Numbers confirm: IT has the potential to become a strategic sector for the development of Montenegro
The potential of the IT industry is receiving increasing public attention, and Montenegro is becoming an important country for IT investments. The actual extent of this potential was demonstrated by the numbers presented at today’s press conference organized by ICT Cortex and the Chamber of Economy of Montenegro, where the results of an ICT research study were presented. Montenegro is experiencing growth in the ICT sector in terms of the number of companies, employees, as well as revenues and profits. This was shown by the analysis of the IT sector in Montenegro conducted by the consulting firm “CEED Consulting” for the needs of the ICT Cortex cluster, under the auspices of the Reconomy program. One particularly interesting finding from the research is that the export of computer services increased to a record 21% in 2022, compared to only 3% in 2017. “The growth in the number of companies has been influenced by the war in Ukraine. Despite the crisis, the IT sector is experiencing growth in all observed parameters, and the IT industry has also seen revenue growth. The analysis showed that companies are facing a shortage of qualified workforce,” said Jovana Vujačić from the company “CEED Consulting.” Among the 70 surveyed companies, the following interesting data stand out: Nina Drakić, the President of the Chamber of Economy of Montenegro, stated that, in addition to tourism, agriculture, and energy, the IT sector is recognized as a strategic sector. “The IT sector had the highest growth last year, which indicates its potential,” said Drakić. Statistics show that the number of registered companies in the ICT sector has been steadily increasing on an annual basis. In the previous year, 1,497 companies were registered, and from the beginning of this year until April, 313 companies have been registered. “In the last five years, the structure of the ICT sector has changed. Statistics show that the IT sector accounts for 84% of the ICT sector. Compared to other sectors, the ICT sector deserves to be a priority economic branch,” said Nada Rakočević, Secretary of the Committee of Information and Communication Technology Associations within the Chamber of Commerce of Montenegro. She further highlighted key figures, pointing out a nearly 70% increase in the number of companies and a 44% increase in employment. The ICT Cortex cluster announced that revenues in the ICT industry reached 602.432.407 million euros last year. “Net profit increased by over 100% compared to 2019. With the growth of ICT companies, the number of employees also increased by 30% last year compared to 2021,” said Milena Aković from the ICT Cortex cluster. She emphasized the need to highlight the significance and potential of the IT industry, which should become a strategic sector. Vladan Tabaš, the CEO of Čikom company and the President of the Board of Directors of ICT Cortex, stated that the IT sector is growing rapidly, but the level of digital transformation in society is not satisfactory. “IT has advanced to a great extent, but the digital transformation in Montenegro is slow. We are entering the digital world, and perhaps the turning point was the COVID-19 pandemic. The obstacle is our educational system, which does not provide the necessary workforce. We need skilled professionals, and therefore, we appeal for significant changes in Montenegro’s educational system,” said Tabaš.
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
The “StepUp with Cortex” project of ICT Cortex and the Capital City of Podgorica improved the competitiveness of 12 small IT companies
ICT Cortex, in cooperation with the Capital city of Podgorica, realized the project “StepUp with Cortex”, which was supported by the Kingdom of Norway through the project “Norway for you – Montenegro”. The “StepUp with Cortex” project, which the ICT Cortex cluster implemented in cooperation with the Capital City of Podgorica, with the support of the Kingdom of Norway through the “Norway for you – Montenegro” project, in the period from March to November of this year, was aimed at improving and education of employees from 12 member companies, to improve competitiveness through the upgrading of institutional, administrative and organizational capacities and business skills of employees. The following companies participated in this project: Alicorn, Amplitudo, Archimede, Bild studio, Codepixel, Codeus, Data Design, DigitalBee, Fleka, Logate, Omnitech, and Oykos Development. The final event of the project was organized yesterday, which was attended by training participants, representatives of companies – project beneficiaries, trainers, and lecturers, as well as representatives of the Capital City and ICT Cortex. Chief Project Officer,, Ferida Mandić, emphasized the importance of this project. “The “StepUp with Cortex” project, in the period from March to November of this year, was aimed at the training and education of employees from 12 member companies, to improve competitiveness through upgrading the institutional, administrative, and organizational capacities and business skills of employees.” pointed out Mandić and added that the results of the training were very successful. “Five education programs were implemented, a total of 10 trainers were engaged; about 100 employees from 12 companies underwent training; employees from the ICT Cortex executive office also completed agile project management training; recommendations were made to improve the business environment for IT companies at the level of the Capital City.” Director of the Center for Information System of the Capital City, Džemal Lekić, pointed out that the administration of the Capital City is dedicated to the improvement of the sector of micro, small and medium enterprises, which is one of the key factors for accelerated economic development. “The ICT sector in the capital is recognized as