In the latest of our new series drawing on the original analysis and data collected by Emerging Europe as part of our Future of IT report, we look at Czechia.
Czechia’s IT sector is a healthy mix of established firms, dynamic start-ups, and global giants setting up local hubs.
From AI-driven solutions and cybersecurity innovations to cloud-based services, Czechia’s tech ecosystem is diverse and rich in expertise.
However, challenges such as talent shortages, rising wage pressures, and stiff regional competition are testing its resilience.
The impact of these challenges is reflected in the country’s good, but less-than-stellar showing in the latest edition of Emerging Europe’s IT Competitiveness Index, part of our Future of IT report, in which Czechia slipped from seventh place in 2023 to ninth in 2024.
Talent
Czechia ranks just 17th in the Talent subcategory, with a score of 15.22. The country’s long-established tradition of technical education and strong STEM programmes have helped create a skilled workforce that is well-equipped to meet the needs of the IT industry. Czechia’s universities and technical schools continue to produce graduates who are highly sought after in fields such as software development, engineering, and data analysis.
Additionally, Czechia benefits from continuous upskilling initiatives and training programmes that help professionals stay up-to-date with the latest technologies. This focus on lifelong learning has enabled Czechia to maintain a competitive talent pool, despite increasing competition from neighbouring countries.
However, as demand for highly skilled professionals soars, companies are finding it increasingly challenging to fill positions. Moreover, remote work has opened the door for Czech IT experts to join international firms without leaving the country, amplifying the local talent crunch.
IT infrastructure
Czechia ranks 16th in IT infrastructure, with a score of 8.29. The country has made significant strides in developing a robust digital infrastructure, which has been key to supporting its growing IT sector.
Czechia’s investments in broadband connectivity, data centres, and mobile networks have helped create a well-connected environment that enables businesses to thrive.
The government’s digital transformation efforts, including the expansion of e-governance services, have also contributed to the country’s high level of digital readiness.
These initiatives ensure that Czechia remains an attractive destination for IT companies and investors seeking a well-established infrastructure base.
Nevertheless, according to Speedtest, its average broadband internet speed of 70.98Mbps is well behind those of regional competitors such as Poland, Romania, and Hungary.
Economic impact
Czechia ranks fourth in the Economic Impact category, with a score of 11.06. The country’s IT sector is a major contributor to its economy, with IT services exports playing a key role in driving growth.
Czechia’s favourable cost structure, combined with its skilled workforce and strategic location in Europe, makes it a preferred destination for foreign direct investment (FDI) in the IT sector.
The IT industry in Czechia has seen consistent growth, supported by government policies that promote innovation and create a conducive environment for businesses to expand.
The export of IT services continues to increase, further enhancing the sector’s contribution to the national economy.
Business environment
Czechia ranks third in the Business Environment category, with a score of 16.96, reflecting the country’s strong regulatory framework and support for IT businesses.
Czechia offers a well-established business ecosystem that fosters innovation and growth, with special economic zones, technology parks, and accelerators that provide start-ups with the resources and networks needed to succeed.
The government has introduced tax incentives and other financial support mechanisms to attract both domestic and international IT firms. Czechia’s focus on intellectual property protection and cybersecurity has also helped create a secure environment for businesses to operate and innovate.
A look ahead
Czechia’s performance in the IT Competitiveness Index reflects its strong foundation in talent, infrastructure, and business environment. As the country continues to invest in digital transformation and innovation, Czechia is well-positioned to maintain its status as a key player in the regional IT landscape.
With a solid infrastructure base, a highly skilled workforce, and a supportive business environment, Czechia’s IT sector is poised for continued growth.
The country’s ongoing focus on fostering innovation and attracting investment will be critical to ensuring its future success in the global digital economy.
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