Offshore Software Development in

Czech Republic

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Developer

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Partner

Medium

Software Outsourcing Readiness

Overview

The Czech Republic (known as Czechia) has shaken off its communist roots and embraced capitalism to become economically well-integrated with the rest of the European Union. Cybersecurity software companies Avast and AVG were founded here, and many multinationals have been attracted by the country’s skilled workforce, prime location, and stable track record of research and development innovation. However, high rates reflect strong demand.

About Czech Republic

Talent Pool & Education

The Czech Republic is a leading source of freelance developers in Europe, with software and IT companies centered in four key hubs: Prague, Ololouc, Brno and Saabrucken. Microsoft’s office in the capital Prague has nearly 1000 employees, including one of the company’s largest development centers in Europe. The tech industry is also supported by Government tax allowances and job creation subsidies.

Language

The official language is Czech, but English is widely spoken, especially in business.

Economic Outlook

The post-pandemic recovery is facing headwinds from further supply disruptions, rising prices and overall uncertainty related to the war in Ukraine. However, the Economist’s Intelligence Unit expects the government to improve fiscal discipline and relations with the EU, while maintaining a pro-business orientation. Corporate tax levels are some of the lowest in Europe at 19% and the share of highly skilled workers in the labor force has continued to rise in recent years.

Political Conditions

Soaring inflation and energy prices have placed pressure on the center-right, five-party coalition led by Prime Minister Petr Fiala. In July 2022, the Government began a six-month presidency of the Council for the European Union, as it faces the challenge of remaining united in support of Ukraine while dealing with the energy crisis caused by reduced gas supplies from Russia.