As NATEK proudly marks its 20th anniversary in 2025, we’re excited to present the latest edition of the NATEK CEE IT Market Report. This year’s report builds on the success of our inaugural release, offering fresh insights into the rapidly evolving IT landscape across Central and Eastern Europe. IT departments play a crucial role in this evolving landscape, exploring and expanding automation and technology spending. Employees are central to these initiatives, as companies plan to increase their IT budgets to support employee growth and strategic projects. The adoption of new technologies is essential for driving efficiencies, supporting business transformations, and providing real business benefits by responding to external pressures. From AI and cybersecurity to nearshoring and talent trends, the region is no longer just emerging—it’s helping shape the global tech economy. Join us as we reflect on two decades of growth and look ahead to the opportunities transforming the future of IT in CEE.
CEE Region Economy Thrives with Emerging Tech Trends
The Central and Eastern European (CEE) region continues to be a strategic investment destination, offering a stable and growing economic environment within the European Union. With a population of over 102 million—23% of the EU total—it provides access to a large and diverse talent pool. In 2024, the region’s GDP surpassed EUR 2.2 trillion, contributing 12% to the EU’s overall economy, underscoring its increasing economic influence. A sharp decline in unemployment to 3.7% and a manageable inflation rate of 3.0% reflect improved labor market conditions and macroeconomic stability. These indicators affirm that the CEE region remains a resilient, cost-effective, and opportunity-rich environment for continued investment.
Various industries within the CEE region are expected to continue adopting advanced technologies, further driving economic growth and innovation.
In 2024, the CEE region’s GDP reached EUR 2,239 billion, accounting for 12% of the European Union’s total economic output. Effective management has played a crucial role in driving this economic growth. Organizations in the region are increasingly adopting advanced technologies such as passwordless authentication and AI to stay competitive, despite the challenges of balancing funding for critical initiatives.
Poland stands as the region’s economic leader with a GDP of EUR 807 billion, a skilled labor force, and low unemployment, while Bulgaria—though the smallest economy—is rapidly growing due to its investor-friendly taxation and strategic location. Poland led in market size at EUR 27 billion, while Bulgaria posted the fastest growth with a 21% CAGR. Key trends driving the region include advances in AI, cybersecurity, IoT, and smart city solutions, along with rising investment in technologies like 5G and blockchain. Major infrastructure projects, such as Slovakia’s nearly EUR 1 billion fiber-optic network and the Czech Republic’s EUR 1.7 billion AI initiative, highlight the region’s commitment to digital innovation and expected long-term tech growth.
AI Experts Needed - Key Skills for Job Market Competitiveness
The rapid advancement of artificial intelligence is reshaping both the skill requirements and job landscape within the IT industry. To stay competitive, IT professionals must develop key competencies such as machine learning, deep learning, prompt engineering, and model evaluation to optimize algorithms, improve AI reliability, and enhance service delivery. AI-driven automation is also transforming IT management through smarter infrastructure monitoring, predictive maintenance, and efficient resource allocation.
Simultaneously, new AI-related roles are emerging. Prompt Engineers ensure accurate AI outputs, AI Compliance Managers oversee ethical and regulatory use, Model Auditors assess algorithm transparency and bias, and IT Automation Engineers integrate AI tools into IT systems. Together, these trends highlight how AI is not only transforming technology but also creating a new generation of specialized IT careers.
Key findings for CEE
Poland: A Leading Tech Powerhouse in CEE
Poland continues to lead the CEE region in digital transformation and tech innovation. Business professionals employed by technology companies play an important role in driving tech innovation and supporting the development and delivery of technology products and services used throughout the economy. The adoption of automation technologies is also on the rise in Poland, with IT departments increasingly turning to automation to drive efficient growth and value. A EUR 240 million fund is driving strong public and private sector investment in artificial intelligence. The country’s IoT market is expanding rapidly, with a 14.7% annual growth rate and projections to reach EUR 1.6 billion by 2025, creating numerous jobs in the sector. Poland is also heavily investing in infrastructure, cloud technologies, and AI, reinforcing its position as a digital leader in the region. To support this growth, the government is prioritizing education initiatives aimed at training thousands of IT and cybersecurity professionals by 2026. Employers are actively seeking candidates with specialized IT skills to meet the growing demand in the job market.
