Latest News  

PwC: The competitive advantages of Romania are language, soft and technical skills

The Romanian SSC & BPO market is mature, offering a high range of capabilities and a large pool of skilled employees, says Francesca Postolache, partner, Audit Services, PwC Romania.

2015-10-23 13:06:12

Romania SSC/BPO market started to develop in the early 2000s, covering the traditional functions for IT, F&A and call centres. Bucharest and Timisoara, benefitting from large university centres and strategic locations, were the first preferred options for SSC/ BPO. After 2006, other locations started to be targeted as well, to leverage the first-mover advantage and lower labour costs. The SSC-BPO market employs between 20-30,000 staff and is expected to grow with 20-30 per cent over the next three years, shifting from transactional processes to value-added activities (e.g. R&D, talent management, engineering).

According to Francesca Postolache, partner, Audit Services at PwC, Romania is the second largest talent pool in the CEE, with over 120,000 graduates per year, main university centres of the country being the SSC/ BPO hubs, providing a qualified labour pool.

„Romania has over 100 universities with more than 450,000 students mainly in the IT and Engineering (approx.140,000 students) and Economic fields (approx. 90,000 students),” said Postolache.

„All university graduates are required to master at least one foreign language. For business degrees two languages are needed. The Romanian workforce is highly receptive to typical Western corporate values and possesses a high degree of cultural understanding. Current salary levels and future salary trends are highly competitive compared to neighbouring countries.”

The language skills available on the Romanian market have been one of the first attraction points for investments in SSC-BPO. Around 90 per cent of educated Romanians speak at least one foreign language, 25 per cent of Romanians speak at least two foreign languages and four per cent of Romanians speak more than three foreign languages.

„Romanians are internationally known for their high aptitude in speaking European languages: primarily English, followed by French, Italian, Spanish and German English is now spoken by eight million Romanians; French by 4.5 million; German, Italian and Spanish, 1.5-2.5 million,” said Postolache. „In the eastern part of Romania there is a high density of Russian speakers, but there is also significant availability of Russian in Bucharest, through the Moldavian students coming for studies here. However, there is limited availability of more exotic languages, like Czech, Slovak and Nordic languages, which can be found only in small areas in the western part of the country, and usually not at business proficiency levels,” she added.

Regarding taxes, besides the VAT return, which is sometimes a difficult objective to achieve due to the higher than 45-day interval of reimbursement, another fiscal law specifies that the salaries generated from activities of software development and sales are exempt from taxes, up to the level of 10,000 USD. „Another significant cost within the P&L indicator are the costs with the rents, which, for the companies in the BOP and SSC fields represent a large share due to the large spaces these companies are renting,” said Postolache.

„Also, the Government introduced a new state-aid scheme starting 1 July 2014, which could bring a significant financial incentive for setting up the SSC in Romania. The new state-aid scheme provides for co-financing of salary costs incurred by the employer for the new jobs created if certain conditions are met. The application should be supported by a business plan which will also demonstrate the incentive effect of the state aid, an investment plan, a hiring plan and a number of administrative documents (the qualitative and quantitative indicators required for qualification),” Postolache concluded.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
FintechOS announces results beyond expectations in 2018

FintechOS announces revenues of 6 million Eur from selling FintechOS technology in just one year from inception. This amount combines 1 million Eur from annual recurring revenue for licenses and 5 million Eur

 Read Full article »
Tremend joins Mellanox in powering the majority of Top 500 supercomputers

Tremend - one of the fastest growing software companies in Romania - has signed an agreement with Mellanox Technologies, a leading supplier of end-to-end connectivity solutions for servers and storage, with hea

 Read Full article »
Almost 19,000 entrepreneurs have already applied for Start-up Nation

The Start-up Nation 2018-2019 program has been accepting business projects for almost a month now, even though the state budget for this year has not yet been passed.

 Read Full article »
Webhelp Romania aiming for EUR 10 million turnover growth, 500 new employees in 2019

Romania's outsourcing market, which recorded two-figure growth in a year, will attract new investments and generate new jobs in 2019, a year full of challenges. After a 2018 that repositioned Romania on the map

 Read Full article »
Manpower: Robots will be your colleagues not your replacement

Fears that robots will eliminate your job are unfounded with a growing number of employers planning to increase or maintain headcount as a result of automation, staffing company ManpowerGroup said in a survey

 Read Full article »
Study: Five out of 10 employers eye lay-offs

Almost 5 out of 10 employers would proceed to lay-offs, according to a survey conducted by the National Council for Small and Medium Sized Companies (CNIPMMR).

 Read Full article »
US company Visteon looks for software developers at Timisoara

Visteon, automotive supplier focused exclusively on cockpit electronics, it is setting up a new product development center in Timisoara, Romania. The company plans to build a team of 400 employees in Romania,

 Read Full article »
Gabriela Mechea takes over the helm of ANIS

The Software and Services Industry Employers Association ANIS appointed Gabriela Mechea as the organizations' executive director, replacing Valerica Dragomir who left the association after 17 years.

 Read Full article »
Poll: 2018 was hard for recruiting – 29 Interviews to one hire

Nearly nine out of ten companies had a tougher time finding suitable employees in 2018 compared with previous years, interviewing an average 29 candidates before hiring one person, a poll by HappyRecruiter show

 Read Full article »
CBRE maintains its market leader ranking with 24 per cent market share on the Bucharest-based office segment

In 2018, CBRE, the real estate consultant managed 24 per cent of the Bucharest-based office market, according to a release of the company.

 Read Full article »
 
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» Webhelp Romania aiming for EUR 10 mill...
» Tremend joins Mellanox in powering the...
» The Outsourcing industry announces its...
» Manpower: Romania's labor market, more...
» Deloitte's Tech Trends 2019 report: B...
» Bucharest, in the top of cities in Eur...
» Oracle reaches 4,200 employees and pla...
» Genpact's COO: Staying ahead of the cu...
» Ascentis: The top ten HR trends for 20...
 
EDITOR CHOICE
Nomination are now open for Romanian Business Services Forum and Awards

Nominations have opened for the prestigious Romanian Business Services Forum & Awards. The 2019 awards will continue to recognize and reinforce the important contribution made by business services professionals

 Read Full article »
Study: 89 per cent of finance teams yet to embrace Artificial Intelligence

Report by Association of International Certified Professional Accountants and Oracle shows that almost 90 per cent of finance teams do not have the skills to support digital transformation.

 Read Full article »
Bucharest, in the top of cities in Europe with the largest number of experts in high-tech industry

Bucharest is among the top cities boasting the most experts in the high-tech innovative industry, with over 70,000 current employees, next to London, Dublin, Madrid or Budapest, reads a study conducted by CBRE

 Read Full article »
CBRE study: Post-millennials, the happiest about their offices

During 2018, real estate consultancy company CBRE conducted the first study dedicated to work environment in office buildings in Bucharest. The respondents have been structured in four age segments, such as Z g

 Read Full article »
Deloitte's Tech Trends 2019 report: Beyond the digital frontier

The recently released Deloitte's Tech Trends 2019: Beyond the digital frontier, as each Tech Trends report in the series conducted by the consultancy company, lobbies for embracing the increasing, often mind-b

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events