Establishment of a software nearshore location in Slovenia
The global trend towards IT outsourcing
In today's age of globalization, more and more companies rely on IT outsourcing. In 2022, the IT outsourcing market was estimated at 410 billion dollars. By 2024, it has exceeded 460 billion dollars and is expected to grow to over 777 billion dollars by 2028. This corresponds to an annual growth rate of 11%, well above the average for most industries. Given this rapid growth, choosing the right location for nearshoring is critical.
Why did I choose Slovenia with Astina in 2011?
When choosing our nearshore office, several factors played a role that made Slovenia an attractive option:
- Vicinity: Slovenia is very close to Switzerland and can be easily reached with direct flights or even by car.
- Repute: Known as the "Switzerland of the Balkans," Slovenia offers excellent education and infrastructure, albeit at higher prices than some neighboring countries.
- Government support: We received an open welcome and the best welcome from the Slovenian government, which played a significant role in our decision to invest there, as it required a lot of administrative procedures.
These factors led us to choose Slovenia as the location for our nearshoring investment. This move has even been highlighted in financial news and underscores its importance in the region.
Here is an excerpt from the article in the Slovenian financial newspaper:
"When we were thinking about where we wanted to open a store, we also evaluated between Germany and Great Britain. And we chose Slovenia.", Marc Gasser, Astina CEO
"It is not known what the value of Astina's investment in Slovenia is, but it is generally believed to be the largest greenfield investment in Slovenia in the last year. The company currently employs seven people in Ljubljana and will continue to do so because it is always looking for good employees: Since the company deals with software solutions, it is primarily looking for engineers. 'We're looking for programmers who can broaden their horizons. And we are constantly looking for them,' says Marc Gasser, the person responsible for Astina in Switzerland."
"Slovenian universities have similar multi-level curricula with a practical component as in Switzerland, and there is also good access to talented people and other resources. We have also received strong support from Slovenian technology companies and organizations. On the contrary, we are very happy. Slovenia is a beautiful country, just like Switzerland, but it has the added advantage of having access to the sea. The downside of doing business in Slovenia is the additional administrative burden because Switzerland is not part of the EU."
Our experiences
The time I spent in Slovenia and actively managed the local company was very instructive. Back then, we had built a team of 30 highly qualified developers who helped us deliver software solutions. The initial effort to establish our presence and build strong relationships in Slovenia was very instructive.
Following the separation of Astina, the nearshoring site was later discontinued by the spin-off company. My experience shows that building a nearshore software development site requires careful planning, strategic evaluation, and active management. By choosing Slovenia, we tapped into a rich pool of talent and set up a subsidiary that was able to alleviate resource bottlenecks in Switzerland.
Finance published an article about the largest greenfield investment in Slovenia in 2013.
Delegations: the Internet Rockstars delegation
We have also increasingly invited customers and other entrepreneurs to Slovenia. One trip was Internet Rockstars, a delegation of Internet entrepreneurs in Ljubljana. We received an incredible amount of attention from the local Internet scene and the press. An entire week of talks and events was even organized around our event as a highlight.
On Thursday after arriving at the airport in Ljubljana, we immediately had lunch and met the first Slovenian entrepreneurs. With a full stomach, we visited the Startup House, the companies Gigodesign and 3fs in three groups. At the subsequent company CosyLab, we then learned, once again, how the controllers of the largest machines in the world work and that such companies can also study around other startups very creatively.
After checking in at the Cubo designer hotel, we met other entrepreneurs from Slovenia at Gallery Isis and listened to lectures from Invest Slovenia, the Chamber of Commerce and Industry and about culture and business from the perspective of foreigners in Slovenia. For many, the after party at the Daktari Club was not the last stop this evening.
The next morning we gathered at our branch offices to travel together by bus to Piran by the sea. Once there, we immediately tasted raw fish and a suitable white wine as a hangover breakfast. On the boat to the Fonda fish farm boutique, very close to the Croatian border, we enjoyed the few kilometers of coastline that Slovenia has to offer. As a tasteful conclusion, there was a guided tour and wine tasting at the San Tomas Winery on the hills of Koper.
Swiss foreign trade magazine also reported on Astina in Slovenia
There was also an article about Astina in the Swiss Foreign Trade Magazine, the magazine of today's Switzerland Global Enterprise (S-GE): Swiss providers of software and information technology depend on ideas, also to win over the best people. Some companies are becoming international for this reason: They want to be an attractive employer. Others understand how to market Switzerland as a secure location for sensitive data.