Services and shared-service centres have established themselves as the most resilient segments in Serbia’s economy for 2025. This sector has thrived due to robust external demand, low capital intensity, and high labor productivity, contrasting sharply with the performance of domestic-focused industries such as construction and energy.
The international market for ICT services and shared-service centres has shown significant growth, with service exports increasing nearly 10% year-on-year. Total exports from the ICT and business services sectors are estimated to be around €4–5 billion, representing approximately 7–8% of Serbia’s GDP. Mature operators in the shared-service space reported revenue growth rates between 8% and 15%, primarily driven by contract expansions rather than price hikes.
Profitability metrics in these sectors remain strong. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins for IT, business process outsourcing (BPO), and finance-back-office operations typically range from 18% to 30%, varying by specialization and automation levels. Despite facing wage inflation between 12% and 15%, net margins have remained stable due to the high value-added per employee and minimal reliance on energy or material costs.
Capital expenditure requirements in this sector are relatively low. Most service exporters maintain capital expenditure intensity below 3% of their revenues, focusing investments on IT infrastructure and office expansions rather than heavy assets. This approach has facilitated strong free cash flow generation, often exceeding 10% of revenues, which supports dividend payments, internal reinvestment, or strengthening of balance sheets.
Labor costs present a significant challenge as competition for skilled workers drives up operating expenses and compels companies to invest more in employee retention and training. Nevertheless, productivity improvements have counterbalanced wage increases, with revenue per employee continuing to rise. This trend reinforces Serbia’s position as a competitive near-shore services hub.
As of the end of 2025, services and shared-service centres emerged as the most attractive segment for investors within Serbia’s corporate landscape. Their financial performance reflects a combination of growth, profitability, and cash generation capabilities while exhibiting limited balance-sheet risk. Companies in this sector are poised to enter 2026 with strong momentum and strategic importance within European service supply chains.
