KATALOG ABSA Web

BUSINESS PROCESS
OUTSOURCING IN ALBANIA

July 2018

Albanian Business Services Association © Albanian Prime Minister’s Office, 2018

BPO in Albania, 1

WHY OUTSOURCE IN ALBANIA?

The potential of Albania as one of most preferred destinations for BPO services came into light in 2000 as a
developed market and regional power in the Balkan. Albania country has transformed into a major destina-
tion for BPO services with its urban culture, availability of resources, infrastructure and attractive Investment
Incentives. Availability of quality workforce is one of the key requirements for the growth of BPO. Albania,
with over 20 universities, generates graduates in most faculties including Engineering, Medical, Finance, IT,
Social and other sciences. This offers a large pool of foreign speaking graduates and skilled resources which
can be immediately absorbed by the flourishing BPO Albania industry.

• Cost of Operations Language skills are high, with a majority of gradu-
Albania has a cost advantage, as it offers lower cost ates fluent in English and Italian, French or German,
of labor, and the real estate prices are also modest Spanish or Greek.
when compared to other metro country in Balkan. As Albania has more skilled workers than other coun-
per CBRE (property consultant) estimates, office tries in the region, and a rising proportion of STEM
rents in Skopje ranges from P20 €/m2 to P27 €/m2 graduates.
compared to Tirana city where it is just from P11 • Favourable Business Environment
€/m2 to P20 €/m2. The firm also shows that the cost Albania offers a positive macroeconomic environ-
of electricity is 11% higher and water 8% higher in ment with one of the lowest inflation rates in the
Skopje, as compared to Tirana City. region and a stable economy.
• Infrastructure Albania is the third least expensive country across 38
Albania has an urban infrastructure with intercon- European countries by purchasing power parity.
nected transportation, a booming real estate market, Albania is one of the fastest-growing economies in
educational infrastructure, medical institutions, and Europe with a healthy growth rate of 3.84% in 2017.
above all a business catalyst culture. Albania also
fares well in education and quality of life. Broadband Transportation Business parks
• Available and Skilled Talent Pool networks
Albania has a cost competitive and young workforce
and the education system on par with European • Attractive Investment Incentives
standards Albania has a very liberal foreign trade policy and has
signed Double Taxation Treaties with more than 30
countries. Numerous free trade agreements (EU,
CEFTA, EFTA, Turkey and USA GSP Program) are
established to help businesses export.

Major Business Processes Outsourced to Albania Incentives Relevant to BPO Sector
Data entry and Call centers in Albania are among the • Exemption from Corporate Income Tax (up to 50%
top outsourced services in Albania. of the tax amount) for a period of 5 years. (Current
Some of the other major business processes being CIT rate is ~15%)
outsourced to Albania include: • Custom duty & exemption from VAT for Albanian
• Call centers goods that enter Technical and Economic Develop-
• Voice Processes ment Areas (TEDA)
• Back office Automation • R&D costs are twice deductible for 10 years
• Finance and Accounting • Data Entry Services.
• Graphic Designing
• Web Designing

BPO in Albania, 2

HOW OUTSOURCING TO ALBANIA
CAN HELP YOUR BUSINESS?

The notion of outsourcing is increasingly changing and it no longer refers to the removal of businesses or
jobs from a country. On the contrary, today outsourcing is more about forming global partnerships and
exploring efficacious ways of completing crucial projects. While Rumania, Bulgaria and Ukraine have
garnered immense appreciation and acceptance in Europe for being top outsourcing destinations, gradually,
many new countries are emerging as providers of best-in-class resources and quality-focused solutions
while giving global organizations a lot of reasons for outsourcing. One of them is Albania.

Albania- An Evolving Destination for Outsourcing • Similar Time Zones
Owing to time-zone compatibility, cultural similari- One of the biggest advantages that firms offering
ties, and a tech-savvy demographic, Albania offers outsourcing through Albania is that we don’t have
high-quality development services to the companies different time zone. This significantly reduced time
outsourcing in the region. difference allows much lesser response times
Innumerable trends Albania have created an between the teams and highly synchronous com-
ever-growing pool of IT talent which can then be munication, enabling the resolution of issues
deployed by companies to achieve low-cost devel- quickly. Communication is one factor which tends to
opment services. suffer due to large differences in time zones and
outsourcing to Albanian Cities eradicates this issue
• Suitable Business Environment completely.
Most Albanian cities are developing state-of-the-art • Abundance of Technical Talent
IT and business hubs and are giving companies Most Albanian cities boast abundant tech talent as
worldwide a plethora of reasons to outsource their the number of qualified and experienced developers
services. The cities that are included in this list are is on the rise in such cities. Even when browsing
Tirana, Durrës, Shkodra, Elbasan, and Vlora. With through online freelancing websites for program-
favorable business policies and political stability, mers, one can find hundreds of high quality
these cities can be chosen as your next offshoring programmers from the cities subsuming Tirana,
option to gain further business benefits. Durrës, Vlora, Shkodra, Elbasan and many more. The
• Cost-effectiveness technical workforce in these cities is growing steadi-
Although many believe that while outsourcing ly & will continue to grow, and this is one of the most
projects, cost should not be the only factor, nobody prominent reasons for outsourcing to Albania.
would deny that it plays a pivotal role. Cost-effec- • Skills in foreign languages
tiveness is among the top aspects one considers Albanian cities have propensity to learn foreign
while deciding about their outsourcing partner and language, you can find people that speak perfectly
cities of Albania are quite cost-efficient when several languages. You don’t need to invest on
it comes to outsourcing development projects. The foreign language trainings.
hiring rates for quality developers and other similar • Fast Growing Outsourcing Market
professionals are much lower than the Italy, Germa- As the global marketplace for outsourcing services
ny, Greece, France, Spain, UK, Switzerland, a factor is expanding, Albania is evolving more rapidly. With
which plays as a strong point for Albania. cities like Tirana, Durrës and Shkodra taking the
lead, there are several other Albanian cities which
are gradually making their place in the offshoring
landscape.

