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Your Guide to Nearshore Software Development in Eastern Europe

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Your Guide to Nearshore Software Development in Eastern Europe

Daxx Guide to Nearshore Software Development in Eastern Europe reviews the 8 leading tech countries in the region – Poland, Ukraine, Romania, Czech Republic, Hungary, Bulgaria, Belarus, and Croatia. To conduct the research, we:

  • Collected data on the software development markets of the countries under review 
  • Gathered information about the number of tech professionals (The State of European Tech report) and annual graduates in each hub 
  • Calculated the average minimum/maximum rates charged by software development vendors in the CEE region utilizing such sources as UpWork, Accelerance, SourceSeek, and Glassdoor
  • Compared top programming languages JavaScript, Java, SQL, Python, PHP, C++, Scala, Ruby with the help of Google Trends to determine what are the most popular stacks in each Eastern European tech hub 
  • Analyzed startup ecosystems and the trends dominating the markets

Brief Overview of Nearshore Software Development Centers in Eastern Europe

We grouped key facts about the software development markets of the top 8 tech hubs in Eastern Europe and organized them below. You'll find: a number of software developers, hourly rates outsourcing companies charge*, most popular programming languages, the main IT cities, and dominating startup trends in each country reviewed.

Nearshore Software Development Rates

In this research, we provide the average minimum/maximum rates in Poland, Ukraine, Romania, Czech Republic, Hungary, Bulgaria, Belarus, and Croatia. All in all, the rates in Eastern European region range between $30-50 per hour.

About the method

For the research on hourly rates in each country studied, we utilized such sources as UpWork, Accelerance, SourceSeek, and Glassdoor. As a result, we determined what are the average minimum and maximum hourly outsourcing rates in each destination. Rates that are close to lower limits are typical of smaller project outsourcing vendors, while the higher ones are common of large companies or partners with domain-specific specializations. 

*We've calculated average minimum and average maximum hourly rates in each country analyzed based on the data collected from UpWork, Accelerance, SourceSeek, and Glassdoor. 

Key Facts About Nearshore Software Development Centers in Eastern Europe

CountryNumber of Software DevelopersAverage Minimum/Maximum Hourly Rates Most Popular Programming LanguagesMain IT HubsFamous Startups
Poland279K$40 - $56Java, SQL, JavaScript, Python, PHPWarsaw, Kraków, Łódź, and WrocławDocPlanner, Nightly
Ukraine185K$26 - $43SQL, JavaScript, Java, PythonKyiv, Kharkiv, Dnipro, Lviv, OdesaPetcube, Grammarly, DepositPhotos
Romania116K$26 - $45SQL, Java, JavaScript, PythonBucharest, Cluj-Napoca, Timisoara, Iasi.UiPath, TypingDNA
Czech Republic96K$34 - $53Python, SQL, JavaScript, JavaPrague, Brno, Olomouc,OstravaKiwi, Apify
Hungary80K$39 - $52SQL, Java, JavaScript, PythonBudapest, Miskolc, Debrecen, Pecs, SzekesfehervarPrezi, LogMeIn, Ustream
Bulgaria55K$34 - $51SQL, JavaScript, Java, PHPSofia, Plodiv, Burgas, VarnaEnhanCV, Connecto.ai
Belarus54K$28 - $43JavaScript, Java, SQL, PythonMinsk, GomelPandaDoc, MSQRD (Masquerade)
Croatia29K$25 - $49JavaScript, Java, SQL, PythonZagreb, Split, DubrovnikAgrivi, ExRey

*The given data on hourly rates are based on our research that covers information collected from UpWork, Accelerance, SourceSeek, and Glassdoor. We've gathered figures and counted average minimum and maximum rates in each country reviewed. The hourly costs in outstaffing companies are lower, so if you're looking to hire a remote team and manage them directly, this model is for you. 

Nearshore Software Development in Poland

Hourly Development Costs
$40 - $56
Main Tech Cities
Warsaw, Kraków, Łódź, Wrocław
Nearshore Software Development in Poland. Market Overview

Most of the tech sector income in Poland comes from computer equipment sales, IT services, and software distribution. It is expected that the revenue from the industry will increase by 45% in 2019, reaching $13 billion by the end of 2022. The software outsourcing market in the country incorporates around 700 business service centers, retaining around 150K employees. The software development sector is expected to grow at a rate of 7,2% annually, while the hardware industry is expected to grow slower – 3,2% per year.

