From Nearshoring Destination to Technology Partner: Building Global Companies in the Western Balkans

For years, the Western Balkans has primarily been presented to international companies as a source of qualified talent at competitive operating costs. That remains part of the region’s value proposition, but it is no longer the full story.

The growth of companies such as ZenDev demonstrates that the Western Balkans is increasingly capable of supporting more sophisticated forms of international cooperation: long-term technology partnerships, product development and globally oriented companies built around regional talent.

In this video, Senad Šantić, co-founder of ZenDev, discusses the experience of building a technology business connected to both Bosnia and Herzegovina and Sweden. His perspective highlights how international market access, local technical expertise and close cultural connections can combine to create companies that compete well beyond their domestic markets.

Proximity is about more than geography

The Western Balkans’ location close to the European Union is frequently cited as an advantage for nearshoring. Companies can work with teams in similar time zones, travel relatively easily and maintain more direct communication than is often possible with distant offshore destinations.

However, effective proximity also depends on how people work together.

European clients need partners who understand their expectations, communicate clearly and can integrate into existing workflows. Shared business practices, strong language skills and familiarity with European markets make it easier for teams from the Western Balkans to collaborate directly with international clients.

This allows the relationship to move beyond the traditional outsourcing model, in which an external supplier simply executes predefined tasks.

The stronger opportunity is to create integrated teams that contribute to decisions, solve problems and take responsibility for long-term outcomes.

Building capability, not only reducing costs

Competitive employment costs remain relevant, particularly as European companies face rising development expenses and persistent difficulty recruiting technology professionals.

However, choosing a nearshoring destination purely on price is a weak long-term strategy.

The quality of the available workforce, the ability to retain employees and the maturity of the local technology ecosystem are ultimately more important. A team that requires constant replacement, supervision or correction will quickly eliminate any apparent cost advantage.

Companies operating successfully in the Western Balkans show that the region can support experienced engineers, multidisciplinary product teams and long-term client relationships.

The value is therefore not simply that companies can hire at a lower cost. It is that they can build capable teams with the technical and commercial understanding required to contribute meaningfully to the business.

International connections create stronger local companies

ZenDev’s development also illustrates the importance of connections between the Western Balkans and its diaspora.

Professionals who understand both the regional talent market and the expectations of Western European clients can bridge gaps that commonly undermine international partnerships. They can translate business requirements, build trust and connect capable local teams with markets in which demand is significantly larger.

This creates benefits on both sides.

International companies gain access to skilled professionals and a geographically close delivery base. Regional employees gain exposure to international projects, modern working practices and opportunities that might otherwise require relocation.

Over time, this exchange strengthens the regional technology ecosystem and helps local companies move from subcontracting toward higher-value services and their own products.

A more mature nearshoring proposition

The next stage of the Western Balkans’ development should not be defined by being the cheapest available option.

Competing exclusively on cost creates a ceiling. It positions regional companies as replaceable suppliers and makes the market vulnerable whenever a lower-cost destination emerges.

A stronger proposition is based on capability, reliability, proximity and the ability to build lasting partnerships.

The experience of entrepreneurs such as Senad Šantić shows that the region already possesses many of the ingredients required: technical talent, international networks, entrepreneurial ambition and direct access to European markets.

The opportunity now is to combine these advantages at a greater scale.

For international companies, the Western Balkans should therefore be evaluated not merely as a location from which to purchase development capacity, but as a region in which to build integrated technology teams and long-term business partnerships.

Watch the video to hear Senad Šantić’s perspective on building an internationally oriented technology company from the Western Balkans.

Discover further insights and download the full Western Balkans Nearshoring Report at westernbalkansreport.manpower.ba.

RECONOMY is an inclusive and green economic development program of the Swedish International Development Cooperation Agency (Sida), implemented by HELVETAS Swiss Intercooperation in the Eastern Partnership and the Western Balkan countries.The Report is done in cooperation with Manpower offices in South East Europe who provided market research and analytics.