IT outsourcing to Bosnia and Herzegovina means engineers in that country build and maintain software for you, for example from Sarajevo. They work on Central European Time, like the Netherlands, and the level of English is good. The country is an EU candidate with a small software sector. You can work there through your own entity, a local software company, or a nearshore partner.
This guide is for decision makers looking at Bosnia for the first time. It starts with the facts: time zone, language, education, the size of the sector, and what EU candidate status does and doesn't change. It then compares the three ways of working in one table, and ends with the checks to make before you start and the drawbacks.
Bosnia and Herzegovina at a glance
The table holds the facts that matter most for IT outsourcing. The rest of the guide explains what they mean in practice.
| Topic | Bosnia and Herzegovina |
|---|---|
| Capital and largest city | Sarajevo |
| Population | About 3.1 million, World Bank figure for 2025 |
| Time zone | CET, and CEST in summer, the same as the Netherlands |
| Languages | Bosnian, Croatian, and Serbian |
| English | 21st of 123 in the EF English Proficiency Index 2025 |
| Employees in information and communication | 30,098 in paid employment, provisional figure for July 2026 |
| Higher education graduates | 10,025 in 2025, all fields combined |
| Relationship with the EU | Candidate since December 2022, not a member |
| Travel to the Schengen area | No visa needed with a biometric passport, since December 2010 |
Why companies look at Bosnia for IT outsourcing
The general reasons for working with a team in a nearby country are covered in our article on what nearshoring is. Cost is also one reason companies look to the east of Europe. Below is what Bosnia and Herzegovina itself offers, and where a caveat belongs.
You work the same hours
Bosnia and Herzegovina uses Central European Time and switches to summer time as well. If your office runs on Central European Time, as ours in the Netherlands does, a team in Sarajevo starts and finishes at the same hour as you. Standups, meetings, reviews, and releases stay where they already are in your calendar.
You notice it most with questions. One raised at ten in the morning can be answered the same morning. There's no handover when the working day ends, as there would be with a team on another continent.
English is the working language
In the EF English Proficiency Index 2025, Bosnia and Herzegovina ranks 21st out of 123 countries and regions, with a score of 591. The Netherlands ranks first. The index is based on test results from 2.2 million adults, so it describes the country as a whole.
In the country itself, people speak Bosnian, Croatian, and Serbian. Agree with your team that tickets, documentation, and meetings run in English.
Education and where engineers come from
In the 2025/2026 academic year, 71,282 students were enrolled in the first cycle of higher education, which includes bachelor's programmes. That's according to the Agency for Statistics of Bosnia and Herzegovina. In 2025, 10,025 people graduated, 0.7% more than a year earlier. Just over 90% of them graduated from a university, and the rest from colleges of higher education.
These figures cover all fields of study. The publication doesn't break out computer science or electrical engineering. So ask a partner where its engineers studied and how it brings new people up to speed.
A small sector with slight growth
In July 2026, provisional figures show 30,098 people in paid employment in the information and communication sector, according to the same agency. That's about 3.5% of all 852,603 people in paid employment. Besides software companies, the sector also includes telecoms and media.
Compared with July 2025, the sector grew by 0.7%, while total employment stayed level. In a market this size, a team of ten engineers is a serious request. Choose a partner that already employs people, rather than one that starts recruiting once you sign.
What EU candidate status does and doesn't change
Bosnia and Herzegovina applied for EU membership in February 2016. It became a candidate country in December 2022. In March 2024, the European Council decided to open accession negotiations. The Council will adopt the negotiating framework once the country has taken all the steps the Commission set out in October 2022. That's how the European Commission's country page describes it.
Nobody can predict how long the road to membership will take. For your decision, what counts is what the status means today.
What's already in place
Some of the arrangements with the EU are older than the candidate status.
- A reform agenda. As a candidate, the country is working on reforms the EU asks for. The Commission approved its reform agenda in November 2025, the same month it published its annual report on the country's progress.
- An agreement with the EU. A Stabilisation and Association Agreement between the EU and the country has been in force since 1 June 2015. Its trade provisions have applied since 2008.
- Travel without a visa. Citizens with a biometric passport have been able to travel to the Schengen area without a visa since December 2010. A kickoff or workshop at your office in the Schengen area needs no visa application.
What the status doesn't change
- The country isn't a member. EU law doesn't apply there automatically. Employment contracts fall under the country's own legislation.
- Government is layered. The country consists of the Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District. The Federation and Republika Srpska each have their own tax administration, for example.
- Your supplier is outside the EU. The arrangements that apply to doing business across borders within the EU don't apply here automatically. Discuss the contract and invoicing with your lawyer and your accountant before you start.
IT outsourcing in Bosnia: three ways to work with engineers
There are three common ways to work with engineers in Bosnia and Herzegovina. They differ mainly in who employs the engineers, who directs the work, and what you arrange in the country yourself.
1. Set up your own entity
You set up your own company in Bosnia and Herzegovina and employ people directly. That gives you full control over recruitment, culture, and ways of working. It also means a lot of work: incorporation, administration, employment law in a country with three administrative units, an office, and local management.
