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Entrepreneurs always keep an eye on global tech and innovation trends. The latter are confirming the expectations of founders, who saw the potential of technology more than 50 years ago. They understood that over time, innovative technologies would help small and large companies to grow faster at reduced costs. Cost-efficiency was the factor that gave a big boost to the outsourcing industry. On the other hand, outsourcing as a method helped not only in terms of financial cost reduction but also in terms of organizational growth and value addition.
Hence budget is no longer the main factor why to outsource business processes especially those that require technology-related talent.
The outsourcing industry is no longer looking for a workforce with basic computer knowledge or language fluency. More complex business functions require good talent. Therefore, enterprises seek to diversify their outsourcing markets. Many companies say that the talent pool in-house or in long-established outsourcing destinations is shrinking or doesn’t meet their requirements when it comes to software development. If you have been hunting for the best software engineers in your city or country, outsourcing will allow you to search for the best talent at a global level.
Startups and big-name companies delegate their IT-enabled services both to nearshore and offshore partners or vendors. How do they pick their outsourcing company? This depends on the specific needs of each company.
Various countries provide classical advantages that increase their attractiveness rate to foreign companies. Such advantages help to set them out from other competitors.
Companies located in the US pay attention to the following factors when deciding where to outsource their business processes and especially software development
Cost of operations
Talent pool
Proximity to the US
Time zone
Innovations
Ease of Regulation
Turnaround time
On the other hand, European companies look for
A skilled workforce and availability
Tax Incentives
Compliance with the EU legal frame
Geographic location or nearshoring
Time zones
The Business environment
Cultural affinity and European identity
Emerging destinations in Europe offer several options to choose from for EU-based companies that plan to nearshore their general and IT-enabled services. EU countries like Poland, Hungary, the Czech Republic, Romania, and Bulgaria are hot locations. Meanwhile, Albania, an EU candidate country, is a well-established nearshore location for Business Process Outsourcing and an emerging destination for software development. There are many factors that make Albania an interesting outsourcing destination. The country has a stable economy and offers tax incentives to software development companies, cultural affinity with the EU countries. The legal framework is being aligned with the EU law and standards. The country enjoys foreign capital invested in the BPO industry. The education system is orientating youth towards vocational education, engineering, and IT skills. Albania is a low-cost nearshore destination with IT infrastructure and a well-educated and qualified labor force.