The champagne bottles have been popped open and with much anticipation, 2023 is now here. Celebrations aside, though, with rising inflation, many businesses in the region are facing cost pressures. This is expected to be a continuing development well into the year.
But it’s also an excellent opportunity for many to utilize nearshore locations to streamline their operations cost-effectively. Those seeking optimal solutions should consider Bosnia and Herzegovina (BiH) for its superb outsourcing conditions.
The reasons behind the growth of the BiH outsourcing industry
A country of breathtaking natural beauty, deep cultural heritage, and an abundance of natural resources, BiH is more than a tourism destination. It has an attractive and low inflation rate of 1.98% (the lowest in SEE), a stable currency linked to the Euro, attractive corporate income tax rates, and a competitive and steady GDP. But focusing more precisely on outsourcing and the IT sector, we see some stunning results.
The IT workforce is educated and skilled, comes with a European mindset and culture, and is low-cost and affordable compared to the rest of its IT counterparts on the remainder of the continent. Language proficiency in both English and German as well as Scandinavian languages, is high.
A strong emphasis is placed on technical education in addition to experience gained abroad through various international programs. Home to some of the world’s leading multinational hard and software suppliers through local sales and support services, the country is also on the verge of EU membership.
Over the past 20 years, serious investments have been made in the country’s stability, which is also developing EU-compliant legislation. It’s also a highly foreigner-friendly state and its attractive geographic positioning means it offers direct flights to most major EU cities within two hours. The time zone is also incredibly attractive, meaning that IT engineers in the country can cater to practically any other time zone in the world much more competitively than many other locations.
As such, technological specialists are the driving force behind the modern economy, as they offer increasingly specialized services to a multinational clientele seeking 24/7 accessibility and excellent service levels.
Trends and global forecast: 2028
So, what does this mean for the future of business? Some important insights should be shared. In our view, services by 2028 will undergo seismic shifts, which are worth looking out for. We are already witnessing the changes in remote vs. on-site debates and shifts in work locations. But this is just one part of the coin.
The conditions for shifting IT services means that more emphasis is being placed on outside-in innovation, aided by digital platforms and the digitization of workflows at scale that cover not most but al industries.
Standard IT will not remain the norm and will go beyond to a product-service business model that is captivated by the customer experience. CEO top of mind is another aspect of consideration that will see further development over the next five years.
Lastly, excellence will be required through multiple dimensions. This will demand a focus on both scaling and on skills, agility and cost-efficiency, technology access via partner networks, as well as customer intimacy.
Skills are becoming a commodity
In short, skills, and IT skills in particular, are becoming a commodity and it is necessary to manage them differently and in more innovative ways. This is why Workforce Solutions such as StorsenDigital’s Experts will play a significant role in the next generation of sourcing services. This approach provides speedy scaling and cost efficiency, which is and will remain a key topic for many companies by 2025.