When considering outsourcing locations, Croatia is becoming an increasingly popular option for Western companies looking to work with top software development companies.
We've already talked about American HealthTech companies hiring Croatian software development companies as their partners; now, let's sum up why, in general, a Western company looking for a technology partner would opt for a software company from Croatia.
With an exceptional combination of talent, affordability, and business-friendly conditions, Croatia has positioned itself as a reliable partner for international tech collaborations. Find out why Croatia stands out as a prime choice for companies from North America and Western Europe looking to outsource their software development needs in Central Europe.
Here’s a breakdown of the factors that make this country stand out regarding custom software development.
1. A rising generation of STEM talent
Croatian universities have recognized the growing demand for tech-related studies and now offer a broad range of programs in computer science, electrical engineering, and information technology, thus increasing the number of students entering STEM fields. Government-funded scholarships, technology-focused grants, and research programs have been created to encourage students to pursue careers in technology.
Additionally, there has been significant support from government and private sector initiatives to nurture this talent. On the private side, numerous tech companies in Croatia have collaborated with universities to provide mentorship programs, industry-led workshops, and career development resources. The goal of these initiatives is to ensure a continuous flow of skilled graduates ready to contribute to Croatia's growing software development market.
The skilled talent pool for the next generation of software developers
For potential partner companies, this dynamic environment offers access to a young, well-prepared, and innovative talent pool that brings fresh perspectives and adaptability to the software development market. In addition to their technical skills, many Croatian graduates possess strong English language proficiency, which eases communication and collaboration with international teams.
This blend of technical capability, practical experience, and language skills makes Croatian STEM graduates highly competitive and valuable for software development companies in the country.
English language proficiency
In our blog about Central Europe being an ideal destination for software development, we mentioned the importance of English language proficiency. According to the EF - English Proficiency Index, Croatia ranks 11th globally, placing it among the top 12 countries in the Very High Proficiency group.
For years, Croatia has been in the top 12 tier of this list. In 2023, Croatia was the second best-performing country in Central Europe and the number one country in the Eastern and Southeastern regions. This means that over 60% of Croatian citizens speak English comfortably.
2. Impressive ranking of Croatian students in IOI - largest STEM competition
Over the years, Croatian STEM students have regularly earned medals at the International Olympiad in Informatics (IOI), including gold, silver, and bronze. These successes place Croatia among the top-performing countries in the competition, especially considering its relatively small size. Croatian students’ ability to excel in such a challenging competition highlights the country’s strengths in software development, as they consistently demonstrate impressive skills in computer science, algorithmic thinking, and algorithmic problem-solving.
This level of achievement reflects a longstanding tradition of high-quality STEM education in Croatia. From a young age, Croatian students are encouraged to engage in advanced mathematics, coding, and science programs, many offering specialized training for international competitions. For companies looking for talented developers to join their software engineering teams, this strong foundation is a clear indicator of their high skill level.
Croatian software companies can count not only on the graduates' technical expertise but also on their capability for innovative, high-stakes problem-solving, which is essential when it comes to computing. This makes a software development company based in Croatia an excellent partner for companies that value technical proficiency, a strong educational background, and a culture of continuous improvement.
3. Competitive outsourcing prices in software development
Croatian software development companies can offer highly competitive pricing thanks to a lower cost of living and average wage levels compared to Western EU countries. This cost advantage makes Croatia an attractive choice for companies in North America and Western Europe, where software development costs are often significantly higher. By partnering with Croatian developers, companies can achieve the same high-quality standards at a significantly reduced cost.
In addition to favorable labor costs, Croatia provides IT companies with supportive tax conditions and government incentives. These initiatives not only help make service rates more affordable but also encourage growth and innovation within the local tech industry. Companies partnering with Croatian developers benefit from these efficiencies, as local firms can often pass on savings directly to their clients. For instance, the Croatian Ministry of Economy supports various research and development projects.
It's important to mention that this cost-effectiveness does not come at the expense of quality. Croatian developers are known for their careful attention to detail. They're creative, and they have strong technical skills. This way, they constantly meet the high standards expected in international software development markets.
For businesses seeking a balance of affordability and excellence when it comes to the digital transformation of their businesses, Croatia’s software development companies offer an excellent outsourcing solution that delivers financial and strategic advantages, whether you're looking for a web development company or a partner to develop high-quality mobile apps.
4. Government support and dynamic tech communities that drive growth in Croatia
Croatia’s government has taken important steps to support the growth of its tech industry, recognizing its potential to boost the economy. It aims to stimulate innovation and investment in R&D, thus enhancing Croatia's position as a tech hub in Central Europe. This includes tax relief measures for basic research, industrial research, and experimental development.
The government’s focus on stability and willingness to collaborate with international partners make Croatia an attractive choice for Western businesses looking to outsource development work or expand their presence in the region.
Cities like Zagreb and Split have developed lively tech communities that greatly contribute to the country’s tech scene. These cities offer a range of support and collaboration opportunities for developers, including tech meetups, hackathons, and workshops that promote idea-sharing and innovation in the community.
With many co-working spaces and tech incubators available, these hubs provide an ideal environment for nurturing talent and encouraging new ideas. These hubs serve as incubators for talent and innovation, reinforcing Croatia’s position as a reliable destination for looking for the right software development partnership.
Final thoughts: Why consider Croatia?
In a global market where skilled talent, cost savings, and efficiency are key, Croatia has distinguished itself as an attractive destination for software development outsourcing. With skilled talent backed by proven international performance, competitive outsourcing rates for software solutions, and a supportive business climate, Croatia makes a compelling case for Western companies seeking a dependable software development partner.
Partnering with Croatian developers not only offers an advantageous financial model but also ensures collaboration with professionals who are driven, well-educated, and aligned with Western business standards. As Croatia continues to strengthen its tech infrastructure, it stands out as a prime choice for Western companies looking to outsource their software development needs in Central Europe. This leads to the key question: Is Croatia home to some of the best software development companies in the region?
If you want to explore how we can help you tap into Croatia's software development expertise, contact us today and find out how we can become your trusted business partner.
