Slovenia - Information Technology Equipment and ServicesSlovenia - Information Technology
Overview
With more than 3,000 companies employing more than 20,000 people, Slovenia’s information and communications technology (ICT) sector presents numerous opportunities for investment and partnerships. Slovenia is home to well-developed IT companies with established services and R&D capability. Information systems outsourcing has grown to become the largest market in Slovenia, followed by systems integration and hardware support. IT services sales in 2017 were strongest in the finance, insurance industry, and government sectors. There are also vibrant start-up and entrepreneurial communities with young companies seeking investment and joint venture opportunities. Many start-up companies are concentrated in technology parks such as Technology Park Brdo-Ljubljana.
In 2017, Slovenian startups with at least one Slovene founding member raised EUR 286 million, the majority of from venture capital (EUR 240 million) followed by Slovenian state funds, crowdfunding, angels, and accelerators. Most investment start-up funds originated in the EU, United States, Slovenia, and China. The IT sector is expected to grow more slowly in 2018 and 2019, however, due primarily to expected reductions in investments from EU firms.
According to Slovenia’s Statistical Office, one in four enterprises provided training to develop e-skills in 2017, while 20 percent of enterprises with at least 10 persons employed ICT specialists. Six percent of enterprises recruited or tried to recruit ICT specialists in 2017, 49 percent of which had ICT specialist vacancies that were difficult to fill.
Slovenia’s cyber security market continues to expand as well, largely in response to the rapidly-changing nature of threats and vulnerabilities to businesses and government. Industry representatives forecast a continued need for security services, particularly in small and medium-sized enterprises (SMEs). The market for security software grew 15 percent in 2017, with growth expected to continue through 2018 and beyond. In response to ongoing budget pressures, however, the government has made significant cuts to IT expenditures. Existing IT platform upgrades and continued investment in a three-tiered cloud-computing infrastructure should provide for some short-term growth.
(Source: Statistical Office of Slovenia; Chamber of Economy; estimates based on top 10 IT firms’ directors)
Sub-Sector Best Prospects
The cloud-computing sector is the IT industry’s fastest growing segment, currently growing at 40 percent per year. In 2018, more than 47 percent of enterprises with 10 or more employees purchased cloud computing services such as e-mail, computer software, electronic file storage space, and computing power, up from 15 percent in 2014. Such services are purchased primarily by large enterprises, followed by medium-sized and small enterprises. Slovenia’s Chamber of Commerce projects the potential for up to 3,000 new IT jobs in Slovenia through 2018, due primarily to cloud solutions targeted towards the public sector as well as SMEs.
Areas of potential growth in the IT sector include:
• Planning and implementation of communicating networks
• Broadband infrastructure
• Security systems
• E-banking
• CMS software
• Software systems for back-up files
• IT Solutions
• Logistics
Opportunities
Slovenia’s Ministry of Public Administration has allocated EUR 38 million to develop a cloud-computing system in 2018. The best opportunities for U.S. software sales in Slovenia include internet systems engineering, application development, consulting, database and communications software/office automation, security, systems integration, archiving, content and document management, and business intelligence. Primary end-users are industry, financial services, public administration, trade, health, energy, production, distribution, and electronic banking.
Web Resources
Ministry of Economic Development and Technology, Kotnikova 5, SI- 1000 Ljubljana, Slovenia
E-mail: gp.mg@gov.si
Ministry of Interior, Stefanova 2, 1000 Ljubljana, Slovenia
E-mail: gp.mnz@gov.si
Ministry of Public Administration, Trzaska 21, 1000 Ljubljana, Slovenia
Email: gp.mnz@gov.si
Chamber of Commerce and Industry of Slovenia, Dimiceva 13, 1504 Ljubljana, Slovenia E-mail: info@gzs.si
Web: http://eng.gzs.si/
U.S. Commercial Service
Matjaž Kavčič, Senior Economic Commercial Specialist
Phone: +386 1 200 5644
Fax: +386 1 200 5555
E-mail: DoingBusinessinSlovenia@state.gov
With more than 3,000 companies employing more than 20,000 people, Slovenia’s information and communications technology (ICT) sector presents numerous opportunities for investment and partnerships. Slovenia is home to well-developed IT companies with established services and R&D capability. Information systems outsourcing has grown to become the largest market in Slovenia, followed by systems integration and hardware support. IT services sales in 2017 were strongest in the finance, insurance industry, and government sectors. There are also vibrant start-up and entrepreneurial communities with young companies seeking investment and joint venture opportunities. Many start-up companies are concentrated in technology parks such as Technology Park Brdo-Ljubljana.
