Why is Outsourcing in Albania so fast improving?

Ermela DERMYSHI, Iva GJINOLLARI & Xhonsila HOXHA
During the last decades Albania is transformed to a very important and appropriate country for information technology development. This transformation is clearly appeared in the increasing of outsourcing industry. Throughout this paper we tend to explain the importance, the benefits and the impacts of this industry both in social and economic development in Albania. We have used the linear multiple regression to analyze the impact of outsourcing industry in Albanian economy. Based on this model we tend to study the relationship between GDP and the percentage of employers in outsourcing companies, the rate of employment, foreign direct investments and GDP per capita. We aim to study if there is there any correlation between these variables. Regardless the impact of outsourcing industry, Albania remains an absorptive country of these companies because of low labor cost, high percentage of unemployment, low youth incorporation in innovative projects and low level of per capita income.