one of the most important sectors for the future economic development of Podgorica because it supports all other sectors of the economy. In recent years, the administration of the Capital City has recognized digitization as one of the priorities in the development of Montenegrin society in terms of processes that can affect the improvement of the quality and standard of life of citizens. The goal is for ICT to become a strong sector of the economy that could become Montenegro’s leading export activity. Through the cooperation of the actors in the ICT community, there will be an increase in the number of employees, primarily professional staff, so the development and application of ICT are of crucial importance for economic development”, stressed Lekić. The project manager of the UNOPS office in Montenegro, Armen Čekić, pointed out that he was particularly glad that the ICT sector recognized the benefits of human resource development. “The development of human resources is the most important for the development of a company, and for the growth of the economy, which also entails the development of technology. So it should be continuously developed. I also hope that the others will follow this approach to their further development”, Čekić concluded. Trainer and NLP coach at NLP Network, Danka Ćetković, expressed her gratitude for the idea of such a project and emphasized that she is very proud of her students. “We hung out and worked together for three months, and at first it wasn’t easy, but over time we realized that the hidden goal was to connect, that we are not competing with each other, but supporting each other. The topics we covered were everyday ones that everyone needs. Especially in the IT sector, because the focus is on professional knowledge, and technological knowledge, to be the best programmers, and designers. That’s how it should be because the ICT industry is the bright spot of our economy. However, for it to be able to deliver everything that is expected, someone must also think about people. Who will develop all that, master it… Because it is an industry that changes very quickly, is very flexible, and prioritizes efficiency, short deadlines, and innovation. So we have to support people, work on their development, communication and negotiation skills, to overcome their fears, nervousness and the like”, described Ćetković. At the very end, participants were presented with certificates and certificates of completed training, where they shared their impressions from the training. A lot of interaction, group work, and exercises, as they said, facilitated the learning process and the acquisition of new skills and knowledge, and they recommend this type of education to people from different spheres because it is of great benefit to everyone. The cooperation of the Capital City and ICT Cortex on this project is another confirmation of joint action aimed at improving the overall business environment and creating an innovative ecosystem for IT companies at the level of the Capital City, where conditions are created for the development of innovative products and their placement on international markets.
ICT Cortex gathered the ICT community for the biggest informal meeting so far
Podgorica, PR press service – ICT Cortex begins the establishment of professional committees, which will strengthen the community through the association of experts from both cluster member companies and from numerous areas related to ICT. This was announced at the event marking the successful year of existence as well as the launch of professional committees, which was attended by over 150 representatives of the IT community from 29 member companies of ICT Cortex, as well as partners and associates of the organization. Milena Aković, coordinator of the professional committees, in front of ICT Cortex, said that in the previous year, the cluster managed to connect the economy, the academic community, and institutions and that it signed a contract with the state worth one million euros. “We received funds for internationalization and education. We have become members of numerous professional bodies. We secured a grant worth half a million euros for equipping the Vaso Aligrudić School of Electrical Engineering. We increased the number of members from 11 to 29. We launched numerous initiatives that we are particularly proud of, and which we will continue this year as well,” Aković said. It is planned, as she announced, to establish eight professional committees. “The goal of the board is to connect middle and top management, to act on the community, strengthen capacities within companies, but also to promote the profession. The first board we started is the board for HR and education, which consists of 12 members from IT member companies. In order to be a fully inclusive association, we will organize various focus groups and involve many of you to give your contribution”, said Aković. After the committee for HR and education, a committee for sales and internationalization will be established, followed by a committee for the empowerment of women in ICT. “What we plan to achieve with the boards is joint strengthening, launching of ideas and initiatives and to show through that segment that we can only do more with united forces.” – concluded Aković The president of the board for HR and education, Jelena Janković from the company Amplitudo, said that the goal is to create the best possible environment for all people working in the IT industry, to find all the problems that exist in the market and “to try to fix it”. Also, Janković expressed her hope that the gathering of employees from all member companies of the cluster will continue, and that there will be more similar gatherings. The sponsor of the event was Crnogorski Telekom, and the official part was followed by a party of the IT community with the Ribnica band, which was also supported by sponsors: Nikšićko beer, Red Bull, Coca-Cola, and G3 Spirits.
