Outsourcing in Albania: Empowering Global Businesses Outsourcing Human Resources, Marketing Services, Accounting Functions, Artificial Intelligence, and Information Technology in Albania
Albania or the Republic of Albania is a south-eastern European country with a rich heritage. It is a 228,748 square kilometres country with 2793592 inhabitants. Tirana is the capital and the largest city of Albania. Albania is a developing country where the service sector and manufacturing industry contribute to the major portion of the economic growth. Albania’s high population functions as an asset for the country’s development. It has the fourth-lowest unemployment rate in the world. Due to its modern infrastructure and strategic geographical location, many countries like Italy, Greece, China, Spain, and the United States are forming trading partnerships with Albania.
Consequently, Albania is becoming one of the most preferred outsourcing hubs in the world. Many developed countries are investing in the Albanian human resource.
Albania is a cost-effective solution for the foreign countries to outsource their parts of the business. Albania has become a crucial outsourcing centre in the world. According to the data of the Albanian Investment Council, the outsourcing industry of Albania is estimated to be $120 to $140 million with almost 32000 professionals.
The above data evidently shows the prospect of the outsourcing market in Albania. Let’s talk about the different sectors and benefits of outsourcing in Albania in the following write-up.
Human Resources Outsourcing in Albania
Albania is a good serviceable place for human resources outsourcing. You can get personalized HR solutions in one place here. The agencies in Albania have been successfully collaborating with foreign companies and start-ups. Foreign companies can utilize the talents of Albania for the harmonious growth of their businesses.Â
Benefits of Outsourcing Human Resources in Albania
- Educated young workforce: A major part of the workforce of Albania is under the age of 35. As a result, the Albanian workforce is extremely resilient and youthful. Additionally, they are educated and experts in their respective sectors. The developers in Albania constantly learn and gain expertise in fields such as Java, C ++ programming language, PHP, R, and many more.
- Multilingual workforce: People of Albania are well-versed in multiple languages such as Italian, English, German, French, Greek, etc. In the earlier time, Albanian people learned multiple languages for the purpose of going abroad and earning a livelihood. That tendency has been sustained till the present day.
As a consequence, most of the people of Albania speak more than one language. This can be beneficial for the foreign countries which want to invest in the Albanian workforce. Working with a multilingual workforce has its perks. This will lead to a smooth communication between the employers and employees.
- Affordable labour cost: The outsourcing companies in Albania offer quality services at a lower cost. Compared to other developing countries of Southeast Europe, quality human resources cost up to 50% less in Albania. That is why it becomes a sweet spot for outsourcing human resources in Albania.
- Dynamic services: When you are thinking of outsourcing human resources to Albania, you can rest assured that it will help you find the best potential in the market through all kinds of services. The services include strategic human resource management, analysis of the industry, competitors, resources, technology, economic factors, help in the recruitment process, and so on.
Marketing Outsourcing in Albania
Marketing outsourcing is a preferred way for international business organizations to promote their brand identity. Outsourcing companies in Albania provide quality services like software analysis, web development, graphic and web design, social media marketing, data analytics, e-commerce, branding, SEM, and SEO on various platforms.Â
Benefits of marketing outsourcing in Albania
- Benefits of EU: Currently, Albania is an EU candidate country. This will open a door of multiple potentials for the foreign companies to outsource their work in Albania. The companies interested in partnering with Albanian companies will be able to utilize benefits including minimum legal and financial concerns.
- Workforce with practical knowledge: Albanian education system has established quite a strong relationship between business organizations and educational institutions. As a result of that, the workforce can gain practical knowledge through internship programs, workshops, and seminars, etc.
- Investor-friendly economy: Albania has established an investor-friendly economy for overseas companies. Albania has been attracting increasing levels of foreign direct investment (FDI) for the last ten years. According to the recent data from UNCTAD, the flow of Foreign Direct Investment has reached USD 1.2 billion from 2016 to 2019.
Moreover, at the end of 2019, stock FDI reached USD 8.8 billion. This data shows how the government of Albania has created investment opportunities for foreign countries. That is why the international brands are getting encouraged to invest here and outsource their marketing tasks to the Albanian workforce.
IT Outsourcing in Albania
Albania is one of the fast-growing IT outsourcing hubs in the world. International companies are now relying on the services of Albanian agencies for their IT work. Albania has specialized professionals in the fields of IT including Artificial Intelligence (AI), Internet of Things (IoT), Cybersecurity etc. Currently, the overseas companies are utilizing the talent pool of IT in Albania for handling their IT functions.Â
Benefits of IT Outsourcing in Albania
- Diversified IT services: Albanian outsourcing companies provide quality IT services at a cheaper rate. The offered IT services are programming, application development, data management, technical support, IT infrastructure management, IT staffing, and so on.
- Cheaper real estate: For overseas companies, it is a wise decision to open new branches in Albania. Real estate is cheaper in this country compared to other European countries. Albanian coastline can be an alternative for the property investors. Property prices in Albania are very low here. For example, vacant lands cost in a range of €40 – €150 and newly built apartments in Tirana cost €500 to €800 per square meter.
