IT Outsourcing - Albania

Albania

Revenue in the IT Outsourcing market is projected to reach US$50.57m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.24%, resulting in a market volume of US$78.67m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$36.59 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. 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 IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

Albania, a small Balkan country, has been making strides in the IT outsourcing market in recent years.

Customer preferences: The Albanian IT outsourcing market has been attracting clients from Western Europe and the United States due to its competitive pricing and skilled workforce. The country's IT professionals are proficient in several programming languages, including Java, Python, and PHP, making them an attractive option for companies looking to outsource their software development needs.

Trends in the market: One trend that has been observed in the Albanian IT outsourcing market is the increasing demand for cloud computing services. With the rise of remote work and the need for more flexible IT solutions, many companies are turning to cloud-based services to manage their operations. As a result, Albanian IT outsourcing companies are expanding their offerings to include cloud-based solutions.Another trend in the market is the focus on cybersecurity. With the increasing number of cyber threats, companies are prioritizing the security of their IT systems. Albanian IT outsourcing companies are responding to this trend by offering cybersecurity services, including vulnerability assessments, penetration testing, and security audits.

Local special circumstances: One advantage that Albania has in the IT outsourcing market is its location. The country is situated in a convenient time zone for European clients and is well-connected to major European cities by air. Additionally, Albania has a young population, with a median age of 32, and a high percentage of its citizens are fluent in English, making it an attractive option for companies looking to outsource their IT needs.

Underlying macroeconomic factors: Albania's economy has been growing steadily in recent years, with a focus on attracting foreign investment and developing its tourism industry. The government has also been investing in infrastructure projects, including improving the country's internet connectivity. These factors have contributed to the growth of the IT outsourcing industry in Albania.In conclusion, the IT outsourcing market in Albania is developing due to its competitive pricing, skilled workforce, focus on cloud computing and cybersecurity, convenient location, and supportive macroeconomic factors. As the demand for IT outsourcing services continues to grow, Albania is well-positioned to become a key player in the global IT outsourcing market.

Methodology

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.