2024 CEE Boutique Software Development Agency Report
Gain valuable market intelligence, understand industry trends, to make informed decisions about partnerships and collaborations, benchmark your strategies, ensuring you stay competitive in the dynamic Central and Eastern European (CEE) tech landscape.
Distribution of agencies by country
This classification is essential to understand the current state of affairs in the industry, as companies of different sizes have different abilities, costs, objectives, and they face different challenges. As a result, their operational models, strategies of growth, clientele, average project size as well as the impact of macro-economic changes also vary.
This divide is also coined by the term "boutique consultancy", which is used to describe smaller, specialized firm that offers expert advice and services in a particular niche or industry.
Number of agencies by distribution of foundation years (2000-2023)
Examining the founding years of companies over the past 25 years reveals three key patterns.
Firstly, most companies were founded in the second half of the previous decade, indicating they are now 5-10 years old and operationally stable.
Secondly, there's a steady decline in the number of older companies, showing that those operating for 10-25 years are well-established.
Thirdly, a steep decline in new companies over the last five years suggests that while the COVID-19 pandemic and economic downturn posed challenges, the increased demand for digitalization favored established companies over new ones struggling for stability.
Talent shortage
The most pronounced barrier is the acute shortage of skilled IT professionals.This shortage spans various specializations, particularly in emerging technologies such as artificial intelligence and cybersecurity, hindering companies' ability to scale operations and meet market demands.