Two Decades of Innovation: Microsoft Development Center in Serbia Contributes to Global Technological Advancement
Microsoft Development Center Serbia (MDCS) is celebrating two decades of innovation, global impact, and the development of technological talent. Founded in 2005 as the fifth Microsoft development center of its kind in the world, it started with a small team of eight engineers; today, it employs over 800 people and contributes to key Microsoft products and technologies.
“Our experts work on global Microsoft products such as Microsoft Word, Microsoft 365 Copilot, Azure, and Fabric, used by millions of people worldwide. These services are utilized by some of the world’s largest enterprises for their most demanding applications, which further confirms the quality of our engineers. I’m especially pleased to see the resulting positive impact on the entire IT community and the broader ecosystem in Serbia,” said Dražen Šumić, Director of the Microsoft Development Center in Serbia.
Left to right: Andreja Ilić, Milan Simić, Jelena Mojašević Katanić, Dražen Šumić, Milena Milojević. Photographer: Filip Tasić.
Cloud and AI: Global Impact from Belgrade
MDCS is a key pillar of Microsoft Cloud – 60% of employees work on Azure technologies, including Azure Core, Azure SQL Managed Instance, and Fabric Data Warehouse. Teams from Belgrade also contribute to AI integrations in Microsoft Word, Microsoft 365 Copilot, and Fabric, as well as hardware projects like Azure Boost. “Fifteen years ago, we launched the first Microsoft machine learning model integrated into a global product from Belgrade. In just the past three years, we’ve produced over 20 innovations that have become part of Microsoft 365 and Windows platforms. This shows how a culture of curiosity and rapid experimentation at MDCS leads to long-term success,” explained Andreja Ilić, Partner General Manager, Office Product Group.
A Talent Magnet and Diverse Team
Today, MDCS brings together experts in three strategic groups — Cloud & AI, Experiences & Devices, and Microsoft AI. The center is multicultural: 13% of employees come from abroad, and 19% are women. “In the past two years, we’ve received over 30,000 applications for open positions. Our engineers develop expert skills in modern technologies and regularly learn and grow through creative and innovative ideas – that’s why they choose to stay,” said Jelena Mojašević Katanić, Principal PM Manager, Applied Sciences Group.
Community and Education
The center continuously invests in the local community and education through initiatives such as Bubble Cup, Women Know IT, and Petlja. Bubble Cup marked its 17th edition in 2024, while programs for girls and women in IT have reached over 1,000 participants so far. “Every week, more than 50,000 students learn on the Petlja platform, which offers 24 free courses aligned with the official curriculum. With Microsoft’s support, we tested microbit devices for neurodivergent children in 50 schools and are now working on expanding the project nationwide,” said Milan Simić, Director of the Petlja Foundation.
Microsoft Garage in Belgrade: From Idea to Prototype
Microsoft Garage Serbia, opened in Belgrade in 2025, is an innovation hub for developing prototypes, experimental projects, and hackathons. As the second Garage location in Europe, it connects the Microsoft development center with startups, universities, and the tech community.
Looking Ahead: Responsible AI and “Frontier” Companies
MDCS is positioning itself as a regional AI innovation center with a focus on generative and responsible artificial intelligence. According to the Microsoft Work Trend Index 2025, early AI adopters report up to 3.7× higher returns and a 40% increase in productivity, and MDCS’s mission is to empower “frontier companies” with technology and skills.“For twenty years, MDCS has shown that local talent can shape global technologies, contribute to the economy and community, and position Serbia as a leader in cloud and AI innovation. The future is exciting as new generations of engineers continue the journey from garage to global products”, concluded Dražen Šumić.
Top image: Microsoft Development Center Serbia (MDCS) is celebrating two decades of innovation, global impact, and the development of technological talent. Left to right at the panel discussion image are Andreja Ilić, Milan Simić, Jelena Mojašević Katanić, Dražen Šumić, Milena Milojević. Image courtesy of Microsoft, taken by Filip Tasić.