Applications for Cortex academy are closed!
At exactly midnight, applications for the largest education program in the field of ICT in Montenegro were closed, with a total number of applications – 1,292. The Cortex Academy combined all the education programs of the members of the ICT Cortex cluster, and at the same time provided an additional, online form of education in five areas: programming, project management, software testing, marketing, and design. Considering a large number of applications and the different motives of Cortex Academy participants, in the next step the following groups will be distinguished: Participants of the Cortex Academy in ICT Cortex member companies Educators: Alicorn, Amplitudo, Bild studio, Coinis, Codeus, Codepixel, Data Design, Digital Bee, Logate Academy, Oykos, Omnitech, Optimus Smart Academy, Sky Sat In January, this group of participants is expected to have interviews and/or a selection task at the company that conducts the course in question. The start of education is planned for February 2022. Participants of online courses SEEKING EMPLOYMENT in the field of programming (students and seniors) This group refers to candidates seeking employment in the field of programming. After completing the online training and the selection project, which is necessary to do, candidates have the possibility of employment in companies that are members of ICT Cortex. The deadline for listening to the online course is from January to May. The first condition is to successfully meet the conditions imposed by the course itself. At the end of the course listening period, in May, these candidates will receive a practical task, the successful completion of which will be the ticket to work in companies. Participants of online courses WITHOUT SEARCHING FOR EMPLOYMENT in the field of programming (students and seniors) This group refers to participants who applied for courses in the field of programming to retrain or upgrade, without looking for employment in the field of programming. The group also applies to participants who have applied for courses in other fields: project management, design, software testing and marketing, regardless of whether they are looking for employment in those fields or not. These participants are expected to conscientiously use the opportunity for additional education and fulfill the conditions required by the courses themselves. No additional tasks by ICT Cortex. High school students applying for the Cortex internship: Let’s do IT! For these candidates, the primary online course is the Complete PHP From Scratch Course for Beginners, which is taken from January to March, followed by the first elimination test (March 2022). From March to May, candidates take the next course Object Oriented PHP and MVC, followed by the second elimination test (May 2022). If both tests are passed successfully, the candidates are followed by an eight-week internship in ICT Cortex companies. High school students who take courses for their improvement, without applying for Cortex practice These participants are expected to conscientiously use the opportunity for additional education and fulfill the conditions required by the courses themselves. No additional tasks by ICT Cortex. All registered candidates will receive detailed instructions and information on further steps via e-mail notification. Great support in the realization of this project was given by Help Montenegro (through the Reeconomy project), Crnogorski Telekom, and Cortex Fondacija, which are the initiators of the online courses. Certainly, the greatest gratitude goes to the members of ICT Cortex, the educators who opened their doors to all future members of the ICT community, eager to acquire new knowledge! Alicorn, AmplitudO, Bild studio, Coinis, Codeus, Codepixel, Data Design, Digitalnam Academy, Logate, Oykos Development, Ominitech, Optimus Smart Academy, SkySat For support in the realization and successful promotion of the Cortex Academy, ICT Cortex is also very grateful to other partners: the universities of Montenegro, Donja Gorica, Mediteran, the secondary vocational school in Podgorica, secondary vocational schools and gymnasiums in Berane, Bijelo Polje, Nikšić and Pljevlja, as well as and representatives of the Capital City of Podgorica and the municipalities of Berane, Bijelo Polje, Nikšić and Pljevlja, and our honorary member IPC Tehnopolis.
