Information and Communication Technology

Key Figures

  • Best telecommunication networks in the region – the system is 100% digital
  • Leading multinational hardware and software suppliers (Microsoft, HP, IBM) have local sales and support services in North Macedonia
  • Well-developed educational system. More than 80 high schools with an intensive focus on languages, mathematics, and science as well as 22 universities
  • More than 1,300 Macedonian students graduated in computer science, software development, foreign languages, and mathematics, while another 1,800 graduated in economics and business administration
  • IT talent in North Macedonia is more affordable compared to the other competitors
  • Many large ICT companies, such as Microsoft, Cisco, Oracle, Dell, Compaq, Hewlett Packard, IBM, Sun Microsystems, Apple, and Lotus are present in North Macedonia via branch offices, distributors, dealers, resellers, solution providers, and business partners
  • 15 active fixed operators, 4 mobile operators, and 90 internet providers.

Sector Overview

The information and communication technology industry is the fastest-growing sector of the Macedonian economy, and it plays an important role in the economy as a provider of jobs and generator of exports. Hardware is the largest segment (55%) of the ICT market in North Macedonia.  ICT services are the second-largest segment (30%), and software comprises 15% of the ICT market. 

With an annual growth rate between 2.5% and 8% over the last several years, the Information and Communication Technology sector in North Macedonia is a promising area for foreign companies. This growth is spurred by large investments by the government and telecommunications companies in IT, continued spending in the financial sector, a decrease in the price of IT equipment, and a decrease in VAT for the equipment.

Source: ICT Chamber of Commerce, MASIT


  1. Skilled Workforce: North Macedonia boasts a highly skilled and technically proficient workforce, particularly in the field of IT and software development. Many young professionals in the country are well-educated and fluent in English, making it easier for companies to operate in the global market.
  2. Competitive Labor Costs: The labor costs in North Macedonia are relatively low compared to Western European countries, which makes it an attractive destination for outsourcing activities. This cost-effectiveness allows companies to maintain high-quality services while reducing operational expenses.
  3. Strong Telecommunications Infrastructure: North Macedonia has invested in developing a robust telecommunications infrastructure, including high-speed internet connectivity, which is vital for ICT companies to deliver their services effectively.
  4. Low Corporate Taxes: North Macedonia offers a favorable tax environment for businesses, with a relatively low corporate tax rate. This can lead to significant cost savings for ICT companies, encouraging investment and growth.
  5. High-Quality Software and IT Services: The country has a growing reputation for producing high-quality software and IT services. Many Macedonian companies excel in delivering software development, cybersecurity, data analytics, and various IT solutions that meet international standards.
  6. Export: A substantial portion of North Macedonia’s ICT companies is export-oriented. They often serve international clients, which not only brings revenue into the country but also facilitates technology transfer and global collaboration.
  7. Access to EU Markets: North Macedonia’s strategic location in Southeast Europe provides companies with relatively easy access to European Union (EU) markets. This proximity makes it an attractive hub for companies looking to expand into the broader European market.
  8. Government Support: The Government has implemented various policies and initiatives to support the growth of the ICT sector, including incentives for foreign investors and startup programs that encourage innovation.
  9. Educational System: The country is home to more than 80 high schools with a strong emphasis on languages, mathematics, and science, as well as 22 universities.
  10. Business Friendly Environment: North Macedonia offers a relatively straightforward and business-friendly environment, with a streamlined registration process and regulatory framework, making it easier for companies to establish and operate their businesses.

MICROSOFT, CISCO, ORACLE, DELL, COMPAQ, HEWLETT, PACKARD, IBM, SUN, MICROSYSTEMS, APPLE, AND LOTUS are present in the country via branch offices, distributors, dealers, resellers, solution providers, and business partners.

Outsourcing industry – branch of the IT industry

The industry is growing faster than the national economy and by 2022 it will become a major contributor to the national economy. In 2018, North Macedonia’s outsourcing industry contributed 2.1% to the country’s real GDP. The outsourcing industry employed 5,713 employees in 2018. By 2022, the number of employees in outsourcing is expected to exceed 15,000. Information technology sourcing (ITO) continued to boast the majority of the employment in the industry, accounting for 53.0% of the total employees in 2018.

Sustainable Work Force Supply

One of the major competitive advantages of North Macedonia is the high level of language skills of its workforce. The share of the population aged 25-34 speaking at least one foreign language in North Macedonia is 40.0%, slightly higher than the EU average of 38.7%


Export countries

The Macedonian outsourcing industry is servicing customers in 37 countries in Europe, North America, Asia, Australia, and the Middle East. Most ITO and BPO companies in North Macedonia see the greatest potential as export destinations in Scandinavian countries, Central and Eastern Europe, followed by the current number one choice North America. ITO companies are the largest part of the startups in North Macedonia.

Leading companies

A number of international companies such as Seavus (Sweden), Netcetera (Switzerland), M Soft (France), and 6 PM (UK/Malta) are developing software in North Macedonia for the export market and others are providing customer support for multi-national IT companies.

The major trans-border companies in Southeast Europe present in North Macedonia are S&T AG (Austria), Ness Technologies (Israel), Musala Soft AD (Bulgaria), Melon AD (Bulgaria), Matrix IT Ltd. (Israel), IN2 Group (Croatia), Endava Ltd. (UK), Dekra SE (Germany), Cisco Systems Inc. (USA), Asseco SA (Poland). A growing number of companies from neighboring countries are present in the Macedonian labor market in the outsourcing industry without having offices or subsidiaries, by hiring freelancers or remote employees in North Macedonia.

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