Albania has the highest number of IT graduates, but the lowest paid in the region

The Information Technology (IT) sector in Albania is among the least competitive among developing European countries, according to the IT Competitiveness index*, compiled by Emerging Europe.

Albania is ranked 21st out of 23 countries, receiving a total score of 36.37 points in 4 sections (Talent, IT Infrastructure, Economic Impact and Business Environment), well below Kosovo and other Balkan countries.

Albania ranks 21st in the Talents category with a score of 10.06, reflecting the country's challenges in improving IT education and workforce development. However, initiatives such as introducing coding into schools and expanding digital literacy programs are helping to build a foundation for future growth. Albania's education system is increasingly focusing on IT-related courses, and the number of students entering this field is constantly increasing.

In 2022, Albania saw significant progress in IT education, with a peak of 8,293 IT students enrolled, and most of these students participated in bachelor programs and courses.

Albania ranks second for the number of IT graduates per 100,000 inhabitants. But on the other hand, those who work in this sector are among the least paid in the region.

"For this year, the leading countries in terms of the number of ICT students per 100,000 inhabitants aged 15-64 are Kosovo, Serbia and Estonia, followed by Latvia and Ukraine.

In 2022 there were 372 ICT students per 100,000 inhabitants aged 15-64 across the region. Ukraine, Albania and Estonia are at the top of the list in terms of the number of graduates per 100,000 inhabitants aged 15-64 in 2022," the report says.

The average gross salary of people employed in ICT across the region is 2,115 euros, which is almost 14.3 percent (or more than 264 euros) more than a year ago.

The highest salaries are still in Lithuania and Estonia, both in 2020 and 2021, followed by the Czech Republic; while the lowest salaries are in Azerbaijan, Albania and Kosovo. On average, Lithuania, Estonia and the Czech Republic offer wages almost 48 percent higher than those in developing Europe as a whole, while Azerbaijan, Albania and Kosovo average wages that are more than 2.5 times lower than the regional average.

IT Infrastructure: Digital Transformation in Progress

Albania's IT infrastructure ranks 15th, with a score of 8.52. The country has made significant strides in expanding its digital infrastructure, supported by various government initiatives aimed at improving Internet connectivity and increasing access to digital services. Despite being relatively small compared to other countries in developing Europe, Albania has ambitious plans to modernize its IT infrastructure.

Key projects include smart labs in schools, expanding digital services and promoting e-government.

By 2023, over 95 percent of applications for public services were being submitted online through the e-Albania portal, demonstrating the country's commitment to embrace digital transformation.

Economic impact: Stable but growing

Albania ranks 19th in the Economic Impact category, with a score of 8.19.

While the IT sector in Albania is still developing, the country has made significant progress in recent years, especially in IT exports.

The export of IT services, including computer services, has grown steadily, with the value of IT services exports increasing from €68.4 million in 2018 to €155.3 million in 2022. This represents a significant increase of the contribution of IT to the national economy.

The IT sector in Albania continues to attract foreign investment, especially from companies looking for cost-effective solutions in software development and IT services.

The government has introduced policies aimed at creating a favorable environment for foreign investors, especially in the IT sector, which is expected to contribute more to the economy in the coming years.

Business environment: Support for startups and innovation

Albania ranks 19th in the Business Environment category, with a score of 9.60. While the country still faces challenges in attracting large-scale investment, its startup ecosystem is evolving rapidly. Government programs such as Albania Tech and various entrepreneurship initiatives are driving innovation and supporting the growth of start-ups.

Albania has introduced several strategies to improve its business environment, including tax incentives for IT firms and increased support for technology-driven enterprises.

The National Cyber ​​Security Strategy (2020-25) further underlines the government's commitment to ensure a secure and supportive environment for IT businesses to flourish./ Monitor