fluctuations like those observed in the IT sector. The total revenue of Montenegrin companies engaged in telecommunications activities amounted to 266 million euros, which is nearly six percent higher than in 2019. Net results also did not experience significant growth, with an increase of less than 2 percent compared to 2021 and a decrease of nearly 17 percent compared to four years ago, indicating that the overall profit in this sector was significantly higher in 2019 than it is today. The three traditional telecommunications providers operating in our market, namely M-tel, Crnogorski Telekom, and ONE, achieved the best results in this field. Significant results were also achieved by companies such as Telemach, Ericsson AB, the Agency for Electronic Communications and Postal Services, and Network Communication. The total number of employees in this sector is 1,973, with as much as 65 percent of them employed in the three leading companies in the telecommunications sector (M-tel, Crnogorski Telekom, and ONE). This number is nearly 14 percent higher than in 2019. Trade of Computer Equipment Regarding the sector related to the trade of computer equipment, it should be highlighted that the total revenue in 2022 amounted to nearly 121 million euros, which is 33 percent higher than the previous year. Compared to 2019, this represents a 54 percent increase, while net profit for the same period has increased by 107 percent, reaching almost 6 million euros. The majority of companies in this field are primarily engaged in the wholesale trade of computers, computer equipment, and software, while a smaller number focus on the retail trade of telecommunications equipment, audio, and video equipment, as well as the wholesale trade of electronic and telecommunications parts. The number of employees in this sector increased by 16 percent in the previous year, reaching 664, which is a significant advancement, especially
ICT week – Podgorica week of ICT events
The Capital City of Podgorica, in cooperation with the ICT Cortex association, organizes ICT WEEK of ICT events. It is a series of events on topics from the field of information and communication technologies, which are spread over 7 days of rich content. The main sponsor of the ICT week is the honorary member of the cluster, Crnogorski Telekom, and the organization of the event was supported by the Science and Technology Park of Montenegro, the Central Bank of Montenegro, and Sky Express. The ceremonial opening of ICT week is planned for Monday, October 3, when the winners of the Capital City Competition for the support of the startup ICT community will be presented, who will be presented with vouchers to go to the biggest IT exhibition, the Web Summit conference in Lisbon. On the first day of the ICT week, the II networking gathering of representatives of the ICT community organized by the cluster will be organized, along with the music program of the L’ombelico band. Tuesday, October 4, is reserved for two thematically separate events: at 10am. in the CUE hotel, the cyber security conference “Integrator” organized by the cluster member, Sky Express, will start, while in the afternoon, for all gaming fans, there will be organized Gaming night – presentations of Montenegrin gaming studios and their pioneering steps in this promising industry, with the central event 3Hills competition “League of Legends” and accompanying entertainment. The third day of ICT Week is dedicated to young innovators. Various types of workshops, quizzes, and competitions in the field of programming, gaming, and IT innovations will be held at the stands of IT companies and innovative organizations, and the content planned for this day will delight the younger population the most. The final event of the first season of the ICT education program, Cortex Academy, will also be organized as part of ICT Week, on October 6. On the same day, a meetup dedicated to women in ICT is planned in Kuslev’s house – Women in tech, in which successful women who confirm with their work that women deserve a place in this promising and rapidly growing industry will take part. On Thursday, October 6, Crnogorski Telekom will present advanced solutions for the digitization of small and medium-sized businesses to the business community at the Hilton Hotel. “The role of fintech in the democratization of the financial environment” is the name of the CBCG Fintech conference, which, for the second year in a row, is organized by the Central Bank of Montenegro in cooperation with ICT Cortex and the Association of Banks of Montenegro. In addition to representatives of the central banks of Europe and Asia, international fintech companies, the European Bank for Reconstruction and Development, the Mastercard company, as well as the Montenegrin banking and ICT sector – members of the Montenegrin ICT Cortex cluster – will take part in the event. The opening ceremony of the regional CBCG Fintech hackathon – a 48-hour competition in creating fintech solutions – will be organized as part of the conference. The third conference this week, dedicated to ICT, will be organized the next day, on Saturday, October 8, under the name IT Spot. The conference will be opened by Janek Rozov from the Government of Estonia and using the example of his country, he will point out the possible directions for the digitization of public administration. The conference will discuss trends in IT, the importance of the ecosystem, but also the development of leaders who will initiate and implement digital changes in society, and smart cities… Representatives of the regional IT scene will appear on stage, as well as experts in the field of human resource management and smart cities. The closing of the ICT week is planned for Sunday, October 9 at the Hilton Hotel, after the announcement of the winners of the II CBCG Fintech Hackathon. The main sponsor of the ICT Week is the honorary member of the cluster, Crnogorski Telekom, the leader in the telecommunications market in Montenegro and an active participant in the digital transformation of Montenegro.
