Business Process Outsourcing - Albania

Revenue in the Business Process Outsourcing market is projected to reach US$35.55m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.34%, resulting in a market volume of US$46.12m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$25.72 in 2024.
In global comparison, most revenue will be generated United States (US$146.30bn in 2024).

Definition :
The Business Process Outsourcing (BPO) market refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers). A distinction is made between horizontal and vertical outsourcing. Horizontal BPO combines function-centric as well as cross-sector and cross-industry services, such as human resources management or payroll accounting. Vertical BPO, on the other hand, focuses on specialized services and is especially appealing to customers from the financial services industry, the healthcare sector, the manufacturing industry, or the retail sector.

Additional Information:

The Business Process Outsourcing market comprises revenues, revenue change, average spend per employee, and the market shares of the different business sectors. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Accenture, Cognizant, Wipro, and IBM.

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Back office process outsourcing, such as Genpact, Concentrix, HCL Technologies, Sutherland Global Services, EXL Services, Remote Coworker, and TechSpeed
Front office process outsourcing, such as IBM Global Services, Hewlett Packard Enterprise (HPE), Sitel Group, Teleperformance, and Qualfon

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services

The demand for Business Process Outsourcing (BPO) services in Albania has been on the rise in recent years, with several factors driving this growth.

Customer preferences: One of the main reasons for the growth of the BPO market in Albania is the increasing preference among companies for outsourcing non-core activities. This allows them to focus on their core competencies and improve their overall efficiency. Additionally, outsourcing to Albania can provide cost savings for companies, as the country has a relatively low cost of living and a highly educated workforce.

Trends in the market: One trend in the Albanian BPO market is the increasing focus on providing high-value services, such as data analytics and research, rather than just basic customer support and back-office functions. This is due to the growing demand for more specialized services from clients, as well as the increasing availability of skilled workers in the country.Another trend is the growing importance of technology in the BPO industry in Albania. Many companies are investing in new technologies, such as artificial intelligence and automation, to improve their efficiency and reduce costs. This has led to a shift in the types of skills that are in demand in the industry, with a greater need for workers with expertise in these areas.

Local special circumstances: One factor that has contributed to the growth of the BPO market in Albania is the country's strategic location and cultural affinity with Western Europe. Albania's proximity to major European markets makes it an attractive location for companies looking to outsource services, as it allows them to easily communicate and collaborate with their outsourcing partners. Additionally, Albania's cultural affinity with Western Europe makes it easier for companies to work with Albanian workers, as they share similar values and work ethics.

Underlying macroeconomic factors: The growth of the BPO market in Albania is also being driven by broader macroeconomic factors, such as the country's improving infrastructure and business-friendly policies. Albania has made significant investments in its infrastructure in recent years, including improvements to its transportation and telecommunications networks. Additionally, the Albanian government has implemented a number of policies aimed at attracting foreign investment, including tax incentives and streamlined business registration processes. These factors have made Albania an increasingly attractive location for companies looking to outsource services.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.