Behind strength in the IT and business services sector, export of Services from Georgia surpassed $2.5 bln (USD). The number of employees engaged in related IT and BPO outsourcing services is more than 46,000.
Professional Services
Growing Services Sector
Strategic Location
Alongside this growth, the country of Georgia is becoming a rising Eastern European outsourcing destination due to its competitive business operating costs and strategic location at the crossroads of Europe and Asia (GMT+4).
International Recognition
The recent growth has been evident. Several international global businesses & IT services providers and prominent local small and medium-sized companies are already serving international clients, including Fortune 500 brands, from operations based in Georgia. Some of the leading companies doing IT and BPO in Georgia include Concentirx, EPAM, Teleperformance, Viber, Mplus Group and many more.
Diverce Offering
The most common services already provided from Georgia are: multilingual voice and non-voice business process services, contact centers, IT, and architecture, design and engineering services (ADE).
What Does Georgia Offer
Georgia's standing as an Eastern European outsourcing hub can be attributed to its young, competitively priced and skilled labor force.
Young, Energetic and Readily Employable Labor Force
Literacy rate in Georgia is 99.4% and 92% of population have at least secondary education. There are 62 higher education institutions, 66 vocational education centers and over 150 language centers in Georgia. During the past 5 years, over 122,000 students graduated with education degrees. Vocational training course fees are mostly financed by the government of Georgia. English is the primary language taught in higher education institutions, however, 10-20% of students are choosing German and other European languages as their secondary option. These multilingual skills make Georgia a competitive option for BPO in Europe.
Competitive Business Operating Costs
Professional Services in Georgia works because the costs of operation are exceptionally attractive. Registering a company takes 1 day with $150 (USD) in business registration fees. The average monthly salary and cost of utilities are one of the lowest in the region.
High-speed broadband and mobile internet are available throughout the whole country. According to Worldwide Broadband Speed League, Georgia has a top position among neighboring south Caucasus countries with an average download speed of 7.14 Mbps, strengthening the country's position as a top Eastern European outsourcing location.
Favorable Legislation
Taxation in Georgia is unique. There is no social security tax. The only tax payable (based on salary) is a personal income tax that's a 20% flat rate, plus a small amount of pension contribution plan (2% paid by employer, 2% paid by employee, 2% paid by government). There are no minimum wage regulations and compensation for labor depends entirely upon agreements made between employee and employer.
Georgia has one of the most liberal labor codes. Work permits are not required and citizens of 98 countries can stay here without a visa for an entire year, making it easier to attract highly skilled individuals for job openings in BPO to Georgiafrom other countries within the region.
Government Support
The government of Georgia provides incentive for BPO and IT companies. Starting with cashback for investment made and employee trainings to providing financing and infrastructure for specialized vocational courses based on investors’ needs. To further incentivize the ICT sector, the “International company Status” concept was introduced in the tax code. This means ICT services exporters are benefit from reduced rates of personal income and profit tax to 5% each.