‘Sarajevo Times’ is introducing a series of research articles on the development, growth and opportunities for the future of the IT industry in BiH. The first article that ‘Sarajevo Times’ brings to its readers focuses on the history of the IT industry in BiH, some of the obstacles to progress, and what the BiH IT industry has to offer that could serve as the future path to success in this global industry.
By: Medina Malagić
It should first be noted that the IT sector in BiH is not something completely new. The Executive Director of Atlant BiH Company Milad Čerkić explains that the beginning of this industry dates back to the early 1960’s, when BiH was still a part of the former Yugoslavia. Prior to the conflict, BiH was home to several information institutes and engineering and information companies. Computer technicians possessed the same level of education and knowledge of their field as professionals in neighboring countries.
However, due to the devastating effects of the conflict in BiH during the early 1990’s and the protracted economic and political crisis, the IT sector in BiH currently lags behind other countries in terms of development strategy and manufacturing capacity. This means that every sector in the IT industry needs to be developed.
The Director of Zira Company Zijad Rašidagić said that one of the problems is that out of all the countries in the Balkans, BiH, as well as Montenegro, are the only countries that lack an established cluster of IT companies. He asserts that the importance of this rests on the fact that it is something necessary in order to make a joint and fortified appearance in foreign markets. Local IT companies are obviously aware of this and are currently engaged in strategies to develop an IT cluster. If they succeed in developing an IT cluster in the next period, it would enable a joint appearance in foreign markets. In addition, he goes on to say that even though there are more IT companies now, overall development is negligent because only a small number of IT companies in BiH enjoy the benefits of successful cooperation with global IT companies.
Milad Čerkić also noted that brain drain has affected the IT sector. This is an issue that is not often spoken about. In countries that have a strong and progressive IT sector, there is a constant demand for experts in this field. Thus, in the past year around 60-100 professionals in this industry have left BiH for other opportunities abroad.
The convoluted administrative system in BiH also creates severe impediments that are not conducive to facilitating an entrepreneurial spirit in this country. As an example, Zijad Rašidagić says that there are still old and antiquated legal regulations in BiH that are underdeveloped and backward, such as customs regulations. These regulations are not in line with the current requirements for the successful development of a modern business. So, while there are a growth of IT companies in BiH, the legal regulations have not changed.
Apart from gaining a competitive edge in foreign markets and potentially serving as a center for outsourcing in the region, another reason why the development of IT companies in BiH is crucial is for protective measures. Zijad Rašidagić of Zira Company says that that the “IT field should be protected, especially from immoral competition of foreign markets that set up businesses with two or three employees and use immoral methods and corruption to take away jobs from local companies”.
”We can say that in the last ten years the IT sector in BiH experienced virtually now growth; It was not a fall or growth, which is not logical. Our company grew, but generally there has been no noticeable growth in BiH”, said the General Manager of Lanaco Company Nebojša Ninić. Thus, even though the IT industry in BiH did not experience growth, the industry has not really stagnated. Also, despite the aforementioned problems, there is a reason to remain optimistic that could shine a more positive light on the future of this global industry and BiH’s role in it. What does exist in the IT industry in BiH is the immense knowledge professionals in the BiH IT sector and untapped potential.
What is unique in the global IT industry is that there is no limit to creative potential and the exchange of information. It is not a narrow sector whose influence is only available to select industries. Technology has become such a ubiquitous part of everyday life that it is nearly impossible to imagine life without it. The extent of the creative potential of the IT industry, especially IT start-ups, is visible in countries where the expansion of this industry has been given free reign to flourish. There are a multitude of examples of Bosnian-Herzegovinian citizens who have worked abroad and then returned to BiH to continue their professions in the IT sector. However, according to Milad Čerkić of Atland BiH, due to the global nature of the IT sector and the inclusivity of exchange of knowledge, there is not much of a difference in either the experience or knowledge between IT professionals in BiH and those involved in this industry in other countries. Most BiH citizens who have returned to BiH have remarked that the only discernible differences have been cultural.
Also speaking on BiH citizens who have returned to BiH after working abroad, Erol Karabeg of Authority Partners says, “Returnees definitely contribute to the business culture in BiH and understand the need for international clients”. He emphasized that there are not many differences between BiH business people and experts and their colleagues in the west. Combined with the effects of globalization that have exerted its influence on BiH, Karabeg said that we can compare students in any IT faculty in Sarajevo with their colleagues in cities like London and Los Angeles. Thus, BiH can be considered an IT society.
The primary impediment in BiH to the development of the IT industry rests on the internal economic and administrative problems that are still plaguing this country. This means that radical changes need to occur to ensure a positive future for the development of the IT industry in BiH.
