Republic of Kosova: A gem for nearshoring opportunities
Republic of Kosova: A gem for nearshoring opportunities In the rapidly advancing landscape of globalisation, 'nearshoring' has emerged as a prominent strategy, where businesses delegate some operations to external entities or individuals. Over the past decade, India has notably led in outsourced roles, particularly excelling in technical fields. However, the trend has recently shifted towards Eastern and Southeast Europe, with Kosova emerging as a highly appealing destination for nearshoring in Europe. This shift is primarily due to Kosovo's youthful, educated, skilled, and multilingual population.
Due to a young and multilingual (English and/or German-speaking) population (28.2% of the population speaks one foreign language and 15.9% more than one foreign language), as well as relatively low average salaries (also in regional comparison), all in geographical proximity (with daily air links), Kosova is becoming a nearshore destination for a growing number of European foreign investors.
In recent years, US, German, UK, and Swiss companies have shown a growing interest in outsourcing part of their business, particularly in the BPO sector, in the form of ICT and customer relations services, and in the manufacturing sector, outsourcing part of the serial production (parts, assembly, etc.) concerning manufacturing.
Breaking Language Barriers
Historically, companies outsourced call centre services to Asian nations primarily for their English proficiency and lower costs. However, the current business landscape demands more than just English proficiency.
Achieving an impeccable English accent has become crucial for offering superior user experiences and services. Kosova not only provides English-speaking resources but also boasts near-native English accents, making it a leading provider for remote jobs across various complexities.
Expertise in Skilled Workforce
In the quest for highly qualified professionals, Kosovo holds an edge beyond its multilingual advantage. The country produces a substantial number of graduates annually, equipped with both bachelor's and master's degrees.
This abundance of skilled individuals covers a wide array of industries, making Kosovo a desirable hub for diverse job functions.
Geographical and Cultural Advantages
Strategically situated in Southeast Europe, Kosova serves as a convenient location for numerous large companies in the UK and US. For European firms, Kosova's cultural proximity eliminates the hurdles of adapting to different cultures, while sharing a time zone with many developed European countries facilitates seamless business operations.
Notably, esteemed companies like AT&T, Dell, Sunrise, Swisscom and IBM have chosen Kosova for outsourcing critical services, underscoring the high value placed on Kosova's offerings.
Cost-Efficiency
Cost considerations are paramount when outsourcing, and Kosova's positioning offers significant advantages. Utilising the Euro as its official currency eliminates exchange rate risks for European businesses. Moreover, Kosova boasts one of the lowest minimum wages in the region, attracting foreign investments due to minimal operational costs and zero currency risks.
With a low corporate income tax of just 10% and no tax on dividends, Kosova presents an enticing environment for foreign investment.