ALBANIA - THE TRUE NEARSHORE BPO in Albania, 3

The BPO sector in Albania has seen steady growth since Shkodër Elbasan
its inception and currently employs approximately
35,000 professionals and across more than 850 firms.
Tirana is the BPO hub of Albania, followed by Durrës,
Shkodër and Vlorë.

Most Albanians working in the sector are under 35, with Tiranë
excellent language skills and a wide range of academic Durrës
backgrounds.

The Global IT-BPO market has recorded steady growth
since 2012. IT forms a large part of outsourcing
expenditure in Europe. European companies prefer
nearshoring, a destination like Albania, rather than
offshoring. Albania's BPO industry is in an emerging
stage and this is the right time to invest.

BPO services in Albania are used by renowned brands Vlorë
such as: Adidas, Vodafone, eBay, Sky, Apple, Barclays,

Groupon, Air France and Alitalia. Current client markets

are: the UK, France, Spain, Germany, Austria, Switzer-

land and Italy.

The total industry size is estimated
to be between $130m and $160m

Major BPO companies in Albania

BPO in Albania, 4

CUSTOMER INTERACTION SERVICES

Inbound Services:
Customer Support
• Inbound contact center: administer incoming
product support or information inquiries from
consumers
• Off-shore CRM (Customer Relationship Manage-
ment) solutions for international companies
• Client centricity: offering personalized support
adapted to the specificities and expectations of
your customers
• BPO companies offer the best level of quality by
training, attracting and retaining representatives
• Additional services in in order management,
billing, queries, reservations and booking, product
information and maintenance

Outbound Services: Marketing Services and
Research

• Monitor customer preferences and their satisfac-
tion through telemarketing, market research, polls,
retention and traffic building campaigns
• Updating lists, databases, surveys and providing
verification services
• Tele-selling of products over the phone to Italian,
German and English language speakers
• Companies primarily serve Italian makets, provid-
ing a cost advantage in the range of 40-45%.

BPO in Albania, 5

STATISTIC OF CALL CENTER SUBJECTS

Report on new registra�ons of CC subjects at certain �me
periods

363

280
247

166

77 82
54

4 12 5 7 11 17 26

1992-2000 2003-2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 APR-18

Status
Un re gistered
Deregistered Wi thout

8% Li quida�on
0%

Ac� ve Oth e r Sus pended
68% 24% 21%

Compa ny i n Liquida�on
Proces s
3%

Ac�ve Deregistered Suspended Company in Liquida�on Process

Unregistered Without Liquida�on

BPO in Albania, 6

IT AND SOFTWARE OPERATIONS

Product Localization Human Resources and Software Development

• Strategy, selection, design, planning and manage- • ERP Technologies (SAP, SAP HANA, Microsoft AX)
ment of technological solutions • Business Intelligence – Analytics (Oracle, QLIK,
• Roll out and upgrade services Microsoft)
• Translation of applications and systems • Enterprise Applications (design and implementa-
• Quality assurance testing to ensure that the tion of application portfolios based on ERP solu-
products or apps are free of any faults or mistakes tions)
without compromised functionality
• Desktop Publishing (DTP) to maintain original Web and Graphic Design
layout through the use of graphic software
programs • Mobile app development and design
• Web development and design of sites via different
IT Maintenance and Helpdesk web platforms
• Digital marketing services (SEO, SMM, PPC) to build
• Maintain IT Risk & Governance, business systems a strong online reputation for your business
confidence, project confidence, information security • Creative design services to create a unique and
and privacy strong visual identity for your brand
• Helpdesk and system support for technology and
information management
• IT consulting consists of a well-established Univer-
sity network focused on computer science and
engineering and mathematics
• IT Helpdesk services used by several renowned
brands including Apple and eBay