How many software developers are there in Poland?

There are 280K software developers in Poland according to The State of European Tech report. Around 15K IT graduates enter the market annually while 99,5K high school students attend tech courses, which ensures steady growth of the market.

Software Development Rates in Poland

According to our research, outsourcing rates among Polish software development companies range between $11 and $65 per hour. If you choose one of the outsourcing companies in Poland, an average minimum software development rate will be $40, while the maximum average will be $56.

What are the top programming languages in Poland?

According to Google Trends, Java and SQL are the top popular programming languages in Poland as of 2019. JavaScript and Python go next, while Scala, C#, and Ruby lag behind with the lowest search rates.

top popular programming languages in poland
IT Startup Scene in Poland

Polish startup tech scene has been gaining ground throughout recent years, being influenced mainly by western trends. Most of the startups aim to satisfy social or economical needs with the majority of companies focusing on B2B cooperation. The Polish IT startup market is currently decentralizing – though many startups are located in Warsaw, such cities as Kraków, Łódź and Wrocław are also becoming vivid tech hubs.

Among the top Polish IT startups are AISENS (utilizes the latest tech to help patients rehabilitate both quickly and efficiently), CardioCube (monitors cardiovascular health with the help of AI), StethoMe (electronic stethoscope that helps parents examine their children, sending results directly to a doctor), DocPlanner (extensive repository with professional healthcare providers that allows its users to search for doctors and make appointments), Nightly (a sound stimulation app that helps to combat sleep-related issues.)

This outbreak of IT startups was possible not only because of the proactivity of the local developers, but also due to a vast number of tech communities and accelerators, which include MCI Capital, Inovo, Experior Venture Fund, ReaktorX, Startup Hub Warsaw, Huge Thing, Hedgehog Fund, and Founder Institute.

Nearshore Software Development in Ukraine

Hourly Development Costs
$26 - $43
Main Tech Cities
Kyiv, Kharkiv, Dnipro, Lviv, Odesa
Nearshore Software Development in Ukraine. Market Overview

Ukraine’s income from software development services provided for foreign enterprises makes $3.5 billion according to the data released by the government. The high-profit rates are rooted in the rapid growth of the tech market in Ukraine – throughout 2017, the software outsourcing market in Ukraine has grown by 20% and is expected to grow by 30% in 2019. According to UNIT.City, Ukrainian exports of IT services will be $5.4 billion in 2020 and $8.4 billion in 2025.

How many software developers are there in Ukraine? 

According to DOU research in 2021, there are currently around 250K software developers in Ukraine, but the number keeps growing, as Ukrainian technical faculties produce 36K specialists annually. The majority of software developers in Ukraine are concentrated in the top 5 tech hubs: Kyiv, Kharkiv, Lviv, Dnipro, and Odesa. 

Software Development Rates in Ukraine

Software development hourly rates in Ukrainian outsourcing companies start at $12 and may go up to $62. If you opt for cooperation with one of outsourcing partners in Ukraine, on average, the minimal hourly rate will be $26, while the maximum average will be $43. However, you can get better options with team augmentation as our services will deploy a development team for you faster to cover business pain points faster and move to new development and product artifacts.


What are the top programming languages in Ukraine?

SQL and JavaScript are the most popular technologies in Ukraine according to Google Trends. Java and Python are next scoring similar ratings, with PHP following closely behind. C++, Scala, and Ruby are the least popular programming languages in Ukraine.

most popular programming languages in ukraine

IT Startup Scene in Ukraine  

According to StartupBlink, Kyiv ranks 34th in the rating of the 1,028 largest tech startup cities. Ukraine has always been a source of tech innovations, so many local startups have already become companies with global names, these include Petcube (which brings pet owners closer to their pets with the help of a system of gadgets connected to a mobile app), Grammarly (using AI and machine learning, this service helps its users improve the quality of the texts they write), DepositPhotos (a depository with 60M+ photos/images/videos that work as an intermediary between sellers and buyers), Looksery (an app with an innovative system of simulating user's appearance for a photo or video in a real-time mode), MacPaw (apps and software to clean up Apple computers and enhance  their productivity). There are 320+ startups just in Kyiv, which means there's a multitude of promising companies in the country. Among these are Luciding, SolarGaps, Hushme, Let’s Enhance, and many others.  

