Business Outsourcing In Georgia Country Is On The Rise (+5% CGAR Y/Y)
Outsourcing In Georgia Country follows the Global Business Process Outsourcing trends. Thanks to its business-friendly policy and Low tax system, Georgia expects to attract many foreign companies and entrepreneurs who wish to benefit from these advantages and develop Outsourcing In Georgia Country. The growth of Business Outsourcing in Georgia country is on the rise (+5% CGAR y/y).
Who Invest In Business Process Outsourcing In Georgia Country?
With its young and educated workforce having an optimal mix of technical and linguistic attributes, competitive business-operating costs, and Georgia’s strategic location between Europe and Asia (GMT+4), Georgia is becoming a rising eastern European outsourcing destination. The most common services currently provided in Georgia are multilingual voice and non-voice business process services, IT, architecture, design, and engineering services (ADE).
International global businesses & IT Leading IT & Data Business Systems providers like Majorel, CMX Solutions, Georgian Service Group, Base 4, Evolution Gaming, Netex, Olmait, Flat Rock Technology, Wandio, and more, are already investing in Outsourcing in Georgia Country.
Why Invest In Business Process Outsourcing In Georgia Country?
Georgia Country offers many advantages for those who plan to outsource their business in Georgia.
Outsourcing In Georgia Country: A Young And Dynamic Workforce
- The literacy rate in Georgia is 99.4%. 92% of the population have at least secondary education. There are 62 higher education institutions, 66 vocational education centers, and over 150 language centers in Georgia.
- English is the primary language. 10-20% of students choose German, French, and other European languages as secondary options.
- The unemployment rate in the country is 20% in 2022 (12.5% before covid-19 – note that in 2022 Georgian Economy is restarting strongly with +8% Economic Growth according to IMF forecasts).
- 50% of the unemployed population is in the 20-40 age group.
Outsourcing In Georgia Country: Competitive Business Operating Costs
- Operating costs in Georgia are exceptionally attractive.
- Registering a company takes 1 or 2 days.
- The average monthly salary is 450 USD).
- Utility costs 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.
Outsourcing In Georgia Country: A Favorable Legislation
- Georgia does not have a social security tax.
- Personal income flat tax 20%
- Pension contribution: 2% paid by employer – 2% paid by the employee – 2% paid by the government
- There are no minimum wage regulations, and compensation for labor depends entirely upon agreements between employee and employer.
- There are no unions in Georgia Country.
- According to the Heritage Foundation, Georgia has one of the most liberal labor codes, ranking 22nd globally on the Labor Freedom Index.
- Work permits are usually not required: indeed, the immigartion policy in Georgia is very progressive. Citizens of more than one hundred countries can stay in Georgia without a visa for one year (renewable each year). They can work and live in Georgia without restriction.
Outsourcing In Georgia Country: Government Incentives
The government of Georgia provides great tax incentives for companies that wish to outsource their activity in Georgia.
Outsourcing In Georgia Country: Virtual Zone Status
0% CIT and 0% VAT for IT services carried outside Georgian territory.
Outsourcing In Georgia Country: International Company Status
5% Corporate Profit Tax (instead of 15%) 0% on Dividends (instead of 5%), 0% VAT on International Business Income. 5% tax applies to the gross salary of non-resident employees instead of 20%. This status is very advantageous for many IT service providers and Logistics companies.