Great (un)utilized potential

In recent years, we have witnessed rapid growth in Serbia's IT industry. While many industries have suffered due to the global pandemic, it seems that the IT industry has weathered the storm and continued to show stable growth over time. Moreover, the current pandemic has highlighted the importance of digitalization and amplified its positive effects. From the first day we entered the school desks, success narratives have been imposed on us, aiming to achieve a certain average grade to get into the desired school or faculty. It seems that the current trend and somewhat the norm of success is a career in IT. Due to societal pressures and expectations, we are growing up in a generation where financial security and comfort, disguised under the veil of ambition, often take precedence over genuine personal development and career fulfilment. It seems as if, on the path to adulthood, we have stopped chasing our dreams and chosen the easier route, one that unfortunately rarely leads to the top.

Somewhat spontaneously and somewhat driven by modern trends, more and more young people are entering the IT industry, and this has contributed to many positive developments within Serbia's IT sector. It is recognized that Serbia's IT industry is experiencing an annual export growth rate of almost 25%, and this sector is identified as having the greatest potential for the development of micro, small, and medium-sized enterprises. The fact is that Serbia's IT community consists of highly skilled professionals, which is continually confirmed - last year, one of Serbia's leaders in mobile gaming, Nordeus, sold its company to the global gaming leader, Take-Two; in recent years, Epic Games acquired the Novi Sad startup 3Lateral, and Nunatix bought Frame, a Serbian-American startup.

However, it seems that despite the potential Serbia's IT industry possesses, it has not yet fully realized its capabilities. Naturally, the question arises: What is needed to fulfil the capacity of the IT industry in Serbia? Is it a matter of greater individual initiative, a more developed local market for products, or a more elaborate system to support the untapped potential of Serbia's industry? It seems that the truth lies somewhere in between. Many people turn to the IT sector because of the benefits it offers - from perks like free lunches and gym memberships to a large number of vacation days and the option to work from home, not to mention high salaries. It is estimated that the average salary in the IT industry is 3 to 5 times higher than the average Serbian salary, which seems to satisfy the innate need for financial security and meeting expectations that have been set for us since childhood. To avoid misinterpretation, it is necessary to mention that all these benefits are highly rewarding for individuals. Still, when viewed from a broader perspective, several problems can potentially negatively affect the growing Serbian IT industry on a macro level.

The rise in salaries in this sector is increasingly due to a lack of skilled workers, which can create an unrealistic market situation, negatively impacting the competitiveness of the workforce in the region. Regulatory laws inadequately support the startup ecosystem in general and companies in the IT sector at any stage of their development, especially in the early stages. Additionally, sources of funding for existing and emerging companies are extremely scarce and still primarily unavailable in our region. Serbia operates in a banking-centric system whose primary focus, unfortunately, is not investing in innovations, which are generally considered higher-risk options. It is also worth noting that the IT service industry, which is the highest revenue-generating segment of the IT industry, is experiencing the highest annual growth rate, and it will become the leading segment in this industry by 2024. This means that a large number of Serbian IT experts "sell" their expertise to foreign clients, often at significantly lower rates than in the clients' home countries. It is evident that the biggest potential of the Serbian IT sector lies in the highly talented workforce, and there are several ways to realize the full potential of this industry, benefiting both individuals working in it and the wider community.

One of the greatest potentials of the IT industry lies in reducing the "outsourcing" of the workforce and emphasizing the development of local IT products and services. Although the outsourcing sector is the best-performing in the Serbian IT industry, it also represents a significant stumbling block. Due to the prevalent trend of outsourcing, less and less focus is placed on developing their own solutions and products, even though IT industry experts tirelessly insist on their development, which is considered a crucial step in the further successful development of this industry in Serbia. If concerted actions were taken to strengthen the domestic IT market, the outsourcing segment would continue to develop, albeit to a lesser extent. It would also create an opportunity for startups to enter the scene, offering innovative and high-quality products not only for our market but globally as well.

Efforts to improve regulatory laws that would have a supporting effect on startups and companies in the IT sector are essential, as is the development of additional financial models for investing in domestic startups (or IT companies). This would help create a sustainable system and the potential creation of IT unicorns (startups valued at over a billion dollars) on the global stage. The expected side effect of regulating many legal and tax issues related to the IT industry would be easier access to and understanding of all the necessary steps a company must go through for its establishment and operations - simplified procedures would make it easier for companies to develop their products, which could later be offered to the global market. Such a system would create fertile ground for the establishment of new companies, and consequently, the experience and references gained from these steps would attract alternative investment funds, which are an important factor in the further progress of the Serbian IT sector.

Investing in the next generation and the education of future IT professionals is certainly one of the areas the IT industry and the state should focus on. Highly educated personnel, with specialists in various fields, are a prerequisite for further progress. Additionally, focusing on the "business" side of operations, which is equally important for the healthy and organic development of the industry, should be emphasized. Raising awareness and training individuals fluent in developing business models and strategies are steps that go hand in hand with educating future IT experts. It is necessary to make young people aware of the opportunities offered by knowledge of information and communication technologies and to nurture a culture of interdisciplinarity and mutual support. The potential for developing domestic products and the need to invest in small and medium-sized enterprises should be emphasized longitudinally, not just momentarily.

In a hypothetical and utopian situation where the climate and all the necessary parameters for developing and realizing the full potential of the IT industry in Serbia are met, the only thing that would be lacking is individuals - those who are bold, courageous, and competent enough to face the competitive market as it is today and, with system support, almost certainly emerge victorious. The strength of Serbia's IT sector undoubtedly lies in its people, and it is continually proven that there is more than competent talent for such an endeavour, even in these imperfect conditions.