To support and foster the development of tech startups in Ukraine, 20+ Ukrainian cities have established their IT-clusters. Lviv, Kharkiv, and Kyiv IT clusters are the largest ones in the country. There are also 50+ IT co-working hubs that aim to provide networking and educational opportunities for tech enthusiasts. Most of these are located in Kyiv (HUB 4.0, DataHub, Platforma, Projector, etc.), Lviv (iHUB, ITEA Hub, Startup Depot, etc.), and Odesa (Impact Hub, Terminal 42, iQSpace, etc.) Ukraine also boasts numerous business accelerators (GrowthUp, iHUB, Carrot, etc.) and hosts 1K+ tech events annually, the most famous being Lviv IT Arena, iForum and IT Weekend Ukraine.

Nearshore Software Development in Romania

Hourly Development Costs
$26 - $45
Main Tech Cities
Bucharest, Cluj-Napoca, Timisoara, Iasi
Romania – Software Development Market Overview

The IT market in Romania is worth around €1 billion, a sum which is expected to grow by 10% until 2020. The Romanian software outsourcing market is likely to become the core contributor to the local GDP in the nearest future, as since 2000 the industry has been growing by 15% annually. Romania has created a favorable environment for the development of the tech industry – 70% of the Romanian IT market is under the control of foreign investments with companies managed from abroad earning €50 million per year each.   

How many software developers are there in Romania? 

There are 116k software engineers in Romania according to The State of European Tech report. Around 7K students graduate from ICT faculties in Romania yearly, however, some of them choose other sectors for work or leave the country. As said by Andrei Pitiș, head of Romanian Employers' Association of the Software and Services Industry – in fact, the Romanian software engineering workforce increases at a rate of 3K developers per year.

Software Development Rates in Romania

Hourly software development rates among vendors in Romania range between $15-60 according to our research. If you opt for one of the tech partners in Romania, the minimum average hourly rate will be $26 and the maximum average will be $45.

hourly development rates in romania

What are the top programming languages in Romania?

SQL is the most popular programming language in Romania, with JavaScript and Java following closely according to Google Trends. Python, PHP, and C++ are next, while Scala and Ruby lag behind.

popular programming languages romania

IT Startup Scene in Romania 

Romania houses around 1K active startups and hosts 40+ startup conferences and meetups yearly. UiPath (a software company that builds robotic process automation for business processes) is the first Romanian unicorn startup that has managed to grow its revenue from $1 million to $100 million in less than 2 years. The startup ecosystem in Romania is growing rapidly, so there are multiple startups appearing yearly.

Among the most prominent are TypingDNA (typing biometrics authentication that helps to protect users' data and identity online), FintechOS (digital transformation services for financial and banking enterprises), teleportHQ (a platform for user interface professionals and designers that enables automated design and code generation), Questo (a mobile app that provides city exploration games), Elrond (broadband performance to blockchain provider).

There are currently 50+ IT hubs and co-working spaces in Romania, which facilitate the growth of innovative environment in the country. NodMakerSpace was recognized as the top co-working space on the Romanian market. Among other vivid hubs are Commons, Hub onezero, TechHub, ImpactHUB, ClujCowork, thatdevspace, ClujHub, thinkspace, Demisol, and Hub 1317. 

Nearshore Software Development in Czech Republic

Hourly Development Costs
$34 - $53
Main Tech Cities
Prague, Brno, Olomouc, Ostrava
Nearshore Software Development in Czech Republic. Market Overview

Since the early 2000's, the Czech labor market has been changing rapidly and undergone a shift towards higher-skilled employment. Thus, sectors such as manufacturing, tech and business services will keep growing, creating new workplaces. At the same time, the value of IT export services has already reached $1.78 billion. According to the Technological Readiness Ranking prepared by the Economist Intelligence Unit, Czechia ranks 27th among 82 other countries surveyed in terms of general tech readiness. The country enters the top 20 by the share of GDP (2%) spent on research and development in the IT field, outperforming such high-fliers as Canada and the UK. 

How many software developers are there in the Czech Republic?

According to the State of European Tech report, there are 96K software engineers in the Czech Republic. However, the tech workforce keeps growing by about 6K ICT graduates yearly. 