This suits companies that want to build a large operation there for years to come. If you want to recruit and manage people yourself without your own entity, an employer of record can handle the contract and payroll in the country. Our comparison of employer of record vs a nearshore partner explains the difference.
2. Work with a local software company
You sign a contract with a Bosnian software company. It delivers a project or puts a team to work for you. You need no administration of your own in the country, and the company knows the local labour market.
You do sign with a company outside the EU, though, and you set the agreements on ways of working, quality, and code ownership yourself. Also ask whether the engineers are employed by the company or work for it as freelancers.
3. A nearshore partner with its own entity and employees
A nearshore partner has its own entity in Bosnia and Herzegovina and engineers on permanent contracts. Some partners also have an office in Western Europe, so you can sign with a company closer to home and have a contact person nearby.
The team works for you on a permanent basis, on your backlog and your priorities. The partner looks after recruitment, coaching, and replacements. Our article on what staff augmentation is shows how such a team works with your people day to day.
The three ways side by side
| Your own entity | Local software company | Nearshore partner | |
|---|---|---|---|
| Employer of the engineers | You | The local company | The partner |
| Who recruits | You | The local company | The partner, with your approval |
| Who directs the daily work | You | The local company or you, depending on the agreement | You or the partner's team lead, following your priorities |
| What you arrange in the country | Incorporation, administration, office, and employment law | Nothing, only the contract | Nothing, only the contract |
| Who you sign with | Your own company in Bosnia | A company outside the EU | The partner, sometimes through an office in Western Europe |
| When an engineer leaves | You find a replacement | The local company finds a replacement | The partner finds a replacement |
| Suits | A large operation for the long term | A defined project | A permanent team that grows with your product |
What to check before you start
The general questions for any nearshore partner are in our checklist of 15 questions for choosing a nearshore partner. For Bosnia and Herzegovina, add these six points.
- Where in the country the engineers are employed. Ask where the company that employs the engineers is registered: in the Federation, Republika Srpska, or Brčko District. Among other things, that decides which tax administration the company deals with.
- Who you sign with. A contract with a company in Bosnia can differ from one with an office in Western Europe in governing law, language, and invoicing. Have your own lawyer read it.
- How invoicing works. Ask your accountant how to process invoices from outside the EU before the first one arrives.
- Which days off the team has. Ask for the team's calendar of public holidays and put it next to your own team's planning.
- How good the English of the actual people is. Hold a technical conversation in English with the engineers before the team starts.
- What your own contracts say. Check whether your agreements with clients contain rules on subcontracting or on work done by third parties abroad.
Also plan a visit in both directions in the first few months. A week at the same table makes the video calls afterwards much easier.
The drawbacks of Bosnia, honestly
IT outsourcing to Bosnia doesn't suit every organisation. Weigh up these four points.
- A smaller pool of engineers. With about 3.1 million inhabitants and just over 30,000 employees in information and communication, the country is a small market compared with Poland or Romania. Finding a rare specialism can take longer.
- Less name recognition. Poland and Portugal are familiar names as destinations for software work. With Bosnia, your board may first ask for an explanation. This guide can help with that.
- Administration outside the EU. Contracts, invoicing, and employment law follow the rules of a country outside the EU with three administrative units. That needs attention from your lawyer and accountant at the start. If you sign with a partner's office in Western Europe, the partner handles much of it.
- A slow road to the EU. The country applied for membership in 2016, and the negotiating framework only comes once the required steps are taken. So base your decision on the situation today.
Our team in Sarajevo
Isatis is a nearshore partner with teams in Nijmegen, in the Netherlands, and Sarajevo. Engineers from our own team in Sarajevo join our clients' teams. We've been building software for more than 30 years, with 30+ engineers and more than 100 projects, and we're certified for ISO 9001 and ISO 27001. Read more about staff augmentation in Eastern Europe.
If you're considering IT outsourcing to Bosnia and want to know which of the three ways suits your organisation, book a conversation. We'll also tell you when another model fits better.
Frequently asked questions
Is Bosnia and Herzegovina in the EU?
No. The country has been a candidate for membership since December 2022, and in March 2024 the European Council decided to open accession negotiations. Until it joins, EU law doesn't apply there automatically.
What time zone does a team in Sarajevo work in?
Central European Time, with Central European Summer Time in summer, the same as the Netherlands. If your office runs on that clock, the team can join your standup and meetings.
How good is English in Bosnia and Herzegovina?
Good. In the EF English Proficiency Index 2025, the country ranks 21st out of 123. Test the English of the engineers in your team yourself, in a technical conversation before they start.
How big is the software sector in Bosnia?
Small. In July 2026, just over 30,000 people were in paid employment in the information and communication sector, which also includes telecoms and media. That's about 3.5% of all people in paid employment.
What's the simplest way to start?
A nearshore partner with its own entity and engineers on permanent contracts asks the least work of you. You arrange nothing in the country itself and only sign a contract with the partner, sometimes through an office in Western Europe.
