ICT Cortex: ICT Cluster Calls on the Government of Montenegro to Ensure Compliance with Contractual Obligations with doMEn Company
Thanks to all the initiatives launched by the doMEn company in Montenegro, the country has become part of the regional and European ICT scene, and doMEn has become recognized as a sincere and dedicated partner of the Montenegrin IT community. “We appeal to the Government of Montenegro to reconsider the Decision on announcing a Public Call for the selection of an Agent for .me domain registration and to ensure compliance with contractual obligations with the doMEn company, which is bound by the principle of the rule of law,” states the ICT Cortex professional association regarding the announcement of the Public Call for the selection of an agent for .ME domain registration. This association, representing over 40 domestic and foreign ICT companies, emphasizes that the potential violation of contractual obligations by the Government of Montenegro jeopardizes the reputation of the Montenegrin business environment and sends a negative message to both existing and potential investors in the IT sector, especially considering that doMEn’s founders include some of the largest American IT companies and renowned leaders in the world of new technologies – Identity Digital, formerly Afilias, and GoDaddy.com LLC. In addition to building a recognized global brand, the doMEn company’s impact on the development of the ICT sector in Montenegro should not be overlooked. One of these impacts is evident in the establishment of the ICT cluster Cortex, of which the doMEn company is one of the founders. The cluster has directed its activities towards strengthening the IT sector and creating conditions for this industry to become the cornerstone of future economic development in Montenegro. Furthermore, it can be said that the pioneering endeavors of the Montenegrin IT community were made possible with the support, knowledge, and experience of renowned American investors through the assistance of the doMEn company. Given that one of the main problems of the IT industry is the lack of skilled professionals, the entire community strives to contribute to the creation of new talent through its courses and extracurricular programs. Since its establishment, the doMEn company has made a significant contribution in this regard, having invested over 1.4 million euros in socially responsible activities in its 15 years of existence. The company has supported 14 generations of primary and secondary school students through its free doMEn programming school. The company has also sponsored robotics competitions, and knowledge Olympiads, and has invested in creating content that directs children toward new technologies through its portal, STEMedukacija.me, and projects such as “My Future STEM Occupation.” At the same time, the association adds that the doMEn company is among the first representatives of the private sector that has actively worked on the development of the Montenegrin startup ecosystem for over a decade. The community regularly takes part in opportunities created by doMEn, with a notable example being the Spark.Me conference – one of the largest business and technology conferences in the region. Through competitions organized by the company, startup teams have had the opportunity, with its sponsorship, to showcase their solutions at the renowned Tech Crunch conference held annually in San Francisco. Thanks to all the initiatives launched by the doMEn company in Montenegro, the country has become part of the regional and European ICT scene, and doMEn has become recognized as a sincere and dedicated partner of the Montenegrin IT community. Thanks to projects initiated by doMEn in collaboration with the Vaso Aligrudić Electrotechnical School, Cortex members have continued to support the school and have secured funds of approximately 550,000 euros from the Regional Challenge Fund for the school’s modernization, which will be one of the largest non-repayable investments in a secondary vocational school in Montenegro. The fact that doMEn, as an export-oriented company with the best export brand in Montenegro, primarily contributes to the economy of Montenegro and its economic development through the export of products and services, totaling over 8 million euros in 2022, should not be overlooked. All these activities, along with many others carried out by the domestic IT sector, should contribute to strengthening the human and financial resources for the development of the IT sector in Montenegro, to attract and initiate new domestic and foreign investments. To function as such a system, support and understanding from the government and institutions are necessary to make Montenegro a desirable and safe country for IT investments, with the capacity to undertake such projects. As responsible partners of the Government of Montenegro in implementing development policies, ICT Cortex urges the need to work on improving and creating an attractive business environment for investments in the growing IT sector, where every investor and IT company will enjoy full respect for the rule of law. The resolution of all issues should be sought through adequate and timely dialogue. ICT CORTEX
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