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Why Outsource in Kosovo

Understand more about why and how companies from Europe prefer outsourcing in Kosovo, and what makes is so unique compared to the Eastern Europe region.

More and more companies from Western Europe are extending their software development capacities with companies from Eastern Europe, including Macedonia, Albania, Kosovo, etc.

More and more companies from Western Europe are extending their software development capacities with companies from Eastern Europe, including Macedonia, Albania, Kosovo, etc.

One of the main reasons why that is happening is due to culture, value, and quality instead of just lower costs. Eastern Europe is not cheaper than Asia, and probably never will be, but the cultural aspect is unique and for us in Kosovo, clients have often mentioned that they like working with us because the team spirit is strong, people are happy about the work that they do and it’s not a work-only relationship. We share success and failure together, and we try hard to make better mistakes tomorrow as the Twitter spirit goes.
Of course, it’s important to mention that each company has their way of operating in the market and their own way of pricing models, may that be fixed, hourly, daily or monthly, but they fall within a certain range and you typically can get a free quote about such information’s. One of the most common models lately, is the extended team model, where clients get to work directly with the developers. As a result, fees are simplified, fixed and paid by the end of each month.

Management of the process

When team exstension is considered as a collaboration option, it’s important to have the internal capacity as well to oversee the work being done by the service provider and make sure that standards are followed as expected. Every service provider usually adapts to the requirements of the client for utilizing various tools or methods for management purposes, so it’s important only to clear that information out in the beginning.

Why Kosovo?

Education

The number of graduates each year from Public and Private Universities is growing, yet their knowledge of English and German language is making them more prone to hunt for courses online to learn about programming. A number of local companies provide shorter and more intense training, which then gives developers the opportunity to get internships at tech companies and continue their growth. There are private companies that are working with younger kids as well to teach them coding and prepare them as a new generation of coders.

Connectivity

This is mentioned very often, but nowadays connectivity is even better. Thanks to agencies such as WizzAir there are now quick and cheap connection flights between Prishtina and other European cities, while there is also a new highway built towards Skopje, which means that the airport next door is available for use as well for other flight options. Very convenient for going back and forth to discuss new projects, to do team building activities, etc.

Simplified Taxation System

Among other things, and you probably didn’t know this, Kosovo has a great and simple taxation system. It has a flat fee of 10% on profit, it has a 10% taxation on employee salary/benefits and 0% VAT for exported services. The cost of living in Kosovo is cheap too, so the average apartment rent with 1-bedroom costs around 250€ / month, while you can find it even cheaper in areas that are further outside of the city center. Lunch costs vary from 3€ – 5€. This is great for the staff that you consider to outsource since it allows them to live very well and positively impact the area where they live.

Ease of doing business

According to the Doing Business Rating by World Bank, Kosovo has an overall score of 73.2 points out of 100, ranking 57th among 190 economies in the ease of doing business. Starting a business is easy and as such is becoming quite an interesting area for other foreign companies to open nearshoring offices, make partnerships with local companies or even acquire local ones.

Fast Internet

Internet in Kosovo is fast and cheap, and according to a study from the Kosovo ICT Association STIKK – 96% of Kosovo household is currently connected to the internet, ranking Kosovo quite high in terms of internet penetration compared to other countries in Europe. According to Speedtest.net, Average Download Speed is 45Mbps, with a stable and growing trend, while talks about experimenting with 5G in some areas in the country are already underway. The cost of a fiber connection various between ISP’s.

 

A growing IT Community

Kosovo has a growing IT Community, which is getting more and more organized from year to year. There is one major annual conference called KOSICT, there’s a conference focused around Open Source Software in April each year called Software Freedom Kosova, there’s a conference on hacking, security and other Mr. Robot related sessions called DokuTech in August in Prishtina and Prizren, there are some dev talks, some meet-ups, etc. The IT Community has also an ICT Association called STIKK, which represents the main companies of the country, and which advocates with the government of the country for putting more investments and efforts in the IT sector, for drawing more attention in tech education, etc.

Growing Startup Environment

Kosovo has a dozen start-ups from the IT community and is home to one of the most successful start-ups in the region, Gjirafa.com, which has closed it’s Series B funding last year at $6.7M, and which is a dear client and friend to us as well

Culture & Fun

We love to have our clients or partners come over for visits often. This way we get to know each other better, and they know more about us with whom they’re working for any type of project. This is very important, especially for long-term cooperation, and gives the chance to understand more about the working conditions, ethics, and culture. Take the time to go out for a beer or dinner with the team that you work with and to appraise the work that they’re doing

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