- Convenient visa and work permit rules: Citizens of the European Union (EU) and Schengen countries can enjoy the same employment rights as Albanian citizens. US citizens are also permitted to stay in Albania for a year without a residence permit. However, to work in Albania for more than three months, the outsiders need to apply for a work permit.
Generally, it takes up to 30 days after submitting the documentation to get approval or denial. The time limit for a work permit depends on the category. Among the four main Albanian work permit categories, Type Ais applicable to both employers and employees. Then Type Bis for independent economic activity permits and Type C is for special occasions. Finally, the Type D category is applicable to eligible foreigners who want permanent work permits. The work permit processing time is shorter than other permit types in Albania. This is also a positive point of outsourcing in Albania compared to other countries.
Accounting Outsourcing in Albania
Accounting management is one of the vital tasks of a business company. It is preferable for the business companies to outsource their accounting work to other agencies. Albania can be a good choice in such a scenario. The accounting outsourcing providers of Albania offer accounting services such as management accounting, tax accounting, financial analysis, forensic accounting, etc. Outsourcing accounting work to Albania is a good decision. The benefits of accounting outsourcing in Albania are discussed below.Â
Benefits of accounting outsourcing to Albania
- Favourable tax systems: Albanian Code of Laws has set a 15 percent corporate income tax rate for the companies earning more than 14 million Albanian Lek (ALL). The companies which earn less than this amount do not need to pay any corporate income tax. The employers in Albania are obligated to make social security and health insurance contributions at a rate of 16.7%. The progressive income tax system of Albania has made a favourable environment for the overseas investors.
- Payroll outsourcing service: If you choose to take help from accounting services in Albania, you will not have to set up your own payroll. The provider will set the payroll for you. There are four different Albania payroll options like internal, remote, and collaboration with local and global companies.
AI Outsourcing in Albania
AI or Artificial Intelligence has become an essential part of the current business system. Needless to mention, it is a new revolution in the digital world. While the industries are utilizing the diversified functions of Artificial Intelligence, they also tend to outsource such work to different countries.
 Albania has proved to be the ideal choice for AI outsourcing. They provide AI outsourcing services like automation of repetitive tasks, streamlining processes, implementation of AI-powered technologies, and so on. That is why AI outsourcing in Costa Rica can be a wise choice for the foreign companies to increase their productivity and service quality. The benefits of AI outsourcing in Albania are discussed below.Â
Benefits of AI Outsourcing in Albania
- Cultural similarity with Central and Eastern Europe: Albania resembles Central and Eastern Europe in many aspects. So, it will be easier for foreign companies to deal with the local market of Albania.
- Growing technological market: Albania is observing technological advancements in recent years. This market has great potential. So, AI outsourcing to Albania can not be a wrong decision for the overseas companies.
Conclusion
Undoubtedly, Albania is a great choice for the outsourcing tasks of different business organizations. It is clear from the discussion that the Albanian outsourcing system offers valuable service at a lower cost. So, you can choose Albania for your outsourcing purpose without any tension. Hopefully, the above write-up has successfully provided insights into the major points of outsourcing in Albania for your better understanding.
FAQs
What do I need to do first for outsourcing in Albania?
First of all, when you have taken the decision of outsourcing in Albania, you need to set your outsourcing goals and proceed according to that plan. Then you need to research the current legal and business environment of Albania to understand whether it aligns with your business purpose. After that, you need to implement offshore management protocols and it will be better if you move to the cloud. Finally, choosing the right outsourcing model will help you obtain your outsourcing goals in Albania.
Is it a good choice to conduct business process outsourcing in Albania?
Business process outsourcing is an effective strategy to increase the productivity of the company. If you choose to conduct business process outsourcing in Albania, you can get quality service at a much lower cost. It will decrease your labour cost compared to the cost in your home country. Also, business process outsourcing increases the productivity and likelihood of success. According to recent data, 70% of small businesses often fail in less than a year of operation due to management problems and so on. The business process outsourcing will help such companies survive in the market and allow them to access knowledge that was costly for the small businesses. Also, the tax on profit here is only 15%. Overall, business process outsourcing is a good choice in Albania.
How can I choose an appropriate outsourcing provider in Albania?
Sometimes it can be difficult to choose the perfect outsourcing companies for designated jobs. You can choose the right outsourcing provider by checking out recommendations, case studies, and reviews from other companies that have used the service. Also, you need to check the company’s expertise and experience level in local employment laws and regulations, the range of services they offer, the company’s reputation and track record, and finally, cost and value for money.
How involved do I need to be in the daily functions of my business if I choose an outsourcing provider?
As a business owner or a manager, you may need to be involved with the tasks depending on the services of the outsourcing provider. If your provider offers a fully managed service, you will not have to get involved with the work at all. However, if the outsourcing company does not provide a fully managed service, you will have to get involved in decision-making, policy development, and employee communication at some level. Also, the outsourcing service can be customized to meet your specific demand.
Find more resources about outsourcing:
Outsourcing Information Technology
Outsourcing Artificial Intelligence
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