Software Development Rates in the Czech Republic

The average hourly rates of software development providers in Czechia will cost you anywhere from $12 to $54. The average minimum hourly fee will be $34, whereas the average highest pay per hour will be $53.


What are the top programming languages in the Czech Republic?

Python, JavaScript, and SQL are the most popular programming languages in the Czech Republic according to Google Trends. Java is not far below, with PHP following closely. C++, Scala, and Ruby are the least popular programming languages in Czechia.

popular programming languages in czech republic

IT Startup Scene in the Czech Republic

Among the top 12 European countries for startups, the Czech Republic was recognized as the 6th most favorable environment for doing business. Czech startups function predominantly within 3 fields: SaaS, web and mobile software services. Czechia takes pride in a vivid startup environment and has already released innovative products with global names. One of these is Kiwi – a flight booking platform that allows users from all over the world to find the best option for their trip. 

Among other promising Czech startups are Apify (a platform that enables automation of web workflow and allows to extract data from websites), BudgetBakers (an app that is your financial assistant who will help you track your expenses), Gamee (a gaming network that helps share gaming experiences across apps), Neuron Soundware (a tech startup that utilizes AI and IoT for early detection of machinery malfunctions).   

There are plenty of IT co-workings and business accelerators that facilitate the growth of startup ecosystem in the country. The majority of these are concentrated in Prague, Brno, Olomouc, and Ostrava. Among the top IT co-working spaces in the Czech Republic are Locus Workspace, Smart Coworking, Paper Hub, SVĚT–HUB, Impact HUB Prague, and many others. The leading business accelerators are AI Startup Incubator, BOLT, CzechAccelerator, ESA Business Incubation Centre, ITACA Business Incubator, Startupbootcamp Commerce, etc.  

Nearshore Software Development in Hungary

Hourly Development Costs
$39 - $52
Main Tech Cities
Budapest, Miskolc, Debrecen, Pecs, Szekesfehervar
Nearshore Software Development in Hungary. Market Overview 

Foreign companies dominate the Hungarian IT sector – 66% of the revenue from the tech industry is produced by businesses managed from abroad. These companies' main offices are predominantly located in the US, UK, and Germany. It is notable that foreign-owned companies are highly productive and provide their employees with a value two times larger than locally-controlled businesses. The value of ICT services exports has been growing at an average rate of 6.4% between 2010 and 2017, reaching 8.2% in the last year. Currently, the tech market revenue in Hungary makes $2.625 million and is expected to reach $2.813 million in 2021. The market has great potential for further expansion, as long as the investment rates keep increasing. For example, in 2017 the investment in ICT has grown by 19% when compared to the previous years. 

How many software developers are there in Hungary? 

There are currently around 80K software developers in Hungary according to The State of European Tech report. The market is continuously increasing – there are around 20K tech students studying at ICT facilities in Hungary. Though some of them choose other directions after graduation, the government promotes cooperation between students and the private sector. 

Software Development Rates in Hungary

The hourly software development rates among Hungarian vendors range between $10 and $66. On average, you'll have to pay a minimum of $39 and maximum $52 per hour if you decide to opt for one of Hungarian development vendors. 


What are the top programming languages in Hungary?

SQL and Java are the most popular programming languages in Hungary according to Google Trends. JavaScript, Python, and PHP follow closely, while C++, Scala, and Ruby are the least popular in Hungary.

popular programming language in hungary

IT Startup Scene in Hungary

Peter Zaboji had a big hand in laying the foundation of a vivid startup scene in Hungary. Back in 2009, he came with a Venture Acceleration Course (VAC), which was a set of English speaking business workshops that inspired business enthusiasts and provided them with basic entrepreneurial knowledge. Since then, Hungary's startup scene has been on the rise. 

The top successful startups that now have global names are Prezi (a cloud platform for creating engaging and interactive presentations), LogMeIn (SaaS collaboration and connectivity solution), Ustream (a cloud-based platform for video streaming services).

Among other promising Hungarian startups are Bitrise (a platform that helps mobile developers save time by automating tasks at versatile stages with 180+ integrations available), SignAll (a technology that aims to help people with auditory issues eradicate communication barriers via translating American Sign Language (ASL) to English and vice versa in real time), Springtab (a tool that collects statistics on social media attendance in a structured manner), Tresorit (a secure cloud service for file synchronisation and sharing).  

