Conference Paper

The aim of this paper is to explore the problem of the emigration of young, skilled workers from the Republic of Macedonia and to consider a possible solution, being, to emulate Bulgaria’s successful business process outsourcing (BPO) sector. The importance of this issue derives from the notion of the economic development of the Western Balkans as a key component of the European integration process. Yet, challenges to doing business in the region abound, and impede the economic development of these countries. The methodology employed in this paper is chiefly the case study approach, focusing on Macedonia. Quantitative analysis of statistical data was also utilised. This paper considers that whilst Macedonia has seen an increase in foreign investment in the last decade, somewhat reducing unemployment, the private sector will never truly flourish unless certain challenges are overcome. Challenges persist in many areas, including: transport infrastructure, enforcement of contracts, and administrative processes, as well as the availability of a skilled workforce. Employers encounter challenges in finding skilled employees. Macedonia faces the same problem as many other countries in the region, whose talented youth migrate to developed countries seeking well-paid employment. A solution may lie in adopting the success model of another South Eastern European country, Bulgaria. Since the early 2000s, many companies have outsourced business processes to Bulgaria, which has created thousands of well-paid jobs for skilled professionals.