BPO in Albania, 7

FINNANCE AND ACCOUNTING

Auditing Services Tax & Legal Services

• Perform financial audits and advisory projects • Tax due diligence, tax review and tax consulting
focusing on internal controls • Tax compliance services for local and foreign
• Risk and financial management for many local and companies
international companies • Corporate and personal income tax, value added
• Fraud protection, corporate governance and tax, tax litigation and procedures, transfer pricing,
sustainability reporting services international tax, tax restructuring and optimization,
• Audit or examination of group reporting packages, excise tax, customs duties, international trade
interim audits, internal controls review. procedures, as well as other tax compliance and
advisory services.
Financial & Banking Law Services • Business Tax Services, Global Compliance and
Reporting, Indirect Tax Services, International Tax
• M&A advisory, business valuation and financial Services
modelling for national and international organiza-
tions Transaction Services
• Preparation of financial statements, financial or
group statements, and the analysis of internal • Valuation and business modelling
control systems. • Corporate development and divestiture advisory
• Compilation of financial statements in accordance • Transaction diligence, transaction tax, transaction
to IFRS or other recognized accounting standards analytics and transaction law
• Serve multinational companies in fields of com- • Operational transactions and strategy services
mercial law, banking and financing, consumer
protection and product safety, competition law,
employment law, IP law, personal data protection,
public procurement, environmental law and dispute
resolution.

BPO in Albania, 8

OUTSOURCE TO ALBANIA

CLASS - AOFFICE RENTAL(SQM / MONTH) CONTACT CENTER AGENT SALARY

+1 Multilingual population € 33 € 31 Al ba nia € 4,200
€ 28 € 27 Poland € 8,700
Romania
€15 € 19 € 6,300
€ 6,853
Bulgaria € 6,420
€ 10,200
Ukraine
Albania Poland Romania Bulgaria Ukraine Czech Czech Republic

Republic

South Eastern Europe Cultural A ffinity Real Estate ~40% Salary ~50% lower
Time Zone: CET (UTC+1) cheaper

Serv es Approx. 32,000 State of the art EU Mature laws Stable NATO
many employees Telecom Candidate mirrored to EU Republic member
v erticals

Multi channel Ranks 8th Globally in Minority Investor Protection
capabilities
SMAC ready

Serv ice 32% 25% 160,000Annual
Orientation Surplus talent Supply Univ ersity
(15 24 age group) Enrollments

Advantage Albania- Summary

• Near-shore to many EU countries. Less than 2 hours flying time from large markets such as Italy, France,
Germany and Switzerland
• Cultural affinity with developed European markets, liberal society and a young multi-lingual population
• Liberal Visa regime, Member of NATO and official candidate for accession to the EU
• Suitable Infrastructure- Air, Land Transport, Tirana Business Park, High Internet Penetration and Fixed Line
Connectivity
• Competitive Labor and Operating Costs – average wage almost half of Italy, 3rd least expensive country in
Europe, economical office space & utility costs
• Politically stable, open economy and a liberal foreign trade policy
• Incentives for outsourcing industry – Special perks for local entrepreneurship and for employing women
and disabled persons; incentives for operations in tier 2 destinations
• Sustainable Talent Pool- High proportion of graduates in Business, Law, Humanities and STEM courses;
>30% Unemployment in age group 15-29 years

BPO in Albania, 9

MARKETING AND PROMOTION PROGRAM

There are certain elements that are vital for an effective Marketing Campaign
An effective Marketing and Promotion plan entails utilizing key communication
channels, employed independently or in conjunction with each other.
The associated figure illustrates the proposed Marketing and Promotion Mix for BPO Investment:

Albanian Social
Diaspora Media

Website

Key information Source Promotional

Public Relations Global Gateway Events & Linkages
Media Coverage
Events & Conference
Branding
MNC’s in In/Outbound Events Media
Distinct Channels
Sectors Business Linkages

Industry Publications & ALBANIA Marketing Collaterals
Surveys BPO Brochures
FLyers
AT Kearney GSLI ASSOCIATION Leaflets
Global Services

Economist, Financial Fact Sheet

Times Pitch Deck etc

Industry Research Industry Brand
Forums Content Roundtables Ambassador/
Industry Research Stakeholder-Enabler Interface Local Leader
Local Ecosystem Business-Govt. Coordination
Third Party Research

High Comm.
&

Embassies

BPO in Albania, 10

WE ARE READY TO ASSIST YOU!

Business Process Outsourcing is a strategic sector in Albania and a dedicated Ministry works on industry
development. There is also a dedicated Minister of State for the Protection of
Entrepreneurship and Investors.
Strategic investors are assisted by the Albanian Investment Development Agency throughout the imple-
mentation phase, including:
• Preparation of documents and administrative application with accelerated procedure by a dedicated
assisting agent
• Preferential priority treatment for preparing documentation, giving opinions or pursuing procedures for
the preparation and implementation of strategic investment
• Land consolidation and support with related infrastructure
• Making available state-owned buildings for the development and implementation of strategic invest-
ment projects.

In addition, Albania offers a business-friendly regulatory environment for investments.
• One stop-shop for company registration and business licensing
• Business licensing through a fast-transparent procedure, easily verifiable online, by the National Licens-
ing Centre for 100 ALL (< 1 Euro)
• An online system for tax filing and payments applied in the country
• The Albanian business legal framework is in compliance with the EU legislation.

CONTACTS
Albanian Investment Development Agency
[email protected]
http://aida.gov.al/images/ckeditor/STRATEGIC%20INVESTMENT%20LAW%20eng.pdf

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Albanian Business Services Association