Hungary continues to develop as a startup hub, which is facilitated by multiple events such as Skill Goulash, Hackathon-in-a-Box, Budapest Hackathons, Startup Grind Budapest, and others. The majority of the top IT coworking spaces in Hungary are concentrated in Budapest, though you may also find great locations in Debrecen, Pecs, and Szekesfehervar. Among top spaces are KAPTÁR coworking, Loffice, Impact Hub Budapest, and UP center. In addition, Hungary houses several business accelerators and incubators – CEU InnovationsLab (an award winning program), OXO Labs, iCatapult, etc.

Nearshore Software Development in Bulgaria

Hourly Development Costs
$34 - $51
Main Tech Cities
Sofia, Plodiv, Burgas, Varna
Nearshore Software Development in Bulgaria. Market Overview

IT outsourcing totaled 4.8% (€2.1 billion) of Bulgaria's GDP in 2017 according to BOA Annual Industry Report. This share is expected to double by 2021, equaling 7.9% and €4 billion in value. The Bulgarian IT sector is one of the country’s leading taxpayers, accounting for 1.3% of funds spent on taxes in the economy. On average, 0.7% of IT outsourcing companies' revenue is spent on paying taxes. More than 50% of Bulgarian software development companies are owned by local entrepreneurs. The rest are outsourcing enterprises mainly owned by US, UK, Dutch, and German businessmen. 

How many software developers are there in Bulgaria? 

There are 55K software engineers in Bulgaria as reported in The State of European Tech. The number of people in the Bulgarian IT workforce continues to grow – 11.5K computer science students graduated in 2017/2018.  

Software Development Rates in Bulgaria

Nearshore software development rates in Bulgarian outsourcing companies range between $10 and $60 per hour. The average minimum hourly rate charged by Bulgarian software development companies is $34, while the maximum average is $51.


What are the top programming languages in Bulgaria?

According to Google Trends, SQL and JavaScript are the most popular programming languages in Bulgaria. Java is next with PHP and Python falling behind. C++, Scala, and Ruby are the least popular software development languages in Bulgaria.

popular programming languages in bulgaria

IT Startup Scene in Bulgaria

Some 10 years ago, there was practically no startup ecosystem in Bulgaria. The startup scene development dates back to the early 2000's, when Bulgarian tech professionals started to entice foreign business owners with their high tech expertise and moderate prices. Now, after software developers in Bulgaria have gained experience in outsourcing companies, they aspire to create unique tech solutions for their local market.

Among promising Bulgarian innovations are – EnhanCV (a service that allows students and professionals to create visually engaging resumes that highlight their qualities), Connecto.ai (a company that focuses on the creation of chat bots for versatile platforms), Playground Energy (a technology that transforms energy produced at a children's playground into noise and light), ClaimCompass (a legal tech company that helps you receive compensation for a delayed or cancelled flight). 

The central launchpad of business innovations is the Sofia Tech Park, which houses 29 companies and 14 startups. Apart from that, the tech park is a venue for 140 events, experimental labs, and continuous business development. Apart from it, Bulgaria boasts multiple IT coworking spaces, including Coworking Bansko, SOHO, betahaus|Sofia, Puzl CowOrKing. Most of the communities and events take place in Sofia, as the city is the country's main tech hub. Among prominent business incubators and accelerators are Eleven, Founder Institute, and Start It Smart.

Nearshore Software Development in Belarus

Hourly Development Costs
$28 - $43
Main Tech Cities
Minsk, Gomel
Nearshore Software Development in Belarus. Market Overview

More and more foreign companies establish their software development teams in Belarus, which in turn increases the IT sector's GDP share (currently earns 1.5% and is expected to reach 4-5% by 2020). Over 90% of the Belarusian IT market is based on exports, yet the governmental influence remains strong – there’s a variety of laws meant to control the local business environment. Among major governmental initiatives is the Hi-Tech Park (HTP), a special system for IT businesses that was introduced more than 10 years ago and is used throughout the country. There are 200+ resident companies, enjoying the benefits of state support: they don’t have to pay most of the taxes, including value-added and income taxes.

How many software developers are there in Belarus? 