In 2017, Slovenian startups with at least one Slovene founding member raised EUR 286 million, the majority of from venture capital (EUR 240 million) followed by Slovenian state funds, crowdfunding, angels, and accelerators. Most investment start-up funds originated in the EU, United States, Slovenia, and China. The IT sector is expected to grow more slowly in 2018 and 2019, however, due primarily to expected reductions in investments from EU firms.
According to Slovenia’s Statistical Office, one in four enterprises provided training to develop e-skills in 2017, while 20 percent of enterprises with at least 10 persons employed ICT specialists. Six percent of enterprises recruited or tried to recruit ICT specialists in 2017, 49 percent of which had ICT specialist vacancies that were difficult to fill.
Slovenia’s cyber security market continues to expand as well, largely in response to the rapidly-changing nature of threats and vulnerabilities to businesses and government. Industry representatives forecast a continued need for security services, particularly in small and medium-sized enterprises (SMEs). The market for security software grew 15 percent in 2017, with growth expected to continue through 2018 and beyond. In response to ongoing budget pressures, however, the government has made significant cuts to IT expenditures. Existing IT platform upgrades and continued investment in a three-tiered cloud-computing infrastructure should provide for some short-term growth.
| 2014 | 2015 | 2016 | 2017 (Estimated) | |
| Total Local Production | 294 | 320 | 320 | 310 |
| Total Exports | 160 | 180 | 180 | 180 |
| Total Imports | 520 | 560 | 550 | 560 |
| Imports from the US | 420 | 440 | 440 | 440 |
| Total Market Size | 654 | 680 | 680 | 690 |
| Exchange Rates: 1 USD | 0.90 | 0.90 | 0.90 | 0.90 |
Sub-Sector Best Prospects
The cloud-computing sector is the IT industry’s fastest growing segment, currently growing at 40 percent per year. In 2018, more than 47 percent of enterprises with 10 or more employees purchased cloud computing services such as e-mail, computer software, electronic file storage space, and computing power, up from 15 percent in 2014. Such services are purchased primarily by large enterprises, followed by medium-sized and small enterprises. Slovenia’s Chamber of Commerce projects the potential for up to 3,000 new IT jobs in Slovenia through 2018, due primarily to cloud solutions targeted towards the public sector as well as SMEs.
Areas of potential growth in the IT sector include:
• Planning and implementation of communicating networks
• Broadband infrastructure
• Security systems
• E-banking
• CMS software
• Software systems for back-up files
• IT Solutions
• Logistics
Opportunities
Slovenia’s Ministry of Public Administration has allocated EUR 38 million to develop a cloud-computing system in 2018. The best opportunities for U.S. software sales in Slovenia include internet systems engineering, application development, consulting, database and communications software/office automation, security, systems integration, archiving, content and document management, and business intelligence. Primary end-users are industry, financial services, public administration, trade, health, energy, production, distribution, and electronic banking.
Web Resources
Ministry of Economic Development and Technology, Kotnikova 5, SI- 1000 Ljubljana, Slovenia
E-mail: gp.mg@gov.si
Ministry of Interior, Stefanova 2, 1000 Ljubljana, Slovenia
E-mail: gp.mnz@gov.si
Ministry of Public Administration, Trzaska 21, 1000 Ljubljana, Slovenia
Email: gp.mnz@gov.si
Chamber of Commerce and Industry of Slovenia, Dimiceva 13, 1504 Ljubljana, Slovenia E-mail: info@gzs.si
Web: http://eng.gzs.si/
U.S. Commercial Service
Matjaž Kavčič, Senior Economic Commercial Specialist
Phone: +386 1 200 5644
Fax: +386 1 200 5555
E-mail: DoingBusinessinSlovenia@state.gov