IT outsourcing market revenues in Croatia are projected to reach USD 304.70 million in 2024, with an expected annual growth rate (CAGR 2024–2029) of 9.17%, bringing the market volume to USD 472.40 million by 2029.
The Croatian IT and outsourcing market is developing strongly. High-quality work and excellent references are increasingly attracting international companies to entrust their product strategy and development to Croatian firms. Investors most commonly focus their resources on contact and call centres and IT outsourcing. This trend reflects the country’s highly skilled workforce, competitive costs, and commitment to innovation.
Croatia has introduced policies and initiatives to encourage foreign investment and business development. The government offers tax incentives, streamlined business registration procedures, and a supportive legal framework. As a member of the European Union and the Schengen Area, companies can operate easily across other EU member states, further extending their reach and growth potential.
Salaries
Compared to other established European countries such as Portugal and the Czech Republic, Croatia has a lower average wage — making it an attractive location for relocating part of a business, as companies can reduce labour costs while still receiving high-quality services. The minimum wage in Croatia in 2024 for full-time employment (40 hours/week) is €840 gross, equating to approximately €700 net.
Croatia also offers highly competitive rates for IT outsourcing services. The average hourly rate for an application developer in Croatia ranges from USD 37 to 74 — lower than equivalent rates in Germany or Switzerland (USD 50–99 per hour). The combination of lower labour costs and high-quality services delivers a strong cost-benefit ratio for companies outsourcing to Croatia.
Employment Contracts
Croatia offers three forms of employment agreement:
- Ugovor o radu — equivalent to a standard employment contract
- Ugovor o djelu — equivalent to a service/mandate contract
- Autorski ugovor — equivalent to a work-for-hire or copyright contract
Infrastructure and Talent
Modern data centres are also a key part of Croatia’s IT infrastructure. These facilities offer state-of-the-art equipment and amenities, ensuring secure and efficient data storage and transfer. Office space, co-working facilities, and hot-desking are also a growing trend in Croatia — primarily in Zagreb.
Croatian universities produce a large number of highly qualified specialists each year, well acquainted with the latest technology trends. The country offers excellent IT and technology universities and high-quality developers, with a strong emphasis on practical skills. In 2020, approximately 30% of all students were enrolled in STEM programmes, and this figure is expected to grow in the coming years.
It is worth noting that the average European rate of new ICT specialists entering the labour market is 6%, while Croatia’s ICT skills base grew by approximately 19% in 2020. Beyond technical skills, Croatians are proficient in English and other European languages such as German and Italian — a significant advantage when serving diverse international markets.
If you would like to learn more about outsourcing opportunities in Croatia, get in touch and let us explore the possibilities for your business.