There are 54K software developers in Belarus according to the results of The State of European Tech. The tech talent pool in Belarus keeps growing – this year, around 13K (20% of all graduates) IT professionals graduated from computer science faculties. If the current trend continues, the share of STEM graduates will account for 22% of all graduates by 2025.

Software Development Rates in Belarus

Hourly rates for software development in Belarusian IT companies range between $15 and $70. The average minimum pay per hour is $28, while the average maximum is $43


What are the top programming languages in Belarus?

Based on Google Trends, the most popular programming language in Belarus is JavaScript, with Java following closely. SQL, Python, and PHP go next, while C++, Scala, and Ruby lag behind.

popular programming languages in belarus

IT Startup Scene in Belarus 

Belarus takes 52nd place of 202 countries with its startup ecosystem strength and further potential. So far, Belarus boasts several startups with global names, one of these is PandaDoc – a document management platform that allows users to sign contracts and proposals right on their PC or smartphone. Another startup that has gained worldwide popularity is MSQRD (Masquerade) – it's a program that allows users to make videos and selfie animations, modifying their appearances in real-time. 

There is also a multitude of promising tech startups in Belarus, among these are BookYourStudy (a service for searching and choosing educational opportunities both in Belarus and abroad), Everhour (a project management app that helps track time, budget, and workload), Lung Passport (a system of a digital stethoscope that works in tandem with a mobile app to control the condition of your lungs, detecting and notifying you about specific abnormal sounds). 

Imaguru stands at the heart of Belarussian startup ecosystem, as it is the first business accelerator established within the country. The hub hosts hundreds of events annually, including the International Venture Day Minsk conference. Imaguru is also known for its co-working spaces and programs that help tech enthusiasts implement their ideas. Among the hub's alumnis are PandaDoc, Masquerade, and many other successful startups. Apart from Imaguru, there are also several coworking spaces in Belarus, including Event Space, TSEH, and Who is John Galt?

Nearshore Software Development in Croatia

Hourly Development Costs
$25 - 49
Main Tech Cities
Zagreb, Split, Dubrovnik
Nearshore Software Development in Croatia. Market Overview

The Croatian ICT market produces around €3.5 billion annually, with an average yearly growth of 4%. As of 2018, the share of Croatian ICT totaled 4.6%. At the same time, the share of software development professionals in Croatia is 3.3%, which is below the EU standards. The country's government has already set off an e-Schools project aiming to increase IT use and integrate computer studies into primary and secondary schools. Transparency of the public sector in Croatia is ensured with the help of tech solution – eGovernment services – a platform already providing 43 e-services. The offerings are expected to expand, adding new opportunities for collaboration between citizens and public administration. 

How many software developers are there in Croatia? 

There are 29K software developers in Croatia according to The State of European Tech. However, the market keeps increasing, adding 4K tech graduates annually. 

Software Development Rates in Croatia

Software development companies in Croatia charge from $10 to $60 per hour. The average minimum rate will be $25, while the maximum will be $49.


What are the top programming languages in Croatia?

JavaScript and Java are the hottest programming languages in Croatia according to Google Trends. SQL and Python are next, with PHP and C++ following. Scala and Ruby are the least popular stacks in Croatia.

popular programming languages in croatia

IT Startup Scene in Croatia 

2013 was a decisive year for the further development of the Croatian IT startup ecosystem, as it was the year the national cluster for the ICT sector was founded. The platform gave rise to 200+ business zones and 70+ incubators. That same year, Agrivi – one of the most successful Croatian startups was launched. The company aims to help farmers all around the world achieve highly profitable and efficient production using top farming practices collected on a dashboard accessible by the users.   

Among other up-and-coming Croatian startups are TalentLyft (software that aims to help HR and recruitment professionals in both recruitment marketing and post-recruitment issues management), ExRey (an app that scans videos and recognizes them, providing a user with the information about it), Sentinel Marine Solutions (an evolving system that provides extensive data about the boat with the help of specific sensors attached to the ship).      

To foster further innovative development, Croatia has developed a well-established business acceleration system. ZIP, the first coworking space in the country, is one of the oldest business incubators in Croatia. Among other incubators are Core Incubator, Eleven Accelerator, Hub Raum, Step Incubator. Among prominent IT coworking spaces in Croatia are Wip, ZICER – Zagreb Innovation Centre, COIN Zadar, and CoCreative.