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 successfully finalized

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, was closed by marking the final event of the project on November 14, 2022. In the period from March to November of this year, five training programs were implemented, a total of 10 trainers were engaged, and about 100 employees from 12 companies underwent training; employees from the ICT Cortex executive office also successfully completed agile project management training; recommendations were made for improving the business environment for IT companies at the level of the Capital City. 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 attended by training participants, representatives of companies – project users, trainers, and lecturers, as well as representatives of the Capital City and ICT Cortex. 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.

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.

The Kingdom of Norway supported the ICT Cortex cluster project – “StepUp with Cortex”

Five projects aimed at increasing the competitiveness of small businesses in Montenegro through their transformation, among which the ICT Cortex cluster project – StepUp with Cortex, are supported by the Kingdom of Norway through the project “Norway for you – Montenegro”, which is implemented by UNOPS in partnership with UNDP. The “StepUp with Cortex” project, which the ICT Cortex cluster implements in cooperation with the Capital City of Podgorica, will be aimed at improvement and education in the field of business skills, in order to improve the competitiveness of our companies through strengthening the skills of employees. The companies that will participate in this project are Alicorn, Amplitudo, Archimede, Bild, Codepixel, Codeus, Data Design, DigitalBee, Fleka, Logate, Omnitech, and Oykos Development. “We will use the received donation in the amount of 50,000 dollars to strengthen the skills of over 100 employees in the members of the ICT Cortex cluster. The focus of the training will be on the development of knowledge and competencies in the areas of business communication, project management, sales, finance, and leadership. The IT sector and the segment of small and medium-sized enterprises form a pillar of the economic development of Montenegro, and we consider the capital city a very important partner for the development of the business environment and the creation of an innovative ecosystem”, said the director of the ICT Cortex project office, Ferida Mandić. “This project is a confirmation that by working together with the ICT cluster, we can improve the business environment for IT companies in the territory of Podgorica, where the conditions are created for them to develop innovative products from our city and place them on the international market,” added the director of CIS in the capital, Džemal Lekić. The project “Norway for you – Montenegro” will support entities that provide support for the development of small businesses in cooperation with municipalities, which will improve the operations of at least 70 small businesses, through the improvement of marketing and negotiation skills, the introduction of innovative approaches in the technological process, the improvement of business communication, project management, finance and leadership, the introduction of digitization, as well as the promotion of best practices for quality, safety and trust in the production of small businesses through the implementation of relevant ISO standards.