Albania is becoming popular for skilled workforce outsourcing in Europe, especially for (Information and Technology) IT and Business Process Outsourcing (BPO). That means more and more companies, especially from Europe, are choosing to hire Albanian workers or companies to handle processes such as customer support, tech support, data management, and similar services. This article provides dedicated information on the Albanian workforce and opportunities for international business.
Why are companies choosing Albania?
Cultural and geographic closeness to Western Europe: Albania has a similar work culture and time zones; in addition, the youth and middle-aged population is highly recognized for being polyglot, as many are proficient in English, Italian, German, Greek, and other European languages.
Cost-effective labor: Salaries are comparatively on the lower spectrum, enabling companies to run cost-efficient business models.
Growing infrastructure and skilled workforce: The country is witnessing growth in its tech and education sectors, which in turn is creating more professionals for IT and support services.
Albania’s Growing Role in the European Outsourcing
Albania’s outsourcing sector has a workforce that is similar in size to that of cities such as Bratislava in Slovakia and Krakow in Poland and is larger than that of Riga in Latvia, Tallinn in Estonia, and Vilnius in Lithuania. Hence, Albania is a very competitive market in terms of the European outsourcing labor market. Also, from reports of the Albanian Investment Council, we find out that the country’s outsourced industry is valued at approximately $120-140 million and creates about 25,000-32,000 jobs, demonstrating that there is an opportunity for significant growth in the outsourcing workforce.
To read more about taxation policies in Albania, click here.
Albania’s Young and Skilled Workforce
Albania reports a very educated and skilled workforce, which includes over 160,000 annual university students and a literacy rate of 99.3% among individuals aged 15-24. Also, 27% of students are in Science, Technology, Engineering, and Mathematics (STEM) fields and 6.7% in Information and Communication Technology (ICT) programs. Also, it leads Central and Eastern European countries in IT graduate production, which is at a rate of 81 graduates for every 100,000 people. Also, we see large-scale modernization of the education system, which includes digital infrastructure improvements and the goal to expand high-speed internet access.
The official language is Albanian, which is spoken by 98% of the population and over 40% of the Albanian population is fluent in at least one foreign language which includes English, Italian, Greek, and German. English and Italian are very common among the youth. In terms of demography, the median age is 36.7 years, and the workforce in Information and Communication Technology (ICT) and Business Process Outsourcing (BPO) is very young which is 70% aged between 19 and 34.
The ICT and BPO sectors, which together employ around 40,000 people, including about 15,00 are software engineers that specialize in frontend, backend, and DevOps. The workforce is mostly located in large cities such as Tirana and Durrës and also includes other hubs like Shkodër and Vlorë, which play large roles.
To read more about Albania, click here.
If you are interested in investing in Albania, it is advisable to consult with a professional on investment opportunities that best suit your needs. Our firm specializes in international taxation, and our team is ready to assist with any related matters. If needed, we can connect you with top professionals to support your business activities in Albania. Please feel free to contact us.