Slovakia: Industrial Strength with Growing Tech Potential
Slovakia’s IT market is experiencing dynamic growth, with companies actively adopting new tech to stay competitive. Enterprise technology is playing a crucial role in this growth, driving innovation and efficiency across various sectors by streamlining processes such as shifting capital expenses to operational ones, outsourcing services, and re-evaluating vendor contracts. With a CAGR of 17.3% between 2020 and 2024, fueled by business-friendly tax policies and a highly skilled workforce, Slovakia is becoming a hub for technological advancement. Competitive IT salaries enhance its appeal to both local and international companies. Team collaboration is also a crucial IT skill, highlighting the importance of teamwork in driving technological changes. The country is also making significant strides in digital infrastructure, with network investments projected to reach EUR 202 million in 2025 and a CAGR of 5.8% through 2029. Major initiatives in fiber optics and 5G deployment are positioning Slovakia as a leader in IT connectivity within the CEE region.
Czechia: A Resilient Economy with a Skilled Workforce
The Czech IT market is experiencing modest growth, with an annual rate of just 2.8% between 2020 and 2024—slower than other CEE countries. A major hurdle is the persistent skills gap, as 63% of IT companies report difficulty in finding qualified professionals due to misalignment between education and industry needs, providing insight into the challenges faced by the sector. In response, the government plans to invest EUR 1.7 billion in R&D in 2025, targeting key sectors like artificial intelligence and semiconductors. Key technology trends have been identified to guide these investments and ensure they address the most critical areas. Meanwhile, rising cyberattack threats pose increasing risks, particularly for small and medium-sized enterprises, highlighting the importance of addressing security concerns. Additionally, focusing on software development can play a crucial role in bridging the skills gap and meeting the growing demand for IT professionals.
Bulgaria: A Strategic Hub with Ambitions in Generative AI
Bulgaria is rapidly strengthening its position in the CEE tech ecosystem through major advancements in research and digital innovation. The launch of two supercomputers, Discoverer and Hemus, valued at EUR 12 million and EUR 15 million, enhances the country’s research infrastructure. However, there is a significant skills gap in the tech sector, with less than half of the potential candidates possessing the high-demand tech skills specified in job postings. E-commerce continues to expand, accounting for 11% of industry expertise in 2024. A major milestone is the development of BgGPT—Bulgaria’s national AI model—backed by EUR 114 million, signaling ambitions to compete with global leaders like GPT-4. Additionally, the country is progressing on regulatory frameworks for blockchain, further supporting innovation in digital finance and transactions. This ensures that emerging technologies remain relevant to the specific needs of various industries.
Summary
In conclusion, the CEE IT market has demonstrated robust and sustained growth, expanding at an impressive average annual rate of 10.9% between 2020 and 2024. Poland leads the region in market size, while Bulgaria stands out for its rapid growth, reflecting the dynamic and diverse potential across CEE. Key drivers such as cloud adoption, advancements in AI, and increasing cybersecurity investments continue to shape the region’s digital transformation, as reported by industry analysts. Coupled with competitive costs and a highly skilled talent pool, CEE has firmly established itself as a top destination for IT development and outsourcing—offering both immediate value and long-term strategic advantage for global businesses. Additionally, emerging technologies are increasingly evaluated for their potential as a solution to various business challenges, further enhancing the region's appeal.
Get More Insights with NATEK CEE IT Market 2025 Report
Are you looking for more insights? Gain a comprehensive overview of the evolving IT landscape in Central and Eastern Europe with the latest edition of the full NATEK CEE IT Market Report. The 2025 edition explores more current trends in remote work, employment regulations, tech trends, talent development, and progress in diversity and inclusion across the region, emphasizing the role of AI capabilities in driving innovation and shaping the course of future technological advancements. Integrated technologies are becoming increasingly important, enhancing operational efficiency and fostering innovation across multiple sectors. It also highlights the unique business advantages of each NATEK location in CEE. Companies expect IT budgets to grow, increasing demand for IT labor and presenting new challenges for professionals in the sector. Click below to download the full report and discover why the region continues to offer exceptional opportunities for growth, innovation, and investment.
