Remote work technologies and global communication platforms have made it very easy to work across borders. Outsourcing labor capacity, as an increasing trend in the business ecosystem, serves well as a policy to reduce labor costs, and equally is sustainable in terms of hiring skillful and motivated team members. In this article, we will take a look at the workforce outsourcing policy in Montenegro, and understand the relevance and benefits for international businesses.
Montenegro’s Well-Educated and Multilingual Workforce
Montenegro has a well-educated population. Over half of the population aged 15 and older has completed high school, and more than a quarter holds a university degree. Among young adults (25–34), 44.4% have a university degree, slightly above the EU average. Nearly all people aged 20–24 have finished secondary education. The country is investing in Information and Technology ( IT) and business skills through government and private initiatives.
While majority of the 15+ years old population is skillful in a foreign language, with English being the most widely spoken in cities such as Budva and Kotor. Other languages include Russian, Italian, German, French, and Spanish.
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Competitive Labor Costs Make Montenegro an Attractive Business Location
Salaries in Montenegro are much lower than in Western Europe. In 2024, the average monthly net salary after tax was about €832, while the EU average is over €2,000. Even in sectors such as IT or finance, the salary range remains lower than the EU levels. In this context, from the perspective of cost, Montenegro is an attractive opportunity to hire skillful professionals.
Montenegro’s IT Industry, Cost-Effective Outsourcing
Montenegro’s biggest outsourcing industry is IT, counting about 800 tech companies including global corporates likewise Microsoft and Huawei. The main IT specializations include software development and cybersecurity, where Montenegro’s local companies present competitive solutions. Primary service areas include software engineering, quality assurance, and technical support. The country has a very skilled labor force, high English proficiency, reliable high-speed internet, and low operational expenses, which make Montenegro attractive for IT outsourcing.
Outsourcing Beyond IT
Other sectors of Montenegro’s economy also support outsourcing. Tourism, which is about 30% of the economy, creates a need for digital services like website building, online booking, and marketing in different languages. Hotels and travel agencies often hire local companies for this. The government has a “Digital Nomad” program to attract remote tech workers, who might start small outsourcing teams.
New areas that are attractive for outsourcing purposes range from healthcare, and education to finance and Human Resources. For instance, services like online doctor visits and online learning growing in the future. In addition, the government is supporting training programs, making outsourcing in Montenegro feasible and convenient.
If you are interested in investing in Montenegro, it is advisable to consult with a professional on investment opportunities that best suit your needs. Our firm specializes in international taxation, and our team is ready to assist with any related matters. If needed, we can connect you with top professionals to support your business activities in Montenegro. Please feel free to contact us.
